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.