Contract Signed with Malaysia's State-Owned Oil and Gas Company PETRONAS
On June 25, POSCO International announced that it will further pursue oil and gas field exploration and development offshore Malaysia. POSCO International recently signed a Technical Evaluation Agreement (TEA) with PETRONAS, Malaysia's state-owned oil and gas company, for the Layang-Layang Basin located off the eastern coast of the Malay Peninsula.
A TEA is a type of exploration contract for conducting feasibility assessments for resource development in a specific area. If the evaluation results indicate a high potential for resource development, this can lead to full-scale exploration and development of the block.
In 2021, POSCO International also signed a production sharing contract with PETRONAS for the shallow-water PM524 block off the eastern coast of the Malay Peninsula. POSCO International holds an 80% stake in this contract. Under the agreement, POSCO International secured a four-year exploration period and a 24-year development and production period. The company is currently conducting prospectivity assessments with PETRONAS at the PM524 exploration block.
A POSCO International representative stated, "If the first drilling at the PM524 block last month is deemed commercially viable, we plan to move forward with full-scale development," adding, "Exploration of the Layang-Layang Basin will also proceed according to established procedures."
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