"Challenge for the Second Gas Field Legend"… POSCO Inter Secures Exploration Rights for Malaysian Offshore Block

POSCO International announced that it has won the exploration operation rights for the PM524 block in Malaysia through an international bid from Petronas, the Malaysian state-owned oil company.

Photo by POSCO International

[Asia Economy Reporter Ki-min Lee] POSCO International is embarking on offshore block exploration in Malaysia to confirm gas reservoirs, challenging the creation of a second gas field legend following the Myanmar gas field.

On the 10th, POSCO International announced that it won the exploration operation rights for the PM524 block located offshore in the eastern Malay Peninsula from Petronas, Malaysia's national oil company, through an international bidding process for exploration blocks in Malaysia.

Among the blocks up for bidding, POSCO International selected the PM524 block as the project target based on the promising natural gas reserves and ease of development, securing the operation rights through competitive bidding.

After coordinating the detailed terms of the production sharing contract with Petronas, POSCO International plans to sign the contract within this year and conduct exploration operations for four years from the contract signing date. POSCO International will hold an 80% stake and operate the block, while Petronas Carigali (a wholly owned oil development subsidiary of Petronas) will participate as a partner holding a 20% stake.

The PM524 block is located offshore in the eastern Malay Peninsula at a water depth of 50 to 80 meters near Kuala Lumpur, the capital of Malaysia, covering an area of 4,738 km². POSCO International reviewed existing 3D seismic and well data of the PM524 block to identify multiple promising structures with high potential for gas reserves and plans to conduct detailed technical evaluations during the exploration period.

Within the PM524 block, there is the Tangbarat gas field currently in production operated by Petronas. If POSCO International succeeds in gas field exploration in the PM524 block, it is also considering linked development utilizing the Tangbarat gas field. If realized, this would have the significant advantage of requiring very low initial development costs and shortening the development period.

Additionally, POSCO International plans to collaborate with Petronas on developing eco-friendly energy technologies to achieve the POSCO Group's 2050 carbon neutrality goal. The Malaysian government, led by the national oil company Petronas, is accelerating the development of clean gas through carbon dioxide underground storage (CCS), green ammonia, hydrogen production, and other eco-friendly energy technologies.

A POSCO International official said, “This is an opportunity to expand the energy business map that had been concentrated in Myanmar,” adding, “By securing a block with high potential for natural gas reserves, whose demand is increasing day by day, we have laid an important foundation as a new growth engine for the company and a basis for expanding business in the energy sector.”

Meanwhile, last month, POSCO International signed a Joint Study Agreement (JSA) with Indonesia's state-owned oil and gas company PERTAMINA for joint surveys offshore eastern Java. The company is expected to accelerate not only the expansion of natural gas business targeting strategic regions such as Southeast Asia and Australia but also entry into carbon-neutral eco-friendly energy development businesses based on this.

This content was produced with the assistance of AI translation services.