Australia's top oil and gas company Woodside Petroleum on Friday said that it has struck an agreement with South Korea's Daewoo International Corporation to explore for oil and gas in the western offshore area of Myanmar.

Woodside said that Daewood had accepted an offer from Woodside for a 40 percent participating interest in the Production Sharing Contract (PSC) for Block AD-7 in the Rakhine Basin.

The deal provides the opportunity for Woodside and Daewoo to carry out a 3D seismic acquisition program between 2013 and 2014.

Woodside Chief Executive Officer Peter Coleman said the offer demonstrated the company's commitment to secure international growth opportunities in frontier and emerging basins.

"The Rakhine deep water basin is an exciting frontier exploration area and Block AD-7 is adjacent to the Daewoo-operated Shwe field development," Coleman said in a statement.