PetroChina, Shell to partner on Canadian oil sands project

PetroChina (PTR.NYSE, 601857.SH, 0857.HK) and Royal Dutch Shell (RDS.A.NYSE, RDSA.LON) have signed a memorandum of understanding to develop an oil-sand block in Canada and agreed to assess coal bed methane in northern China’s Ordos Basin, Dow Jones reported. The companies expect to produce crude oil from the Canadian oil-sand block, part of an oil and gas complex project. PetroChina parent China National Petroleum Corp (CNPC), which disclosed the agreements in an in-house newsletter, did not provide further details. Earlier this year, oil refiner China Petroleum and Chemical Corp (Sinopec; SNP.NYSE, 600028.SH, 0386.HK) received approval from Canada to buy ConocoPhillips’ (COP.NYSE) stake in Syncrude Canada for US$4.65 billion.