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POSCO International wins bid for operation right of Malay gas field

POSCO International wins bid for operation right of Malay gas field

Posted August. 11, 2021 07:33,   

Updated August. 11, 2021 07:33


POSCO International is pushing ahead with gas development in Malaysia, expanding the scope of its energy business in addition to its gas project in Myanmar.

POSCO International said on Tuesday that it has won the bid for exploration and operation rights of PM524 block in the eastern part of the Malay Peninsula from Malaysian state-owned oil and gas company Petronas. The eastern coast of the Malay Peninsula, where the country’s capital Kuala Lumpur is located, has attracted the attention of the global energy industry for its high probability of natural gas existence. POSCO International participated in the competitive bidding after reviewing the prospect of natural gas business in the PM524 and the ease of development. This is the first time that the company ever won such bid in Malaysia.

POSCO International will sign a product sharing agreement with Petronas within this year and begin exploring the PM524 for the next four years. POSCO will own 80 percent stake and Petronas will acquire 20 percent stake through its subsidiary. Utilizing its experience in gas field exploration in Myanmar, POSCO plans to explore the 4738km² gas field at a depth of 50-80 meter in the ocean. If gas is discovered in the PM524 block, the Malaysian company will be able to save the initial cost and shorten the development period since it is already producing gas near the PM524.

Hyung-Seok Seo skytree08@donga.com