(Yicai Global) May 10 -- Shares in Norinco International surged as much as 5.9 percent today after the Chinese construction engineering firm said that it has secured a USD1.2 billion contract to construct a crude oil pipeline in South Sudan.

Norinco’s share price [SHE:000065] closed up 1.3 percent at CNY18.33 (USD2.65) today. Earlier in the day it hit CNY19.16.

Unit Huibang Group will be the engineering, procurement and construction contractor for a crude oil pipeline connecting the Thar Hath and Palcoh oil fields in South Sudan, Norinco said yesterday, citing the contract signed with the Ministry of Petroleum of South Sudan on May 8.

Huibang will design, build and do the necessary procurement for the new pipeline, including constructing auxiliary facilities such as roads and bridges along the route, Beijing-based Norinco said.

Construction is expected to take 18 months and will start as soon as a deposit of 30 percent of the contract amount is paid, it added. No further details, including the length of the pipeline, were given.

Editor: Kim Taylor