New Delhi: Oil and Natural Gas Corporation (ONGC) and global energy major bp have signed a new Technical Services Contract (TSC) aimed at enhancing hydrocarbon production from ONGC’s assets in India’s Western Offshore Basin. The agreement focuses on improving recovery rates and operational efficiency using advanced global technologies and expertise.
The contract was signed on 25 June 2026 in New Delhi, in the presence of Union Minister for Petroleum and Natural Gas Hardeep Singh Puri and Petroleum Secretary Dr. Neeraj Mittal.
bp Appointed Technical Services Provider for Western Offshore Basin
Under the agreement, bp has been appointed as the Technical Services Provider (TSP) for ONGC’s Western Offshore Basin assets. The basin includes 43 blocks, making it ONGC’s most productive offshore region and a key contributor to India’s domestic oil and gas output.
The Western Offshore Basin has been central to India’s energy production for over four decades and continues to play a crucial role in strengthening the country’s energy security.
Expansion of ONGC–bp Strategic Partnership Beyond Mumbai High
The latest contract expands the existing collaboration between ONGC and bp, which began with a Technical Services Contract for the Mumbai High fields in February 2025.
Following positive results from that partnership, both companies are now extending their cooperation to other mature offshore assets in the Western Offshore Basin. The focus will be on deploying:
- Advanced production enhancement technologies
- Global engineering and reservoir management expertise
- International best practices for mature oil fields
Despite bp’s involvement, ONGC will retain full ownership and operational control of all assets.
Focus on Production Growth and Efficiency Improvement
The partnership aims to support India’s long-term energy needs by improving output from aging offshore fields. Key objectives include:
- Reducing natural decline in mature oil and gas fields
- Enhancing hydrocarbon recovery rates
- Improving operational efficiency across facilities
- Supporting sustained production growth
bp will collaborate closely with ONGC’s technical teams to identify and implement production optimization opportunities across reservoirs, wells, and production systems.
Revenue-Based Payment Structure for bp
The financial arrangement under the contract includes a two-phase structure:
- A fixed fee during the first two years
- A performance-linked service fee thereafter, based on a share of revenue from net incremental hydrocarbon production
This model aligns incentives with output growth and efficiency improvements.
Leadership Views on Strategic Collaboration
ONGC Chairman and CEO Arun Kumar Singh said the success of the Mumbai High partnership provided confidence to expand the collaboration to the Western Offshore Basin. He highlighted that the initiative is expected to improve recovery rates and support sustained production growth.
bp India Chairman and bp Senior Vice President Kartikeya Dube said the company looks forward to leveraging its global expertise to enhance production and contribute to India’s energy security goals.
Strengthening India’s Energy Security
The agreement comes as India continues to focus on increasing domestic oil and gas production and reducing import dependence. By combining ONGC’s operational strength with bp’s global technical capabilities, the partnership is expected to maximize output from mature offshore fields and support long-term energy security.
About ONGC
Oil and Natural Gas Corporation is India’s largest crude oil and natural gas producer and a Maharatna public sector enterprise under the Government of India. It plays a crucial role in the country’s energy sector, contributing a significant share of domestic hydrocarbon production and supporting India’s energy security through exploration, production, and development of oil and gas resources.
