New Delhi, Feb. 10 -- In a significant move towards enhancing oil and gas production from India's largest offshore field, the Oil and Natural Gas Corporation Limited (ONGC) and bp have inked a strategic contract on Monday, which aimed at revitalising the Mumbai High field, was formalised, marking a pivotal moment in the country's energy sector.
Under the terms of the agreement, bp will assume the role of Technical Services Provider (TSP), bringing its global expertise in managing mature reservoirs and advanced recovery technologies to the forefront.
While ONGC will retain ownership and operational control of the Mumbai High field, bp's involvement as TSP will see the deployment of technical personnel for an initial two-year period. During this phase, bp will receive a fixed fee, followed by a performance-based service fee linked to incremental oil and gas production.
The collaboration is strategically designed to stabilise the current production decline and restore robust growth at the Mumbai High Field. bp's extensive experience in managing large oil fields globally will be instrumental in optimising oil recovery at the site.
The company plans to conduct comprehensive reviews of sub-surface models, implement system optimizations, and enhance reservoir management practices. This initiative is expected to significantly boost domestic oil and gas production, increasing ONGC's revenues while yielding higher service returns for bp.
Work on the project is set to commence by March this year, with bp assembling a team of technical experts to drive the initiative. To ensure seamless execution, ONGC and bp have already established a Senior Management Team and a Joint Management Team.
At the signing ceremony, Petroleum and Natural Gas Minister Hardeep Singh Puri underscored the strategic importance of the collaboration. "India's quest towards energy self-sufficiency gets a massive boost as ONGC onboards its energy partner bp as Technical Service Provider for the Mumbai High Field, a landmark field that has been providing energy security to us since 1974. This collaboration will help in enhancing production through bp's expertise in managing complex reservoirs and advanced operational practices."
Petroleum and Natural Gas Secretary Pankaj Jain emphasised the transformative potential of the engagement. "This strategic partnership represents a critical step in leveraging global best practices and cutting-edge technologies to optimize production at Mumbai High. Through this collaboration, we will reinforce our commitment to energy self-reliance and sustainable growth, ensuring a brighter future for India's energy landscape."
ONGC Chairman and CEO Arun Kumar Singh said: "By engaging a TSP, ONGC aims to realize the enhanced potential of the Mumbai High field by leveraging cutting-edge technologies and global best practices, securing its future contribution to India's energy landscape."
Kartikeya Dube, Head of Country and Chairman of bp India, expressed enthusiasm about the partnership.
"We are extremely proud and privileged to be selected as a partner by ONGC and look forward to bringing our international experience and technical expertise to the Mumbai High Field. This opportunity further underpins our commitment to exploration and the production of oil and gas in India, creating value for both companies and helping support the country's vision for energy independence and security," he said.
Published by HT Digital Content Services with permission from Millennium Post.