Calgary-based Penn West Energy Trust has reached a deal with the Chinese state investment fund to form a partnership to develop the firm’s oilsands assets in the Peace River area of northern Alberta.

Penn West will contribute assets worth $1.8 billion and the China Investment Corp. (CIC) will invest $817 million, giving it a 45 per cent stake in the partnership. The Chinese fund will also inject about $435 million into Penn West itself by buying 23.5 million units of the income trust.

The deal will give the Chinese sovereign wealth fund a 45% stake in Penn West's oilsands development in the Peace River region of northern Alberta. (CBC)

The assets include 96,000 hectares of oilsands leases, with current production of about 2,700 barrels of oil equivalent per day.

The deal is due to close around June 1.

CIC is China's main sovereign wealth fund, responsible for investing the country’s huge currency reserves.

It earlier invested more than $3.5 billion in Teck Resources Ltd., giving it a 17.5 per cent stake in the mining company.

Last month, the state-owned Chinese oil company, Petro-China, bought a nine per cent share in oilsands miner Syncrude for $4.65 billion, and a year earlier it paid $1.9 billion for a 60 per cent interest in two Canadian oilsands projects planned by Athabasca Oil Sands Corp.