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POSCO will not sell Myanmar gas fields


Photo: EPA

POSCO said on 26 June in a regulatory filing that it won't sell off the resource development unit of Daewoo International that has caused controversies within the group reported Korea IT Times on 29 June.

It has been a month since the rumour of selling the Myanmar gas fields reared its head. The discord between POSCO and its trading arm Daewoo International emerged on 26 May when a document detailing restructuring plans on the trading unit was uploaded on the group's Intranet page on which any employee can post messages anonymously.

The Myanmar gas fields are one of the prized assets of the POSCO Group, with expected profit for 25 years until 2022 from its acquisition in 1997. The emergency management reform committee held an interim meeting recently in which group chairman Kwon Oh-joon was in attendance and decided to keep the assets despite the current poor results.

Kwon Oh-joon commented on 9June in relation to the rumour about the gas fields, “All business units within POSCO Group are up for restructuring and it is no exception for the Myanmar gas fields. I ordered some of the planning officers to review the sale possibility of the gas fields in preparation for the current market conditions to worsen further. Unfortunately, the press have blown it out of all proportion, speculating about outright sale.”

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