ONGC Onboards BP as Technical Services Provider to enhace production from Western Offshore Fields
New Delhi, May 25 (TNT): Oil and Natural Gas Corporation Limited (ONGC) has onboarded BP Exploration Services India Limited (BPXS), a wholly-owned step-down subsidiary of BP Plc, as Technical Services Provider (TSP) for enhancing production from its entire Western Offshore fields excluding the Mumbai High field.
India’s exploration and production sector remains critical to meeting rising energy demand, with ONGC contributing nearly 75 per cent of the country’s domestic crude oil and natural gas production, the ONGC said in a release here on Monday.
The Mumbai Offshore Basin is described as ONGC’s most prolific hydrocarbon-producing basin.
ONGC stated that it had earlier entered into a TSP contract with BP Exploration Alpha Ltd for the Mumbai High field in January 2025, and preliminary results showed stabilisation in production decline through focused well, reservoir and facility management initiatives.
Building on that experience, ONGC issued an International Competitive Bidding tender to appoint a TSP for the remaining Western Offshore fields to improve production through global technology, expertise and operational best practices.
Following bid evaluation, BPXS was selected for the project.
The company said the TSP would review field performance and identify improvements in reservoirs, facilities and wells to enhance production from offshore fields.
According to projections shared in the release, the initiative has the potential to increase crude oil production by around 10.8 per cent from 46.25 MMT to 51.26 MMT and gas production by nearly 31.5 per cent from 82.68 BCM to 108.69 BCM over the 10-year contract period. Overall oil and oil equivalent gas production is expected to rise by around 24.1 per cent from 128.93 MMTOE to 159.96 MMTOE.
ONGC said the increase is expected to become visible from FY27, with full-scale impact likely from FY30 onwards.
Under the agreement, the TSP will receive a fixed fee during the first two years, followed by a service fee linked to incremental hydrocarbon production revenues after recovery of additional costs.
ONGC stated that the initiative aims to unlock the enhanced production potential of the entire Western Offshore portfolio by leveraging advanced technologies and global best practices to strengthen India’s energy security.
TNT KS
