Taipei - Taiwan has signed an oil exploration agreement with Belize in a deal described Tuesday by Taipei as deepening relations with its Caribbean ally.

"CPC Corporation Taiwan signed the production sharing agreement with Belize on January 14, indicating further improvement of both diplomatic and substantive relations between our two sides," Diego Chou, deputy director for Latin American and Caribbean Affairs of the Foreign Ministry, said in a news conference.

Belize is one of just 23 nations that recognize Taiwan diplomatically.

Chou said CPC will soon send a group of experts and technicians to Belize for geological and seismological survey of a
4,800-square-kilometre offshore site before officially setting up its exploration team there.

The deal was signed by the OPIC Resource Corporation, an overseas subsidiary of the state-run CPC petroleum company, and the government of Belize in Belmopan, the capital of the tiny Caribbean nation, Chou said.

CPC officials said the deal gives the state oil firm access to the offshore mine for petroleum exploration for a period of eight years. It allows the Belize government to collect royalties, share of production, income tax and 10 per cent working interest.

CPC officials declined to estimate the amount of revenues Belize would collect through the deal. They said preliminary exploration activities will begin within 90 days from date of signing. (dpa)