May 5 (Bloomberg) -- Argentina plans to open an embassy in Angola, sub-Saharan Africa's second-biggest oil producer, after Argentine President Nestor Kirchner and Angolan President Eduardo Jose Dos Santos signed an oil and trade accord. Argentina's state oil company, Energia Argentina SA, agreed to a technology and trade exchange with the African nation's oil company, Sonangol SA, while the two countries also agreed to create a bilateral trade-promotion group, Kirchner said in remarks today at the presidential palace in Buenos Aires.

``We decided to have a stronger presence on a continent that's on a path of peace and development,'' Kirchner said.

Enarsa, as the Argentine oil company is known, was created last year after power shortages forced the government to reduce shipments of natural gas to industry. The company plans to participate in all areas of Argentina's energy development, including oil, natural gas and hydroelectricity, Enarsa Vice- President Luis Corsiglia said last month in Rio de Janeiro.

Oil represents half of Angola's gross domestic product and 75 percent of government revenue, the International Monetary Fund said in a report on April 5. Oil accounted for 92 percent of the country's $10.5 billion export revenue last year, followed by diamonds, the government said on April 29.

Argentina's exports to Angola rose 27 percent last year to $81 million from $64 million in 2003, according to the National Statistics Institute. The country has no imports from Angola.

Brazil, South America's biggest economy, said May 3 it will finance $580 million in Angolan purchases of Brazilian goods and services through a three-year, oil-backed loan program.

To contact the reporter on this story: Eliana Raszewski at eraszewski@bloomberg.net

Last Updated: May 5, 2005 19:05 EDT