Sunda Energy receives 12-month extension for Timor-Leste PSC

Sunda Energy's subsidiary, SundaGas Banda Unipessoal, has been granted a 12-month extension on its Production Sharing Contract (PSC) in Timor-Leste, according to a recent announcement. The extension was granted by Timor-Leste's upstream regulator, Autoridade Nacional do Petróleo (ANP), for the TL-SO-19-16 PSC, which SundaGas operates in partnership with the government-owned TIMOR GAP Chuditch Unipessoal.

The PSC pertains to the Chuditch gas field, where the joint venture has been set to commence drilling operations on the Chuditch-2 appraisal well.

However, on June 19, ANP had previously sent a notice of intention to terminate the joint venture, citing non-compliance with the contract's minimum exploration work requirements for contract year 3. This deadline for drilling Chuditch-2 was set for June 18, 2026. ANP provided the joint venture with a 120-day window to present their case before potential termination.

Since receiving the initial notice, SundaGas and TIMOR GAP have been engaged in discussions to determine the next steps for drilling Chuditch-2. These discussions may include a potential farm-in arrangement by TIMOR GAP to increase their working interest in the PSC and transfer operatorship to TIMOR GAP, as reported in a press release.

The extension granted to the PSC also includes a suspension of the cost recovery uplift from June 19, 2024, until drilling operations on Chuditch-2 begin. Sunda Energy continues to collaborate with Finder Energy Holdings Limited (ASX:FDR) under a letter of intent signed on April 8, 2026, concerning their respective drilling campaigns.