MUSCAT, Oman (AP) _ Phillips Petroleum Co. signed an oil production-sharing agreement Monday with the government, the Oman News Agency reported.

Under the pact, which covers a 6,960 square-mile area in in southwest Oman, Phillips is obliged to invest at least $29 million during the first three years of the 10-year concession.

Oman Oil Minister Mohammed al-Rumhy, who signed the agreement, said Phillips is entitled to 40 percent of any discoveries, with the remainder going to the Omani government, the news agency said.

This is the second concession in Oman for Phillips, which is based in Bartlesville, Okla.

The company is expected to begin drilling next year, ONA said.

Oman is a not a member of the Organization of the Petroleum Exporting Countries. It has a capacity for producing about 800,000 barrels of oil daily and has several oil-production agreements with other major foreign companies.