State-owned China Petroleum Engineering & Construction Corporation (CPECC) has been awarded a $548m service contract at the Halfaya oil field in the east of Iraq.

CPECC, a subsidiary of state-owned Petrochina, which is developing the field, will provide engineering, procurement, construction and commissioning (EPCC) services to raise oil production, Reuters news agency reports.

The field is scheduled to increase oil production to 535,000 barrels a day (b/d) by 2017, from 100,000 b/d in 2012.

In November 2012, Petrochina launched a tender for the construction of a second phase central processing facility (CPF) with two production trains of 50,000 b/d each. This deal is understood to be included in the service contract. CPECC was previously awarded a $174m deal in April 2011 for the first phase CPF.

Petrochina, a subsidiary of state-owned China National Petroleum Corporation (CNPC), leads the development of the 4.1-billion-barrel Halfaya oil field along with France’s Total, Malaysia’s Petronas and state-owned Missan Oil Company.