ABU DHABI ø China and Oman have signed an energy accord for exploration and development of the southern part of the sultanate.

The agreement signed by the government in Muscat and China's Sinopec called for the state-owned corporation to explore for crude oil and natural gas in Blocks 36 and 38 -- comprising a combined area of 36,000 square kilometers -- in southern Oman. Sinopec was expected to conduct geological assessments and drill a well by 2007.

Officials said Sinopec would spend $22 million on energy exploration.

The contract contained an option for Sinopec to invest an additional $29 million in any extension of the exploration period.

Muscat would not bear any investment risk during the exploration, officials said. Two wells have already been drilled in the areas of Block 36 and 38. China, with three companies operating in the sultanate, was expected to invest a total of $600 million in energy exploration in Oman.