Abu Dhabi National Oil Company (Adnoc) has awarded contracts worth $318m (AED1.2bn) to connect newly drilled smart wells to the production facilities at the Bu Hasa field.

The contracts are aimed at optimising performance and sustain the production capacity of 650,000 barrels a day (bpd) at the Bu Hasa oil field located 200km south of Abu Dhabi.

ADNOC Onshore, a subsidiary of Adnoc, awarded the contracts in two packages. Each package has a three-year duration and includes a two-year extension option.

Valued at up to $158.6m (AED582m), Package 1 is awarded to China Petroleum Pipeline Engineering while the $159.1m (AED583.9m) Package 2 has been awarded to Robt Stone (ME).

The EPC contracts will see the installation of up to 260 conventional and non-conventional smart wells, which enable remote operations.

Adnoc said that the contractors will procure all equipment on an upfront basis to ensure faster construction and hand-over.

Adnoc upstream executive director Yaser Saeed Almazrouei said: “This EPC award demonstrates how ADNOC is leveraging advanced technologies such as smart wells with state-of-the-art remote capabilities, to drive higher performance from our assets and resources, and to generate additional value.

“The award underpins our strategic objectives to expand production capacity and create a more profitable upstream business with over half of the contract value flowing back into the UAE’s economy, supporting local businesses and stimulating economic growth.”

The Bu Hasa asset is one of Adnoc’s oldest oil fields. It is in production since 1965.

Adnoc awarded a contract in 2018 for the Bu Hasa Integrated Field Development Project (BUIFDP) to boost production and sustain long-term production.

It forms a part of the firm’s strategy to expand its crude oil production capacity to five million barrels per day by 2030.