Posco Daewoo, a leading South Korean trade company, has secured a deal from the Bangladeshi government to explore gas in a deep-sea block, the company said Wednesday.

Posco Daewoo and Petrobangla, a state-owned oil firm, signed a production-sharing contract for deep-sea block 12 in the Bay of Bengal, according to the company. 
 

“This deal is based on our success of gas exploration in Myanmar,” Kim Young-sang, the company’s president and CEO, said at a signing ceremony in Bangladeshi capital Dhaka. “The 12 deep-sea block in Bangladesh has a similar geological setting with that of Myanmar, so we will do our best to achieve another success in Bangladesh.”

In February 2016, Posco Daewoo discovered gas reserves in the deep sea of Myanmar, which is adjacent to block 12 of Bangladesh.

By signing the deal, the company has secured a survey period of at least eight years and production period of up to 25 years. The company said it will begin a seismic survey in the area in the second quarter of this year. 

By Park Ga-young (gypark@heraldcorp.com)