Key Highlights

  • Finder Energy announced on 15 October 2026 that it executed a contract with ENEOS Drilling for the Hakuryu-5 semi-submersible rig for the KTJ development offshore Timor-Leste.
  • The contract covers three firm wells with options for two more, with drilling to commence from 1 December 2027 and an estimated duration of about 150 days for the firm wells.
  • The company is targeting a final investment decision for the KTJ Project by 30 November 2026, and the contract is conditional on approvals due by 16 November 2026 and 31 December 2026.

Shares in Finder Energy Holdings Limited closed at $0.275 on 27 October 2026, up 3.77% for the session. In broader markets, the ASX 200 closed at 8,850.1, up 0.46%, and the energy sector index finished at 11,074.7, up 0.63%. Brent crude oil slipped 0.60% to USD 115.15 as diplomatic efforts to ease the U.S.-Israeli war with Iran reduced concerns over further regional escalation. Finder Energy Holdings Limited (ASX:FDR) is the operator of the KTJ Project, a Kuda Tasi and Jahal oil development in PSC 19-11 offshore Timor-Leste, which it is developing with joint venture partner TIMOR GAP.

Latest Development: Drilling Rig Contract Executed

In its announcement of 15 October 2026, Finder said it had executed a contract with ENEOS Drilling for the Hakuryu-5 semi-submersible drilling unit, together with associated equipment and personnel. The contract is for a firm three-well program for KTJ, with options for an additional two wells.

The company stated that the firm wells are scheduled to begin from 1 December 2027, with an estimated duration of approximately 150 days to drill and complete the wells for production. This includes running completion assemblies and installing wellheads and Christmas Trees ready for hook-up to the Petrojarl I FPSO. The two optional slots were described as providing flexibility to accommodate other operators or to drill exploration or appraisal wells targeting potential tie-back opportunities within PSC 19-11.

Latest Development: Key Contract Terms

The annexure to the release summarises the material terms. The contract is between Finder Timor-Leste B.V., a subsidiary of Finder, and ENEOS Drilling Limited.

  • Firm commitment of three development wells, with a minimum contractual commitment of 140 days
  • Commencement window between 1 December 2027 and 15 March 2028, subject to contractual commencement requirements
  • Estimated total contract value of approximately US$42.3 million (gross Joint Venture cost), dependent on actual duration and rates
  • Staged bank guarantees totalling US$19.3 million (gross) to secure payment obligations
  • Finder expects to fund its share primarily through project debt financing being progressed with Barrenjoey DCM

Latest Development: Long Lead Items and Service Providers

Finder said it has already secured critical-path long lead items and services. According to the release, Sumitomo will manufacture and supply casing, production liner and completion tubing, and OneSubsea is fabricating three Christmas Trees. Wellheads have been acquired from another joint venture following inspection, AGR will provide integrated drilling management services with Finder retaining responsibility as Operator, and SLB will supply upper completion equipment.

Chief Executive Officer Damon Neaves said the Hakuryu-5 crew has a safety and performance record with experience in Southeast Asia, including campaigns for PETRONAS and INPEX.

Risks and Catalysts on Watch

The company's release identifies the following conditions and milestones.

  • The contract is conditional on Joint Venture, government and Finder board approvals by 31 December 2026, and ENEOS parent company and board approvals by 16 November 2026.
  • Finder is targeting FID for the KTJ Project by 30 November 2026 and continues to advance remaining workstreams, including partner investment criteria, approvals, major project agreements and financing arrangements.
  • A site survey will support the final mooring and marine riser assessment. If agreement on additional mooring equipment costs cannot be reached, either party may terminate without liability for costs.
  • The contract includes customary termination rights, including termination for convenience by Finder, material default and prolonged force majeure, with early termination payments calculated by reference to the standby day rate.

Final Word

Finder Energy announced on 15 October 2026 that it signed a rig contract with ENEOS Drilling for three firm KTJ development wells plus two options, with drilling from 1 December 2027. The company said the contract remains subject to approvals and that it is targeting FID by 30 November 2026.