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UPDATE:Angola Signs Letter Of Intent To Develop Ecuador Oil

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LONDON -(Dow Jones)- Angola Thursday signed a letter of intent with Ecuador to explore and produce oil and gas in the Latin American nation, Ecuador's Oil Ministry said in a statement late Thursday.

The letter was signed in Quito by visiting Angolan Oil Minister Jose Botelho de Vasconcelos and his Ecuadorian counterpart, Germanico Pinto.

The statement didn't specify what acreage or investment amount was covered by the letter of intent. However, Ecuador has previously said Angola is interested in three blocks and wants to invest between $1.5 billion and $3 billion in different areas, included oil and energy.

The ministry's statement said the investment activities would be undertaken by Angola's national oil company Sonangol "at the responsibility and risk for the company."

The letter of intent is part of a push by Ecuador to increase ties with state- owned oil concerns after tightened investment rules led to tensions with some private oil companies.

In September, the South American nation signed a joint-venture agreement with Petroleos de Venezuela SA to operate the Sacha oil field, in the Amazonas region.

Ecuador also has preliminary cooperation agreements with Iran and Indonesia.

The five-year prospective agreement signed with Angola also includes training-exchange programs in areas such as exploration, production, environmental management, legal regulations and dispute resolution.

Ecuador is to be replace Angola on Jan. 1 as the president of the Organization of Petroleum Exporting Countries.

By Benoit Faucon, Dow Jones Newswires; +44-20-7842-9266; benoit.faucon@ dowjones.com

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