A 300 Billion Won Project
POSCO Daewoo has started the second phase of a Myanmar gas field development project, the company announced on June 28. It began to develop eight additional production wells by signing a contract with world-class companies.
POSCO Daewoo announced that its president Kim Young-sang signed an engineering, procurement, construction, installation and commissioning (EPCIC) contract with Lorenzo Simonelli, chairman of Baker Hughes, and David Dickson, president of McDermott for the second phase of the Myanmar gas field development project in Washington, DC, the US.
The contract is worth 300 billion won. The McDermott-Baker Hughes consortium will install subsea production facilities, subsea gas pipelines, and underwater production controllers to develop a total of eight subsea wells, four in Shwe Gas Field and the other four in ShwePhyu Gas Field. POSCO Daewoo will manage and supervise the EPCIC project while directly conducts drilling work at the eight subsea wells.
The Myanmar gas field is a representative successful resources development project of POSCO Daewoo. The company earns more than half of the total operating profit through this project every year. The Myanmar gas field is being developed in three phases. Since discovering the gas field in 2010, POSCO Daewoo has been selling gas to China and Myanmar through the phase 1 development of the field.
This project for the second phase will begin in July. POSCO Daewoo aims to produce gas in Shwe Gas Field beginning in April 2021 and in ShwePhyu Gas Field beginning in April 2022.
McDermott is a global EPCI (Engineering, procurement, construction and installation) company with 95 years of history. The marine installation is a special feature. BHGE is recognized as the only company able to provide products and services throughout the entire oil and gas production process.
POSCO Daewoo is pursuing the discovery of additional gas fields in the western sea of Myanmar and Section DS-12 of Bangladesh based on its experience in the development of the Myanmar gas fields. In addition, the company plans to acquire new mining rights mainly in strategic countries such as Southeast Asia, Oceania, and North America among others and diversify its portfolio of resources development by acquiring assets under development or assets which are producing gas.