POSCO ex­pands de­vel­op­ment of Myan­mar gas field

The Korea Times - - BUSINESS - By Nam Hyun-woo [email protected]­re­atimes.co.kr

POSCO In­ter­na­tional has signed a de­sign deal with McDer­mott In­ter­na­tional of the U.S. for the phase three de­vel­op­ment of its gas field project in Myan­mar, the com­pany said Sun­day.

POSCO In­ter­na­tional CEO Kim Young-sang and McDer­mott CEO David Dick­son signed the con­tract on front-end en­gi­neer­ing de­sign (FEED) ser­vices for the fi­nal stage de­vel­op­ment of the Shwe Project.

The con­tract came weeks after POSCO In­ter­na­tional named McDer­mott and Hyundai Heavy

In­dus­tries in Oc­to­ber as FEED con­trac­tors for the phase three de­vel­op­ment.

The value of the con­tract has not been dis­closed.

McDer­mott and Hyundai Heavy will work on ba­sic de­signs for a new com­pres­sion plat­form, bridge links be­tween plat­forms and make mod­i­fi­ca­tions to the ex­ist­ing plat­form for the project.

After fin­ish­ing the ba­sic de­sign­ing, POSCO In­ter­na­tional will choose one of them as the con­trac­tor in charge of en­gi­neer­ing, pro­cure­ment, con­struc­tion, in­stal­la­tion and project com­mis­sion­ing next year.

POSCO In­ter­na­tional started the multi-field off­shore gas project in 2000 in wa­ters near the Bay of Bengal and started com­mer­cial pro­duc­tion in 2013.

Of three fields in the project — Shwe, Shwe Phyu and Mya — POSCO de­vel­oped the Shwe and Mya fields in phase one and is work­ing on phase two de­vel­op­ment of the Shwe and Shwe Phyu fields.

In phase two, Shwe is ex­pected to be­gin com­mer­cial gas pro­duc­tion in 2021, fol­lowed by Shwe Phyu in 2022. The project has been a cash cow for POSCO In­ter­na­tional, whose main busi­ness is trad­ing.

Cour­tesy of POSCO In­ter­na­tional

POSCO In­ter­na­tional CEO Kim Young-sang, seated right, and McDer­mott CEO David Dick­son, seated left, pose after sign­ing a con­tract in the U.S. Satur­day (lo­cal time) on front-end en­gi­neer­ing de­sign ser­vices for the phase three de­vel­op­ment of POSCO In­ter­na­tional’s Myan­mar gas field project.

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