Posco International wins rights to develop Indonesia gas field

Posco International's gas field in Myanmar [POSCO INTERNATIONAL]

Posco International won exploration rights for an offshore gas field in eastern Indonesia, the energy and trading company said Thursday.

A consortium of Posco International and Indonesia’s state-run Pertamina Hulu Energy (PHE) won the bid to explore, develop and produce a gas field lot off the eastern coast of Java Island, according to the company. The Bunga block measures 8,500 square kilometers (3,281 square miles).

The companies hold a 50 percent each in the the project, and Posco International will operate the field.

Posco International and PHE conducted research on the region for a year from 2021 and identified a stratum where natural gas reserves are likely to be located.

If exploration is successful, Posco International will be able to ramp production and secure a stable supply of liquefied natural gas (LNG), said the company.

Posco International is currently operating gas fields in Myanmar and Australia. Another gas exploration project has been underway in Malaysia since 2021 as well.

Posco International runs an LNG terminal in Gwangyang, South Jeolla, and recently broke ground for the second terminal.

The agreement with Indonesia’s PHE will also open a channel for overseas energy business development, said the company.

Posco International completed a merger with Posco Energy on Jan. 1. With the addition of Posco Energy’s utility business, the company has an LNG value chain including development, storage and power generation.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]