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2nd UPDATE:Angola Inks Letter Of Intent To Develop Ecuador Oil

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LONDON -(Dow Jones)- Angola Thursday signed a letter of intent with Ecuador to help with the exploration and production of 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.

Angola's official news agency later said the document "aims at enhancing the development of projects...in block 29 of Ecuador's Amazon region, and in blocks 5 and 39 of the Ecuadoran coast."

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, but they have yet to lead to material investments.

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

Ecuador is to take over the presidency of the Organization of Petroleum Exporting Countries from Angola on Jan. 1.

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

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  11-06-091115ET
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