Sunda Energy secures PSC extension for Timor-Leste gas asset

Traders Union
All News
Financial Institutions
Sunda Energy PSC extension

Highlights

Sunda Energy's subsidiary received a 12-month extension for Production Sharing Contract TL-SO-19-16 in Timor-Leste, covering the Chuditch gas field.
Joint venture discussions with TIMOR GAP and ANP focus on a possible farm-in and operatorship transfer, with binding documentation targeted by end-2026.
Coordination with Finder Energy Holdings, which secured a drilling rig for Kuda Tasi and Jahal, may offer execution options for the Chuditch-2 well.

Timor-Leste contract extension and ongoing talks

As reported by London Stock Exchange, Sunda Energy says its wholly owned subsidiary SundaGas Banda Unipessoal has received a 12-month extension from Timor-Leste upstream regulator Autoridade Nacional do Petróleo for the current phase of Production Sharing Contract TL-SO-19-16.

The PSC covers the Chuditch gas field, where SundaGas and government-owned partner TIMOR GAP Chuditch Unipessoal have been preparing to drill the Chuditch-2 appraisal well. On 19 June 2026, the company said it received a notice from ANP stating that the joint venture was in breach of the PSC after failing to drill Chuditch-2 by 18 June 2026, as required under the minimum exploration work commitments for contract year 3.

Since receiving that notice, the joint venture is holding what the company describes as constructive commercial discussions with TIMOR GAP and in close liaison with ANP on a route toward drilling the well. Those discussions remain ongoing and include a possible farm-in by TIMOR GAP for a larger working interest in the PSC, along with a transfer of operatorship to TIMOR GAP.

The extension allows time for those talks to continue, with a stated target to complete binding documentation and secure the relevant ANP approvals before the end of 2026. It is also subject to a suspension of the uplift on the PSC cost recovery account from 19 June 2024 until drilling operations on Chuditch-2 have begun.

Drilling coordination and project implications

Separately, Sunda Energy notes that Finder Energy Holdings announced on 15 October 2026 that it has signed a drilling rig contract for its Kuda Tasi and Jahal development in Timor-Leste. According to Sunda, the rig includes optional drilling slots that could give other operators flexibility to participate.

The company says it continues to liaise with Finder under the framework of the letter of intent announced on 8 April 2026 on collaboration between the planned KTJ and Chuditch-2 drilling campaigns. That coordination could help shape execution options for Chuditch-2 as Sunda and its partners work through the current contractual and regulatory process.

Chief executive Andy Butler says the extension is an important milestone in progressing toward drilling Chuditch-2, while also thanking ANP for its support and TIMOR GAP for what he describes as a positive approach during the discussions. Sunda Energy says it will provide further updates on the talks in due course.

Our earlier article on HeiTech Padu’s MyIMMs maintenance deal explained that Malaysia extended the contract to keep the legacy immigration system running during the rollout of the National Integrated Immigration System (NIISe). We noted the size and timeline of the extensions, how the maintenance arrangement overlaps with the transition schedule, and what the added work could mean for HeiTech Padu’s earnings and contract pipeline.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.