ONGC Partners with BP to Enhance Production from Western Offshore Assets
ONGC inks pact with BP to boost output from Western Offshore assets
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Oil and Natural Gas Corporation (ONGC) has signed a contract with BP Exploration Services India Limited to improve production from its Western Offshore assets, excluding the Mumbai High field. This partnership aims to reverse output decline and bolster India's energy security.
- 01The contract follows an International Competitive Bidding tender aimed at improving output from ageing offshore fields.
- 02BPXS previously assisted ONGC in stabilizing production decline in the Mumbai High field, which significantly contributes to Western Offshore production.
- 03The new agreement includes a review of field performance and interventions to enhance hydrocarbon recovery across 43 blocks in the Mumbai Offshore Basin.
- 04Projected increases include a 10.8% rise in crude oil production from 46.25 million metric tons (MMT) to 51.26 MMT and a 31.5% increase in natural gas output from 82.68 billion cubic meters (BCM) to 108.69 BCM over ten years.
- 05The contract features a fixed fee for the first two years, transitioning to a performance-linked fee based on incremental revenue.
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The Oil and Natural Gas Corporation (ONGC) has entered into a significant contract with BP Exploration Services India Limited (BPXS) to enhance production from its Western Offshore assets, excluding the Mumbai High field. This initiative aims to counteract production decline and improve India's energy security. The agreement follows ONGC's successful previous collaboration with BPXS in the Mumbai High field, which is crucial for Western Offshore production. Under the new contract, BPXS will assess field performance and recommend strategies to boost hydrocarbon recovery across 43 blocks in the Mumbai Offshore Basin. The partnership is projected to yield a 10.8% increase in crude oil production, raising output from 46.25 MMT to 51.26 MMT, and a 31.5% rise in natural gas production from 82.68 BCM to 108.69 BCM over the next ten years. The contract structure involves a fixed fee for the initial two years, transitioning to a performance-based fee linked to revenue from increased production, reinforcing ONGC's commitment to maximizing recovery from mature fields.
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This partnership is expected to significantly enhance domestic energy production, addressing rising energy demands in India.
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