Malaysia's state oil and gas company Petronas has signed an oil exploration and production agreement with the Ethiopian government, the official Ethiopian press reported on Saturday.

The agreement gives Petronas the exploration and exploitation rights across 15,356 square kilometres (6,142 square miles) in the Gambela Block in southwestern Ethiopia, near the border with Sudan, the press said.

Petronas also signed a deal with the Ethiopian government to carry out geological and geophysical tests to search for gas in the eastern Ogaden Basin, near the border with Somalia, the press said.

"The ministry of mines and Petronas, Malaysia's national petroleum company, signed a petroleum exploration and production sharing agreement for the Gambela Block and a technical joint study agreement for the Ogaden Basin in eastern Ethiopia," it said.

5-year programme

Under the Gambela accord, Petronas has five years to draw up a programme of the minimum work it plans to carry out in the block and must contribute five million dollars up front (4.2 million euros) to start operations.

The agreements were initialled last Wednesday by Ethiopian Minister of Mines Mahmoud Dirir, and Shamsul Azhar Abbas, the deputy head of Petronas' exploration and production business division, the press said.

Petronas is responsible for all Malaysia's oil and gas resources and exports, both crude oil and refined products.

It has been investing in exploration and production abroad since 1990 and has interests in Asia, the Middle East and Africa. - AFP