Oil & gas duo join forces to find rig for drilling campaigns in Southeast Asia

April 8, 2026, by Melisa Cavcic

SundaGas Banda Unipessoal, a wholly owned subsidiary of the UK-based and AIM-listed Sunda Energy, has teamed up with Finder Timor-Leste, a subsidiary of Perth-based oil and gas exploration player Finder Energy, to obtain a rig for the two companies’ drilling programs off the coast of the Democratic Republic of Timor-Leste, Southeast Asia.

An offshore rig — Illustration; Source: Sunda Energy, former Baron Oil

Sunda has entered into a letter of intent (LOI) with Finder to work together to secure a drilling rig for the pair’s drilling campaigns offshore Timor-Leste. SundaGas operates the TL-SO-19-16 production sharing contract (PSC), in partnership with its government-owned joint venture partner, Timor Gap Chuditch Unipessoal. This PSC contains the Chuditch gas field, where SundaGas plans to drill the Chuditch-2 appraisal well.

Finder is the operator of the Kuda Tasi and Jahal (KTJ) fields offshore Timor-Leste, also in partnership with Timor Gap. The firm is preparing to drill at least three wells as part of its development of the KTJ fields, on which it is planning to take a final investment decision (FID) by mid-2026.

Under the terms of the LOI, SundaGas and Finder agree to collaborate on a proposed combined Timor-Leste drilling campaign, including: seeking to contract a mutually acceptable and technically suitable drilling rig for the KTJ and Chuditch-2 wells; seeking to align contracts for other necessary materials and services; coordinating to the extent possible on project management, planning and execution activities; and providing each other with the necessary support and information to efficiently and expeditiously execute the drilling campaign.

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The LOI will terminate on the earlier date of either a formal rig share agreement being executed by the parties, or on October 31, 2026, unless extended by mutual agreement, with either party having the right to terminate the LOI at any time. As the KTJ wells will be drilled in water depths of around 400 meters, Finder requires a semi-submersible rig rather than a jack-up.

However, many semi-submersible rigs can operate in shallower waters. The Chuditch-2 location is around 65 meters and the original Chuditch-1 discovery was drilled with a semi-submersible unit by Shell. Finder has already advanced its plans to secure a suitable semi-submersible rig, which will be suitable for both locations.

Sunda claims that minor amendments to the well engineering design for Chuditch-2 will be required with a different rig type, and this work will start shortly. Finder and SundaGas have also initiated discussions regarding project management and logistics planning. It is anticipated that Chuditch-2 drilling will be planned to kick off as early as possible in 2027, subject to rig availability.

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The operator explains that securing a rig to drill Chuditch-2 has proved challenging, largely due to the expected short duration of 35 to 40 days of the campaign, with no immediate follow-up work for the rig. The opportunity to share a rig with Finder, which plans to drill three development wells on KTJ, means a combined duration of operations of almost 200 days, making it a far more attractive proposition for contractors.

The LOI is expected to provide both companies with the opportunity for significant operational synergies and savings, despite the changes to the operational plan for Sunda, including the use of a semi-submersible unit.

As the KTJ wells are expected to be drilled in 2027, SundaGas has submitted a request on behalf of the Chuditch joint venture to the upstream regulator, Autoridade Nacional do Petróleo (ANP), to extend the current contract period of the PSC, which expires on June 18, 2026. ANP is currently considering that request.

Dr. Andy Butler, CEO of Sunda Energy, commented: “I am delighted with the plans agreed with Finder to align our planned drilling activities with their KTJ development project. This collaborative initiative would create many potential synergies and help both parties effectively achieve their respective operational goals.

“Although this plan pushes back drilling of Chuditch-2 further from our earlier schedule of Q2 2026, the sharing of a drilling rig, along with certain materials and services, would considerably enhance the achievability of the project.”