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Highlights:
- Sunda Energy signs a Memorandum of Understanding with Timor-Leste for potential development of Chuditch gas resources.
- Plans include pipeline export to Bayu Undan and LNG processing on Timor-Leste’s south coast.
- Feasibility studies and appraisal drilling scheduled for 2025 to fast-track production timelines.
Sunda Energy PLC (LSE:SNDA) has taken a significant step towards advancing its gas development ambitions in Timor-Leste by signing a Memorandum of Understanding (MOU) with the nation’s government. The agreement outlines a collaborative framework to evaluate the development of the Chuditch Production Sharing Contract (PSC) gas resources, marking a key milestone in the company’s strategic expansion.
Key Development Framework
The MOU focuses on a pipeline export route connecting Chuditch gas resources to the Bayu Undan field infrastructure, with further transmission to liquefied natural gas (LNG) facilities on Timor-Leste’s south coast. This integrated approach is designed to streamline operations and enhance the region’s energy infrastructure.
Feasibility Studies and Drilling Plans
Engineering and commercial feasibility studies are already underway, providing the foundation for Sunda Energy’s planned appraisal drilling of the Chuditch-2 well, set for the second quarter of 2025. The results of these studies will shape the project’s development trajectory and inform key decisions regarding production and distribution.
Pending successful flow testing at Chuditch-2, SundaGas Banda Unipessoal, Sunda Energy’s wholly owned subsidiary, aims to deliver gas to the Bayu Undan facilities at agreed production rates. These arrangements remain contingent upon further agreements and the completion of all necessary studies.
Government Collaboration
The Timor-Leste Ministry of Petroleum and Mineral Resources (MPMR) has expressed its commitment to facilitating infrastructure development and agreeing to purchase gas output. This collaboration highlights the strong alignment between Sunda Energy’s operational goals and Timor-Leste’s national priorities, creating opportunities for mutual economic benefit.
Strategic Importance
The partnership underscores Sunda Energy’s proactive approach to leveraging local relationships and resources to achieve ambitious development goals. Andy Butler, the company’s chief executive, emphasized the collaborative effort, stating: “Our shared desire to expedite development of Chuditch gas continues to result in highly effective collaboration. This offers a potentially fast-tracked production timeline with significant revenues for the Timorese nation and all stakeholders.”
Next Steps
With feasibility studies progressing and drilling scheduled, Sunda Energy is poised to accelerate its activities. The upcoming months will be crucial as the company works toward transforming Chuditch PSC into a commercially viable gas production hub, contributing significantly to Timor-Leste’s energy landscape and economic development.
