(Yicai Global) Jan. 14 -- China Oil HBP Science & Technology has clinched the bid for a natural gas processing plant project with an annual capacity of 1 billion cubic meters in the Kashagan Oilfield in Kazakhstan at a price of USD242 million, HBP said in a statement today.

Beijing-based international oil and gas service contractor HBP's [SHE:002554] stock price jumped to the daily 10 percent limit this afternoon when it hit CNY3.39 (USD0.49), up 8.31 percent.

HBP will provide the project owner Gas Processing Company with a detailed project design and all skid-mounted equipment, along with an on-site guide to equipment installation and project commissioning services. The project will last two years, per the statement.

The Kashagan Oilfield is a massive oil and gas deposit in Kazakhstan's Caspian oil and gas basin believed to be the biggest such find in the world in 30 years. The oil reserve amounts to 38 billion barrels, while the natural gas is 1 trillion cubic meters. The processing projects will solve the problem of gas being wasted through torch combustion and recycle resources.

The processing plant is the first phase of the project, and the second-phase currently under planning will raise capacity to 4 billion cubic meters in the future, per the statement.

QAZAQ Business Group, the parent company of the project owner Gas Processing Company, owns gas supply networks in 10 of Kazakhstan's 14 states, per the statement.

Editor: Ben Armour