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Sunda Energy: Letter of Intent for rig to drill Chuditch well

Published by , Editorial Assistant
Oilfield Technology,


Sunda Energy Plc, the AIM-quoted exploration and appraisal company focused on gas assets in Southeast Asia, has announced that its wholly owned subsidiary, SundaGas Banda Unipessoal, Lda., has entered into a non-binding Letter of Intent (LOI) with an international drilling contractor concerning commercial negotiations for a definitive drilling contract for the use of a jack-up drilling rig located in the region by SundaGas. Sunda intends to use the rig for the appraisal drilling campaign on the Chuditch Field, offshore Timor-Leste.

Sunda Energy: Letter of Intent for rig to drill Chuditch well

Signature of the LOI enables the Company to progress regulatory approvals for the use of the jack-up rig in Timor-Leste, including the preparation of the required drilling safety case and other campaign specific documentation, in compliance with applicable law in Timor-Leste. The rig is expected to complete its ongoing work in the region before becoming available for Chuditch appraisal drilling in 2Q25, in line with earlier guidance issued by the Company.

The entry into the definitive Agreement will be subject to standard conditions including mandatory regulatory approval by Autoridade Nacional do Petróleo (ANP), the upstream regulator acting on behalf of the Ministry for Petroleum and Mineral Resources of Timor-Leste. SundaGas is liaising closely with ANP in its drilling preparations and is committed to ensuring the Chuditch appraisal campaign is carried out in line with the work programme and budget approved by ANP.

The LOI contains other customary provisions and while negotiations are ongoing, there can be no guarantee that a definitive Agreement will be entered into between SundaGas and the drilling contractor.

Further updates on preparations for the drilling of the Chuditch-2 appraisal well will be provided in due course.

Dr Andy Butler, Chief Executive Officer, commented:

"Today's news of this Letter of Intent is an important step towards our forthcoming appraisal drilling campaign on the Chuditch Field. We are pleased to be working with a leading offshore drilling contractor that can provide us with a rig that meets all our required specifications."

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/09122024/sunda-energy-letter-of-intent-for-rig-to-drill-chuditch-well/

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