Beijing: Myanmar, a close ally of China, has awarded oil and gas exploration rights to a Chinese oil giant at three deep-sea blocks off the oil-rich country s western Rakhine coast.

The contract was signed yesterday, two days after China and Russia vetoed a US move to drag Myanmar into the UN Security Council in an effort to restore democracy in the country.

Under the production sharing contracts signed between the China National Petroleum Corporation (CNPC) and the Myanmar Oil and Gas Enterprise under the Ministry of Energy, oil and gas exploration will be carried out at blocks AD-1,AD-6 and AD-8 off the Rakhine coast which cover a total area of 10,000 square-kilometres.

Since October 2004 up to January 2005,a consortium comprising two Chinese and one Singaporean companies had reached a series of contracts with Myanmar on gas exploration at onshore Block-M (Kyaukphyu) and A-4 in western Rakhine state, Block M-10 and M-2 in the Mottama offshore area, onshore Block C-1 (Indaw-Yenan area) and Block C-2 (Shwebo-Monywa area) in northwestern Sagaing division.

The signing ceremony was attended among others by visiting Chinese Vice-Chairman of the National Development and Reform Commission Zhang Guobao and Myanmar Minister of Energy Brigadier-General Lun Thi.

Meanwhile, Myanmar is planning to sell gas produced from two biggest blocks A-1 (Shwe field and the Shwephyu field) and Block A-3 (Mya field) in the Rakhine offshore area to countries such as India, China and Thailand as well as South Korea. However, the final decision to which country the gas will be sold is being postponed up to now, Xinhua news agency reported.