POSCO International to explore gas mines in Indonesia

Economy 10:57 February 23, 2023

SEOUL, Feb. 23 (Yonhap) -- POSCO International Corp., a major South Korean commodities trader, said Thursday it has won a bid to explore gas mines in Indonesia as it is stepping up to expand its energy and resources drive.

A consortium involving POSCO International and Indonesian state-owned PT Pertamina Hulu Energy (PHE) obtained the rights from the Indonesian government to explore the Bunga gas block off the eastern Java Island, the Korean company said.

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

Exploration rights in oil and gas mining include the rights to develop and produce the energy resources after the discovery.

The Bunga gas block covers 8,500 square kilometers, about 14 times the size of Seoul.

When gas fields are found, POSCO International will be able to secure a more stable natural gas reserve and bolster its liquefied natural gas (LNG) business, it said.

POSCO International, a unit under South Korean steel giant POSCO, operates gas fields in Myanmar and Australia. It has been carrying out another gas exploration project in Malaysia since 2021.