ONGC selects BP arm to boost output from Western Offshore fields

ONGC has appointed BP Exploration Services India as technical service provider to enhance oil and gas production from Western Offshore fields through technology and operational improvements

State-owned petroleum explorer Oil and Natural Gas Corporation (ONGC) on Monday announced it has selected BP Exploration Services India Limited (BPXS), UK, a wholly-owned subsidiary of BP Plc, UK, as the technical service provider (TSP) for all the Western Offshore fields, excluding the 43 blocks in Mumbai High.

 

The selection was made through an international competitive bidding (ICB) tender for the engagement of a TSP to enhance production from mature offshore oil and gas fields in the Mumbai Offshore Basin (excluding Mumbai High) through the induction of technology, expertise and best operational and management practices.

 

“The TSP will review the field performance and identify improvements in reservoir, facilities and wells to enhance production from Western Offshore fields (excluding the MH field),” the company said in a statement.

 

 

It added that the TSP has indicated a substantial potential increase of around 10.8 per cent in crude oil production (from baseline production of 46.25 million tonnes to 51.26 MT) and a 31.5 per cent increase in gas production (from 82.68 billion cubic metres or BCM to 108.69 BCM) for the 10-year contract period.

 

“In terms of O+OEG, the increase works out to around 24.1 per cent (from 128.93 million tonnes of oil equivalent or MMTOE to 159.96 MMTOE). The increase is expected to be visible from FY27, with full-scale visibility expected from FY30,” ONGC said.

 

The TSP 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.

 

With this, ONGC aims to realise the enhanced potential of the entire Western Offshore fields (72.62 million tonnes of oil equivalent), not limited to the Mumbai High field alone, by leveraging cutting-edge technologies and global best practices, securing its future contribution to India’s energy landscape.

 

ONGC had in January 2025 signed a TSP contract with BP Exploration Alpha Ltd (BPXA) for the Mumbai High field (presently accounting for 38 per cent of total Western Offshore production O+OEG), which is the largest oil field in the Mumbai Offshore Basin.

 

Preliminary production data during the initial months of TSP implementation indicate moderation of the earlier declining trajectory and stabilisation of production, the company said. This was achieved through well, reservoir and facility management (WRFM) initiatives, optimisation of existing wells, enhanced surveillance and prioritised facility de-bottlenecking.

 

Building on this experience, ONGC had decided to engage a TSP for the entire Western Offshore, excluding the Mumbai High field, in line with the existing TSP engaged for the Mumbai High field.