Oil and Natural Gas Corporation Limited (ONGC) has entered into an agreement with bp, appointing the latter as the Technical Services Provider (TSP) for the Mumbai High field, India's largest and most productive offshore oil field. Under this arrangement, ONGC will retain ownership and operational control of the field, while bp will provide technical expertise to enhance production.
The contract stipulates that bp will receive a fixed fee for two years for its personnel, followed by a performance-based service fee tied to increased oil and gas output. The collaboration aims to stabilize the field's declining production and restore it to a growth trajectory. bp will utilize its global experience in managing large oil fields to optimize recovery at Mumbai High. This will involve reviewing sub-surface models, implementing system improvements, and refining reservoir management practices.
The partnership is expected to significantly increase domestic oil and gas production, boosting ONGC's revenues and contributing to India's energy security. It also aligns with the nation's goal of achieving energy independence.
Kartikeya Dube, Head of Country and Chairman of bp India, emphasized the company's commitment to supporting India's energy vision, stating, "This collaboration underscores our dedication to oil and gas exploration in India, creating value for both organizations and advancing the country's energy security goals."
A team of technical experts from bp is set to begin work by March 2025. To ensure smooth execution, ONGC and bp have established Senior Management and Joint Management Teams.
India's Minister of Petroleum and Natural Gas, Shri Hardeep Puri, highlighted the significance of the partnership, noting, "This collaboration with bp, a leader in managing complex mature reservoirs, will enhance production from Mumbai High, a field that has been pivotal to India's energy security since 1974."
Shri Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas, expressed confidence in the partnership, stating, "This initiative reflects our commitment to leveraging global expertise and advanced technologies to achieve energy self-reliance and sustainable growth."
ONGC Chairman and CEO, Shri Arun Kumar Singh, added, "By engaging bp as a TSP, we aim to unlock the full potential of Mumbai High using cutting-edge technologies and global best practices, ensuring its continued contribution to India's energy needs."
The collaboration marks a significant step in India's journey toward energy independence, combining ONGC's operational strengths with bp's technical expertise to maximize the output of this iconic field.