- Contract executed with ENEOS Drilling for Hakuryu-5 rig
- Contract secures three firm development wells, with options for two additional wells
- Contract aligns with Finder’s budget expectations for development drilling program
- Drilling program scheduled to commence from December 2027
Finder Energy (ASX: FDR) has achieved a key milestone for its KTJ oil development offshore Timor-Leste with the signing of a contract for the Hakuryu-5 semi-submersible drilling unit.
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The contract with ENEOS Drilling also includes the provision of associated equipment and personnel for a firm, three well program for KTJ with options for an additional two wells.
The contract provides for the drilling of three firm wells to commence from 1 December 2027 with an estimated duration of approximately 150 days to drill and complete the wells for production, including running completion assemblies and installation of the wellheads and Christmas Trees ready for hook-up to the Petrojarl I FPSO.
Finder CEO, Damon Neaves, said the two optional drilling slots provide flexibility to accommodate participation by other operators, creating opportunities for cost and operational synergies, or to undertake exploration or appraisal drilling targeting potential tie-back opportunities within PSC 19-11.
“The Hakuryu-5 and her highly experienced crew have an excellent safety and performance record with extensive operating experience in Southeast Asia, including drilling campaigns for major operators such as PETRONAS and INPEX,” Mr Neaves said.
“Securing the Hakuryu-5 is a major milestone for the KTJ Project which brings us a step closer to FID and providing clear visibility on the timing of the development drilling program.
“This is also a strong signal of the progress being made towards delivering Timor-Leste’s next offshore oil development. We are committed to working with our joint venture partner, TIMOR GAP, to deliver a project that can generate lasting economic benefits for the country.”
The award of the rig contract to ENEOS follows a tendering, evaluation and negotiation process, including a rig inspection that took place in Labuan, Malaysia, involving representatives of our Joint Venture partner, TIMOR GAP as well as ENEOS representatives visiting Dili, Timor-Leste, to evaluate in-country logistics support and local content.
To support the drilling campaign and schedule, Finder has already secured critical-path long lead items and services, including casing and tubing Christmas Trees wellheads; drilling management; completion equipment.
Sumitomo will manufacture, supply and deliver Oil Country Tubular Goods (OCTG) including casing, production liner and completion tubing
Three Christmas Trees are under fabrication by OneSubsea which control the flow of oil from the wells as well as safety functions
Wellheads have been acquired from another joint venture following inspection to confirm their suitability
AGR will provide integrated drilling management services to support the planning, management and execution of the development drilling program on behalf of Finder, with Finder retaining overall responsibility as operator
SLB will supply upper completion equipment for the development wells, including downhole flow-control valves, gauges, chemical-injection equipment, packers, subsurface safety valves, control lines, cables, protectors, splices, contingencies and spares.
Discovered and fully appraised, the Kuda Tasi and Jahal (KTJ) oil fields are estimated to hold combined 25 million barrel (MMbbl) gross 2C contingent resources.
FDR was steady at 27.5¢. Mkt cap $152.4M.
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