Finder Energy Extends KTJ Oil Field FID Deadline as Major Contracts Near Close
Key Takeaways
- Finder Energy and TIMOR GAP have mutually agreed to extend the KTJ Project FID deadline by two months to 30 November 2026, with all other Farmin Agreement terms — including TIMOR GAP's commitment to fund 50% of development expenditure — remaining unchanged.
- The EPCI tendering phase is now complete following an international supplier roadshow, and Finder has moved into contract negotiations with a focus on managing project cost and schedule ahead of FID.
- Debt financing is advancing to final stages with Barrenjoey, with the completed EPCI tender now providing financiers a firm basis for assessing project cost and execution risk.
- The drilling rig contract is progressing through final approvals with execution targeted for October 2026, and the overall drilling schedule remains on track for late 2027.
- Finder cites a strengthening oil price outlook and strong market interest in KTJ's crude quality as tailwinds supporting the debt financing process.
KTJ project moves closer to FID as Finder extends farmin deadline and advances major contracts
Finder Energy Holdings Limited (ASX: FDR) has released a multi-workstream progress update on its flagship Kuda Tasi and Jahal (KTJ) oil field development, confirming that the Final Investment Decision (FID) deadline under the Farmin Agreement (FIA) with TIMOR GAP has been extended from 30 September 2026 to 30 November 2026. The extension is an agreed outcome between joint venture partners, not a lapse, reflecting the additional time required to complete major contracting and financing work before both parties formally commit capital to the project.
Key figures from the update include:
- New FID deadline: 30 November 2026
- TIMOR GAP funding commitment: 50% of development expenditure (terms and cap unchanged)
- Drilling target: late 2027
- Rig contract execution targeted: October 2026
Damon Neaves, CEO, Finder Energy Holdings Limited
“Finder and TIMOR GAP continue to work closely on the remaining activities required to achieve FID. The Farmin Agreement extension reflects the positive engagement between the joint venture partners and provides additional time to complete major contracting and financing. Our shared objective is a robust, commercially executable development that delivers long-term value for all stakeholders in the KTJ Project.”
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What a Final Investment Decision means — and why the extension matters
An FID is the point at which partners in an oil and gas project formally commit capital to build and execute a development. It is the gateway from planning to construction, and reaching it requires that all major commercial, technical, and financing conditions are resolved to each party’s satisfaction.
FID dates embedded in farmin agreements are commercial conditions, not hard regulatory deadlines. Extensions are common when significant contracting and financing work remains in motion, and they require the agreement of all parties. In the case of KTJ, Finder and TIMOR GAP have agreed to the extension to ensure they enter FID with competitive contract terms and financing on firm ground.
The TIMOR GAP farmin agreement established the 50% cost-carry structure that underpins KTJ’s development funding model, with TIMOR GAP committing to fund half of all development expenditure in exchange for its joint venture interest in the project.
Before FID can be taken, the following workstreams must reach sufficient resolution:
- EPCI (Engineering, Procurement, Construction and Installation) contract negotiations
- Debt financing finalisation, being advanced with Barrenjoey
- Drilling rig contract execution
- Regulatory and joint venture approvals for major packages
Four workstreams advancing in parallel toward FID
EPCI tendering complete — contract negotiations underway
Finder completed an international supplier roadshow, assessing prospective contractors’ facilities and capabilities before inviting a diverse group of prequalified companies to tender. The EPCI tendering phase is now complete, broadening supply chain reach and providing a wider range of sourcing and delivery options. Finder is progressing proposals into contract discussions, with a focus on securing an approach that manages project cost and schedule.
Debt financing advancing to final stages
With the EPCI tender complete and major contract discussions progressing, Finder and Barrenjoey are advancing to the final stages of Finder’s debt financing process. The EPCI and major contract tender results now provide a firm basis for financier assessment of project cost and execution. Finder continues to engage with prospective financiers, including potential offtakers and additional parties identified through the broader contracting process, though financing remains subject to final terms and required approvals.
Parallel major packages progressing
Other major packages are advancing alongside the EPCI and financing workstreams:
- Drilling rig: contract progressing through final approvals, with execution targeted for October 2026
- FPSO (Floating Production Storage and Offtake vessel) shipyard works, tow and moorings: advancing
- Environmental and site surveys: in progress
- All packages subject to applicable joint venture and regulatory review and approval processes
Schedule — drilling still targeted for late 2027
Finder continues to target drilling in late 2027 and is prioritising critical path contracting, procurement, and long lead items to support that schedule. The broader development schedule will be confirmed once major contracts and the integrated execution plan are finalised.
| Workstream | Status | Key Milestone | Timeline | Notes |
|---|---|---|---|---|
| EPCI contracting | Tender complete; contract negotiations in progress | Execute EPCI contract | Pre-FID | International roadshow completed; diverse supplier group tendered |
| Debt financing | Advancing to final stages | Finalise terms and approvals | Pre-FID | Progressing with Barrenjoey; subject to final terms and required approvals |
| Drilling rig contract | Progressing through final approvals | Contract execution | Targeted October 2026 | Subject to joint venture and regulatory review |
| FPSO, surveys and moorings | Advancing in parallel | Complete major package approvals | Pre-FID | Includes FPSO shipyard works, tow, moorings, environmental and site surveys |
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Why the extended timeline protects shareholder value
The two-month FID extension reflects commercial discipline rather than project difficulty. By broadening the EPCI tender to a wider supplier market, Finder has strengthened its negotiating position and improved its visibility over what will be the project’s largest contract. That additional cost certainty directly benefits Finder shareholders and TIMOR GAP by reducing the risk of committing to a development on suboptimal terms.
Critically, TIMOR GAP’s commitment to fund 50% of development expenditure remains in place, and all other FIA terms are unchanged. The extended timeline also arrives against a backdrop that Finder describes as a strengthening oil price outlook and strong market interest in KTJ’s high quality crude, both of which the company cites as tailwinds for its debt financing process.
The drilling target of late 2027 remains unchanged. Finder has confirmed it will update the market on the broader development schedule once major contracts and the integrated execution plan are finalised, keeping investors informed as the project moves from contracting into execution.
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