Royal Dutch Shell has received approval from China for a production-sharing contract for the Fushun shale gas block in the southwestern province of Sichuan as it steps up drilling activities in the Asian country.

China approved the contract a year after Shell first signed a contract for the development of the shale gas block with the China National Petroleum Corp.

Speaking on the sidelines of a conference in Beijing, Shell spokeswoman Li Lusha said that the contract is the first of its kind that China approved.

Shell has made commitment to spend at least $1 billion a year to explore vast share gas resources in China, the oil firm told Reuters last August.

The company's chief executive officer, Peter Voser, disclosed that they are ramping up investment in China as they make plans for a significant drilling season in 2013 and 2014.