BEIJING, Sept. 15 (Xinhuanet) -- Andes Petroleum Corporation, a joint venture of Chinese petroleum companies, has reached an agreement with Canada-based EnCana Corporation to purchase all of its shares in subsidiaries that have oil and pipeline interests in Ecuador, said sources with China National Petroleum Corporation (CNPC) Thursday.

    According to the agreement signed Tuesday, the Andes Petroleum Corporation, in which both the CNPC, China's largest oil producer and China Petroleum and Chemical Corporation (Sinopec), China's largest oil refiner hold a share, will buy those assets of EnCana for 1.42 billion US dollars in cash.

    The sale, expected to close before the end of this year, is subject to prior approval by the government of Ecuador, normal closing conditions and regulatory approvals.

    Based in Calgary, Alberta, EnCana has been focusing on developing its natural gas and oil resources in North America and divesting of its non-core assets since being formed in early 2002.

    The net book value of EnCana's investment in Ecuador is approximately 1.4 billion US dollars.

    Sinopec has also participated in the purchase, said the source. Enditem