Timor-Leste Regulator Threatens Sunda Energy Contract

Timor-Leste's upstream regulator has issued a notice of intention to terminate Sunda Energy's Production Sharing Contract TL-SO-19-16. The notice, received by SundaGas Banda Unipessoal Lda., alleges a breach of contract due to the failure to drill the Chuditch-2 appraisal well by the required deadline of June 18, 2026. This deadline was part of the minimum exploration work requirements for contract year 3.

SundaGas operates the contract, which includes the Chuditch gas field, in partnership with the government-owned TIMOR GAP Chuditch Unipessoal Lda. The company has until October 16, 2026, to present written arguments to the regulator before a final decision is reached. The regulator indicated that an extension might be considered if SundaGas provides proof of a binding rig contract for drilling in 2027.

The board of Sunda Energy disputes the grounds for the notice and is consulting with legal and regulatory advisors. The company has requested an urgent meeting with the regulator for clarification and reserves its rights concerning the matter. Sunda Energy is an exploration firm focused on gas assets in the Asia-Pacific region.