China Offshore Oil Engineering Co. Ltd. (COOEC) has been awarded a significant contract to expand the Shwe Natural Gas Project, commonly referred to as the Shwe Gas Field, located off the coast of Arakan State.

The South Korean conglomerate POSCO International has issued a contract worth USD 523 million to COOEC for the expansion of the A-1 gas field, one of the primary sites off the Arakan coast. The contract, signed on July 17, encompasses the procurement of engineering technologies and materials necessary for the project's fourth phase.

The expansion project is scheduled to be completed over a period of three years. Under the terms of the contract, COOEC will be responsible for the overall project design, procurement of equipment, installation, and other related general works.

The Shwe Gas Field project was initiated following the discovery of natural gas deposits in the Bay of Bengal in 2004. The project was divided into two sites: A-1 and A-3. Since then, POSCO International has been commercially extracting gas from these sites.

Since 2013, the gas produced from the Shwe Gas Field has been transported to China National Petroleum Corporation (CNPC) through an extensive pipeline network. The pipeline has been transporting over 500 million cubic feet of gas to China daily.

POSCO International holds a 51% stake in the Shwe Gas Field, while Korea Gas Corporation (KOGAS) owns 17%. Myanmar Oil and Gas Enterprise (MOGE) holds 15% of the shares. Additionally, India-based companies Gas Authority of India Ltd. (GAIL) and Oil and Natural Gas Corporation (ONGC) each hold an 8.5% stake in the project.