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POSCO Daewoo to explore gas fields in Bangladesh

POSCO Daewoo CEO Kim Young-sang, right, poses with Petrobangla Chairman Abul Mansur Faizullah after signing a gas field exploration contract in Dhaka, Bangladesh, Tuesday. Under the agreement, the trading unit of POSCO will explore potential gas fields off the coast of the South Asian country. / Courtesy of POSCO Daewoo

By Lee Hyo-sik

POSCO Daewoo has secured a deal to explore potential gas fields off the coast of Bangladesh, the company said Wednesday.

Company CEO Kim Sang-young signed a production-sharing contract with Petrobangla Chairman Abul Mansur Faizullah at the headquarters of Bangladesh’s state-run oil firm in Dhaka, Tuesday.

Under the agreement, the trading and natural resources development unit of steelmaker POSCO will be able to explore an area, designed as block DS-12 by Petrobangla, for up to eight years. If natural gas is found, POSCO Daewoo, which plans to start exploring the area in the second half of this year, can produce and sell gas for 25 years.

But the two firms declined to make public the details of the contract, including how they would split the revenues.

Last October, POSCO Daewoo was selected as a preferred bidder for the exploration project.

“The latest contract shows that POSCO Daewoo is highly recognized for its knowhow and expertise in the exploration and production of offshore gas fields,” CEO Kim said. “If it wasn’t our successful Myanmar project, we wouldn’t be able to secure the Bangladeshi deal. We will do everything we can to repeat the success story in Bangladesh.”

Since 2013, the company has been producing natural gas in waters off the northwestern coast of Myanmar, most of which is sold to China.


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