[Alpha Biz=(Chicago) Reporter Paul Lee] POSCO International will launch a "second resource development myth" linking Myanmar's gas field in Indonesia. The exploration will begin with the local government confirming the right to distribute natural resources (crude oil and natural gas) estimated at 1.3 billion barrels in the future.

If POSCO International, which is speeding up its leap to become an "energy-specialized company," succeeds in developing the Bung-A mine in Indonesia, synergy is expected in the liquefied natural gas (LNG) linkage project.

POSCO International said on the 25th that it has signed a "product distribution contract" with local government agencies and state-run oil company PHE in Tangrang, Indonesia.

The product distribution contract takes part of the crude oil and gas produced in the mines first by the contractor to recover the investment and then divides the rest in a certain percentage with the government.

Under this contract, POSCO International will be guaranteed the right to operate the Bung-A mining area, six years of exploration and 30 years of development and production. The ratio of distribution between the government and contractors was fixed at 60 to 40 for crude oil and 55 to 45 for gas. Twenty-five percent of production is mandatory to Indonesia. The Bunga mining area is located on the eastern coast of Java Island in Indonesia and is 14 times the size of Seoul. It is a large mining area that includes a depth of 50m from the sea to the deep sea of 500m.

In particular, the Bung-A mine has the same characteristics as the Pagelongan gas field, which produced large-scale natural gas nearby, and is highly likely to succeed in exploration. Reuters estimates that 1.3 billion barrels of natural gas are buried in the mine.

 

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