Finder Energy’s SLB alliance puts KTJ on first oil fast-track

Finder Energy is eyeing an acceleration of its Kuda Tasi and Jahal oil fields toward first production under a strategic alliance with SLB.

Finder Energy’s alliance with SLB will fast-track key components of the KTJ project FEED. Pic: Getty Images

• Finder Energy forms strategic alliance with SLB to fast-track drilling and subsea components of KTJ project FEED

• These items expected to be completed about 12 months ahead of schedule, which could accelerate path to first oil

• Company focused on other time-critical workflows, including FPSO selection and long-lead items

Special Report: Finder Energy has formed a strategic alliance with world-leading subsurface technology company SLB (formerly, Schlumberger) to fast-track front-end engineering and design (FEED) studies for its Kuda Tasi and Jahal oil fields in Timor Leste.

Under the Development Alliance Agreement and Accelerated FEED Project Agreement, the two parties will immediately mobilise resources to complete the key drilling and subsea components within six to nine months, about 12 months ahead of schedule.

Finder Energy (ASX:FDR) chief operating officer Mark Robertson will lead the joint project team while SLB will deploy technical and project management resources across multiple disciplines including subsurface, well construction and subsea engineering.

SLB has a global footprint in more than 100 countries and has more than 100,000 employees including a regional office in Perth and a strong presence in Timor-Leste.

Having the backing and support of a major industry player such as SLB, provides significant third party validation for the KTJ development project.

FDR will also reduce its forward expenditure on the Kuda Tasi and Jahal oil fields (KTJ) through a collaborative contracting model and should help derisk further funding initiatives being worked on by FDR.

“Finder is pursuing an acceleration strategy to bring forward first oil at Kuda Tasi and Jahal,” chief executive officer Damon Neaves said.

“This alliance with SLB brings enormous resources and development capability to the project not only accelerating FEED but establishing a pathway through to FID, the construction phase and beyond.”

The development concept for the KTJ project. Pic: Finder Energy

KTJ project

To boost the potential of the agreement to significantly accelerate the KTJ project to first oil, the company is also focused on other time-critical workflows, including FPSO selection and other long-lead items.

The alliance contemplates an integrated single-source solution beginning with a commitment to undertake FEED, which will deliver project costings and a timeline (including procurement of critical path long-lead items) to the level of accuracy required to achieve a final investment decision.

Further support will come from the project having access to SLB’s global procurement and stocking programs.

The FEED study will also see the preparation of scopes and costings for subsequent project stages, including FID, construction, drilling execution and management. These subsequent stages remain subject to agreement and regulatory approvals processes.

FDR recently completed reprocessing of the Ikan 3D seismic that covers PSC 19-11 and focuses on the Kuda Tasi and Jahal development area, which collectively host best estimate (2C) contingent resources of 22 million barrels (MMbbl) of oil.

The significant improvements in imaging observed within the reservoir pay interval are expected to be used to finalise placement of development wells to optimise production and facilitate other project milestones.

Previous modelling of the two fields has indicated that they could produce up to 10MMbl of oil in the first 18 months of production.

Development of the KTJ project is expected to be through subsea wells linked to a central manifold that in turn feeds into a floating production, storage and offtake vessel.

This article was developed in collaboration with Finder Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Finder Energy’s SLB alliance puts KTJ on first oil fast-track