In 1998, a discovery in the Timor Sea sparked hopes for Timor-Leste’s energy future. The  Chuditch gas field held vast potential, however, back then, it remained largely untouched. Timor-Leste, while rich in resources, was still developing its capacity to engage in large-scale projects of this kind.

Fast forward to today, and things are quite different. Timor-Leste has been steadily building its infrastructure and expertise, and now, Sunda Energy, an experienced international oil and gas company, is preparing to take the next steps at Chuditch-2. And this has interesting implications for Timor-Leste and those who get involved early on.

Let’s break it down. 

The Promise of Chuditch: Not just another Gas Field

The Chuditch gas field is located in the Timor Sea, about 185 kilometres south of the Timor-Leste mainland. It was discovered during the early stages of energy exploration in the region, with initial estimates suggesting that it held substantial natural gas reserves. In fact, Chuditch-2—the well set to be drilled by Sunda Energy—targets a potential 2.4 trillion cubic feet (TCF) of recoverable gas. That’s no small find. For comparison, such reserves could power millions of homes and industries for decades to come.

So, why wasn’t it developed back in the late 1990s?

Timing.

At the time of the discovery, Timor-Leste was navigating its early years of independence and lacked the technical or financial resources to undertake such a massive project. The oil and gas industry demands vast infrastructure, expertise, and long-term planning—all of which were in short supply. But now, Timor-Leste is in a stronger position, ready to make the most of its natural resources.

What Has Changed? Why Now? ⏩

The question on many minds is, “Why now?” What makes this the right time to develop the Chuditch gas field, more than 25 years after its discovery?

One major factor is that Timor-Leste has become more equipped to pursue large-scale projects. Over the past decade, the country has been working to strengthen its energy sector. Timor-Leste's primary oil field, Bayu-Undan, located about 250 kilometres southeast of the Timor-Leste coast, has provided much-needed revenue over the years. However, as the Bayu-Undan field nears depletion, Timor-Leste is looking to the future and diversifying its energy sources. Bayu-Undan was once the lifeblood of the nation’s economy, but now, with diminishing production, the country is actively seeking new opportunities to secure its energy future and this is where Chuditch and Sunda Energy come in.

Introducing Sunda Energy

At the heart of the Chuditch-2 development is Sunda Energy, an international oil and gas company with all the requisite expertise in deepwater drilling and exploration.

Sunda Energy brings renewed expertise, technological advancements, and financial backing to the table. These elements were missing back in the late 1990s, but now they provide the foundation for what many industry insiders say will be a successful and transformative project. 

Looking ahead, Andrew Butler, CEO of Sunda Energy, highlighted the company’s -ambitions: “Going forward, if the reprocessed data merits it, we would like to drill an appraisal well, which is an obligation on the Chuditch discovery. But we would also like to drill at least one additional exploration well to establish the presence of gas resources in adjacent features. We would effectively be looking at a cluster development for all that gas."

Sunda Energy will take on the challenges of deepwater drilling, ensuring that the project is both safe and economically viable.

How Partnerships Have Changed the Game

In line with international trends, Timor-Leste’s success in energy exploration is not happening in isolation. Partnerships with international and regional players have been key to this transformation. For example, collaboration with Australia through projects like Greater Sunrise and cooperation with Japan in energy infrastructure development have empowered Timor-Leste with the tools and expertise it currently posesses. Additionally, these partnerships have also opened up other channels for investment, facilitating technology transfers and capacity building.

The Tasi Mane project, a major infrastructure initiative developing a petroleum industry on Timor-Leste's south coast, is another example. It has seen the construction of industrial hubs, supply bases, and logistical support facilities that are essential to the successful operation of offshore fields like Chuditch. This project not only shows the Timorese potential for industrial development, but also lays a foundation for long-term energy self-reliance.

What Does This Mean for Timor-Leste? 

When we talk about the development of Chuditch-2, we're not just talking about the extraction of gas. We’re talking about the ripple effects this could have throughout Timor-Leste's economy and society. The revenues generated from this field could help fund critical public services, job creation and stimulate the economy through modernised schools, upgraded healthcare facilities, and reliable electricity reaching homes and businesses across the country. The income from natural gas extraction can be reinvested into education, healthcare, and infrastructure, directly benefiting Timorese society. From engineers to construction workers, skilled and unskilled labour will be in demand, providing employment opportunities for the Timorese people. Local businesses stand to gain as well, particularly those involved in transportation, construction, and services supporting the energy sector.

For investors, this makes Timor-Leste an attractive destination. The country offers a resource-rich environment, backed by growing infrastructure and political stability, making it a favourable location for energy projects and related industries. Over the years, IN-VR has worked closely with the Timorese government on local content initiatives, helping to integrate local businesses into the energy supply chain and build a skilled workforce. These initiatives have created a strong foundation for Timor-Leste, to be well-positioned to fully benefit from projects like Chuditch-2.

Understanding the Technical Process

For those not familiar with the ins and outs of the oil and gas industry, drilling for natural gas is a complex and highly technical process. Sunda Energy will be using state-of-the-art drilling rigs, capable of operating in deepwater conditions. Chuditch-2 is located in water depths of around 90-100 metres, and drilling to reach the gas reserves will require careful planning and execution. The company will utilise semi-submersible rigs, floating platforms anchored to the seabed. These rigs are designed to remain stable, even in the harsh conditions of the Timor Sea.

One of the important challenges—not just technical but environmental—is ensuring the safety and sustainability of the operation. Strong currents and unpredictable weather patterns in the Timor Sea present obstacles that need careful monitoring. Sunda Energy will deploy advanced systems, including real-time data monitoring and blowout preventers, to mitigate these risks and maintain environmental standards. The success of the project depends on careful execution and management, ensuring that the benefits of gas extraction do not come at the expense of the environment.

Once the gas is extracted, it still needs to be processed and transported. Processing will likely take place at a central facility, to remove impurities before the gas is compressed for export. Geography also favours Timor-Leste, located close to high-demand markets like Australia, Japan, and South Korea, adding a lucrative dimension to the Chuditch-2 project.

What Comes Next? 

The Chuditch-2 project is just one piece of a broader strategy for Timor-Leste as it works towards energy independence.  As the country begins to tap into this resource, it is also looking ahead to other projects. 

The success of Chuditch-2 could inspire further exploration in other offshore fields, such as Greater Sunrise, which contains an estimated 5.13 TCF of gas. By developing these fields, Timor-Leste can ensure that its energy sector remains a reliable and sustainable source of revenue for decades to come by exporting to the energy-hungry markets in Asia.

A Future Full of Promise 

Looking ahead, one thing is clear: Timor-Leste is no longer just imagining what could be—it’s taking concrete steps to shape its future. The Chuditch-2 project marks an important accomplishment in this journey, as the nation works to ensure that its valuable natural resources are used in ways that will benefit its people, not just today, but for generations to come.

But this is about more than gas exploration. It’s a story of a young nation determined to rise, to grow, and to create new opportunities for its citizens. As Chuditch-2 progresses, the potential impacts stretch far beyond the energy sector—touching on everything from education and healthcare to jobs and infrastructure.

What will this project mean for Timor-Leste in the years ahead? While time will tell, one thing is certain: the country is forging its own path, and it’s a journey worth watching closely.