$42.3 Million Offshore Drilling Rig Contract Signed for Timor-Leste Oilfield

en.Wedoany.com Reported - On October 15, Australian energy company Finder Energy announced that its subsidiary Finder Timor-Leste B.V. has signed an offshore drilling rig contract with ENEOS Drilling to use the Hakuryu-5 semi-submersible drilling rig to drill 3 development wells in the Kuda Tasi and Jahal (KTJ) oilfield in Timor-Leste waters, with an option to drill 2 additional wells. The joint venture project is expected to incur approximately $42.3 million in drilling rig expenditure, with drilling operations planned to commence from December 1, 2027, subject to approval by joint venture partners, the government, and corporate boards.

Under the contract arrangement, the 3 firm development wells are expected to require approximately 150 days to complete drilling and completion operations, with a minimum committed operating period of 140 days. The drilling work includes running completion strings, installing wellhead equipment and subsea Christmas trees, and connecting to the Petrojarl I floating production storage and offloading (FPSO) vessel after completion. The permitted rig operating window is from December 1, 2027 to March 15, 2028, and ENEOS Drilling will also provide the corresponding drilling equipment and operating personnel.

The contract provides for two optional well slots, which may be used for joint drilling operations with other operators, or for exploration or appraisal wells within the PSC 19-11 license area that could potentially be tied back to existing production facilities. The rig selection process followed tendering, technical evaluation, and contract negotiations. Representatives of Finder Energy and joint venture partner TIMOR GAP also conducted an on-site inspection of the drilling rig in Labuan, Malaysia, while ENEOS Drilling representatives traveled to Dili to assess logistics support and local supply capabilities.

Procurement of drilling support equipment and services for the project has been progressing in parallel. Sumitomo is responsible for supplying casing, production liners, and completion tubing; OneSubsea is manufacturing 3 subsea Christmas trees; wellhead equipment has been procured from another joint venture project and has completed fitness-for-purpose checks. AGR is responsible for integrated drilling management services, covering drilling planning, project management, and construction execution support, with Finder Energy retaining overall operator responsibility for the project. SLB is responsible for providing upper completion equipment, including downhole flow control valves, pressure and temperature measurement instruments, chemical injection equipment, packers, downhole safety valves, and control lines and cables.

Finder Energy plans to make a final investment decision on the KTJ oilfield development by November 30, 2026. The approval deadline for ENEOS Drilling's parent company and board is November 16, and the relevant approval deadline for the remaining joint venture partners, the government, and the Finder Energy board is December 31. The project received approval for its field development plan in July 2026 and obtained major environmental impact assessment approval in September, while debt financing and engineering, procurement, and construction (EPC) contract negotiations are still ongoing.