LONDON - Sunda Energy Plc (AIM: SNDA) has signed a Memorandum of Understanding (MOU) with the Timor-Leste Ministry of Petroleum and Mineral Resources (MPMR) and TIMOR GAP E.P., the state-owned energy company of Timor-Leste, to explore the potential development of the Chuditch PSC gas resources. This collaboration aims to fast-track the evaluation of a gas development concept that includes pipeline export to the Bayu Undan field and planned LNG facilities on Timor-Leste's south coast.
The MOU outlines a joint commitment to expedite the development of Chuditch gas contingent on the successful drilling of the Chuditch-2 appraisal well, scheduled for the second quarter of 2025. Engineering and commercial studies are already underway to assess the feasibility of this development, which would see gas from the Chuditch field transmitted to an LNG facility expected to be located in the Natarbora district.
Sunda Energy, which holds a 60% stake and operates the Chuditch PSC in partnership with TIMOR GAP Chuditch Unipessoal Lda, is set to deliver gas at an agreed production rate and duration, subject to successful appraisal drilling and flow testing. In return, MPMR and its affiliates have agreed to facilitate the development of necessary infrastructure and purchase the gas from the Chuditch field, assisting in the financing of its development. However, these commitments are non-binding and hinge on the positive outcomes of the upcoming appraisal drilling and subsequent binding agreements.
Dr. Andy Butler, CEO of Sunda Energy, emphasized the effective collaboration with the Timorese government and expressed optimism about the joint development concept, which could lead to significant revenues for Timor-Leste and involved stakeholders.
The Chuditch PSC, located off the coast of Timor-Leste, was initially discovered by Shell (LON:SHEL) in 1998. Sunda Energy, after reprocessing 3D seismic data and conducting technical studies, reported on February 27, 2023, that the field contains significant contingent and prospective gas resources. The upcoming Chuditch-2 well aims to confirm the commercial viability of the gas column predicted to be around 150 meters thick.
The information for this report is based on a press release statement.
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