ONGC Taps BP as Technical Service Provider for West Offshore Field Production Boost

ONGC Engages BP Exploration Services India as Technical Service Provider

State-run Oil and Natural Gas Corp (ONGC) has selected BP Exploration Services India Limited (BPXS), a wholly-owned subsidiary of BP Plc, as the technical service provider (TSP) to boost production from its entire Western offshore fields excluding the Mumbai High field.

The TSP will review field performance and identify improvements in reservoir, facilities, and wells to enhance production from Western offshore fields. BP Exploration Services India Limited has indicated a substantial potential increase of ~10.8% in crude oil from baseline production of 46.25 million tonnes to 51.26 MMT and ~31.5% increase in gas production from 82.68 billion cubic meters to 108.69 BCM for the ten-year contract period.

The increase in production works out to ~24.1% from 128.93 MMTOE to 159.96 MMTOE in terms of Oil and Oil-Equivalent Gas. The expected increase is visible from FY27, with full-scale visibility expected from FY30.

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Under the contract, BP Exploration Services India will receive a fixed fee for the first two years, followed by a service fee based on a percentage share of the revenue from net incremental hydrocarbon production, after recovering incremental costs. The agreement aims to leverage cutting-edge technologies and global best practices to realize the enhanced potential of the entire Western Offshore fields.

ONGC accounts for about 75% of India's domestic crude oil and natural gas production. The Mumbai Offshore Basin is ONGC's most prolific hydrocarbon-producing basin, comprising 43 blocks, of which 28 are under the nomination regime. These blocks have contributed a substantial share of ONGC's crude oil and natural gas production and have remained under continuous development for over four decades.

While ONGC continues to unlock new hydrocarbon resources through greenfield projects, enhancing recovery from mature fields remains equally important to raising domestic production.

| Comparison of Baseline and Projected Production | | --- | --- | | Baseline Crude Oil (MMT) | 46.25 | | Projected Crude Oil (MMT) | 51.26 | | Increase in Crude Oil (%) | 10.8 | | Baseline Gas (BCM) | 82.68 | | Projected Gas (BCM) | 108.69 | | Increase in Gas (%) | 31.5 | | Baseline Oil and Oil-Equivalent Gas (MMTOE) | 128.93 | | Projected Oil and Oil-Equivalent Gas (MMTOE) | 159.96 | | Increase in Oil and Oil-Equivalent Gas (~%) | 24.1 |

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ONGC has earlier entered into a Technical Services Provider (TSP) Contract with M/s BP Exploration Alpha Ltd (BPXA) for the Mumbai High field, which is the largest oil field of the Mumbai Offshore Basin. Preliminary production data during the initial months of TSP implementation indicate moderation of the earlier decline trajectory and stabilization of production.