Finder Energy (ASX: FDR) signs development alliance with SLB to fast-track KTJ oil field toward first oil by 2026

Finder Energy Holdings Limited (ASX: FDR), an oil and gas exploration company active in the North West Shelf and United Kingdom North Sea, has entered into a strategic partnership with global energy technology provider Schlumberger Australia Pty Ltd (SLB) to accelerate development of its Kuda Tasi and Jahal (KTJ) oil fields. Under a Development Alliance Agreement and a parallel Accelerated FEED Project Agreement signed in Perth on June 12, 2025, the Australian energy developer will fast-track key pre-development activities by up to 12 months.

With a current market capitalization of AUD 18.48 million and a one-year return of 2.67%, Finder Energy Holdings Limited is seeking to significantly enhance the commercial timeline of its KTJ project in Timor-Leste. By leveraging SLB’s engineering capacity, supply chain scale, and regional presence, the oil and gas exploration company expects to achieve faster execution, tighter cost control, and improved procurement efficiency.

The accelerated Front End Engineering and Design (FEED) phase, which now targets completion in 6 to 9 months, represents a material advancement toward the Final Investment Decision (FID) and eventual first oil, now likely to be targeted for 2026.

Why is Finder Energy turning to SLB to advance KTJ’s FEED stage faster than previously scheduled?

The decision to partner with Schlumberger Australia Pty Ltd comes at a critical inflection point for Finder Energy Holdings Limited, which is actively repositioning itself from a pure-play exploration firm into a development-stage producer. The agreement with SLB includes the immediate mobilisation of technical personnel across drilling, subsurface engineering, and subsea system planning—areas where SLB has longstanding expertise and local infrastructure in Timor-Leste.

According to Finder Energy’s Chief Executive Officer Damon Neaves, the alliance represents a strategic shift designed to bring forward first oil through the rapid completion of early-stage engineering milestones. He emphasized that the integrated development approach enabled by SLB would facilitate a smoother transition through subsequent stages, including field architecture finalization, subsea production system selection, and identification of critical path equipment.

The estimated cost commitment for the accelerated FEED effort is approximately USD 0.9 million net to Finder Energy. While this front-loads certain elements of the company’s expenditure plan into calendar year 2025, Finder Energy expects that the collaborative contracting model will result in lower aggregate costs through shared execution risk, reduced interface complexity, and economies of scale.

How is the integrated project team between Finder Energy and SLB expected to deliver faster results?

As part of the new alliance, an Integrated Project Team has been formed under the leadership of Finder Energy’s Chief Operating Officer Mark Roberson. This joint team, overseen by a steering committee composed of executives from both companies, is tasked with delivering a full technical solution from pre-FEED to engineering design and procurement planning.

The strategic rationale behind the integrated model is to unify project design, cost estimation, and execution planning under a single-source engineering and service provider. For Finder Energy Holdings Limited, this reduces coordination risk and allows for faster alignment on drilling methodologies, reservoir development plans, and subsea layout.

The development path under the Accelerated FEED Project Agreement includes identification and procurement scheduling for Subsea Umbilicals, Risers, and Flowlines (SURF), which often form the most time-critical elements in offshore oil field development. The project team will also prepare qualified project pricing and execution schedules with the precision required to support a binding FID decision.

While Finder Energy retains full discretion to terminate the agreement with 14 days’ notice, the collaboration with SLB reflects increasing alignment with industry best practices where early-stage design is tightly integrated with construction and installation frameworks to minimize rework and delay.

What makes Timor-Leste a high-priority geography for Finder Energy’s upstream ambitions?

Finder Energy’s KTJ project is located in offshore Timor-Leste, a region that is increasingly gaining attention from mid-cap and junior explorers due to its favorable geology, regulatory clarity, and proximity to existing infrastructure. SLB’s long-standing presence in Timor-Leste, supported by a regional base in Perth and established local partnerships, made it a natural fit for the collaboration.

SLB has played a prominent role in executing major upstream oil and gas projects in the region and has invested in developing local talent, supply chains, and engineering capabilities. These advantages position it to immediately deploy both local and international resources to de-risk the KTJ development timeline.

The KTJ oil fields represent a strategic growth opportunity for Finder Energy Holdings Limited as it transitions into a production-capable firm. The ability to bring first oil to market faster and more cost-effectively enhances the project’s internal rate of return and its competitiveness within the broader Asia-Pacific energy landscape.

How are investors and institutional observers reacting to Finder Energy’s SLB partnership?

Institutional sentiment toward Finder Energy Holdings Limited has been moderately positive in 2025, supported by the company’s proactive capital management and steady share price performance. Trading flat at AUD 0.065 as of June 17, 2025, the Australian oil and gas exploration company has operated within a narrow 52-week band between AUD 0.032 and AUD 0.067, reflecting its early-stage development profile.

Finder Energy’s price-to-earnings ratio of 3.82, while not a definitive valuation benchmark due to the absence of commercial production, suggests that investors are still pricing in speculative upside based on successful project milestones. The company’s ASX rank (1,540 out of 2,323) and sector rank (96 of 176) point to a relatively modest institutional profile, which could improve significantly if the KTJ project enters the development and revenue-generating phase on schedule.

While Finder Energy currently does not offer a dividend yield, retail and forum-based investors have shown interest in the KTJ timeline and perceived undervaluation relative to regional peers. Analysts covering ASX small-cap energy stocks are expected to reassess development risk metrics based on updated cost, FEED progress, and FPSO contracting visibility over the next two quarters.

What are the next critical steps toward FID and first oil for the KTJ project in 2025–2026?

Over the next six to nine months, Finder Energy and SLB will complete the accelerated FEED process, including scope definition, risk analysis, and supply chain alignment. Once this milestone is reached, the project is expected to transition to a binding investment decision phase, where detailed costings and long-lead procurement schedules will form the basis of downstream construction commitments.

Key focus areas include Floating Production Storage and Offtake (FPSO) vessel selection, reservoir engineering refinement, and drilling logistics—each of which can materially influence the timeline to first oil. In parallel, Finder Energy Holdings Limited will continue regulatory engagements and finalize contractual frameworks for Engineering, Procurement, Construction and Installation (EPCI) execution.

The Alliance Agreement with SLB does not bind Finder Energy to future expenditures, offering flexibility in capital allocation while still maintaining a clear framework for collaborative progression through the project lifecycle. If all milestones are met, first oil from the KTJ oil fields could realistically occur in 2026, establishing Finder Energy as a revenue-generating mid-tier operator.

What are the broader implications for Australia’s small-cap energy firms working in frontier basins?

Finder Energy Holdings Limited’s partnership with Schlumberger Australia Pty Ltd may serve as a case study for other ASX-listed oil and gas juniors seeking to derisk exploration-to-production transitions. The use of an integrated development alliance, combined with front-loaded technical planning, reflects growing institutional expectations around execution discipline and capital efficiency.

With many Australian juniors operating in capital-constrained environments, strategic partnerships with engineering multinationals offer a viable route to accelerate asset monetization while controlling risk. For Finder Energy, this alliance reinforces a thematic shift across the sector—where technical readiness, procurement agility, and fast-tracked FEED design are becoming essential to attract institutional capital.

As oil prices remain moderately stable and exploration capital remains cautious, successful early-stage development stories like KTJ could attract follow-on investor interest and position Finder Energy for potential farm-in, JV expansion, or uplift in institutional research coverage.