In a joint communiqué the three Japanese firms said, “We will explore the area by October 2007 and are scheduled to drill a test well in 2006 after conducting a seismic survey.”

“The blocks, 1,570 square kilometres in total, are at a depth of 100-200 meters [and] several oil and gas fields are located nearby,” added the firms, which did not elaborate further.

Under the terms of agreement, Idemitsu and Nippon Oil will each hold a 35% stake in both blocks. The balance is held by Teikoku.