Korean firm stops Bay of Bengal exploration - minister

DHAKA (Reuters) - A Korean company hired by Myanmar to explore for oil and gas in disputed waters in the Bay of Bengal is withdrawing, a senior Bangladesh foreign ministry official said on Friday.

"The Daewoo-Myanmar company, a South Korean firm appointed by Myanmar for oil and gas exploration in the Bay of Bengal, has started the process of withdrawal from areas Bangladesh claims to be her territorial water," said Iftekhar Ahmed Chowdhury, Foreign Affairs adviser (minister).

"The government of the Republic of Korea and the Daewoo company informed us that the dismantling process had begun which might take a few days to complete," he told Reuters.

Iftekhar said Bangladesh still hoped for a peaceful resolution of the dispute in the Bay, where both countries have deployed navy ships.

Dhaka has noted the issue to China, a friend of both.

In Yangon, a Foreign Ministry official said on Thursday Myanmar had only "paused" in its exploration activities in the disputed waters.

"We don't have any reason to change our stance on this matter because it is located in our exclusive economic zone," said the Foreign Ministry official, who declined to be identified.

"We will continue it soon and move somewhere else within our zone when it's finished," he said of the exploration work.

Meanwhile, the head of Bangladesh's army-backed interim government, Fakhruddin Ahmed, held a meeting on Thursday with the armed forces chiefs and foreign ministry officials to take stock of the situation.