BP Exploration (Alpha), a step-down subsidiary of UK energy giant bp, has won a bid to serve as a technical service provider for Oil and Natural Gas Corporation’s (ONGC) Mumbai High, a multi-layered field in the Mumbai offshore area in India.
BP has outbid Shell in the round and committed to increasing production over the ten-year contract period at the Mumbai High field, which was discovered in 1974.
The company forecasts approximately a 44% rise in crude oil, from 45.47 million tonnes (mt) to 65.41mt, approximately 89% in gas from 24.94 billion cubic metres (bcm) to 47.22bcm, and approximately 60% in overall output from 70.4 million tonnes of oil equivalent (toe) to 112.63toe.
Production gains will start in FY26, with full visibility by FY28. These increments are expected to yield up to $10.3bn in additional oil and gas revenue and contribute up to $5bn to the Indian Government through royalties, cess and levies.
Alpha will initially earn a fixed fee, transitioning to a revenue-based service fee after cost recovery.
The Mumbai High field achieved its highest production level in March 1985, with 471,000 barrels of oil per day (bopd). However, by April 2024, production had dwindled to approximately 134,000bopd, as per the tender document released last year, reported Reuters.
ONGC has implemented various enhancement measures in the field to boost production, but challenges persist, requiring advanced interventions.
In a move to revitalise output, the Indian Government disclosed in June that ONGC was seeking a technical partnership with a global oil company.
The partnership is a part of bp's broader engagement in India's energy sector, which includes operating 1,900 fuel retail stations across the country and producing oil and gas from the Krishna-Godavari basin's deep-water block on the east coast, in conjunction with Reliance Industries.
The collaboration between Reliance and bp has also extended to bidding with ONGC for exploration rights for an offshore block in India, indicating a strengthening of ties and shared interests in the region's energy resources.
