(Yicai Global) Oct. 11 -- Shares of China's Zhongman Petroleum and Natural Gas Group skyrocketed after the drilling engineering firm said it has won its first oil well workover contract in Saudi Arabia, expecting to gain USD49.8 million.

ZPEC’s stock price [SHA: 603619] surged by the daily limit of 10 percent to CNY15.72 (USD2.40) intraday. The shares are more than 70 percent up this year.

The oilfield service provider's unit in Saudi Arabia signed a four-year cooperation agreement with Saudi Aramco regarding the rehabilitation project, the Shanghai-headquartered firm said in a statement yesterday.

This is ZPEC's second engineering service contract inked with Saudi Aramco, proving that ZPEC's drilling work has gained recognition by the world's biggest oil producer, said the Chinese company.

The contract equals about 20 percent of ZPEC's audited revenue in 2020, and is expected to have a positive impact on its operating performance in the next four years, the firm added.

ZPEC has been expanding its business overseas. Last March, the company signed its first drilling contract with the Dhahran-headquartered firm, expecting to earn USD120 million. That was also the first-ever contract the Chinese company has won in oil-rich Saudi Arabia.

Editor: Emmi Laine, Xiao Yi