Finder Energy (ASX:FDR) secures transformational farmin with Timor-Leste’s national oil company

Finder Energy Holdings (ASX:FDR) has taken a decisive step forward in the development of its flagship Kuda Tasi and Jahal (KTJ) oil fields offshore Timor-Leste, executing a binding farmin agreement that reshapes the funding and risk profile of the project.

The agreement sees joint venture partner TIMOR GAP increase its participating interest in Production Sharing Contract 19-11 from 24 per cent to 34 per cent, while committing substantial capital support ahead of and beyond the Final Investment Decision (FID) targeted for mid-2026.

Highlights

• TIMOR GAP lifts its stake in PSC 19-11 from 24% to 34%.

• The national oil company will fund 50% of development capex up to US$338 million once FID is taken.

• Immediate pre-FID support includes funding 24% of costs, capped at US$15 million.

• Finder retains 66% interest and operatorship of the PSC.

• The deal materially de-risks the KTJ Project and underpins Timor-Leste’s nation-building strategy.

The farmin strengthens the financial and operational framework of the KTJ Project, with TIMOR GAP agreeing to shoulder half of the development capital expenditure from FID, capped at US$338 million, a commitment that significantly reduces Finder’s funding burden.

Prior to FID, TIMOR GAP will contribute 24 per cent of acceleration costs up to US$15 million and a 12 per cent share of other pre-FID joint venture expenditure from the start of 2025, while Finder retains operatorship and a 66 per cent majority interest, preserving control over the accelerated development program, with completion of the interest transfer still subject to regulatory and third-party approvals and expected by late October 2025.

Chief executive Damon Neaves framed the agreement as a critical endorsement of the KTJ Project’s trajectory, remarking:

“We are delighted to strengthen our partnership with TIMOR GAP through this agreement, which not only increases their participation in the KTJ Project but also demonstrates confidence in the acceleration strategy targeting FID by mid-2026.”

The deal aligns the joint venture with Timor-Leste’s strategic objective of achieving its first fully sovereign oil development, with TIMOR GAP seconding personnel to Finder Energy’s Perth office and providing logistical services such as helicopter transport and supply vessels.

At the same time, the integrated project team is advancing multiple work streams, including subsurface evaluation, reservoir modelling, subsea production system design, FPSO selection and interface engineering.

Commercial and regulatory processes are running in parallel, with risk assessments, environmental and social impact studies and project execution strategies all feeding into a robust field development plan to support FID.

The company has flagged a series of near-term catalysts, including securing an FPSO, obtaining independent resource certification, updating dynamic modelling and production forecasts, contracting a drilling unit, completing FEED and finalising debt funding.

Together, these milestones are expected to underpin the path to FID and ultimately the commencement of first oil production.

For Finder, the entry of TIMOR GAP as a larger equity and funding partner significantly reduces development risk while reinforcing the KTJ Project’s strategic importance for both the company and the host nation.

With regulatory approvals pending and project execution work advancing, the focus now turns to converting this strengthened partnership into a fully funded development decision within the next 12 months.

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