Sunda Energy, the AIM-quoted exploration and appraisal company focused on gas assets in the Asia-Pacific region, has announced that its wholly owned subsidiary SundaGas Banda Unipessoal, Lda. ('SundaGas') has received from Timor-Leste upstream regulator Autoridade Nacional do Petróleo ('ANP') a letter of notice of intention to terminate the Production Sharing Contract TL-SO-19-16.
SundaGas operates the PSC in partnership with its government-owned joint venture partner TIMOR GAP Chuditch Unipessoal, Lda. ('TIMOR GAP'). The PSC contains the Chuditch gas field where SundaGas has been preparing to drill the Chuditch-2 appraisal well ('Chuditch-2').
The Notice states that SundaGas is in breach of the PSC in that it has failed to fulfil its minimum exploration work requirements for contract year 3 of the PSC, namely, to drill Chuditch-2 by 18 June 2026.
Pursuant to the Notice and the PSC, SundaGas is afforded the opportunity to submit written representations to ANP concerning the Breach within 120 days of the Notice, that is 16 October 2026, before ANP makes a final decision on termination at its sole discretion. The Notice also sets out that ANP may consider granting an extension for the period for the fulfilment of the minimum exploration work requirements for contract year 3 of the PSC, provided SundaGas provides evidence of a binding signed contract for a rig to drill Chuditch-2 in calendar year 2027.
The Board of Directors of Sunda disputes the basis of, and background to, the Notice and the Company is consulting with its regulatory and legal advisers with respect to the matters therein. SundaGas has also requested an urgent meeting with ANP for clarifications regarding the contents of the Notice. The Company reserves its rights with respect to these matters.
Further announcements will be made at the appropriate time by the Company.
Source: Sunda Energy
