State-owned Oil and Natural Gas Corporation (ONGC) has appointed the UK's BP as a technical services provider to boost output from its western offshore oil and gas fields, expanding a partnership aimed at reviving production from India's ageing hydrocarbon assets.
In a statement, ONGC said BP Exploration Services India Limited was selected through an international competitive bidding process to enhance production across western offshore fields in the Mumbai Offshore Basin, excluding the flagship Mumbai High field.
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ONGC had engaged BP in January last year for Mumbai High, India's largest producing oil field, which accounts for about 38% of ONGC's western offshore oil and oil-equivalent gas production.
The company said preliminary results from the Mumbai High partnership showed moderation in production decline and improved output stability through better well, reservoir and facility management, along with infrastructure de-bottlenecking and enhanced surveillance.
Under the expanded mandate, BP's India unit will assess reservoir performance and identify operational improvements across mature offshore fields using global technologies and management practices.
ONGC said the engagement could increase crude oil production by about 10.8% over the 10-year contract period, raising output to 51.26 million tonnes from a baseline of 46.25 million tonnes. Natural gas production is projected to rise 31.5% to 108.69 billion cubic metres from 82.68 bcm.
Combined oil and oil-equivalent gas production from the western offshore fields is expected to rise about 24% to nearly 160 million tonnes of oil equivalent during the contract period, the company said.
The increase in production is expected to begin from fiscal year 2027, with full-scale impact visible from FY30.
Under the agreement, the technical services provider will receive a fixed fee for the first two years, followed by a share of revenue generated from incremental hydrocarbon production after cost recovery.
Separately, BP said it "can confirm that it has been selected by ONGC as TSP for Western Offshore fields (excluding Mumbai High)".
"We are grateful to ONGC for once again reaffirming their trust in us and look forward to supporting an enhanced production from these fields," it added.
ONGC, which accounts for about 75% of India's domestic crude oil and natural gas production, said the partnership is aimed at unlocking additional output from mature offshore assets while supporting India's energy security goals amid rising demand.
Mumbai Offshore Basin is ONGC's most prolific hydrocarbon-producing basin. The basin comprises 43 blocks, of which 28 blocks, including Mumbai High and the giant Bassein gas field, were given to it on a nomination basis.
"While ONGC continues to unlock new hydrocarbon resources through greenfield projects, enhancing recovery from mature fields remains equally important to raising domestic production," the statement said.
ONGC said it entered into a Technical Services Provider (TSP) Contract with BP Exploration Alpha Ltd (BPXA) for the Mumbai High field, which is the largest oil field of the Mumbai Offshore Basin, in early January 2025.
"Preliminary production data during the initial months of TSP implementation indicate moderation of the earlier decline trajectory and stabilisation of production. This has been achieved through focused well, reservoir and facility management (WRFM) initiatives, optimisation of existing wells, enhanced surveillance, and prioritised facility de-bottlenecking," it said.
Building on this experience, ONGC decided to engage a TSP for the entire Western Offshore (excluding the Mumbai High field) in line with the existing TSP engaged for the Mumbai High field.
"Accordingly, ONGC issued an international competitive bidding (ICB) tender for engagement of a TSP to enhance production from mature offshore oil and gas fields in the Mumbai Offshore Basin (excluding Mumbai High) through the induction of global technology, expertise, and best-in-class operational and management practices. All the major international oil companies were invited to participate," the statement said.
It, however, did not say how many participated in the tender.
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"After the bid evaluation process, M/s BP Exploration Services India Limited (BPXS), UK, a wholly-owned step-down subsidiary of BP Plc, UK, has been selected as TSP. The TSP will review the field performance & identify improvements in reservoir, facilities and wells to enhance production from Western Offshore fields (excluding MH field)," it said.
"With this, ONGC aims to realise the enhanced potential of the entire Western Offshore fields (72.62 million tonnes of oil and oil equivalent gas), not limited to the Mumbai High field alone, by leveraging cutting-edge technologies and global best practices, securing its future contribution to India's energy landscape," it added.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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