The partnership comes as ONGC seeks to bolster domestic crude oil and natural gas production to meet rising demands.
Photo Credits: ONGC
PANAJI
Oil and Natural Gas Corporation (ONGC), India’s largest exploration and production (E&P) company, has entered into a strategic collaboration with BP to enhance production at the Mumbai High (MH) field, one of the country’s most critical offshore oil assets.
The partnership comes as ONGC seeks to bolster domestic crude oil and natural gas production to meet the rising energy demands fuelled by India’s rapid economic growth.
Mumbai High, discovered in 1974 and producing since 1976, has been the cornerstone of India’s oil output. However, as the field matures, production has been facing challenges, prompting ONGC to explore new interventions to optimize recovery and extend its lifespan. Despite several enhancement measures over the years—such as gas and water shut-offs, side-tracking of poor producers, and enhanced water injection—ONGC has recognised the need for more advanced solutions to fully unlock the field’s potential.
To address these challenges, ONGC issued an International Competitive Bidding (ICB) tender to engage a Technical Services Provider (TSP) with expertise in managing mature reservoirs and implementing advanced recovery technologies. BP Exploration (Alpha) Ltd., a wholly-owned subsidiary of BP Plc, UK, emerged as the successful bidder after a rigorous evaluation process. BP was chosen for its proven track record in similar complex projects, financial strength, and technical capabilities.
The collaboration aims to significantly increase production from Mumbai High. According to BP’s evaluation, there is a potential for a 44% increase in crude oil production, from the current baseline of 45.47 million metric tons (MMT) to 65.41 MMT, over the ten-year contract period. Gas production is expected to rise by nearly 89%, from 24.94 billion cubic meters (BCM) to 47.22 BCM, during the same period. In terms of overall energy (O+OEG), this translates into an approximately 60% increase, from 70.40 million tons of oil equivalent (MMToe) to 112.63 MMToe.
