PETROS SIGNS DEAL WITH KOREAN POSCO GROUP FOR DEVELOPMENT OF CSS BUSINESS IN SARAWAK

Date: 12 December 2022

KUCHING, Sarawak, 12 December 2022 - Petroleum Sarawak Berhad (“PETROS”) today signed an MoU with POSCO Group from Korea, to collaborate in the development of Carbon Capture and Storage (“CCS”) business in Sarawak.

The ceremony was witnessed by Premier of Sarawak, YAB Datuk Patinggi Tan Sri (Dr) Abang Johari Bin Tun Datuk Abang Haji Openg. Also present were Sarawak Deputy Minister for Energy and Environmental Sustainability, YB Dr Hazland Abang Hipni; Sarawak State Secretary, YB Datuk Amar Haji Mohamad Abu Bakar Bin Marzuki; and State Financial Secretary, Dato Sri Dr Wan Lizozman Bin Wan Omar.

PETROS was represented by Tan Sri Datuk Amar (Dr) Hamid Bugo, Chairman of the Board of Directors for PETROS; Janin Girie, PETROS Group CEO; Anyi Ngau, PETROS Acting Senior VP of Sarawak Resources Management; while POSCO Group was represented by Cho Ju-Ik, EVP and Head of Hydrogen Business for POSCO Holdings.

“We are deeply honoured by our Premier, Abang Jo and our State Government, who gave PETROS the trust and confidence to be the resource manager for the carbon capture and storage for Sarawak,” said Tan Sri Hamid Bugo in his speech.

He added, “We share this confidence and belief in our potential in the CCS arena. With support and the right collaborations, we can truly make Sarawak achieve a world-scale, world-class endeavour into CCS.”

PETROS, as the resource manager for the CCS business in Sarawak, inked the collaboration agreement with POSCO Holdings-POSCO International-POSCO Engineering & Construction Co, Ltd.

The four companies will conduct a joint study on potential carbon storage sites in Sarawak based on available data provided by PETROS, transportation of CO2 from Korea to CCS hub in Sarawak, CO2 injection and sequestration, solutions to reduce, mitigate and/or avoid Green House Gas (“GHG”) emissions arising from the CCS opportunities; and assess the technical and commercial feasibility of the CCS business.

“POSCO International has abundant experiences in exploration and production of overseas oil and gas fields, and POSCO E&C already completed in-depth study for CO2 facilities, so we are confident to accelerate our carbon neutrality by means of gathering group-level abilities,” said Cho Ju-Ik, EVP and Head of Hydrogen Business for POSCO Holdings.

Today’s MoU was signed by Cho Ju-Ik for POSCO Group and Anyi Ngau for PETROS.

“Our Premier had previously mentioned that CCS is a key enabler to achieve Net Zero by 2050. Sarawak is blessed with geological structures that are suitable to store carbon dioxide. Therefore, enabling us the potential to be dealing with CCS at a global-scale” said Anyi Ngau, Acting Senior VP of Sarawak Resources Management PETROS.

“We are honoured and grateful for this confidence given to us by our Premier and our Government,” he added.

The Sarawak Land Code has been updated to include the legislation regulating this new CCS business opportunity. The CCS sites are part of the State land and belong to Sarawak. The CCS industry aims to promote the development of Sarawak’s massive sour gas reserves, which contain CO2. Through the CCS business, it would enable Sarawak to ensure long-term energy security for the State, provide more local jobs in this green industry and provide an additional revenue source to the State.

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