ONGC has signed a contract with BP p.l.c which will serve as the Technical Services Provider (TSP) for the Mumbai High field. File
| Photo Credit: ONGC

Oil and Natural Gas Corporation Ltd (ONGC) has signed a contract with BP p.l.c which will serve as the Technical Services Provider (TSP) for the Mumbai High field, India’s largest and most prolific offshore oil field.

ONGC will retain ownership and operational control of the field. Under the terms of the contract, bp p.l.c. will receive a fixed fee for two years for its deployed personnel, followed by a service fee linked to incremental oil and gas production, ONGC said.

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bp p.l.c. will work in close collaboration with ONGC to stabilize the field’s current production decline and restore it to a robust growth trajectory, it said. 

bp p.l.c. will assemble a team of technical experts to commence work by March 2025. In support of this initiative, both companies have already established a Senior Management Team and a Joint Management Team to ensure seamless project execution.

Arun Kumar Singh, Chairman and CEO, ONGC, said “By engaging a TSP ONGC aims to realize the enhanced potential of the Mumbai High field by leveraging cutting-edge technologies and global best practices, securing its future contribution to India’s energy landscape.”

The MH oil producing field is located in the Mumbai offshore area. It was discovered by ONGC in 1974 and started production in 1976. File

Oil And Natural Gas Corporation Limted (ONGC) said it has selected BP Exploration (Alpha) Limited, a wholly-owned step-down subsidiary of BP Plc, the U.K. has been selected as the Technical Service Provider (TSP) for its Mumbai High (MH) Field. 

“The TSP will review the field performance & identify improvements in reservoir, facilities and wells to enhance the production from MH field,” ONGC said in a filing with exchanges.

“The TSP has indicated a substantial increase in O+OEG production (up to 60%) from baseline production levels (reputed third-party vetted production estimates with natural decline) over 10 years contract period,” it added.

The MH oil producing field is located in the Mumbai offshore area. It was discovered by ONGC in 1974 and started production in 1976. 

ONGC said while its focus is on unlocking the potential of new hydrocarbon resources through green-field projects, enhancing recovery from mature fields such as MH also remains a top priority for increasing domestic production.

The company had issued an International Competitive Bidding (ICB) tender on June 2024 to engage a TSP for MH field with expertise in managing complex mature reservoirs and implementing advanced recovery technologies and best operational practices. 

Issuing a statement, William Lin, EVP Gas and Low Carbon Energy, bp said “We confirm bp’s participation in the technical services provider (TSP) selection process for enhancement of Mumbai High production. We are pleased to know that bp has been selected as the TSP for the project.”

“We look forward to bringing our long experience of optimising performance and recovery from major mature fields around the world to help unlock and enhance production from Mumbai High, India’s largest oil & gas field (25% of India’s oil production),” he said.

“We look forward to working with ONGC to create value for both the country and the companies involved, and supporting India’s increasing energy needs,” he added.