Oil and Natural Gas Corporation (ONGC) has engaged BP Exploration Services India Limited (BPXS), a subsidiary of BP Plc, UK, as its Technical Services Provider (TSP) to enhance production from its Western Offshore fields. This move is part of ONGC’s strategy to increase domestic crude oil and natural gas production to meet India’s growing energy demands.
The collaboration aims to leverage global technology and expertise to optimise production from mature offshore oil and gas fields in the Mumbai Offshore Basin, excluding the Mumbai High field. BPXS will focus on reviewing field performance and identifying improvements in reservoirs, facilities, and wells. The initiative is expected to result in a significant increase in production over the next decade.
According to ONGC, the TSP has projected a potential increase of approximately 10.8% in crude oil production, from a baseline of 46.25 million metric tonnes (MMT) to 51.26 MMT. Additionally, gas production is expected to rise by about 31.5%, from 82.68 billion cubic metres (BCM) to 108.69 BCM. Overall, the oil and oil-equivalent gas (O+OEG) production is anticipated to grow by 24.1%, from 128.93 million metric tonnes of oil equivalent (MMTOE) to 159.96 MMTOE.
The increase in production is expected to become apparent from the financial year 2027, with full-scale visibility by 2030. BPXS 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.
This partnership follows ONGC’s earlier engagement with BP Exploration Alpha Ltd. (BPXA) for the Mumbai High field, which has already shown promising results in stabilising production through well, reservoir, and facility management initiatives.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).