ONGC and BP Partner to Boost Production at Mumbai High Oil Field

The Oil and Natural Gas Corporation Limited (ONGC), a prominent Indian central public sector undertaking, stands as the nation’s foremost government-owned explorer and producer of oil and gas. It commands approximately 70% of India’s domestic crude oil production and 84% of its natural gas output.

ONGC has Partnered with BP

In a strategic collaboration, ONGC has partnered with BP to revitalise production at the Mumbai High oilfield, a complex multi-layered field situated in India’s offshore Mumbai region. This partnership aspires to arrest the field’s production decline and chart a trajectory of sustainable growth.

Under the arrangement, BP will act as the Technical Services Provider (TSP), earning a fixed fee for two years, subsequently transitioning to a performance-based remuneration model linked to incremental oil and gas production.

The initiative aims to bolster oil recovery at Mumbai High through advanced sub-surface analyses, system optimisations, and enhanced reservoir management techniques. This alliance is expected to not only elevate India’s domestic hydrocarbon output, bolstering its economy but also yield lucrative service fee returns for BP.

Statement From BP Management 

Kartikeya Dube, BP India’s Head of Country and Chairman, stated: “This collaboration further underscores our steadfast commitment to oil and gas exploration and production in India. 

It creates value for both partners while supporting the nation’s vision for energy self-sufficiency and security.”Despite the collaboration, ONGC will retain ownership and operational control of the field. The venture will commence with BP deploying technical experts by March 2025, supported by a joint management team to ensure flawless execution.

Statement From Hardeep Singh Puri

India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, highlighted: “While ONGC retains ownership of the field, this landmark technological partnership will harness BP’s expertise in managing complex mature reservoirs, deploying advanced recovery technologies, and implementing global best practices to elevate production from this iconic asset.”

Statement From ONGC

Echoing these sentiments, ONGC Chairman and CEO Arun Kumar Singh remarked: “By engaging a TSP, ONGC aims to unlock the full potential of the Mumbai High field, leveraging cutting-edge technologies and world-class practices to safeguard its pivotal role in India’s energy future.”

ONGC Share Price Performance 

At 3:30 PM on February 11, 2025, Oil and Natural Gas Corporation Ltd shares traded at ₹239.40 per share on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.