New Delhi: The Oil and Natural Gas Corporation (ONGC) has signed a major Technical Services Provider (TSP) agreement with BP Exploration Services India Limited to boost production from its Western Offshore oil and gas fields (excluding Mumbai High), marking a significant step toward strengthening India’s energy security.
The partnership aims to leverage global expertise and advanced technologies to improve recovery from mature offshore assets in the Mumbai Offshore Basin.
Major Boost in Oil and Gas Production
Under the 10-year contract, BPXS is expected to deliver substantial production gains:
- Crude oil output: +10.8% (46.25 MMT → 51.26 MMT)
- Natural gas output: +31.5% (82.68 BCM → 108.69 BCM)
- Oil + OEG: +24.1% increase (128.93 MMTOE → 159.96 MMTOE)
ONGC stated that production gains are expected to start becoming visible from FY27, with full impact likely by FY30.
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Strategic Partnership for Mature Offshore Fields
The agreement covers ONGC’s entire Western Offshore portfolio, excluding the Mumbai High field, which includes 43 blocks developed over four decades.
BPXS will:
- Conduct reservoir and field performance analysis
- Optimize wells and production systems
- Improve facility efficiency and de-bottlenecking
- Introduce advanced global best practices
The aim is to maximize output from aging but high-potential hydrocarbon fields.
Performance-Based Commercial Model
The contract structure includes:
- Fixed service fee for the first two years
- Performance-linked revenue sharing thereafter
- Returns based on net incremental hydrocarbon production
This model ensures alignment between production growth and financial incentives.
Building on Mumbai High Experience
ONGC had earlier partnered with BP for the Mumbai High field in January 2025. That engagement helped stabilize production decline through:
- Well and reservoir management improvements
- Facility optimization
- De-bottlenecking of production systems
Encouraged by those results, ONGC has now expanded the model to its broader Western Offshore assets.
Strengthening India’s Energy Security
The Mumbai Offshore Basin contributes a major share of India’s domestic oil and gas production. With rising energy demand, improving output from existing fields is seen as a key national priority.
Officials said the partnership will help:
- Improve domestic hydrocarbon production
- Reduce import dependency
- Extend life of mature offshore assets
- Support long-term energy security goals
Positive Outlook for India’s E&P Sector
Industry experts view the deal as a significant development in India’s upstream oil and gas sector. The collaboration reflects a shift toward performance-linked global partnerships aimed at maximizing output from brownfield assets.
If successful, the model could be replicated across other ONGC fields in the future.
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. The company plays a central role in the country’s upstream energy sector, contributing significantly to domestic hydrocarbon production and energy security through exploration and production activities across onshore and offshore fields.
