Timor-Leste’s upstream regulator ANP has granted SundaGas Banda a 12-month extension to its offshore TL-SO-19-16 production-sharing contract (PSC).

The company operates in partnership with state-owned TIMOR GAP Chuditch. The PSC, 185 km south of Timor-Leste, contains the Chuditch gas field discovered by Shell in 1998, which the partners have been looking to appraise with the Chuditch-2 well.

In June, a letter sent by ANP issued notice of intention to terminate due to a breach of terms, as there had been a requirement to drill by the expiry of year three of the PSC.

However, the partners have since held dialogue with ANP on a way forward, which could include the transfer of operatorship to TIMOR GAP.

Under the extension, all parties must agree on a timeline for completion of the discussions by the end of this year, resulting in binding documentation and relevant ANP approvals, prior to the end of 2026.

Prior to the notice, SundaGas Banda and Australian E&P company Finder Energy had held talks on a rig-share arrangement.

Finder revealed recently that it had contracted the semisub Hakuryu 5 to drill development wells for its Kuda Tasi and Jahal (KTJ) development offshore Timor-Leste. The contract included additional optional drilling slots that could accommodate participation by other operators.

Framework discussions continue between the two operators.