KUALA LUMPUR (Aug 12): Posco International, the trading arm of South Korean steelmaking conglomerate Posco, and Petroliam Nasional Bhd (Petronas) plan to sign a production sharing agreement for gas field exploration in Peninsular Malaysia, a Korean media reported.
According to Pulse by Maeil Business News Korea & mk.co.kr, Posco International was awarded the right to explore and operate the PM524 block offshore Peninsular Malaysia by Petronas after a successful international bid.
The report noted that this will be Posco International's first resource expedition in Malaysia.
Posco International and Petronas aim to sign the agreement within a year, after finalising the terms of the contract.
The contract will allow gas field exploration for four years.
According to Pulse, Posco International will hold an 80% stake with the operation right, while Petronas will hold the remaining 20% via its subsidiary Petronas Carigali Sdn Bhd.