China Petrochemical Corp, parent of listed China Petroleum & Chemical (Sinopec), had joined six other global oil firms in changing their business arrangements with Venezuela on exploration and production into joint ventures majority owned by the state oil firm, state media reported.
The change was part of the South American nation's partial nationalisation of oil assets after President Hugo Chavez ordered state oil firm Petroleos de Venezuela (PDV) to take over operations of heavy oil projects in the Orinoco Basin from May 1.
Foreign investors were given until Monday to sign new contracts, which raise PDV's stake at the expense of foreign partners, or exit the country.
China Petrochemical had signed a memorandum of understanding on the new joint venture, Shanghai Securities News reported, without quoting any source or giving details. The company's spokesman said he was unaware of the development.
China Petrochemical has agreed to take a 32 per cent stake in the Orinoco Belt's Posa oilfield, which is 60 per cent owned by PDV, Dow Jones reported last month.
In addition to China Petrochemical, US oil firm Chevron, Britain's BP, France's Total, Italy's ENI and Norway's Statoil have signed new contracts, while PetroCanada and US producers ConocoPhillips and ExxonMobil refused to sign and continued to negotiate for compensation.