ONGC and bp partner to boost Mumbai High field production in strategic energy move

Oil and Natural Gas Corporation Limited (ONGC) has entered into a landmark partnership with British energy giant bp to enhance oil and gas production from the Mumbai High field, India‘s largest and most prolific offshore oil field. The agreement, signed in the presence of prominent government officials and senior executives from both companies, aims to reverse the field’s production decline while reinforcing India’s pursuit of energy self-sufficiency.

The contract was formalised at a ceremony attended by the Honourable Minister of Petroleum and Natural Gas Shri Hardeep Singh Puri, Secretary of the Ministry of Petroleum and Natural Gas Shri Pankaj Jain, ONGC’s Chairman and CEO Shri Arun Kumar Singh, and bp’s Executive Vice President William Lin. The collaboration underscores a significant milestone for India’s energy sector as it seeks to stabilise declining output from mature fields and meet the country’s growing energy demands.

How will the ONGC-bp partnership impact Mumbai High field production?

Mumbai High field, operational since 1974, has been a critical contributor to India’s domestic oil output. However, like many mature oil fields, it has faced a steady decline in production over the years. The partnership between ONGC and bp is designed to address this challenge through the deployment of advanced technologies, improved reservoir management practices, and enhanced operational efficiencies.

Under the terms of the contract, bp will serve as the Technical Services Provider (TSP), leveraging its extensive global expertise in managing complex offshore oil fields. ONGC will retain full ownership and operational control of Mumbai High, ensuring that strategic decisions remain aligned with India’s national energy goals. The contract stipulates a two-phase payment structure, with bp receiving a fixed fee for the first two years, followed by a service fee linked to incremental oil and gas production. This performance-based approach incentivises bp to deliver measurable improvements in output, creating a win-win scenario for both companies.

bp’s role will involve comprehensive subsurface model reviews, system optimisations, and the implementation of cutting-edge technologies to maximise oil recovery. By tapping into bp’s international experience in similar offshore environments, ONGC aims to stabilise production levels and chart a new growth trajectory for Mumbai High field.

Why is this partnership significant for India’s energy self-sufficiency?

India’s energy landscape is at a critical juncture, with rising consumption driven by economic growth and urbanisation. Despite significant efforts to diversify its energy mix, the country remains heavily reliant on imported oil to meet its needs. The ONGC-bp partnership is strategically aligned with India’s broader goal of achieving energy self-sufficiency, reducing dependence on imports, and enhancing domestic production capabilities.

Speaking at the signing ceremony, Shri Hardeep Singh Puri highlighted the strategic importance of the collaboration, stating that it represents a key step in India’s quest for energy security. He emphasised that under the leadership of Prime Minister Narendra Modi, India is committed to maximising its domestic energy resources through strategic partnerships and technological advancements.

Shri Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas, echoed this sentiment, describing the agreement as a vital initiative to harness global best practices. He expressed confidence that bp’s technical expertise, combined with ONGC’s operational experience, would drive sustainable growth in domestic oil and gas production.

What technologies will bp bring to enhance Mumbai High’s oil recovery?

bp’s involvement in Mumbai High field goes beyond providing technical consultancy. The company will deploy state-of-the-art technologies and advanced reservoir management techniques that have proven successful in other mature offshore fields worldwide. This includes data-driven subsurface analysis, enhanced oil recovery (EOR) methods, and digital monitoring systems to optimise field performance in real-time.

By integrating these technologies, bp aims to identify untapped reserves, reduce production decline rates, and improve the overall recovery factor of the field. Additionally, bp will establish a dedicated team of technical experts to work closely with ONGC’s operational staff, ensuring seamless knowledge transfer and capacity building within the Indian workforce.

Shri Arun Kumar Singh, Chairman and CEO of ONGC, highlighted the strategic rationale behind engaging a Technical Services Provider. He noted that bp’s global expertise in managing complex oil fields would help unlock Mumbai High’s full potential, securing its long-term contribution to India’s energy landscape.

bp’s Head of Country and Chairman, Kartikeya Dube, expressed pride in the partnership, stating that it reflects bp’s commitment to supporting India’s energy goals. He emphasised that bp’s international experience would create significant value for both companies, while advancing India’s vision of energy self-sufficiency.

What are ONGC and bp’s future plans beyond Mumbai High?

In addition to the Mumbai High contract, ONGC and bp signed a memorandum of understanding (MoU) to explore further collaboration across the energy sector, both within India and internationally. The MoU, signed during India Energy Week, outlines plans for joint exploration of offshore opportunities under India’s Open Acreage Licensing Program (OALP) and potential cooperation in new energy vectors such as carbon capture and storage (CCS).

The MoU, which is valid for three years, reflects the companies’ shared vision of fostering innovation, sustainability, and energy security. Both parties will work together to identify and develop new business opportunities in oil and gas exploration, production, and trading, with a focus on creating long-term value for stakeholders and contributing to global energy transition efforts.

This strategic alignment not only strengthens ONGC’s position in India’s energy sector but also reinforces bp’s role as a key partner in the country’s energy growth story.