Finder Energy Secures Development Approval for KTJ Oil Fields

Finder Energy (ASX: FDR) has secured approval for the field development plan covering the Kuda Tasi and Jahal (KTJ) oil fields offshore Timor-Leste.

The approval from the Autoridade Nacional do Petróleo provides the principal regulatory authorisation required to develop the fields and clears a pathway toward a final investment decision during the September quarter.

Finder is continuing financing, contracting, and procurement work in parallel to maintain an accelerated schedule targeting first oil between late 2027 and early 2028.

The KTJ development is positioned to become the first offshore oil project delivered under Timor-Leste’s sovereign petroleum regime.

Primary Approval Secured

Field development plan approval completes the project’s technical evaluation and development planning phase.

The regulator has accepted the selected development concept, as well as the supporting subsurface, engineering, and economic work completed during front-end engineering and design.

Finder considers the approval a major de-risking event because it enables the joint venture to advance financing negotiations, contracting, and major procurement activities toward final investment decision.

The project has progressed through subsurface studies, engineering design, environmental work, development area approval, and acquisition of the Petrojarl I floating production storage and offloading vessel since Finder assumed operatorship in August 2024.

Phased Development Takes Shape

The first development phase will use three subsea production wells, with two targeting the Kuda Tasi field and one planned for Jahal.

Production will flow through subsea infrastructure, flexible flowlines, and umbilicals to the redeployed Petrojarl I vessel for offshore processing, storage and crude oil export.

The approved development architecture includes subsea wellheads, an umbilical termination assembly, and equipment supporting electric submersible pumps.

Finder has designed the facilities with spare capacity to accommodate additional discoveries and future field tie-backs across production sharing contract 19-11.

Near-Term Catalysts Build

Finder is targeting completion of debt financing and an independent competent person’s report supporting the funding process during the September quarter.

The company also plans to execute other major development agreements and  contracts, and secure a suitable rig for the development campaign, as the project moves toward construction readiness.

Interpretation of reprocessed Ikan three-dimensional seismic data over the Krill and Squilla discoveries will support evaluation of potential second-phase developments tied into the Kuda Tasi and Jahal infrastructure.

The development will commercialise discoveries that had previously remained stranded despite their proximity to established regional petroleum activity, and Finder expects the shared offshore infrastructure to provide a foundation for future discoveries within the wider licence area.

Additional resources could be developed through later phases using the initial production system, potentially extending the project’s operating life beyond the first development and offering Timor-Leste both near-term production potential and infrastructure capable of supporting a broader offshore petroleum hub.

Rapid Project Advancement

Chief executive officer Damon Neaves described the approval as the culmination of almost two years of technical, commercial, and regulatory work.

“The KTJ project has progressed from stranded discoveries to an approved offshore development in an exceptionally short period, reflecting the strong collaboration between Finder, TIMOR GAP, ANP, our contractors, and the government of Timor-Leste,” Mr Neaves said.

“This approval substantially de-risks the project, providing a clear pathway to complete project financing and progress toward Final Investment Decision.”

“Beyond the initial development, the approved infrastructure establishes a long-term offshore production hub capable of supporting future discoveries across PSC 19-11, with the potential to become a cornerstone of Timor-Leste’s next generation of offshore petroleum production.”