State-run ONGC said on Monday that it has selected BP Exploration Services India (BPXS), a wholly-owned step-down subsidiary of BP, as the technical services provider (TSP) for the entire western offshore fields, excluding the Mumbai High (MH).
The TSP will review the field performance and identify improvements in reservoir, facilities and wells to enhance production from Western Offshore fields (excluding MH field), the country’s largest exploration and production (E&P) firm said.
“The TSP has indicated a substantial potential increase of around 10.8 per cent in crude oil (from baseline production of 46.25 million tonnes (mt) to 51.26 mt) and around 31.5 per cent increase in gas production (from 82.68 billion cubic meters (BCM) to 108.69 BCM) for the 10-year contract period,” ONGC added.
In terms of O+OEG (Oil + Oil equivalent of Gas), the increase works out to around 24.1 per cent (from 128.93 million tonnes of oil equivalent (MTOE) to 159.96 MTOE).
Fixed fee
The increase is expected to be visible from FY27 with full scale visibility expected from FY30. 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 MMTOE O+OEG), 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,” the Maharatna company said.
Mumbai Offshore Basin is ONGC’s most prolific hydrocarbon-producing basin. The basin comprises 43 blocks, of which 28 blocks are under the nomination regime, with the balance under OALP / NELP / DSF regimes.
ONGC already has a TSP contract with BP Exploration Alpha (BPXA) for the Mumbai High field (presently around 38 per cent of total western offshore production O+OEG), which is the largest oil field of the Mumbai Offshore Basin, in early January 2025.
Preliminary production data during the initial months of TSP implementation indicate moderation of the earlier decline trajectory and stabilization of production. This has been achieved through focused well, reservoir and facility management initiatives, optimization of existing wells, enhanced surveillance, and prioritized facility de-bottlenecking.
bp confirmed that it has been selected by ONGC as Technical Service Provider for Western Offshore Fields (excluding Mumbai High). It looks forward to supporting an enhanced production from these fields.