ONGC and bp Sign Technical Services Contract to Enhance Production from Western Offshore Basin Fields

ONGC and bp Sign Technical Services Contract to Enhance Production from Western Offshore Basin Fields​

In a significant move to strengthen India's energy security, Oil & Natural Gas Corporation Limited (ONGC) and BP have signed a new Technical Services Contract for fields in the Western Offshore Basin. Under this agreement, BP has been appointed as the Technical Services Provider (TSP) for ONGC’s assets in the Western Offshore Basin, marking an expansion of their collaboration beyond the Mumbai High project.

As India's National Oil Company, ONGC plays a pivotal role in maintaining the nation's energy security, accounting for approximately 64 per cent of domestic crude oil and natural gas production. The Western Offshore Basin, which comprises 43 blocks, is one of ONGC's most prolific hydrocarbon-producing areas, contributing substantially to India’s energy needs over four decades.

The new contract aims to facilitate the wider deployment of advanced technologies, global technical expertise, and best-in-class operating practices across these crucial mature hydrocarbon assets. While BP will collaborate closely with ONGC's multidisciplinary teams to identify interventions in reservoirs, wells, and production facilities, ONGC will retain complete ownership and operational control of the assets.

The collaboration is set to focus on moderating natural production decline, improving hydrocarbon recovery, and supporting sustained production growth.

Financial Structure and Partnership Growth​

The terms of the contract stipulate that BP will receive a fixed fee for the initial two years. This will be followed by a service fee linked to a percentage share of revenue generated from net incremental hydrocarbon production.

This agreement builds upon the existing Technical Services Contract signed between ONGC and BP for Mumbai High in February 2025. During the first year of collaboration on that project, the companies successfully delivered growth and moderated production decline through enhanced surveillance and focused reservoir, well, and facility management initiatives.

Statements from both organizations highlighted the importance of the partnership for future recovery and national security. ONGC Chairman and CEO Shri Arun Kumar Singh stated that this expanded collaboration will support improved recovery, greater efficiency, and sustained production growth, building on the encouraging outcomes at Mumbai High.

Shri Kartikeya Dube, bp India Chairman and Senior Vice President, expressed optimism about bringing BP's global expertise to enhance production from the Western Offshore Basin and strengthen India's energy security.

Company Overview​

ONGC is recognized as India's largest exploration and production company. It holds the country's largest exploration acreage and possesses extensive in-house capabilities across the exploration and production value chain. Furthermore, ONGC has maintained a Reserve Replacement Ratio exceeding one for its 2P reserves for the past ten years.

BP operates as a major international energy company in India, with activities spanning oil and gas exploration and production, gas trading, and mobility fuels. The partnership represents one of BP's key collaborations within the Indian market.

ONGC Stock Price Movement​

Shares of Oil & Natural Gas Corporation Limited are shedding value in live trading, dipping 2.40% to trade at ₹234.25 as of 1:41 PM. The stock saw significant movement through the day, supported by a volume of 21.22 million shares and touching an intraday low of ₹234.05.