"POSCO International Recognized for Resource Project to Explore Natural Gas in Indonesia"

Winning the International Bid for Exploration and Operation Rights of Indonesian Mining Blocks

[Asia Economy Reporter Choi Dae-yeol] POSCO International announced on the 23rd that it has acquired the rights to explore and develop natural gas in the seas around Indonesia.

This bid was an international tender conducted by the Indonesian government, in which POSCO International participated as part of a consortium equally sharing stakes with the local state-owned company PHE (Pertamina Hulu Energi). They secured the exploration rights for the Benga Block located offshore in the eastern part of Java Island. The Benga Block covers a total area of 8,500 km², about 14 times the size of Seoul. It is a large-scale block with water depths ranging from 50 to 500 meters.

Exploration rights refer to the rights to conduct exploration, development, and production necessary for natural gas development. PHE is a subsidiary of Pertamina, the local state-owned oil and gas company. The company stated, "Securing exploration rights through an international tender means that POSCO International's capabilities in gas field exploration and operation have been internationally recognized," adding, "We are expanding our global energy territory from Australia and Malaysia to Indonesia."

Previously, the two companies conducted joint surveys for about a year starting in 2021. They discovered strata with a high possibility of natural gas presence in this block. Given that it shares similar characteristics with the large-scale natural gas-producing and operating Pagarungan gas field nearby, the Benga Block also has high development potential.

POSCO International expects that if exploration in the Benga Block is successful, natural gas reserves will be stably secured. The company plans to contribute to energy security by importing the gas domestically and strengthen LNG-related businesses. The company is engaged in LNG tank leasing and bunkering businesses. They also plan to seek opportunities to enter eco-friendly energy businesses locally in Indonesia.