Finder Energy enters alliance with global energy company SLB to fast-track Kuda Tasi-Jahal oil field

Finder Energy (ASX: FDR) has entered into a development alliance and accelerated front-end engineering and design (FEED) deal with global company SLB to fast-track the company’s Kuda Tasi and Jahal oil field development in the Timor Sea.

Finder expects the alliance to bring forward its completion of key drilling and subsea FEED components by approximately 12 months.

With more than 100,000 employees, SLB has been a key player in delivering major projects in Timor-Leste, where it has established a robust infrastructure and workforce while contributing to the local economy.

Major milestone

Chief executive officer Damon Neaves said the shortened schedule would mark a major milestone towards first oil production.

“We are focused on pursuing an acceleration strategy to bring forward first oil at Kuda Tasi and Jahal,” he said.

Mr Neaves said SLB would immediately deploy technical and project management resources across multiple disciplines.

“Our alliance with SLB brings enormous resources and development capability to accelerate FEED and establish a pathway through to construction and beyond.”

Critical workflows

Finder will focus on other critical workflows including long lead times related to selection of an FPSO (floating production storage and offloading) vessel.

The company’s chief operating officer Mark Roberson will lead an integrated project team to deliver the end-to-end solution under the direction of a joint steering committee comprised of SLB and Finder executives.

The integrated team boasts significant expertise across disciplines including subsurface, well construction, subsea production system engineering, drilling management and subsea installation.

Optimised solution

The accelerated FEED agreement aims to develop an optimised and integrated end-to-end production solution using early engineering activities to maximise return on investment.

Finder anticipates it will deliver project costings and a timeline — including procurement of critical path long-lead items — to the level of accuracy required to pass through to final investment decision.

The company will commit an estimated net amount of US$90,000 to the agreement, which is lower than its original forecast expenditure due to the integrated solution and collaborative contracting model.