CARACAS (Commodity Online) : Latin America’s largest crude oil producer, Venezuela said it will create a joint venture between state energy company Petroleos de Venezuela and National Oil Consortium to pump as much as 450,000 barrels of crude a day.

Country’s parliament passed a resolution in this effect Wednesday.

World events analysis and how they affect Markets

As per the deal, the group will pay a $1 billion signing bonus and get a 40 percent stake in the venture, which will drill the Junin 6 block of Venezuela’s Orinoco Belt.

The Orinoco is Venezuela’s richest oil province, with more than a trillion barrels in place.

PDVSA, as the Venezuelan company is known, previously agreed to terms with the owners of National Oil Consortium, Gazprom, Rosneft, Surgutneftegaz, TNK-BP and LUKoil.

Venezuela separately gave new rights to a joint venture between PDVSA and Belarussian firm Belarusneft. The venture can now drill gas that is not associated with crude oil.