Bolivia and Libya agreed Wednesday to establish diplomatic relations and join efforts to develop the nations' energy resources.

Bolivian Foreign Minister David Choquehuanca said the two countries signed a memorandum to set up diplomatic ties during a meeting with Libyan officials in La Paz.

Choquehuanca said Bolivia, which has large natural gas reserves, also wants help from oil-powerhouse Libya in developing its energy sector.

Leftist President Evo Morales established diplomatic relations with Iran last September.