Saudi Aramco has awarded Baker Hughes (BHGE) an integrated services contract for capacity expansion work on the offshore Marjan oilfield, the state-run company announced in a statement.

BHGE will carry out drilling operations, and provide coiled tubing and drilling fluid engineering services as part of the contract. The American company will begin the work this month, according to the statement.

The 500,000 barrels per day (b/d) Marjan field is one of three offshore Saudi fields slated for expansion work, also including the 800,000 b/d Zuluf field and the 200,000 b/d Berri field.

The plan aims to add 1 million b/d of additional capacity to the three fields by 2023 in order to offset declining production from aging fields.

“The Marjan oil field is one of the major upstream developments this year that will contribute to the kingdom’s oil production strengths, helping maintain capacity and meet domestic and global demand,” Mohammed al-Qahtani, Aramco senior vice president of upstream, said in a statement.

Saudi Arabia reportedly possesses roughly 1.7 million b/d in spare production capacity because of its 10.63 million b/d output for July, according to a S&P Global Platts survey published in August.