Strategic Initiative Overview

ONGC has engaged M/s BP Exploration Services India Limited (BPXS), UK, a wholly-owned step-down subsidiary of BP Plc, UK as Technical Services Provider (TSP) for enhancing production from mature offshore oil and gas fields in the Mumbai Offshore Basin, excluding the Mumbai High field. This follows the successful TSP contract with M/s BP Exploration Alpha Ltd. (BPXA) for the Mumbai High field implemented in early January 2025.

Initiative Objective and Scope

The TSP will review field performance and identify improvements in reservoir, facilities, and wells to enhance production from Western Offshore fields through induction of global technology, expertise, and best-in-class operational and management practices. The contract covers the entire Western Offshore fields excluding Mumbai High, which currently represents approximately 38% of total western offshore production (O+OEG).

Expected Production Impact

TSP has indicated substantial production increase potential over the ten-year contract period:

Crude Oil: 10.8% increase from baseline production of 46.25 MMT to 51.26 MMT

Natural Gas: 31.5% increase from baseline production of 82.68 BCM to 108.69 BCM

O+OEG (Oil + Oil Equivalent Gas): 24.1% increase from 128.93 MMTOE to 159.96 MMTOE

The production increase is expected to become visible from FY27, with full-scale visibility expected from FY30.

Contract Structure and Compensation

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.

Background Context

Mumbai Offshore Basin is ONGC's most prolific hydrocarbon-producing basin comprising 43 blocks (28 under nomination regime, balance under OALP/NELP/DSF regimes). These blocks have contributed substantially to ONGC's production and have been under continuous development for over four decades. ONGC accounts for about 75% of India's domestic crude oil and natural gas production.

Previous TSP Performance

Preliminary production data from the Mumbai High TSP implementation (initiated January 2025) indicates moderation of the earlier decline trajectory and production stabilization through Well, Reservoir and Facility Management (WRFM) initiatives, optimization of existing wells, enhanced surveillance, and prioritized facility de-bottlenecking.

Selection Process

ONGC conducted an International Competitive Bidding (ICB) Tender inviting all major International Oil Companies to participate. BP Exploration Services India Limited was selected after the bid evaluation process.

Strategic Significance

The initiative aims to realize the enhanced potential of the entire Western Offshore fields (72.62 MMTOE O+OEG) by leveraging cutting-edge technologies and global best practices, securing ONGC's future contribution to India's energy landscape.