Finder Energy has acquired the Petrojarl I FPSO vessel for its Kuda Tasi and Jahal (KTJ) oilfields project offshore Timor-Leste, a move that establishes a pathway to a Final Investment Decision (FID) by mid-2026 and first oil by the end of 2027.

Acquisition and Strategic Agreement

The FPSO was acquired from Amplus Energy for US$15 million in shares and cash, including US$6 million cash. As part of the agreement, Amplus has taken a significant equity stake in Finder Energy and will retain a central role in the project. This includes delivering front-end engineering and design (FEED), managing life-extension and upgrade work for the vessel, and providing future operations and maintenance services after field deployment.

Rationale and Project Acceleration

Finder identified the Petrojarl I as an excellent fit for the KTJ project due to its adaptability, proven systems, and readiness for life-extension work. Ownership of the vessel, as opposed to chartering, is expected to generate significant cost savings. Market data indicated that bareboat charter rates for a similar-sized FPSO in Southeast Asia could range from US$60,000 to US$200,000 per day, which over a seven-year project would exceed US$150 million in gross operating costs. Furthermore, owning the vessel lowers the economic cut-off for the project, potentially unlocking an additional 2 to 3 million barrels of production.

FPSO Specifications and Deployment Plan

The double-hulled Petrojarl I has a processing capacity of 25,000 to 30,000 barrels of oil per day, can handle 10,000 barrels of produced water per day, and has a storage capacity of 180,000 barrels. It will serve as the focal point of the KTJ production infrastructure, connecting to three planned development wells and a subsea production system. The vessel is currently warm-stacked in a shipyard in the Canary Islands, where inspections to support pre-FEED and FEED work are being facilitated. Amplus will manage the FPSO's modification and life-extension work in three phases: pre-FID shipyard/lay-up; shipyard life-extension and upgrades; and hook-up and commissioning.

Proven Track Record and Future Potential

The FPSO has a history of 11 deployments, most recently on the Atlanta field offshore Brazil from 2018 to 2024, where it achieved 98% production uptime. Finder notes that the Atlanta field conditions were more challenging than those expected at KTJ, involving deeper water and heavier oil, providing confidence in the vessel's suitability. Beyond the KTJ fields, ownership of the Petrojarl I has the potential to unlock future development opportunities on Block 19-11, including the Krill and Squilla discoveries and other near-field tie-back prospects.

Funding and Corporate Developments

To fund the acquisition and project costs, Finder has secured binding commitments for a placement of approximately 67.6 million shares to raise A$25 million (US$16.4 million). The funds will be used for the FPSO acquisition, holding and maintenance costs, identifying long-lead items, and accelerating FEED studies to advance the project to FID. As part of the strategic agreement, Amplus Managing Director Steve Gardyne has been appointed to Finder Energy's board. The acquisition is scheduled for completion on 12 December 2024.