Posco International said Monday that it had discovered a new offshore gas reservoir near Myanmar, raising hopes for a new cash cow for the company.

According to the Korean company, it began exploratory undersea drilling on Jan. 12 for its Mahar gas project. The company drilled 2,598 meters into the seabed, more than 1,000 meters below the water, and carried out drill stem testing to discover the gas reservoir, which could yield about 38 million cubic feet of natural gas per day.

The company said it plans to carry out assessment drilling there from 2021, analyze the data for two years and come up with detailed plans to develop the new gas field for commercialization.

The company is also to carry out exploratory drilling for another project in Aung Myin, some 24 kilometers southeast of Mahar.

Posco International, the trading arm of Korea’s leading steel manufacturer, Posco, is already seeing a profit from its gas production project in the Southeast Asian country.

It is currently producing and selling gas extracted from two offshore gas fields in Myanmar, Shwe and Mya, which contributed to the company’s highest operational profit of 605.3 billion won ($511.9 million) in 2019.

“The discovery of the new gas field shows the capability of Posco International in exploratory drilling, and it will stimulate the company to take a step further in the energy industry,” a Posco International official said.

By Jo He-rim (herim@heraldcorp.com)