Eni SpA (E) said Friday it signed a memorandum of understanding with China National Petroleum Corp., or CNPC, as part of a strategy to strengthen its presence in the hydrocarbon-hungry Far East and to use its shale gas knowledge.

The memorandum allows for the study of business opportunities in China and international markets, including common opportunities to jointly expand operations in conventional and unconventional hydrocarbons in Africa , as well as allowing CNPC to asses the potential purchase of stakes in certain assets owned by Eni.

Rome-based Eni , Italy 's biggest energy company by market value, said it will use its expertise in shale gas gained in North America to assess opportunities in unconventional resources owned by CNPC in China .

Eni, which entered the Chinese market in 1984, is a small player is the world's No. 2 economy with a daily output of 12,000 barrels of oil equivalent. Eni is seeking to tap into China 's gas market, which is still at its infant stages when compared with coal.

Gas' credential as a source of lower-carbon energy is steadily growing globally as environmental issues take a more central role in energy policies.

Eni didn't provide financial details of the accord.

Market players say it is hard to quantify the importance of the deal for Eni, as financial details are missing and it refers to possible projects.

The possible sale of Eni assets to CNPC is positive, as it shows the Italian company is focused on its disposal plan to lower debt, said Roberto Mascarello, a Geneva-based analyst with Kepler Capital Markets.

"Chinese companies are known to pay well for energy assets," said Mascarello.

Analysts are positive on the accord's Africa focus too -- the continent where Eni produces most of its hydrocarbon output and also where Chinese companies have invested heavily to grab hold of its rich commodities.

At 1147 GMT, Eni shares rose EUR0.34, or 2%, at EUR17.63, outperforming the 1.5% gain on Italy 's benchmark FTSE Mib Index.

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