POSCO has entered into a joint shareholders agreement with Samchully and Korea National Oil Corp. to survey two oil and gas fields in West Ferghana/Chinabad in Uzbekistan. The oil block exploration project is under a joint investment structure where KNOC holds 65%, POSCO holds 20% and Samchully holds 15%. Located offshore in the Northeastern region of Uzbekistan, the blocks take up a total area of 6170sq/km. Potential reserves in the area are estimated at 8400 million barrels. The first phase of exploration will span three years, including a geophysical exploration and geological assessment in 2011. In 2012, an exploration drill will be conducted to confirm oil and gas reserves.
