National oil company Petronas said today it has signed a production sharing contract (PSC) with Thai Energy giant PTT to explore and develop an offshore oil block in an overlapping area containing hydrocarbon resources.

Under the deal, Petronas said its unit, PC JDA Ltd., and PTT's subsidiary, PTTEP Int. Ltd., will each hold a 50 percent interest in the development of Block B-17-01, located in the Malaysia-Thailand Joint Development Area in northern Thailand.

The block covers an area of approximately 3,475 square kilometers

Petronas and PTT are also partners in Blocks B-17 and C-19 in the same area, it added.