India’s largest oil and gas company, Oil and Natural Gas Corporation (ONGC), has enlisted BP to provide technical services to help increase production at the country’s biggest oilfield, the company announced on Wednesday.
India, the world’s third-largest importer of crude oil, has been striving to reduce its heavy reliance on oil imports. Currently, over 80% of India’s daily oil consumption is met through imports.
BP, a long-time player in India, has been looking to expand its presence in both the upstream and downstream sectors. The country has emerged as a key driver of global oil demand growth, overtaking China. Last year, BP’s board visited India, underscoring the company’s commitment to deepening its business ties with the country.
ONGC had launched an International Competitive Bidding (ICB) process last year to select a technical services provider for its offshore Mumbai High oilfield, located around 100 miles west of the Mumbai coast in the Arabian Sea. This field, which has been producing oil since 1976, is India’s largest oilfield.
Mumbai High reached its peak production of 471,000 barrels per day (bpd) in March 1985. However, output has since declined, with current production at approximately 134,000 bpd as of last year.
Following the bidding process, ONGC selected BP Exploration (Alpha) Ltd., a subsidiary of BP, to serve as its technical services provider. BP’s role will involve reviewing the field’s performance and recommending ways to improve reservoir management, facilities, and wells to boost production.
ONGC stated in a stock exchange filing that BP has projected a potential 60% increase in production over the next 10 years, compared to the baseline production levels, which account for natural decline and third-party vetted estimates.
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