JINAN - Xinchao Shiye, a public company based in East China's Shandong province plans to buy oil fields in the United States in a transaction worth 8.3 billion yuan ($1.3 billion).

The oil fields are in Howard and Borden counties, Texas, said a Xinchao Shiye disclosure to the Shanghai Stock Exchange on Saturday.

Xinchao Shiye inked a Letter of Intent with Ningbo Dingliang Huitong Equity Investment Center, a limited liability partnership, and all its individual partners.

According to the disclosure, the Center will purchase the oil fields from Tall City Exploration and Plymouth Petroleum, two limited liability companies registered in Nevada, through Moss Creek Resources LLC, the Center's subsidiary.

Such a transaction has already received the approval of the Committee on Foreign Investment in the United States, the disclosure added.

Xinchao Shiye would later buy the Center through certain arrangements, said the disclosure.

Earlier this year, Xinchao Shiye announced it would buy oil fields in Crosby County of Texas in a transaction worth 2.21 billion yuan.