DHAKA - MYANMAR removed a rig from a gas-rich stretch of the Bay of Bengal on Sunday after Bangladesh sent warships to protest against exploration in the disputed waters, Dhaka's foreign minister said.

Bangladesh deployed four ships and put its navy and armed forces on high alert after a Korean company escorted by Myanmar ships began work in the area.

Iftekhar Ahmed Chowdhury, the country's foreign minister, told reporters Myanmar was removing the rig.

'What I have heard from the ground is that Daewoo company is slowly removing its rig. As I talk to you, it is leaving Bangladeshi territory,' Chowdhury said.

'We hope that they will not conduct any further exploration in this area until we can demarcate our maritime boundary through talks,' he added.

Armed forces spokesman Salauddin Ahmed confirmed the development, which he said had 'greatly eased tensions' in the Bay of Bengal.

Bangladesh faces an acute energy shortage and has invited bids from foreign companies to explore gas in its stretch of the sea.

Navy and army officials said that Bangladesh had readied missile-laden boats and two elite army units as Myanmar boosted its troop presence along the 220-kilometre land border.

Officials of the two countries held talks in the new Myanmar capital Naypyidaw earlier this week but apparently failed to resolve the dispute.

Myanmar, which has discovered huge reserves of natural gas in the Bay of Bengal, insists its exploration work is legal.

More talks between the two nations are due to be held in Dhaka on November 16 and 17. -- AFP