(Yicai Global) Feb. 7 -- Shares in China Petroleum Engineering soared by the exchange-imposed limit today after the Chinese oil and gas engineering service provider said it has won a USD316 million contract to construct an oilfield facility for US oil major ExxonMobil’s Iraq subsidiary.

China Petroleum’s share price [SHA:600339] closed up 10 percent at CNY3.19 (USD0.50).

A unit of China Petroleum will be responsible for building new crude oil treatment and ancillary facilities for the West Qurna-1 oilfield that will increase the reserve’s output of crude oil by 210,000 barrels a day and boost annual production by about 1,050 tons, China Petroleum said yesterday.

The project will start construction in April and is scheduled to be completed within three years, the Beijing-based firm said. It will boost the company’s profit and revenue and help it consolidate its oil and gas engineering business in Iraq and the Middle East, it added.

The West Qurna oilfield, located about 65 kilometers northwest of the city of Basra in southern Iraq, is one of the country’s main oil fields and is currently divided into two blocks, of which Block 1 is currently being developed by ExxonMobil’s Iraq subsidiary.

Editor: Kim Taylor