Highlights
- A binding Farmin Agreement has been executed with joint venture partner TIMOR GAP to increase their participating interest in PSC 19-11 from 24% to 34%.
- Under the terms of the Farmin Agreement TIMOR GAP will contribute 50% of the total development capex for the KTJ Project from FID, up to a gross cap of US$338 million.
- TIMOR GAP will also provide immediate funding support for the period prior to FID, this includes 24% of costs which accelerate FID up to a gross cap of US$15 million.
- Finder will retain a 66% participating interest and Operatorship of PSC 19-11.
- This farmin represents a major step forward for the KTJ Project, significantly de-risking First Oil and reinforcing the value of the development.
- Finder will now look to secure the remaining balance of funding and finalise critical project elements to enable FID by mid-2026.
Finder PSC 19-11 Pty Ltd, a subsidiary of the Company, has entered into a Farmin Agreement with joint venture partner, TIMOR GAP PSC 11-106 Unipessoal, Limitada, a subsidiary of the National Oil Company of Timor-Leste (TIMOR GAP). Under the agreement, TIMOR GAP will acquire a further 10% participating interest in PSC 19-11 (Farmin Interest), increasing their interest in the joint venture to 34%. Completion of the transfer of the Farmin Interest is subject to receiving regulatory and third party approvals. Finder anticipates that completion will occur in or about late October 2025.
Damon Neaves, CEO said: 'We are delighted to strengthen our partnership with TIMOR GAP through this agreement, which not only increases their participation in the KTJ Project but also demonstrates confidence in the acceleration strategy targeting FID by mid-2026. This agreement significantly de-risks the development, underpins the project’s strategic importance for Timor-Leste and marks a major milestone for the KTJ Project.'
The transaction demonstrates the strength of the PSC 19-11 joint venture and the confidence of the partners in the KTJ Project as we move swiftly through the development process. Finder welcomes greater participation from TIMOR GAP in the KTJ Project, which will be the first 100% sovereign Timor-Leste development project which aligns with Timor-Leste’s nation building strategy.
Finder maintains majority ownership (66%) and operatorship of the PSC, ensuring we remain in a position to oversee the delivery of the accelerated project timeline. Finder and TIMOR GAP are strongly aligned to achieve acceleration of FID. Under the JOA, TIMOR GAP was carried for their 24% interest until FID, however, under the terms of the Farmin Agreement TIMOR GAP will contribute to 24% of the costs of activities to accelerate FID up to a gross cap of US$15 million and 12% of the costs of other joint venture expenditure retrospectively from 1 January 2025 until FID.
Subject to FID occurring prior to 30 September 2026 (which may be extended in certain circumstances including delays outside the Operator’s control), TIMOR GAP will contribute 50% of development capex up to a gross cap of US$338 million. Thereafter, the parties will contribute to development capex pro rata in accordance with their participating interests. The funding provided by TIMOR GAP under the Farmin Agreement significantly de-risks the KTJ Project and strengthens Finder’s position to secure debt funding as well as other critical project elements such as the FPSO and a Drilling Unit for the development wells.
TIMOR GAP is working closely with Finder at this critical phase of the KTJ Project and will be seconding personnel to Finder’s Perth office as part of the FID acceleration strategy, including the current Accelerated FEED Project and subsequent phases of the project. TIMOR GAP, or its affiliates, will provide services to the KTJ Project such as helicopter transport, supply boats and other services.
Project Status
The Integrated Project Team is progressing all work streams to advance the KTJ Project through assurance checks and project decision gates to adhere to our Quality Assurance System. Our current focus is transforming design concepts into a fully defined FDP to support a development decision at FID. During this stage we are undertaking detailed subsurface evaluation and reservoir modelling, refining SPS components, FPSO selection and interface engineering as part of FEED to refine technical specifications, cost estimates, and schedules. Key commercial and regulatory work is also being undertaken, including partner alignments, regulatory approvals and engagement with contractors and suppliers. Risk assessments, environmental and social impact studies and project execution strategies are also being completed. The outcome of FEED is to define a robust, de-risked FDP with a clear technical and economic case to achieve FID.
Near-Term Catalysts
Looking ahead, we are fast approaching a number of major catalysts and project milestones, including:
- Securing an FPSO
- Independent resource certification for the Kuda Tasi and Jahal Oil Fields
- Updated dynamic modelling simulation and production forecasts
- Securing the Drilling Unit for the development drilling campaign
- Completion of FEED
- Approval of FDP
- Debt funding
- Final Investment Decision
Unlocking the cash flow potential of the KTJ Project is Finder’s highest priority. We look forward to delivering these milestones and providing further updates as we progress to First Oil.
Timor-Leste – North West Shelf
Finder Energy holds 76% and Operatorship of PSC 19-11, located within the prolific Laminaria High oil province of Timor-Leste.
Near Term Development
- Discovered and fully appraised Kuda Tasi and Jahal Oil Fields with combined 22 MMbbl Gross 2C Contingent Resources
- Multiple development concepts including proven FPSO tied to subsea wells
- Excellent initial production rates of 25,000 – 40,000 bopd (facility dependant)
- Rapid development pathway
- Initial development provides hub for additional near field development, creating a pipeline of opportunity
Low Risk Upside
- Discovered Krill & Squilla Oil Fields with combined 23 MMbbl Gross 2C Contingent Resources
- Drill-ready, low-risk and near-field exploration prospects with combined 116 MMbbl Gross Mean Prospective Resources
Equity is available in the PSC. Please contact info@finderenergy.com if you would like to find out more about the project.
Source: Finder Energy
