State oil company Petronas today said it has been awarded a contract to explore for oil and gas in the Timor Sea together with its partners Korea Gas, Samsung and LG International.

The production-sharing contract was awarded by the Timor Sea Designated Authority for an offshore exploration block in the Joint Petroleum Development Area between Timor Leste and Australia, Petronas said in a statement.

"The minimum financial investments for these exploration activities is US$40.5 million," it said.

The contract for Block 06-102 was signed on Monday in the capital Dili.

Petronas through its subsidiary PC (Timor Sea 06-102) Ltd holds 50 percent equity in the production contract and will be the operator of the Block.

The remaining equity is shared by Korea Gas (30 percent), Samsung (10 percent) and LG International (10 percent).