Sunda Energy has signed a memorandum of understanding (MoU) with Timor-Leste government and state-owned companies, setting out the framework for joint evaluation of a development concept for gas resources on the Chuditch PSC, including pipeline export to the Bayu Undan field and on to planned LNG facilities on the south coast of Timor-Leste.
Sunda Energy, through its wholly owned subsidiary SundaGas, signed the MoU with the Timor-Leste Ministry of Petroleum and Mineral Resources (MPMR) and Timor Gap, state-owned energy company and parent to SundaGas’ joint venture partner in the TL-SO-19-16 Production Sharing Contract, known as the Chuditch PSC.
Through the MoU, SundaGas has agreed to work closely with the other parties to the MoU and ANP (Timor-Leste's National Petroleum Authority) to plan an accelerated development of Chuditch gas following drilling of the Chuditch-2 appraisal well scheduled for the second quarter of 2025.
In anticipation of a successful production flow test at Chuditch-2, the parties to the MOU are collectively undertaking engineering and commercial studies to evaluate the feasibility of developing Chuditch gas, with pipeline export to existing facilities at the Bayu Undan gas field and onward transmission to an LNG facility to be located on the south coast of Timor-Leste (expected to be in the Natarbora district).
These studies have already started, Sunda Energy noted.
Based on the development concept described above, and subject to a successful production flow test at the Chuditch-2 appraisal well, SundaGas would commit to deliver gas to Timor-Leste via Bayu Undan facilities at an agreed plateau production rate and duration.
MPMR and/or its affiliates would commit to expedite development of receiving and onward transmission facilities for gas at Bayu Undan and onshore, including the installation of a gas export pipeline from Bayu-Undan to the south coast of Timor-Leste.
MPMR and/or its affiliates would also commit to buy the gas from Chuditch field, to assist in the financing of the Chuditch field development.
The outlined commitments are non-binding and subject to successful appraisal drilling and production flow test, and the conclusion of future binding documentation between the parties to the MoU.
“The close relationship that we enjoy with the government of Timor-Leste, and our shared desire to expedite development of Chuditch gas, continues to result in highly effective collaboration. Consequently, we have arrived at an exciting development concept that we’re jointly evaluating, and which offers a potentially fast-tracked production timeline with potential significant revenues for the Timorese nation and all stakeholders.
“We greatly look forward to completion of the Feasibility Study and further acceleration of our activities as we progress towards the upcoming appraisal drilling and beyond,” said Andy Butler, Chief Executive Officer.
Sunda is the 60% licence holder and operator of the Chuditch PSC, in partnership with Timor Gap Chuditch Unipessoal, a wholly owned subsidiary of Timor Gap, holding the remaining 40%.
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