KUALA LUMPUR, June 29 (Xinhua) -- The Malaysian government has extended its agreement with underwater exploration firm Ocean Infinity for another 12 months to continue the search for the wreckage of Malaysia Airlines Flight MH370 in the southern Indian Ocean, Transport Minister Anthony Loke Siew Fook said on Monday.

Photo taken on March 18, 2016 shows people taking photos in front of the Petronas Twin Towers in Kuala Lumpur, Malaysia. (File Photo: Xinhua)

The cabinet approved the extension on Friday, with the renewed agreement taking effect from July 1 this year until June 30, 2027, Loke said in a statement.

"This extension maintains all key terms and conditions of the existing agreement, including the application of the 'no find, no fee' principle. Under the arrangement, the government will not make any payment to Ocean Infinity if the aircraft wreckage is not found," he said, adding that the government would pay the firm 70 million U.S. dollars if the wreckage is successfully located.

Loke said the extension would allow Ocean Infinity to complete the search of the remaining 7,428.54-square-kilometer search area.

The disappearance of MH370 was a tragic accident that occurred on March 8, 2014, when the plane, en route from Kuala Lumpur to Beijing, China, vanished from radar screens with all 239 people on board.