POSCO International Discovers Additional Gas Layer in Myanmar A-3 Block (Photo by POSCO International)
[Asia Economy Reporter Kim Ji-hee] POSCO International conducted a gas production test on the newly discovered Mahar prospect structure at the offshore drilling rig in Myanmar's A-3 block on the 17th. As a result, a productivity of approximately 38 million cubic feet per day from one well was confirmed.
Exploratory drilling is the process of using drilling equipment to confirm the presence of gas within geological layers, and a gas production test is conducted after drilling to assess the gas productivity of the discovered gas-bearing layer. POSCO International began drilling to a depth of about 2,598 meters in the deepwater Mahar prospect, where the water depth exceeds 1,000 meters, starting from the 12th of last month. They confirmed good productivity from a gas layer approximately 12 meters thick, once again demonstrating their deepwater exploration capabilities.
POSCO International plans to begin appraisal drilling on the Mahar prospect gas layer starting in 2021. After about two years of detailed analysis, they will establish a detailed development plan for the gas field and develop it as a cash cow linked to the Myanmar gas fields.
In particular, the Mahar prospect structure is located about 30 km south of the existing Myanmar gas field, the Shwe gas field. This proximity allows for integrated development with the gas field production facilities, enabling efficient development through reduced investment costs and shortened construction periods. Additionally, exploratory drilling is scheduled consecutively for the Yan Aung Myin prospect structure, located 24 km southeast of the Mahar prospect where gas was discovered, raising expectations for additional gas discoveries.
A POSCO International official stated, “This new gas layer discovery is an example demonstrating POSCO International's exploration capabilities and will serve as a stepping stone for new growth in the energy sector. We will continue to pursue exploration of promising blocks to accelerate the completion of the POSCO Group energy value chain.”
POSCO International plans to foster the energy sector as one of its strategic businesses in the future. Leveraging the success of the deepwater exploration project in Myanmar's A-3 block as a driving force, they aim to complete the second and third phases of Myanmar gas field development and enhance synergy with POSCO Group companies.
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