
BP plc has signed a contract to provide technical services to India’s Oil and Natural Gas Corporation Limited (ONGC) for the Mumbai High field, India’s largest offshore oil field.
BP said in a news release that it will optimize oil recovery at Mumbai High “by conducting comprehensive reviews of sub-surface models, implementing system optimizations, and enhancing reservoir management practices”. The oil major said it plans to collaborate with ONGC to stabilize the field’s current production decline and restore it to a robust growth trajectory.
ONGC will retain ownership and operational control of the field. Under the terms of the contract, BP will receive a fixed fee for a period of two years for its deployed personnel, followed by a service fee linked to incremental oil and gas production.
BP said it plans to assemble a team of technical experts to begin work in March. Both companies have already established project management teams for the project.
“We are extremely proud and privileged to be selected as a partner by ONGC and look forward to bringing our international experience and technical expertise to the Mumbai High field. This opportunity further underpins our commitment to exploration and the production of oil and gas in India, creating value for both companies and helping support the country’s vision for energy independence and security,” Kartikeya Dube, Head of Country and Chairman of BP India, said.
Shri Arun Kumar Singh, ONGC Chairman and CEO, said “By engaging a [technical services provider], ONGC aims to realize the enhanced potential of the Mumbai High field by leveraging cutting-edge technologies and global best practices, securing its future contribution to India’s energy landscape”.
Meanwhile, the two companies also signed a memorandum of understanding (MoU) to explore opportunities for collaboration and partnership across the energy industry in India and internationally.
The potential collaboration will be focused on oil and gas exploration and production, as well as trading and extending to other energy vectors, BP said in a separate news release.
Specific areas under the MoU include potential collaboration and the sharing of best practices for deepwater exploration, as well as jointly bidding for mutually agreed offshore acreage under India’s Open Acreage Licensing Program (OALP) rounds.
The three-year MoU also encompasses strategic collaboration to create value in trading and in additional energy vectors, such as carbon sequestration, according to the release.
ONGC said it has the largest exploration acreage in the country and has discovered seven out of the eight producing basins of India. The company produces 63 percent of the country’s oil and gas. It describes itself as having “in-house service capabilities in all areas of exploration and production of oil and gas and related oil-field services”.
BP stated that its activities in India include Castrol lubricants, oil and gas trading, low carbon energy projects through Lightsource BP, and IT back office activities.
In a November 2024 report, the U.S. Energy Information Administration (EIA) said India emerged as the leading source of growth in global oil consumption in its forecast.
“Over 2024 and 2025, India accounts for 25 percent of total oil consumption growth globally,” the EIA noted in its November 2024 short-term energy outlook.
To contact the author, email [email protected]
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
MORE FROM THIS AUTHOR