ONGC partners with BP to boost production at Mumbai High Field

India’s biggest oil and gas explorer, Oil and Natural Gas Corporation (ONGC), has teamed up with global energy giant BP to enhance oil and gas production from the Mumbai High offshore field, the nation’s largest-producing oilfield. The collaboration is set to rejuvenate the field’s output, which has declined significantly over the years.

Discovered in 1974, the Mumbai High field reached its peak production of 471,000 barrels per day (bpd) of oil in March 1985. Since then, production has dropped and was approximately 134,000 bpd as of April 2024, according to a tender document released last year.

The field, located off India’s west coast, has been a cornerstone of the country’s domestic energy production. ONGC’s partnership with BP aims to reverse the downward trend and ensure optimal recovery from the mature field.

BP’s role as a technical service provider

BP will serve as a technical service provider, leveraging its global expertise to help boost production levels. According to ONGC, BP has committed to increasing the field’s output by up to 60%.

“We look forward to bringing our extensive experience in optimizing performance and recovery from mature fields worldwide to enhance production from Mumbai High,” BP said in a statement.

India, the world’s third-largest oil importer and consumer, has been grappling with stagnant oil and gas production for years. In June 2024, the government announced ONGC’s plans to collaborate with a global oil major to address this issue.

India’s oil minister, Hardeep Singh Puri, also met with BP’s board in September 2024 to discuss potential partnerships. The government has actively encouraged foreign companies to participate in its exploration programs to accelerate domestic energy production.

BP’s growing presence in India

BP already has a strong footprint in India through its partnership with Reliance Industries, operating over 1,900 fuel retail stations and producing oil and gas from a deep-water block in the Krishna-Godavari basin off the country’s eastern coast.

The Reliance-BP joint venture has also teamed up with ONGC to bid for exploration rights for an offshore block, further solidifying its commitment to India’s energy sector.

This partnership between ONGC and BP marks a significant step in reviving India’s largest oil field and strengthening the nation’s energy security. With BP’s expertise and ONGC’s strategic vision, the Mumbai High field could once again become a beacon of energy production for the country.

FAQs about ONGC and BP partnership

1. What is the Mumbai High field, and why is it important?

The Mumbai High field is India’s largest-producing oil field, discovered in 1974. It has been a critical resource for the country’s energy needs, contributing significantly to domestic oil production.

2. Why has the production from Mumbai High declined?

The field, being mature, has seen a natural decline in production over the years. Its peak production of 471,000 barrels per day (bpd) in 1985 has dropped to around 134,000 bpd as of April 2024.

3. What is the role of BP in this partnership?

BP will act as a technical service provider, using its global expertise to optimize production and recovery from the mature Mumbai High field.

4. How much production increase is expected from this partnership?

BP has committed to boosting oil and gas production from the Mumbai High field by up to 60%.

5. Why is India focusing on increasing domestic oil and gas production?

India is the world’s third-largest oil importer and consumer. Increasing domestic production reduces dependency on imports, enhances energy security, and helps meet the growing energy demand.

6. What other projects does BP have in India?

BP, in partnership with Reliance Industries, operates over 1,900 fuel retail stations and produces oil and gas from a deepwater block in the Krishna-Godavari basin. The Reliance-BP partnership is also bidding for offshore exploration blocks with ONGC.

7. How does this partnership align with India’s energy goals?

This collaboration supports the government’s initiatives to attract foreign investment in energy exploration and production, helping India achieve self-reliance in energy.

8. What is the timeline for seeing results from this partnership?

While immediate results may not be visible, significant improvements in production are expected in the medium to long term as BP implements its technical solutions.

9. Has ONGC partnered with global companies before?

Yes, ONGC has explored partnerships with other global oil majors to leverage advanced technologies and expertise in enhancing production.

10. What is the significance of this tie-up for BP?

For BP, this partnership strengthens its foothold in India, a rapidly growing energy market, while showcasing its technical expertise in optimizing mature oil fields.