The non-binding MoU will enable both companies to use their experience to efficiently develop exploration and production (E&P) projects.
Itochu and CITIC are each expected to invest $946m in a single E&P project, a Nikkei report cited.
Providence Resources plc plans to issue 399,670,956 shares to institutional and other investors.
The private placement will involve the issue of ordinary shares at a price of $0.171 each.
The offering will raise $64.42m, which will be primarily used by Providence to settle the Transocean litigation and to repay short-term liabilities.