POSCO International Signs Share Acquisition Agreement with Senex Energy in Australia

Securing 44% of South Korea's Annual Natural Gas Consumption

[Asia Economy Reporter Ki-min Lee] POSCO International announced on the 12th that it has signed a share acquisition agreement for Senex Energy in Australia and a joint investment agreement with Hancock Energy for the acquisition of Senex Energy.

Procedures such as approval at the Senex Energy shareholders' meeting and local court approval remain, and once the acquisition process is completed in March next year, POSCO International will become a global oil exploration and production (E&P) company.

This acquisition is the largest global M&A case since POSCO International joined the POSCO Group in 2010. The total acquisition price is 770.9 billion KRW, of which POSCO International will invest 50.1% and Hancock 49.9%.

Through the acquisition of Senex Energy, POSCO International will secure natural gas reserves of approximately 802 billion cubic feet (802 Bcf), equivalent to 44% of South Korea's annual natural gas consumption in 2019, while also acquiring local onshore gas field operation personnel in Australia.

Senex Energy is the sixth largest natural gas production and development company in Australia, owning the Atlas, Roma North, and Louisiana gas fields, as well as the Artemis and Rockybar exploration blocks. Senex Energy produces 19 billion cubic feet of natural gas annually, which is sold through pipelines to the eastern Australia region and LNG liquefaction plant markets.

POSCO International cited Australia's status as a mining-advanced country with low investment risk, the ability to sell to various demand centers in the industrial complex-dense eastern Australia region, and the cost reduction from utilizing existing onshore pipelines as the reasons for acquiring Senex Energy.

In particular, by jointly acquiring Senex with Australian Hancock, which has a friendly partnership with POSCO through the Roy Hill mine project, POSCO International expects to reduce investment risks and create synergies in future energy transition business areas.

Additionally, based on a stable natural gas (LNG) business, it is expected to contribute to POSCO Group's carbon neutrality strategy through carbon capture and storage (CCS) projects using Senex Energy gas fields and the production of blue and green hydrogen.

Joo Si-bo, CEO of POSCO International, said, "The role of natural gas is very important in preparing for the emerging hydrogen economy era," adding, "This contract will be an important turning point for expanding our business into energy transition projects and will also solidify our position as a global natural gas development company."

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