ONGC Partners BP to Boost Western Offshore Output, Eyes 24% Production Growth

ndia’s exploration and production (E&P) sector remains critical to meeting the country’s rising energy demand amid sustained economic growth. As the National Oil Company (NOC), Oil and Natural Gas Corporation (ONGC) plays a pivotal role, contributing nearly 75% of India’s domestic crude oil and natural gas production.

The Mumbai Offshore Basin is ONGC’s most prolific hydrocarbon-producing region, comprising 43 blocks—28 under the nomination regime and the remainder under OALP, NELP, and DSF frameworks. These assets have collectively contributed a significant share of India’s hydrocarbon output and have been under continuous development for over four decades.

Mumbai High Success Drives Expansion Strategy

While ONGC continues to develop new hydrocarbon resources through greenfield projects, enhancing recovery from mature fields has become equally critical.

In January 2025, ONGC entered into a Technical Services Provider (TSP) contract with BP Exploration Alpha Limited (BPXA) for the Mumbai High field, which accounts for nearly 38% of total western offshore production (O+OEG).

Early results from the TSP engagement indicate stabilization of production and moderation in decline rates. This improvement has been achieved through:

• Focused Well, Reservoir and Facility Management (WRFM)
• Optimization of existing wells
• Enhanced production surveillance
• Targeted facility de-bottlenecking

BP Selected for Western Offshore Fields

Building on the success of the Mumbai High model, ONGC has extended the TSP approach to the entire Western Offshore region, excluding Mumbai High.

Following an International Competitive Bidding (ICB) process involving major global oil companies, BP Exploration Services India Limited (BPXS), a step-down subsidiary of BP Plc, has been selected as the Technical Services Provider.

Under the agreement, BPXS will evaluate field performance and recommend improvements across reservoirs, wells, and surface facilities to enhance production from mature offshore assets.

Strong Production Upside Expected

BPXS has projected significant gains over the 10-year contract period:

• Crude Oil: +10.8% (46.25 MMT to 51.26 MMT)
• Natural Gas: +31.5% (82.68 BCM to 108.69 BCM)
• Total O+OEG: +24.1% (128.93 MMTOE to 159.96 MMTOE)

The incremental production is expected to begin from FY’27, with full impact visible by FY’30.

Performance-Linked Commercial Model

The contract structure includes:

• A fixed fee for the initial two years
• A performance-linked service fee thereafter, based on incremental hydrocarbon output after cost recovery

Strategic Outlook

With this initiative, ONGC aims to unlock the full potential of its Western Offshore portfolio, estimated at 72.62 MMTOE (O+OEG). By leveraging advanced technologies and global best practices, the company seeks to maximize recovery from mature fields and strengthen its long-term contribution to India’s energy security.