First of all, use the alternative format:
EXEC SQL CONNECT :usr_pwd;
where the host variable usr_pwd contains your username and password separated by a slash character (/).
Then for usr_pwd attach remote server info:
"user/pwd@(DESCRIPTION = (ADDRESS_LIST =(ADDRESS = (PROTOCOL = TCP)(HOST = xx.xx.xx.xx)(PORT = xxxx)))(CONNECT_DATA = (SERVICE_NAME = xxxxx)))"
For fast verification, you can use sqlplus to see if it connects first then plug in your code and compile:
sqlplus user/pwd@(DESCRIPTION = (ADDRESS_LIST =(ADDRESS = (PROTOCOL = TCP)(HOST = xx.xx.xx.xx)(PORT = xxxx)))(CONNECT_DATA = (SERVICE_NAME = xxxxx)))