Beijing, Oct 18 (IANS): China National Petroleum Corporation (CNPC) Friday said it has signed a memorandum of understanding (MoU) with Rosneft Oil, Russia's oil giant, to tap oil reserves in eastern Siberia.

According to the MOU, CNPC and Rosneft will collaborate to develop several large oil and gas fields in eastern Siberia and the far east, Xinhua reported.

They will set up a joint venture, with Rosneft controlling 51 percent of the equity and CNPC owning the remaining 49 percent.

CNPC and Rosneft will thereafter jointly acquire and develop oil and gas fields of mega reserves in eastern Siberia and the far east, according to a statement on the CNPC website.

The oil produced will first meet energy demands in eastern Russia and then be exported to China and other Asia-Pacific countries, according to the statement.

It added that the signing of the MoU is a new breakthrough by the two sides in upstream cooperation, and will surely promote future joint work in downstream businesses and other sectors.