Steel-making Giant Bids to Take Over Shwe Gas Development
News Weekly Business Roundup (March 6, 2010) The Pohang Iron and Steel Company, known as POSCO, is seeking a controlling stake in South Korea’s Daewoo International, which heads the foreign consortium developing the Bay of Bengal gas field. POSCO is a multi-billion dollar business ranked as the world’s second-largest steel producer. It is based in Pohang, South Korea. It is bidding to buy a 70 percent share of Daewoo for US $1.9 billion, according to the oil and gas newspaper Upstream. “In truth, it is the South Korean government that is selling its controlling interest in the Shwe gas project, because both Daewoo and the smaller Shwe consortium partner Korea Gas are mostly owned by it,” said Collin Reynolds, an energy industries analyst in Bangkok. “The change in ownership of Daewoo is unlikely to lead to any change in the current Shwe gas investment and development plan.”
Sources: Irrawaddy
