Hakuryu-5 Semisubmersible Contracted for KTJ Three-Well Program

15 October 2026
Edited By: Haley McQueen

Finder has executed a contract with ENEOS Drilling for the Hakuryu-5 semisubmersible drilling unit, associated equipment, and personnel for a firm, three-well program for KTJ, with options for an additional two wells. A summary of the material terms of the rig contract is set out in the Annexure.

Hakuryu-5 Semi-Submersible Drilling Unit. (Image credit: ENEOS Drilling)

The contract is conditional upon receipt of the required Joint Venture, government, and Finder board approvals by December 31, 2026, together with ENEOS parent company and board approvals by November 16, 2026.

The contract provides for the drilling of three firm wells to commence from December 1, 2027, with an estimated duration of approximately 150 days to drill and complete the wells for production, including running completion assemblies and installation of the wellheads and Christmas Trees ready for hook-up to the Petrojarl I FPSO.

The two optional drilling slots provide flexibility to accommodate participation by other operators, creating opportunities for cost and operational synergies, or to undertake exploration or appraisal drilling targeting potential tie-back opportunities within PSC 19-11.

Damon Neaves, CEO, said: “The Hakuryu-5 and her highly experienced crew have an excellent safety and performance record with extensive operating experience in Southeast Asia, including drilling campaigns for major operators such as PETRONAS and INPEX. Securing the Hakuryu-5 is a major milestone for the KTJ Project, which brings us a step closer to FID and providing clear visibility on the timing of the development drilling program. This is also a strong signal of the progress being made towards delivering Timor-Leste’s next offshore oil development. We are committed to working with our Joint Venture partner, TIMOR GAP, to deliver a project that can generate lasting economic benefits for the country. We look forward to spudding the first of the three firm development wells late next year.”

The award of the rig contract to ENEOS follows a tendering, evaluation and negotiation process, including a rig inspection that took place in Labuan, Malaysia, involving representatives of our Joint Venture partner, TIMOR GAP, as well as ENEOS representatives visiting Dili, Timor-Leste, to evaluate in-country logistics support and local content.

The rig contract builds on substantial progress across the KTJ Project. To support the drilling campaign and schedule, Finder has already secured critical-path long lead items and services, including:

Casing and Tubing—Sumitomo will manufacture, supply, and deliver Oil Country Tubular Goods (OCTG), including casing, production liner, and completion tubing.
Christmas Trees—Three Christmas Trees are under fabrication by OneSubsea, which controls the flow of oil from the wells as well as safety functions.
Wellheads—Wellheads have been acquired from another joint venture following inspection to confirm their suitability.
Drilling Management—AGR will provide integrated drilling management services to support the planning, management and execution of the development drilling program on behalf of Finder, with Finder retaining overall responsibility as Operator.
Completion Equipment—SLB will supply upper completion equipment for the development wells, including downhole flow-control valves, gauges, chemical-injection equipment, packers, subsurface safety valves, control lines, cables, protectors, splices, contingencies and spares.

The execution of the rig contract, together with the procurement of critical long-lead equipment and engagement of key service providers, demonstrates the KTJ Project’s progression toward execution readiness. These commitments secure key components of the development program, improve visibility on the project schedule, and position the Joint Venture to transition into the execution phase following FID.

Finder continues to advance the remaining workstreams required to achieve FID, including satisfying each partner’s investment criteria and obtaining Joint Venture and regulatory approvals, finalizing remaining major project agreements and financing arrangements, and targeting FID for the KTJ Project by November 30, 2026.

Securing the Hakuryu-5 is also an important development for Timor-Leste, providing tangible evidence of progress towards the country’s next offshore oil development. The KTJ Project could contribute to Timor-Leste’s future petroleum revenues, support local employment and contracting opportunities, and strengthen the country’s offshore petroleum industry. The commitment of an international drilling contractor represents another important step towards translating the KTJ development plans into offshore operations.