(image: Pixabay)
SEOUL, Nov. 1 (Korea Bizwire) – POSCO International Corp., the trading unit of South Korean steel giant POSCO, said Monday it signed an agreement with Malaysia’s state-owned oil and gas company to explore and operate a gas field in the Southeast Asian country.
In August, POSCO International won an international bidding to explore and operate the 4,738 square-meter natural gas field, known as the PM524 block, in the sea about 50-80 meters deep off the east coast of Malaysia.
Under the agreement, POSCO will own a 80 percent stake and Petronas Bhd will hold a 20 percent stake through a subsidiary. The deal gives POSCO the rights to explore the gas field for four years, and develop and produce the resources for 24 years.
It is POSCO’s first natural resource exploration deal in Malaysia, marking an expansion into other Southeast Asian markets besides its existing business in Myanmar.
POSCO plans to start the exploration and drilling in 2025 after a thorough analysis.
If gas is discovered in the block, POSCO is considering developing the gas by utilizing its production facilities near the area, which will help the company reduce the initial costs and time for the development, according to the company.
(Yonhap)
