Finder Energy has secured regulatory approval for its Kuda Tasi and Jahal offshore development in Timor-Leste, significantly advancing the project towards a final investment decision and first oil by 2028.
- Field Development Plan approved by Timor-Leste petroleum regulator
- Project de-risked, enabling Final Investment Decision this quarter
- Development includes three production wells and Petrojarl I FPSO redeployment
- Infrastructure designed for future expansion across PSC 19-11
- First oil targeted in late 2027 to early 2028
Regulatory Green Light for KTJ Project
Finder Energy (ASX:FDR) has crossed a major milestone with the Autoridade Nacional do Petróleo (ANP) granting approval for the Field Development Plan (FDP) covering the Kuda Tasi and Jahal (KTJ) offshore fields in Timor-Leste. This endorsement not only confirms the regulator’s acceptance of the project’s technical and commercial framework but also materially de-risks the venture, clearing the way for the Final Investment Decision (FID) expected within the current September quarter.
Accelerated Development with Strategic Infrastructure
The approved FDP outlines a phased development centred on three production wells, two in Kuda Tasi and one in Jahal, feeding into the redeployed Petrojarl I Floating Production Storage and Offloading (FPSO) vessel. Importantly, the infrastructure has been deliberately designed with expansion in mind, enabling future tie-backs and discoveries within the PSC 19-11 area, effectively establishing a long-term offshore production hub for Timor-Leste’s sovereign petroleum regime.
Since taking over operatorship in August 2024, Finder has rapidly advanced the project through comprehensive subsurface studies, front-end engineering design (FEED), and environmental approvals, culminating in this FDP sanction. The company is concurrently progressing financing, contracting, and procurement activities to maintain an accelerated schedule targeting first oil in late 2027 to early 2028.
Financing and Contracting on Track Amid Ongoing Preparations
With the regulatory hurdle cleared, Finder is focused on locking in project financing and executing major contracts, including drilling and integrated Engineering, Procurement, Construction & Installation (EPCI) agreements. The joint venture has already commenced procurement of critical long-lead items earlier this year, supported by Timor-Leste’s state oil company TIMOR GAP, to safeguard manufacturing capacity and keep development timelines intact.
Finder also anticipates an independent Competent Person’s Report (CPR) to support the financing process and expects to complete debt financing arrangements alongside contract awards during the September quarter. Additionally, interpretation of reprocessed 3D seismic data over adjacent discoveries such as Krill and Squilla is underway, potentially feeding into Phase 2 expansion plans.
Implications for Timor-Leste’s Energy Sector
The KTJ Project is poised to become Timor-Leste’s first offshore oil development under its sovereign petroleum regime, marking a significant step in the nation’s energy sector evolution. The phased approach and scalable infrastructure position the project as a potential cornerstone for future offshore developments within PSC 19-11, with the capacity to extend production life well beyond the initial wells.
CEO Damon Neaves emphasised the collaborative effort behind the rapid progression from stranded discoveries to an approved offshore development in under two years, highlighting the regulatory efficiency and commercial focus demonstrated by ANP and the Timor-Leste government. This approval is expected to bolster investor confidence and underpin the company’s strategy to deliver first oil on an accelerated timeline.
Bottom Line?
With FDP approval secured, Finder Energy is set to move swiftly toward FID, but financing and contract execution remain critical hurdles before first oil can flow.
Questions in the middle?
- Will Finder secure full project financing within the September quarter as planned?
- How will the interpretation of seismic data influence Phase 2 expansion opportunities?
- What risks remain in maintaining the accelerated schedule toward first oil in late 2027?