Sunda enters funding discussions with Pacific LNG for Chuditch PSC off Timor-Leste

London-listed Sunda Energy, formerly known as Baron Oil, has signed an exclusivity agreement with Singapore-based investment firm Pacific LNG Operations to explore a potential strategic investment in the Chuditch production sharing contract (PSC) offshore Timor-Leste, according to an announcement made on August 12.

The agreement grants both parties a period of mutual due diligence to assess a possible strategic investment in the Chuditch project. This investment would specifically fund the planned Chuditch-2 appraisal well. Any potential investment is expected to be made through an equity issuance in a Sunda subsidiary, rather than at the parent company level.

During this exclusivity period, discussions with other interested parties will continue. However, Sunda Energy noted that there is no certainty a definitive agreement with Pacific LNG or any other parties will be reached.

In parallel, Sunda Energy is negotiating the use of an identified drilling rig for the Chuditch-2 appraisal well. The company is working closely with Timor-Leste's National Petroleum Authority to secure the necessary regulatory approvals for the procurement, temporary importation, and permitting of the preferred rig.

In February, Baron Oil completed the divestment of a 15% stake in the Chuditch PSC to Timor Gap, the national oil company of Timor-Leste. The Chuditch PSC, located about 185 km south of Timor-Leste, 100 km east of the Bayu-Undan field, and 50 km south of the planned Greater Sunrise development, covers an area of approximately 3,571 km² in water depths of 50-100 m. The block includes the Chuditch-1 gas discovery, originally drilled by Shell in 1998.