Under the contract, Posco will explore and operate Block PM524, a 4,738 sq.m. natural gas field located in the sea about 50 to 80 m deep off the east coast of Malaysia.
Mohamed Firouz Asnan, Senior VP of Malaysia Petroleum Management, said:
- We welcome POSCO International to Malaysia’s upstream oil & gas industry and as a new player in Malaysia, they bring their experiences of operating gas fields in other parts of this region, including the technological development of Carbon Capture and Storage
- This award further reinforces Malaysia’s attractiveness as a destination for companies seeking to grow their energy portfolio and thrive in energy transition
- Under our right asset, right player strategy, supported by a progressive fiscal regime, we hope to fully maximise the long-term value of the hydrocarbon resources in Malaysia, especially in Peninsular Malaysia where the demand is expected to increase
Posco is the operator with 80 % participating interest while Petronas Carigali holds the remaining 20%.
It is Posco's 1st natural resource exploration deal in Malaysia, marking an expansion into other Southeast Asian markets besides its existing business in Myanmar.