Yangon - Myanmar has rejected a demand by Bangladesh to stop offshore oil exploration in a disputed area in the Bay of Bengal, state media reports said Friday.

The Myanmar government announced it would continue exploration in the Rakhaing offshore block AD-7 despite Bangladesh's claim to the area, according to state-run TV and newspapers.

Myanmar claimed the AD-7 block was within the special economic zone of Myanmar territorial waters and that the demand by Bangladesh was unlawful and wrong.

"The Myanmar government will continue all the works to the completion for safeguarding of country's interest in accordance with international laws," said a TV news broadcast.

South Korea's Daewoo Corp was awarded a tender to explore block AD-7 in 2005. Daewoo started exploration in the offshore block in 2007 and drilled its first test well in September. (dpa)