Subsidiaries of China National Petroleum Corp (CNPC) and Mozambican oil firm Empresa Nacional de Hidrocarbonetos (ENH) established last week a joint venture to jointly explore oil projects in the African nation, Chinese state-run news agency Xinhua reported. It is the first joint venture formed by Chinese and Mozambican state-owned companies.

The new company between China Petroleum Engineering and Construction Corp (CPECC) and ENH Logistics will provide services on refining and chemical projects, survey, designing, engineering, storage, and long-distance pipeline networks, the Chinese company said in a statement.

Hou Haojie, general manager of CPECC, said the Chinese company would take this opportunity to “introduce the most advanced personnel, techniques and management experience” to Mozambique. He was speaking at a ceremony held last week in Mozambique’s capital Maputo.

Eduardo Naiene, president of ENH Logistics, was quoted saying the joint venture marked “a new milestone for energy development in Mozambique”.

Xinhua reported the newly formed firm would explore building several oil and gas projects in basins in the African nation.