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China National Petroleum Corporation (CNPC) and Russian state oil giant Rosneft have signed a memorandum of understanding on joint production of the East Siberia oil reserves, CNPC said in a statement.

Under the memorandum, two state oil companies will set up a joint venture where Rosneft controls 51% of the stakes and CNPC owning the rest.

The joint venture will develop a number of giant oil and gas fields in eastern Siberia and the Far East, including the Srednebotuobinsk field which Rosneft has taken over recently after a complete acquisition of the field owner Taas-Yuryakh.

The oil produced in the future will be exported to China and other Asia-Pacific countries through Russia Eastern Siberia-Pacific Ocean pipeline and a China-Russia oil pipeline stretching from Russia’s Skovorodino to China’s Daqing City in Heilongjiang Province.

In June, Rosneft signed a $270 billion deal with CNPC to supply 300,000 barrels of oil a day to China over 25 years, starting in 2015.

Last month, Russia’s biggest natural gas producer Gazprom and CNPC agreed on the basic terms of a deal to ship up to 68 billion cubic meters of gas per year to China, with the final agreement expected to be reached by the end of this year pending price negotiation.