Sunda Energy wins 12-month extension to Timor-Leste gas contract
Sunda Energy PLC on Monday said its wholly owned subsidiary, SundaGas Banda Unipessoal Lda, received a 12-month extension to its production sharing contract covering the Chuditch gas field in Timor-Leste.
The Philippines- and Timor-Leste-focused gas company said the extension gives SundaGas more time to discuss plans to drill the Chuditch-2 appraisal well with government-owned joint venture partner Timor Gap Chuditch Unipessoal Lda.
The contract was granted by Timor-Leste's upstream regulator Autoridade Nacional do Petroleo.
In June, Sunda Energy received a notice of intention to terminate the contract as the joint venture failed to meet minimum exploration work requirements.
Since receiving the notice, the joint venture has held discussions with the regulator on a way forward. Sunda Energy described the discussions as "constructive".
The discussions include a potential farm-in by Timor Gap to increase its working interest in the contract. They also cover a possible transfer of operational control to Timor Gap.
The extension gives the partners time to reach a binding agreement and obtain the necessary regulatory approvals before the end of 2026.
Separately, Sunda Energy noted Finder Energy Holdings Ltd's Thursday announcement that it had signed a contract for a drilling rig for its Kuda Tasi and Jahal development in Timor-Leste.
The rig contract includes optional additional drilling slots that could accommodate other operators. Sunda Energy continued to liaise with Finder over potential collaboration between the planned drilling campaigns.
Shares in Sunda Energy were up 5.5% to 1.53 pence per share on Monday afternoon in London.
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