Highlights

  • Finder Energy and TIMOR GAP have extended the Final Investment Decision condition under their Farmin Agreement to 30 November 2026.
  • The international EPCI tender process has been completed, with contract negotiations now progressing with shortlisted suppliers.
  • Finder said its Debt Financing process is moving toward final stages as project cost information becomes more defined.
  • The broader tender process has pushed FID later than previously anticipated, although Finder continues to target drilling in late 2027.

Finder Energy Holdings Limited (ASX:FDR) is progressing the Kuda Tasi and Jahal oil fields, collectively referred to as the KTJ Project, in Timor-Leste. FDR shares were quoted at A$0.28 on 5 October 2026. The latest project update focuses on an extension to the Final Investment Decision timetable, completion of the international EPCI tender phase and continued work across financing and procurement activities.

Final Investment Decision Condition Extended

On 5 October 2026, Finder announced that the condition requiring Final Investment Decision under its Farmin Agreement with TIMOR GAP had been extended from 30 September 2026 to 30 November 2026.

The extension is intended to provide additional time for the parties to complete major contracting, financing and critical-path activities before reaching FID. All other terms of the Farmin Agreement remain unchanged. This includes the agreed funding structure under which TIMOR GAP is to fund 50% of development expenditure, subject to the terms and applicable cap.

The revised date represents a delay relative to the earlier project timetable, with Finder acknowledging that the wider contracting process has taken longer than initially anticipated.

EPCI Tender Process Moves Into Contract Discussions

Finder has now completed its international Engineering, Procurement, Construction and Installation tender process. The company broadened the process after earlier engineering work provided the technical basis for the development.

An international supplier roadshow was conducted and prospective contractors were assessed before a broader group of prequalified companies was invited to tender. Finder said the expanded process increased its supplier reach and provided a wider range of sourcing and delivery options.

Following completion of the tender phase, proposals have moved into contract discussions. Finder said these negotiations are focused on securing an executable approach covering both project cost and schedule.

Major Procurement Packages Progress in Parallel

Other project packages are also being advanced, including the drilling rig, environmental and site surveys, FPSO shipyard works, tow arrangements and moorings.

The drilling rig contract was progressing through final approvals at the time of the announcement, with execution targeted for October 2026. These packages remain subject to the applicable joint venture and regulatory review and approval processes.

This work is being undertaken alongside critical-path procurement and long-lead items as Finder seeks to maintain its broader drilling timetable.

Debt Financing Enters Later Stages

Finder also reported progress on debt financing for the KTJ development. With the EPCI tender completed and major contract discussions underway, the company said the financing process is advancing toward its final stages.

The completed tender work provides a firmer basis for assessing project costs and execution requirements. Finder continues to engage prospective financiers, including potential offtakers and other parties identified during the wider contracting process. Financing remains subject to final terms and approvals.

The release does not disclose the size, pricing or final structure of any proposed debt facility, meaning financing arrangements have not yet been finalised.

Late-2027 Drilling Target Remains in Place

Despite the revised FID timetable, Finder continues to target drilling in late 2027. The company is prioritising contracting, procurement and long-lead items that are considered important to maintaining that schedule.

A more detailed integrated development schedule is expected once major contracts and execution planning have been finalised.

The company therefore remains in a pre-FID development phase. While contracting and financing work have advanced, FID itself has not yet been achieved and remains dependent on completion of the outstanding commercial and funding workstreams.

Closing Perspective

Finder Energy's latest KTJ update shows further progress across contracting, procurement and financing, but also confirms that Final Investment Decision will occur later than previously expected. The extension to 30 November 2026 provides additional time to conclude major commercial arrangements, while the late-2027 drilling target remains unchanged for now. The announcement does not provide updated revenue, Earnings or cash-flow figures, so no new year-on-year financial movement can be assessed from this release.