On Tuesday, January 8, 2025, the UK-based global energy company BP PLC secured a major contract to operate and enhance production from ONGC’s (Oil and Natural Gas Field) flagship Mumbai High Field. The UK-based firm didn’t disclose the contract’s financial details, such as the revenue share.
ONGC’s Mumbai High Field is India’s largest oil and gas field and has been experiencing a fall in output for the past 3 decades. The firm was searching for offers from international oil and gas players to increase production from the field. ONGC’s tender offered a revenue share from the incremental hydrocarbon production and a fixed fee. BP and Royal Dutch Shell were the only international firms participating in the tender, and BP secured it.
M/s BP Exploration (Alpha) Ltd., the subsidiary of BP PLC, has been selected as the technical service provider. It will assess field performance and identify improvements in the facilities, reservoirs, and wells to increase production in Mumbai High.
According to Arun Kumar led ONGC, while the company focuses on unlocking the potential of new hydrocarbon resources, improving mature fields is also important. It also said in the 10-year contract period, BP showcased an increase of up to 60% in oil and oil equivalent gas from the field’s baseline production levels.
Mumbai High Field, located in the Mumbai Offshore basin in the Arabian Sea, was founded in 1874, and hydrocarbon production started in 1976. In 1989, Mumbai High Field reached its peak production level of 4,76,000 barrels of crude oil per day and 28 billion cubic metres of natural gas. Since then the production has been falling. The current production levels are around 134,000 bpd of crude oil and 13 bcm of natural gas.
ONGC’s decision when the government is planning to sell stakes in the field with its operatorship to international oil and gas majors. In the TSP model, ONGC will remain the Mumbai High controller.
