PetroChina Co. and Royal Dutch Shell have agreed to jointly work on an oil and gas project in Canada and a coal bed methane block in the northern part of China, according to a PetroChina announcement on November 10.

The two oil giants signed a memorandum of understanding for the project in Canada. The two companies also signed an agreement to jointly evaluate coal bed methane reserves in the Daning block of Erdos Basin in north China, PetroChina said on its website.

The two companies took over Australia's Arrow Energy in a $3.05 billion joint bid in July this year.