YPF and Sinopec have agreed to work together to develop conventional and unconventional oil and gas projects in Argentina.

A memorandum of understanding was signed Jan. 28 in Beijing, China, regarding the two companies’ intent to establish a joint venture with upstream and downstream potential, according to YPF’s website. The partnership could include exploration and development targets in the Vaca Muerta shale.

The plans would build upon the relationship already established between the two. Together, Sinopec and YPF are working on new projects in the La Ventana area. The projects, according to YPF, include 3-D seismic, drilling exploratory and development wells and the construction and refurbishment of treatment plants.