POSCO International signs deals with Indonesia to explore offshore gas fields
POSCO International Vice Chairman Jeong Tak, right, shakes hands with Pertamina Hulu Energi President Wiko Migantoro after signing a memorandum of understanding in Tangerang, Indonesia, Tuesday. Courtesy of POSCO International
By Lee Kyung-min
POSCO International has signed a product distribution contract with Indonesian government organizations and state-run oil firm Pertamina Hulu Energi (PHE) in Tangerang, Indonesia, Tuesday. PHE is a subsidiary of PT Pertamina Hulu Indonesia, the country's state-run oil and gas producer.
In attendance were POSCO International Vice Chairman Jeong Tak, Pertamina Chairman Nicke Widyawati and PHE President Wiko Migantoro.
Under the contract, the POSCO affiliate will claim some of the gas and oil from Bunga mine. The remaining natural resources from the mine will be divided between the government of Indonesia and the POSCO affiliate.
The POSCO affiliate will be able to explore the mine on Jana Island for six years followed by a 30-year development and production period.
The ratio of distribution between the Indonesian government and POSCO International will be 60-40 for crude oil and 55-45 for gas.
The joint mine development project began in 2021 after POSCO International and PHE jointly investigated the mine area and found a stratum highly likely to have an abundance of natural gas.
The two were selected in February this year as consortium partners alongside PHE and secured the right to explore.
The POSCO affiliate plans to further the exploration of mining areas.
It plans to send experts from its headquarters to Jakarta-based PT POSCO International ENP Indonesia to evaluate the prospects of the mining business, as measured by 3D artificial wave exploration, by 2026. It will decide whether to drill the site in 2027.
The POSCO affiliate said the contract will strengthen energy security and bolster liquefied natural gas projects.
POSCO International Vice Chairman Jeong Tak said the signing of the contract is the culmination of years of overseas business and technology know-how, as well as decisions made by executives and employees.
“We will continue securing new energy sources to contribute to national energy security,” he said.
Jeong and Widyawati signed a separate memorandum of understanding to fortify cooperation in carbon capture storage technology projects and blue hydrogen-ammonia business opportunities.