State-run Oil and Natural Gas Corporation (ONGC) announced on Monday that it has appointed BP Exploration Services India (BPXS), a wholly-owned subsidiary of BP, as the technical services provider (TSP) for its western offshore fields, excluding the Mumbai High field.
The TSP will evaluate field performance and identify potential enhancements in reservoirs, facilities, and wells to increase output from these offshore fields. ONGC stated that BPXS has indicated a significant potential uplift: an estimated 10.8% increase in crude oil production, raising forecasts from a baseline of 46.25 million tonnes (mt) to 51.26 mt. Additionally, gas production is projected to increase by 31.5%, from 82.68 billion cubic meters (BCM) to 108.69 BCM over the contract’s ten-year duration.
In terms of oil and oil equivalent gas (O+OEG), this translates to an approximate increase of 24.1%—from 128.93 million tonnes of oil equivalent (MTOE) to 159.96 MTOE.
The anticipated production enhancements are expected to start showing results in fiscal year 2027, with full visibility projected by fiscal year 2030. The TSP will receive a fixed fee for the initial two years, transitioning to a service fee that is based on a percentage of revenue derived from net incremental hydrocarbon output, after the recovery of incremental costs.
ONGC aims to tap into the full potential of the entire western offshore fields, which hold an estimated 72.62 MMTOE O+OEG, by utilizing advanced technologies and global best practices. This initiative is critical for securing the future role of ONGC in India’s energy sector.
The Mumbai Offshore Basin is ONGC’s most productive hydrocarbon basin, consisting of 43 blocks; 28 of these are under the nomination regime, while the remainder falls within the OALP, NELP, and DSF regimes.
Currently, ONGC also maintains a TSP contract with BP Exploration Alpha (BPXA) for the Mumbai High field, which contributes approximately 38% of the total western offshore production of O+OEG. This contract was established in early January 2025.
Preliminary production data following the initial months of TSP implementation suggest a stabilization of output, contrasting with the prior decline trajectory. This improvement is attributed to targeted management of wells, reservoirs, and facilities, as well as optimization efforts, enhanced monitoring, and prioritized facility de-bottlenecking.
BP has confirmed its selection by ONGC as the Technical Service Provider for the western offshore fields (excluding Mumbai High) and looks forward to facilitating increased production for these areas.
Published on May 25, 2026.
