ONGC Selects BP Subsidiary as TSP for Enhancing Production from Mumbai High Field

The Oil and Natural Gas Corporation (ONGC) has announced that it has selected BP Exploration (Alpha) Ltd, a wholly-owned step-down subsidiary of BP Plc, as the Technical Service Provider (TSP) for its Mumbai High Field. This partnership aims to enhance production from one of India's largest oil and gas fields.

The Mumbai High Field has played a crucial role in India's energy sector, contributing significantly to the country's domestic oil production.

As of 2024, the field produces around 134,000 barrels of oil per day and 10 million cubic meters of gas per day. The field reached its peak production level of 20 million tonnes per year in 1998.

Key Points:

Objective: The TSP will review the field performance and identify improvements in reservoirs, facilities, and wells to boost production.

Role as TSP: BP Exploration (Alpha) Ltd will review the field performance and identify improvements in reservoirs, facilities, and wells to boost production.

Expected Increase: BP has indicated a substantial increase in oil and oil-equivalent gas production (up to 60%) from baseline production levels over a 10-year contract period. The partnership aims to increase crude oil production by 44% and gas output by 89% over a ten-year contract period.

Historical Context: The Mumbai High Field was discovered by ONGC in 1974 and started production in 1976.

Revenue Boost: The incremental production is expected to generate additional oil and gas revenue of up to $10.3 billion and contribute $5 billion to the government exchequer through royalties, cess, and other levies.

This collaboration is expected to significantly enhance India's domestic production and support the country's energy needs.

BP's India unit is a significant player in the country's energy sector, focusing on various aspects of the energy value chain. BP operates in the upstream sector, focusing on natural gas production.

BP operates in the upstream sector, focusing on natural gas production. The company aims to expand its retail network to 5,500 outlets by 2025 through its joint venture with RIL.

Besides, BP has also partnered with Lightsource to develop renewable energy projects in India, including the 60 MW solar farm at Wagdari, Maharashtra.