Posco Daewoo Corp., the energy development unit of South Korean steelmaker Posco, will develop new subsea wells for stable gas production near its offshore production base in the A-3 block in Myanmar with an investment of $94.2 million.

Drilling of three new wells will start in the first quarter of 2020, the company announced Monday. It has been conducting various precision tests for the gas field development project.

The project is jointly invested by India’s two state-run companies Oil and Natural Gas Corp. (ONGC) and GAIL, Myanmar’s state-run Myanmar Oil and Gas Enterprise (MOGE) and Korea Gas Corp. Posco Daewoo holds a 51 percent stake in the $184.8 million project.

Posco Daewoo has been producing gas from three fields located in blocks A-1 and A-3 of the Bay of Bengal, Myanmar, under a 30-year supply contract with Chinese state gas company China National Petroleum Corp. (CNCP). It hopes the Myanmar gas field project would help win more projects in other areas like Southeast Asia, Oceania and North America.

On Tuesday, shares of Posco Daewoo fell 1.89 percent to close at 18,200 won ($16.10) in Seoul.

By Hwang Soon-min and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]