November 28, 2024

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Posco International's offshore gas field in Myanmar (Posco International)

South Korean commodities trader Posco International said Thursday that it has won gas mine exploration rights in Indonesia as part of efforts to beef up energy and resource businesses.

A consortium involving the Korean firm and Indonesia’s state-owned Pertamina Hulu Energy gained the rights to explore and operate the Bunga gas block off the eastern Java island.

The two will each own a 50 percent stake in the project, while Posco International will hold the operational rights.

The Bunga gas block covers 85,000 square kilometers, about 14 times the size of Seoul.

The two conducted a joint investigation into the area for over a year from 2021 and succeeded in discovering a stratum with a high potential for natural gas reserves.

Posco International said it plans to explore the mine more thoroughly as soon as it signs a deal with the Indonesian government. If the exploration is successful, the company could secure a stable supply of natural gas, contribute to the nation’s energy security, and strengthen its liquefied natural gas-linked businesses.

The company has been operating gas fields in Myanmar, Australia and Malaysia.

By Kim So-yeon (sera13@heraldcorp.com)