The semi-official publication quoted an Energy Ministry official saying gas production at the Yetagun field off Burma's south-east coast could be increased by 25 per cent.

The official said a verbal agreement had been reached between the Burmese junta and PTT Exploration and Production (PTT E&P).

"Although the partners have agreed to increase production, it takes time to reach a final agreement," the Burma official said.

The Times reported Thailand wanted to buy an additional 100 million cubic feet of gas per day on top of the 400 million cubic feet piped every day from offshore reserves in the Andaman Sea.

Burmese natural gas makes up about 20 per cent of Thailand's supply.

Most of that comes from the Yetagun and Yadana fields that are operated by Malaysia's Petronas, Japan's Nippon Oil, PTT E&P, Total of France and US-based Unocal.

Prime Minister Thaksin Shinawatra caused a stir in early August when he made a surprise visit to the secretive state.

Upon his return he said he had asked Burma for exclusive rights to develop its natural-gas reserves.

Energy Minister Viset Choopiban reported at the time that Thaksin met with strongman leader Senior General Than Shwe and asked that Thailand energy giant PTT Plc be permitted exclusive rights to a natural-gas field in the Bay of Bengal.

PTT confirmed it was in a race with China and India to secure exclusive rights to offshore natural gas reserves in western Burma.

Agence France-Presse,

 The Nation