Following an international competitive bidding process, India's Oil and Natural Gas Corporation announced on May 25 that it has appointed BP Exploration Services India to enhance production across its western offshore fields.
This contract excludes the Mumbai High field, which operates under an existing technical services provider contract.
Under the ten-year contract, BP Exploration Services India will review performance and suggest improvements across reservoirs, facilities and wells.
The partnership targets a 10.8 per cent increase in crude oil production (from 46.25 million tonnes to 51.26 million tonnes) and a 31.5 per cent rise in gas production (from 82.68 billion cubic metres to 108.69 billion cubic metres).
This represents a combined 24.1 per cent surge in total hydrocarbon output to 159.96 million tonnes of oil equivalent, with initial gains visible by the 2027 financial year and full-scale volumes anticipated by the 2030 financial year.
ONGC said it expects these increases, representing a 24.1 per cent rise in oil and oil equivalent gas production from 128.93 million tonnes of oil equivalent to 159.96 million tonnes of oil equivalent, to begin appearing in the 2027 financial year. Full-scale visibility of the enhanced volumes is anticipated by the 2030 financial year.
This agreement follows a prior technical services contract signed in early January 2025 with BP Exploration Alpha for the Mumbai High field, which represents approximately 38 per cent of total western offshore production. To stabilise output at that field, reservoir management, well optimization and facility de-bottlenecking were implemented, according to ONGC.
For the new offshore contract, the service provider will receive a fixed fee during the first two years of operations. Subsequent payments will consist of a service fee based on a percentage share of revenue from net incremental hydrocarbon production after recovering incremental costs.
Containing 43 blocks under various licensing regimes, the Mumbai Offshore Basin remains the most prolific hydrocarbon-producing basin for ONGC. By applying international technology, the firm aims to realise the enhanced potential of these mature fields, which contain an estimated 72.62 million tonnes of oil equivalent of oil and gas.
