Shares of Offshore Oil Engineering advanced after the engineering arm of state-owned offshore oil explorer China National Offshore Oil said it won a USD800 million contract for an offshore oil project in Thailand.

Offshore Oil Engineering [SHA: 600583] was trading up 2 percent at CNY5.61 (79 US cents) as of lunch break in Shanghai today.

Offshore Oil Engineering will build wellhead platforms and install subsea pipelines for an offshore oil development project owned by Thai state-owned enterprise PTT Exploration and Production, the Tianjin-based company announced on Oct. 24, adding that it will be responsible for the whole project, from design to installation to commissioning upon completion.

The project will be executed under a long-term agreement model, and PTTEP will confirm the delivery volume of offshore wellhead platforms and the workload for the subsea pipeline installation annually through actual orders between 2027 and 2029, Offshore Oil Engineering noted. Payments will be based on the actual orders.

This is the second infrastructure construction project for offshore oil and gas resource exploitation that Offshore Oil Engineering is collaborating on with PTTEP. Ten years ago, the Chinese firm built wellhead platforms and installed subsea pipelines for PTTEP's offshore oil exploration project in Myanmar for USD367 million.

PTTEP operates over 50 petroleum exploration, development, and production projects in more than 10 countries across several regions, with the primary focus on Southeast Asia and the Middle East, according to the company's website.