Myanmar's government says ethnic Shan guerrillas have attacked a state oil and gas company compound near the Chinese border, leaving two dead and three wounded.

The state-owned Myanma Ahlin newspaper reported Wednesday that guerrillas from the Restoration Council of the Shan State-Shan State Army opened fire Monday at the Myanma Oil and Gas Enterprise compound in Namkham, 740 kilometers (460 miles) north of Yangon.

Fighting in the area broke out earlier this month between the government and Shan guerrillas, causing more than 2,000 Shan villagers to flee across the border, but calm has been restored, RCSS secretary general Lt. Col. Yawd Murng said Wednesday.

A pipeline to China will go through the area.

The government has signed cease-fires with several ethnic groups, but fighting continues with others, including the Shan.