The deal will now be sent before a general session of the pro-government unicameral national assembly for final approval.
According to the terms of the agreement, PDVSA will hold 60% of the new company, with CNPC controlling the remaining 40%.
Petrozumano will be authorized to explore for and extract crude oil and natural gas in a 428km2 area in Anzoategui state for 25 years.
Commission president Angel Rodriguez said in the press release the terms were favorable to Venezuela's government and the new company would also be authorized to provide services to other firms operating in the country.
Petrozumano will not directly export oil and must sell everything it produces to PDVSA, reported newspaper El Universal.
Venezuela currently ships 300,000b/d of oil to China and plans to send nearly 1Mb/d of crude by 2012.
Representatives of CNPC Venezuela in Caracas were unable to provide further details on the new venture when contacted by BNamericas.
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