SundaGas Banda Unipessoal, a wholly owned subsidiary of the UK-based and AIM-listed Sunda Energy, has dodged a bullet in Timor-Leste with a crucial 12-month reprieve, since the regulatory extension keeps hopes alive for the long-awaited appraisal well following a termination warning earlier this year over missed deadlines, as partner negotiations heat up.
Sunda Energy’s subsidiary has received from Autoridade Nacional do Petróleo (ANP), Timor-Leste’s upstream regulator, an extension of 12 months to the current phase of the production sharing contract (PSC) TL-SO-19-16, which contains the Chuditch gas field, where SundaGas has been preparing to drill the Chuditch-2 appraisal well. The firm operates this asset in partnership with its government-owned joint venture partner, Timor Gap Chuditch Unipessoal.
The operator disclosed in June 2026 the receipt of a letter of notice of intention to terminate the PSC from ANP, stating that the joint venture was in breach, having failed to fulfill the minimum exploration work requirements for the third year of the PSC contract, regarding the drilling of the Chuditch-2 well by June 18, 2026. The notice gave the joint venture 120 days to submit written representations to ANP, following which it may terminate the PSC.
As a result, the joint venture has been conducting constructive, commercial discussions, in close liaison with ANP, concerning a joint way forward to drilling Chuditch-2. These talks are ongoing and include, among other things, a farm-in by Timor Gap for an enlarged working interest in the PSC and the transfer of operatorship to the other firm.
The extension granted by ANP allows the joint venture time to continue the discussions, with a stated timeline for completion prior to the end of 2026. Sunda explains that this extension is subject to a suspension of the uplift on the cost recovery account for the PSC from June 19, 2024, until such time as drilling operations on Chuditch-2 have started.
Dr. Andy Butler, Sunda’s CEO, commented: “I am delighted that an extension has been granted to the PSC and am grateful to ANP for their continued support of our efforts to progress the Chuditch project. I also thank Timor Gap for the positive spirit of our discussions. This extension is an important milestone as we progress towards the drilling of Chuditch-2.”
Meanwhile, the company notes that Finder Energy revealed on October 15, 2026, the signing of a contract for a drilling rig for the Kuda Tasi and Jahal (KTJ) development in Timor-Leste, with the rig having additional optional drilling slots that provide flexibility to accommodate participation by other operators.
The firm is continuing to liaise with Finder under the framework of the letter of intent announced in April 2026 with respect to collaboration between the planned drilling campaigns for KTJ and Chuditch-2 drilling campaigns.
This extension in Timor-Leste comes shortly after Sunda Energy revealed progress made in New Zealand, securing exclusive rights to advance its petroleum exploration permit application over the decades-old gas-condensate field in the offshore Taranaki Basin.