Royal Dutch Shell and the China National Petroleum Corporation (CNPC) have inked an agreement, in a move to develop upstream and downstream energy businesses.

As per the agreed terms, the companies will also bolster their cooperation in sectors like deep sea exploration as well as liquefied natural gas (LNG) and unconventional gas sources like shale.

Both the companies have agreed to promote the strategic partnership to a higher level.

Shell also plans to establish a $12.6bn refinery and petrochemical complex in eastern China, under a partnership with CNPC, which is anticipated to become the single largest foreign investment in the country, Reuters reported.

It has already joined forced with CNPC to explore and develop shale gas in China’s western regions.