Ecuador says to rework Italy's Agip oil deal

QUITO, Oct 11 (Reuters) - Ecuador will renegotiate its oil extraction contract with Italy's Eni unit Agip Oil (ENI.MI: Quote, Profile, Research, Stock Buzz) to improve terms for the state, President Rafael Correa said on Saturday.

Correa, a leftist former economy minister who seeks to boost state control over the key oil sector, has pushed foreign oil companies to overhaul their deals to increase the OPEC's nation share of revenues.

"If you are listening to me (Oil Minister) Derlis Palacios, we have to renegotiate Agip's contract and fast," Correa said during his weekly radio show.

A local Agip spokesman was not immediately available for comments.

Agip produces around 28,000 barrels of oil per day from oil block 10 in the Amazon jungle. The state keeps all of that oil and pays the firm for its services.

Correa wants other companies, including Brazil's Petrobras (PETR4.SA: Quote, Profile, Research, Stock Buzz) and Spain's Repsol (REP.MC: Quote, Profile, Research, Stock Buzz) to switch their current participation-sharing contracts to service deals similar to the one Agip holds. The participation deals allows companies to keep part of the oil they extract.

In Agip's case, Correa is questioning some of the terms in the service contract. Agip has not been part of contract renegotiations that started last year.

Correa has threatened to expel foreign oil companies currently renegotiating their deals if they that fail to boost falling output. However, the U.S. trained economist has so far refrained from nationalizations like his leftist allies in Venezuela and Bolivia. (Reporting by Alonso Soto; Editing by Xavier Briand)