POSCO DAEWOO clinched a gas production deal for DS-12 block with the Bangladesh government and state-run gas company Petrobangla, which is considered as a landmark contract that will help expand the trading company’s presence in the Southeast Asian country.
Under the deal, POSCO will have the right to explore a gas block named DS-12, for up to eight years. If natural gas is found, POSCO, which plans to start exploring in the H2 of 2017, can produce and sell gas for 25 years.
Petrobangla is Bangladesh’s biggest state-run energy company covering the whole gamut of energy and natural resource business including exploration, production, transport and sale.
POSCO DAEWOO was picked as a preferred bidder for the block last October. The DS-12 block is near the Thalin gas exploration well in block AD-7 of Myanmar where the Korean resource developer discovered gas in February last year.