Oil & Natural Gas Corporation Limited (ONGC) has engaged M/s BP Exploration Services India Limited (BPXS) as a Technical Services Provider (TSP) to enhance production from mature offshore oil and gas fields in the Mumbai Offshore Basin, excluding the Mumbai High field. The contract follows ONGC’s earlier TSP agreement with BPXA for the Mumbai High field, where production stabilization was achieved through Well, Reservoir, and Facility Management initiatives. This expansion aims to apply global best practices across the entire Western Offshore region, which contributes significantly to ONGC’s domestic output.
ONGC estimates a potential production increase of approximately 10.8% in crude oil output, rising from a baseline of 46.25 million metric tonnes (MMT) to 51.26 MMT over the ten-year contract period. Gas production is projected to grow by 31.5%, from 82.68 billion cubic metres (BCM) to 108.69 BCM. The combined O+OEG (oil and oil equivalent gas) increase is expected to reach 159.96 million tonnes of oil equivalent (MMTOE), up from 128.93 MMTOE, with full visibility anticipated from FY’30.
The TSP will receive a fixed fee for the first two years, transitioning to a revenue-sharing model where a percentage of net incremental hydrocarbon production revenue covers service costs. This structure aligns with ONGC’s strategy to optimize mature fields while maintaining financial discipline. The contract covers reservoir management, well optimization, and facility de-bottlenecking to unlock hidden reserves in the Mumbai Offshore Basin’s 28 nominated blocks.
BPXS, a wholly-owned subsidiary of BP Plc, UK, brings international expertise to ONGC’s operations. The selection followed an International Competitive Bidding process involving major global oil companies. ONGC’s decision its focus on leveraging cutting-edge technologies to maximize output from fields that have been under continuous development for over four decades.
The Mumbai Offshore Basin, ONGC’s most prolific hydrocarbon region, accounts for a substantial share of the company’s crude oil and natural gas production. By extending TSP engagement beyond the Mumbai High field, ONGC aims to realize the full potential of 72.62 MMTOE O+OEG reserves in the basin. This initiative supports India’s energy security goals amid rising domestic demand driven by economic growth.
ONGC’s TSP contract reflects its commitment to and in the exploration and production sector. The company continues to prioritize technological innovation to enhance recovery rates in mature fields, ensuring long-term contributions to India’s energy landscape. The agreement marks a strategic step in ONGC’s efforts to maintain its position as the National Oil Company.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.