Finder Energy (FDR) has achieved a significant regulatory milestone with the approval of the KTJ Project Development Area by the Autoridade Nacional do Petróleo (ANP). This approval, alongside ongoing engineering and funding advancements, brings the KTJ Project closer to production.

The KTJ Project covers the Kuda Tasi and Jahal oil fields and represents the first stage of regulatory approvals. The development area approval acts as a precursor to the Field Development Plan (FDP), which is scheduled to be submitted to ANP in Q2 2026.

Regulatory Framework and Timeline

Upon approval of the FDP, the Development Area secures tenure for up to 25 years or until production ceases. The 88 square kilometre development area provides regulatory certainty essential for advancing financing and the Final Investment Decision (FID) for the KTJ Project.

Finder targets FID in mid-2026 and first oil in late 2027. The Front-End Engineering Design (FEED) for the KTJ Subsea Production System (SPS) and production wells was completed on schedule and on budget in February 2026, positioning the company to move into procurement, financing, and approvals for FID.

Technical Feasibility and FPSO Engineering

Phase 1 engineering studies have confirmed the technical feasibility of redeploying the Petrojarl I FPSO (PJI) to the KTJ Project. The studies supported targeted production rates of approximately 25,000 barrels of oil per day (bopd) across multiple modeled operating scenarios. A key identified upgrade is the need for a produced water treatment system, with the core separation and processing systems largely deemed fit for purpose.

Environmental and permitting pathways have been defined, including a full Environmental Impact Assessment (EIA). An independent fatigue assessment indicated no material reduction to the vessel's fatigue life under Timor Sea operating conditions. Finder's strategy includes leveraging its owned Petrojarl I FPSO and a strategic alliance with SLB to fast-track development, completing key drilling and subsea FEED components ahead of schedule.

Financial Structure and Resource Base

A farm-in agreement with TIMOR GAP secures 50 per cent of the total KTJ development capital expenditure up to a gross cap of US$338 million. Finder is actively progressing debt funding for its remaining share of development capital ahead of FID. The KTJ Project includes 25 million barrels (MMbbl) gross 2C contingent resources. Additional identified upside comprises 23 MMbbl gross 2C contingent resources within PSC 19-11.

Furthermore, 116 MMbbl gross 2U prospective resources have been identified within the same permit area. Finder's upside strategy involves using the Petrojarl I FPSO as a central processing and export point to potentially enable tie-backs of surrounding discoveries, subject to successful appraisal and exploration. This could also support stand-alone development further south within PSC 19-11.

Project Risks and Considerations

The approval of the KTJ Development Area is a critical step, de-risking the project and strengthening the pathway to FID. Continued progress on engineering, financing, and regulatory approvals will be key factors for project advancement. Investors will monitor the execution of the produced water treatment system, corrosion mitigation, and successful debt funding to fully realise the project's potential.

Cost and schedule uncertainty, CO2-related corrosion risk, potential for further engineering constraints, and funding execution remain important considerations for the project's development.

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