BP secures contract to boost declining output at ONGC's Mumbai High field.

State-owned Oil and Natural Gas Corporation (ONGC) announced recently that BP Exploration (Alpha), a subsidiary of UK-based BP Plc, has been chosen as the Technical Services Provider (TSP) for the Mumbai High oil field. The field has faced declining crude oil production in recent years.

The selection was made through an international competitive bidding process initiated by ONGC on June 1, 2024. In its regulatory filing with the Bombay Stock Exchange (BSE), ONGC stated that BP Exploration (Alpha) will evaluate field performance and recommend enhancements in reservoir management, facilities, and wells to increase output.

The agreement includes a 10-year contract under which BP Exploration (Alpha) projects a significant increase of up to 60% in production from current baseline levels, which have been vetted by third-party estimates factoring in natural decline.

In a separate statement, BP expressed its commitment to the project. "We are pleased to have been selected as the TSP for Mumbai High and look forward to applying our global expertise in optimizing performance and recovery from mature fields," said William Lin, BP’s Executive Vice President of Gas and Low Carbon Energy. Lin emphasized BP's goal to enhance production at Mumbai High, which accounts for about 25% of India’s total oil output, while supporting the nation’s growing energy needs.

Discovered in 1974, the Mumbai High field began production in 1976 and remains India’s largest oil and gas field. ONGC highlighted its dual focus on developing new hydrocarbon resources and maximizing recovery from mature fields like Mumbai High as part of its strategy to boost domestic production.

The collaboration between ONGC and BP is expected to leverage advanced recovery technologies, operational best practices, and BP’s extensive experience with mature reservoirs to unlock the field’s full potential.

HBL