ONGC onboards BP Exploration as Technical Services Provider for Mumbai High Field
Oil major ONGC has onboarded BP Exploration, a wholly-owned subsidiary of British Petroleum PLC, UK as Technical Services Provider (TSP) for its Mumbai High Field, a multi-layered field located in the Mumbai offshore area. The awarding was done after an International Competitive Bidding (ICB) tender.
According to the terms of TSP, BP Exploration will receive a fixed fee for the first two years, followed by a Service Fee based on a percentage share of the revenue from net incremental hydrocarbon production, after recovering incremental costs.
By engaging a TSP, ONGC aims to realize the enhanced potential of MH field by leveraging cutting-edge technologies and global best practices, securing its future contribution to India’s energy landscape.
In a press release announcing the awarding of tender, ONCG wrote:
Over the decades, ONGC has implemented various enhancement schemes in MH field to boost production and recovery. Various measures like gas and water shut-off jobs, side-tracking poor producers, enhancing water injection support, gas-lift, and infill drilling have been implemented to maintain production. However, the field continues to experience production related challenges, necessitating more advanced interventions.
TSP has indicated a substantial potential increase of ~ 44% in crude oil (from baseline production of 45.47 MMT to 65.41 MMT) and ~ 89% increase in gas production ( from 24.94 BCM to 47.22 BCM) for the ten-year contract period. In terms of O+OEG, the increase works out to ~60% (from 70.40 MMToe to 112.63 MMToe). The increase is expected to be visible from FY’26 with full scale visibility expected from FY’28. This incremental production is expected to generate additional oil and gas revenue (net of levies) of upto USD 10.30 Billion and incremental contribution to GoI Exchequer by way of royalty, cess and other levies upto the tune of USD 5 billion.
TSP will receive a fixed fee for the first two years, followed by a Service Fee based on a percentage share of the revenue from net incremental hydrocarbon production, after recovering incremental costs.
