(Yicai Global) Jan. 24 -- China CAMC Engineering’s stock price rose after the contractor and China National Offshore Oil Corporation landed a USD594 million deal to build a central crude oil processing facility in southern Iraq.

CAMCE’s shares [SHE: 002051] closed 2.5 percent up at CNY7.27 (USD1.15) apiece today. The stock has gained 1.7 percent so far this month.

A consortium will oversee engineering, procurement, and construction of the 865-square-kilometer facility in Iraq’s southern Barsa province, CAMCE said late yesterday, citing the contract signed with Kuwait Energy Basra. The plant will have a daily capacity of 100,000 barrels of oil and will be completed in 33 months.

The total value of the contract is equal to 47.3 percent of CAMCE’s revenue in 2020, the Beijing-based company said.

CAMCE accounts for 93 percent of the consortium, while China National Offshore Oil Corporation, one of the country’s top three energy firms, makes up the rest. CAMCE will be responsible for construction work, while CNOOC will handle the design of technical support.

CAMCE added that the project will boost its performance over the next three years, consolidate the firm’s professional advantages in building petrochemical projects, and expand its share of the overseas engineering construction market.

Kuwait Energy Basra, a unit of Hong Kong-based United Energy Group, provides oilfield exploration, development, production, and other services to oil companies, including Basra Oil, an Iraqi national company responsible for the oil in South Iraq, CAMCE said.

CNOOC’s shares [HKG: 0883] gained 0.8 percent to HKD9.35 (USD1.20) today.

Editor: Futura Costaglione