Can Finder Energy Overcome Development Risks to Deliver First Oil from Timor-Leste by 2026?
Finder Energy has accelerated development of its Kuda Tasi and Jahal oil project in Timor-Leste through a strategic alliance with SLB, targeting a Final Investment Decision in 2026. The company highlights robust resource estimates and a streamlined path to first oil production.
- Strategic alliance with SLB to accelerate FEED for KTJ project
- Contingent resources of 34.3 million barrels net at Kuda Tasi and Jahal
- Forecast initial production rates of 25,000–40,000 barrels per day
- Final Investment Decision targeted for 2026 with multiple funding sources
- Potential value uplift from converting contingent resources to proven reserves
Strategic Partnership Accelerates Development
Finder Energy Holdings Limited has unveiled significant progress in its Timor-Leste oil development project, announcing a strategic alliance with SLB, the world’s largest oilfield services group. This partnership is designed to fast-track the Front End Engineering and Design (FEED) phase for the Kuda Tasi and Jahal (KTJ) fields, aiming to reduce technical and schedule risks and optimize project economics.
The accelerated FEED project encompasses subsurface evaluation, well construction, reservoir management, and subsea production systems, with completion expected in early 2026. This collaboration brings SLB’s extensive resources and expertise to bear, positioning Finder Energy to move swiftly toward a Final Investment Decision (FID).
Robust Resource Base and Production Outlook
Finder Energy’s presentation at the RIU Good Oil and Gas Energy Conference detailed contingent resources of 34.3 million barrels net across Kuda Tasi and Jahal, with additional prospective resources in nearby fields such as Lanjara and Krill. The company forecasts initial production rates between 25,000 and 40,000 barrels of light, sweet oil per day, supported by high-quality reservoirs and regional aquifer pressure.
Importantly, the project’s capital expenditure payback is expected within the first year of production, underscoring the economic viability of the development. The use of a conventional Floating Production, Storage and Offtake (FPSO) vessel, readily available for lease, further simplifies and accelerates the path to first oil.
Path to Final Investment Decision and Value Creation
Finder Energy is actively negotiating FPSO selection and rig contracts for development wells, with multiple funding sources under discussion. The accelerated FEED work aims to deliver accurate project pricing and identify critical long-lead items, reducing execution risk. The company anticipates converting its 2C contingent resources into 2P proven reserves at FID, which is targeted for 2026.
This milestone is expected to trigger multiple re-rating events for the company, potentially unlocking significant value. Finder’s current market capitalization stands at approximately $63 million, with shares trading around 16.5 cents. The company’s management emphasizes the low-risk nature of near-field prospects and the strategic advantage of the SLB alliance in de-risking project execution.
Looking Ahead
Upcoming catalysts include independent resource certification, updated dynamic reservoir modelling, FEED completion for subsea production systems and drilling, and securing debt funding. These steps will be critical in advancing the KTJ project toward commercial production and delivering shareholder value.
Bottom Line?
As Finder Energy advances toward FID with SLB’s backing, the KTJ project stands poised to transform the company’s valuation and operational profile.
Questions in the middle?
- Will Finder secure the necessary funding and partners to meet the 2026 FID target?
- How will independent resource certification impact reserve classification and valuation?
- What are the key risks that could delay first oil production despite accelerated FEED?
