SEOUL -- POSCO International, a trading arm of South Korea's steel group, will work with Petronas, a Malaysian state oil and gas company, to explore gas fields in waters off the east coast of the Malaysian Peninsula.
In an international bid, POSCO International said it has won the right to explore and operate the PM524 minefield where Petronas already operates a gas field. The South Korean company aims to sign a product distribution contract within this year after coordinating with Petronas on detailed conditions.
POSCO International has picked promising mining areas by checking seismic waves and drilling data. The company will hold an 80 percent stake, along with the right to operate, while the remainder will be controlled by Petronas' subsidiary, Petronas Carigali Sdn Bhd, a subsidiary of the Malaysian state company.
POSCO International and Petronas would jointly develop eco-friendly energy technologies and expand their partnership to achieve carbon neutrality. The parent steel group has stepped up efforts to decarbonize and reach net-zero carbon emissions.
"It is an opportunity to expand the energy business map concentrated in Myanmar," an unnamed POSCO International official said in a statement on August 10. POSCO International has been involved in gas projects in Myanmar, an important natural gas producer in Asia, and delivers natural gas to China through a Myanmar-China gas pipeline.
POSCO International has disclosed plans to expand its natural gas business to Southeast Asia and Australia. The company signed a joint survey agreement in July on eastern Java waters with Pertamina, a state-run oil and gas company in Indonesia.
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