Timor-Leste Throws 12-Month Lifeline to Delayed Gas Project Ahead of Drilling Ops

October 20, 2026 · 10 hours ago

This extension for a gas field in Timor-Leste follows earlier termination warnings as partnership talks and drilling preparations press ahead.

SundaGas Banda Unipessoal, a wholly owned subsidiary of the UK-based and AIM-listed Sunda Energy, has dodged a bullet in Timor-Leste with a crucial 12-month reprieve, since the regulatory extension keeps hopes alive for the long-awaited appraisal well following a termination warning earlier this year over missed deadlines, as partner negotiations heat up.

Sunda Energy’s subsidiary has received from Autoridade Nacional do Petróleo (ANP), Timor-Leste’s upstream regulator, an extension of 12 months to the current phase of the production sharing contract (PSC) TL-SO-19-16, which contains the Chuditch gas field, where SundaGas has been preparing to drill the Chuditch-2 appraisal well. The firm operates this asset in partnership with its government-owned joint venture partner, Timor Gap Chuditch Unipessoal.

The operator disclosed in June 2026 the receipt of a letter of notice of intention to terminate the PSC from ANP, stating that the joint venture was in breach, having failed to fulfill the minimum exploration work requirements for the third year of the PSC contract, regarding the drilling of the Chuditch-2 well by June 18, 2026. The notice gave the joint venture 120 days to submit written representations to ANP, following which it may terminate the PSC.