Posco International signs gas-field deal with Malaysia's PetronasPosco International, 62.9 percent owned by 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 bid to explore and operate the 4,738 square-meter (51,000-square-foot) natural gas field, known as the PM524 block, in water about 50-80 meters deep off the east coast of Malaysia.
Under the agreement, Posco will own an 80 percent stake and Petronas 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.