Sunda Energy PLC (AIM:SNDA, FRA:GHA0) has revealed it faces a regulatory challenge over its Chuditch gas project after Timor-Leste’s upstream regulator issued a notice of intention to terminate the production sharing contract covering the field.
The AIM-listed company said its wholly owned subsidiary, SundaGas Banda Unipessoal, received the notice from Autoridade Nacional do Petróleo (ANP) on 18 June.
ANP said SundaGas was in breach of the PSC after failing to fulfil its year-three minimum exploration work requirements, namely drilling the Chuditch-2 appraisal well by 18 June 2026. SundaGas has 120 days, until 16 October 2026, to submit written representations before ANP makes a final decision on termination.
The notice also says ANP may consider granting an extension if SundaGas provides evidence of a binding signed rig contract to drill Chuditch-2 in calendar 2027.
Sunda said its board “disputes the basis of, and background to, the Notice” and has requested an urgent meeting with ANP for clarification.