DHAKA, Sept 14: State-owned Petrobangla signed an agreement with Thailand's PTTEP to look for oil and gas in the energy-rich Bay of Bengal, the Thai energy minister said in Bangladesh's capital on Thursday.

The two companies will begin work on geological and seismic studies immediately in an unspecified area of the bay, Thai energy minister Viset Choopiban told reporters.

PTT Exploration and Production (PTTEP) is a Bangkok-based, listed company.

Tahiland's state-owned oil giant PTT owns 66.31 per cent of its shares.

The Bangladesh government said in August it would seek bidders for oil and gas blocks in the Bay of Bengal after a legal protest was overcome.

Bangladesh is home to South Asia's biggest gas reserves. It was divided into 23 blocks for hydrocarbon exploration after the government amended the country's Petroleum Act in 1993.

Three blocks are located near a recent gas discovery in waters controlled by neighbouring Myanmar, a find which has prompted renewed interest in the region from foreign oil companies.

Bangladesh has proven recoverable gas reserves of 15 trillion cubic feet, according to official figures. More than three trillion cubic feet have already been extracted. —AFP