National oil firm Petronas today said it has been awarded by Ethiopia an exploration block in the western part of the country believed to be rich in oil and gas.

Petronas said the award marked its entry into the upstream sector of the African country.

The production sharing agreement for the block G was inked in the Ethiopian capital Addis Ababa between Petronas and the country's Ministry of Mines.

Block G, which covers an area of 15,356 square kilometres, lies within the Gambela Basin and is located in the western part of Ethiopia.

Technical training

Petronas would pump US$5 million for this initial exploration stage and would provide technical training for Ethiopians in Malaysia in related fields.

Petronas, in a statement said it would also conduct geological and geophysical studies on the Ogaden Basin, another gas-prolific area in Ethiopia.

Petronas is already operating in a few other African countries including Algeria, Angola, Benin, Chad and Cameroon.