(Yicai Global) Nov. 10 -- Shares in Yantai Jereh Oilfield Services Group advanced as much as 5 percent today after the private Chinese oil field services developer said that a subsidiary has won the firm’s first oil and gas development contract in the oil-rich kingdom of Kuwait.

Jereh Oilfield’s share price [SHE:002353] closed 2.21 percent higher at CNY43 (USD6.70). Earlier in the day it had reached CNY44.28.

Unit Jereh Oil & Gas Engineering has been chosen as general contractor for Kuwait Oil’s Jurassic Production Facility 5 Project, responsible for engineering, procurement and construction, the Yantai, northeastern Shandong province-based parent firm said yesterday.

Jereh Oil will build an oil and gas extraction facility in the Jurassic gas field in the north of the country, it said. Scheduled to be completed within 26 months, the plant should have an output of 50,000 barrels of crude oil and 150 million standard cubic feet of natural gas each day. Once up and running, Jereh Oil will be responsible for operations and maintenance for the next five years.

The project is worth one third of Jereh Oilfield’s revenues last year, it said. It will also greatly enhance the company’s brand awareness in the Middle East.

Editor: Kim Taylor