Continental Resources said it has signed a memorandum of understanding with Petróleos de Venezuela to operate and develop the Ayacucho 2 Block within the Venezuelan Orinoco Oil Belt.

The company said it and PdVSA would advance a long-term contract agreement in the coming weeks for the block, which encompasses around 126,000 acres and has an estimated 30 billion barrels of resources in place.

The contract is expected to give Continental a 100% working interest in operating the block, the company said.

"Ayacucho 2 is an extraordinary addition to our portfolio and will contribute significantly to Continental's growth trajectory," Chief Executive Doug Lawler said.