BP already has a similar arrangement for ONGC’s flagship Mumbai High fields, but the latest move significantly expands its role, making it responsible for helping enhance output from fields that account for about 72% of ONGC’s gas production and 60% of its oil output.
For BP, a global energy major that remained a junior partner to Reliance Industries in India for more than a decade, the expanding role across ONGC’s upstream assets marks a new trajectory and growing influence in the country.
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ONGC on Monday said BP had been selected as the technical services provider (TSP) for its Western Offshore fields through an open bidding process. Western Offshore includes some of ONGC’s largest assets, such as Neelam and Bassein.
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It also includes Mumbai High, for which a separate arrangement was put in place last year.”TSP has indicated a substantial potential increase of 10.8% in crude oil (from baseline production of 46.25 million metric tonnes (MMT) to 51.26 MMT) and 31.5% increase in gas production (from 82.68 billion cubic meters (BCM) to 108.69 BCM) for the 10-year contract period,” ONGC said in a statement.