ONGC onboards Technical Services Provider for enhancing production from entire Western Offshore fields
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ONGC has selected BP Exploration Services India Limited (BPXS), a wholly-owned step-down subsidiary of BP Plc, as the Technical Services Provider for the entire Western Offshore fields excluding the Mumbai High field. The TSP contract aims to enhance production from mature offshore oil and gas fields in the Mumbai Offshore Basin through advanced technology and best practices. BPXS has indicated substantial production increases of approximately 10.8% in crude oil (from 46.25 MMT to 51.26 MMT), 31.5% in gas production (from 82.68 BCM to 108.69 BCM), and 24.1% in total O+OEG (from 128.93 MMTOE to 159.96 MMTOE) over the ten-year contract period. The fee structure includes a fixed fee for the first two years, followed by a service fee based on a percentage share of revenue from net incremental hydrocarbon production. The production increases are expected to be visible from FY27 with full scale visibility by FY30.
This partnership with BPXS is positive for ONGC as it aims to unlock significant production potential from mature Western Offshore fields, contributing to India's energy security. The incentive-based fee structure aligns TSP interests with ONGC's production goals, potentially boosting long-term revenues and shareholder value.