Accomplishment Made Upon Workers’ Sweats and Tears

(Front Row, From Left) Minister of Rail Transportation Than Htay, Vice President Nyan Htun, Minister of Energy Zeyar Aung and Daewoo International Vice Chairman Lee Dong-hee

CEO and Chairman of POSCO Chung Joon-yang, Vice chairman of Daewoo International Lee Dong-hee, Vice President of Myanmar Nuan Tun and about 150 guests from the governments and POSCO partners celebrated the kickoff of offshore natural gas commercialization.

This ceremony for the gas field development by Daewoo International holds a significant meaning for all participants because the project went through a number of major difficulties due to sluggish investment conditions. Nevertheless, the employees’ sweats and tears have finally been paid for.

Daewoo International drilled the submarine area in Westside sea of Myanmar, in which other oil companies from France, Japan and the U.S. failed to find any feasible gas field in the 1970s. By adopting a new concept of exploration, they found ‘Shwe’ gas field in 2004 and also succeeded in discovering ‘Shwe Phyu’ and ‘Mya’ gas fields in 2005 and 2006.

The total amount of gas deposit in these three gas fields reach about 4.5 trillion cubic feet, which is the biggest volume of gas fields found by any Korean oil/gas companies around the world. In addition, the Myanmar gas field operation was undertaken by Korea’s own technologies and know-hows. It is regarded as a cornerstone and a good model for the Korean oil and gas companies operating overseas.

During the ceremony, Chairman Chung shared his feelings with the audience by saying, “This is the most rewarding moment since Daewoo International started working with us as a member of POSCO Family.” “To build a better world with dreams, hopes, materials and energies, which is POSCO’s vision, we absolutely need Daewoo International’s competence and know-hows in resource development,” he added.

Lee Dong-hee, Vice Chairman of Daewoo International, also expressed his gratitude for the completion. “I am overwhelmed to see the successful result of the Myanmar gas field project, which is built upon our employees’ sweats and tears,” he said. The Vice Chairman Lee emphasized that Daewoo International will continue to focus on resource development and new growth engines to achieve another highly fruitful outcome like they have done in Myanmar.

Myanmar’s Local Society Impressed by Daewoo International’s CSR Activity

Daewoo International also hosted a donation ceremony at Kyuak Phyu to celebrate the completion of roads renovation as a part of the corporate’s project for the local infrastructure enhancement

In line with the gas field operation, Daewoo International also operated a series of CSR activities in Myanmar. For a town of Kyuak Phyu, Daewoo International built more than 10 kilometer-long roads and bridges. They also provided supports for education, medical assistance, water supply and other infrastructure. By doing so, Daewoo International aimed at improving the quality of local residents’ lives and the prosperity of Kyuak Phyu.

Notably, Daewoo International is also investing USD 200,000 every year to create a submarine forest in Mangrove, located near Ramree Island. The project will assist the subtropical region’s environment protection and provide protections from Tsunamis and cyclones.

A 4300kva (20㎿ per day) diesel generator is also installed for the on-land gas terminal in Kyuak Phyu, to ease the electricity shortage for about 5,000 local homes. The Myanmar Investment Commission (MIC) appreciated the effort from Daewoo International and granted a commendation for their social contribution.

Daewoo International’s Oil/Gas Development Operations Continue

Since the Korean government granted the right to explore the seabed mines in the East Sea in September 2011, Daewoo International has been pushing ahead with the operation in association with the Korea National Oil Corporation. In March, Daewoo International has also secured an investment from Woodside, the biggest oil development company in Australia, for AD-7, a marine mine lot in vicinity of the Myanmar’s gas field. A month later, Daewoo International was also able to secure its right to investigate and explore mines in RSF-7 and MOGE-8, both located in the central inland area of Myanmar. Daewoo International will keep moving forward to the continuous growth and advancement in resource development division.