The deal is between Pioneer Natural Resources and Sinochem, who is purchasing a 40 percent minority, non-operating interest in over 200,000 acres in the Wolfcamp shale.
"We made an announcement last week about a partnership with Sinochem," said Scott Sheffield, Pioneer CEO.
The deal is worth $1.7 billion, which will be used to drill over 6,000 wells over the next 20 years in Reagan and Upton counties.
"Pioneer will be the operator and the producer," said Sheffield. "They're making a passive investment and will be making about a $35 billion total investment over the next several years."
Sheffield said this will add 1,000 jobs with Pioneer and 4,000 more service jobs. It could also be a game changer for the future of the Permian Basin oil and gas industry.
"I think we are at the front of finding one of the largest in making the largest discoveries of the world right here below Midland, Texas. It's called the Wolfcamp zone. It's going to end up being 2 (or) 3 million acres, and it's technology driven. It's different that past oil and gas booms. There's no wildcatting done. We know the oil is there. And so, it's going to be a significant resource for the next 100-150 years," added Sheffield.
When up and running, Sheffield says the move will produce 350,000 extra barrels of oil per day, which will further decrease America's dependence on foreign oil.