State-run ONGC announced that it has chosen BP Exploration Services India Limited, a UK-based subsidiary of BP Plc, as the Technical Services Provider for its Western Offshore oil and gas fields, excluding the Mumbai High field. This decision aims to enhance production from mature assets by inviting global oil companies to propose ways to improve recovery from ageing offshore fields in the Mumbai Offshore Basin.
The selected Technical Services Provider will evaluate field performance and suggest interventions across reservoirs, wells, and facilities to boost production using global best practices and advanced technologies. ONGC’s collaboration with BP Exploration Alpha Ltd. for the Mumbai High field has already shown promising results through production stabilization efforts.
For the Western Offshore cluster, the Technical Services Provider anticipates a substantial increase in crude oil and natural gas production over a 10-year contract period. The projection includes a 10.8% rise in crude oil output, a 31.5% increase in natural gas production, and a 24% growth in oil and oil equivalent gas production.
ONGC foresees the production improvement starting from FY27, with significant impacts expected by FY30. The Technical Services Provider will initially receive a fixed fee for two years, followed by a revenue-linked service fee based on incremental hydrocarbon production after factoring in additional costs. This initiative aligns with ONGC’s strategy to maximize output from mature offshore fields and ensure long-term energy security through technology-driven recovery enhancements.
Shares of ONGC closed lower at Rs 284.90 per share on the NSE.
