ONGC and bp Sign Technical Services Contract in Western Offshore

ONGC described the Western Offshore Basin as its most prolific hydrocarbon-producing area, comprising 43 blocks that have supplied energy to the country for more than four decades. The company said the basin has been a major contributor to India’s energy requirements and that ONGC as the national oil company accounts for around 64 per cent of domestic crude oil and natural gas production. The release said the contract will enable transfer of advanced technologies and operating practices to enhance recovery from mature assets.

Under the terms of the contract ONGC will retain full ownership and operational control of the assets while bp will provide technical services and work with ONGC multidisciplinary teams to identify interventions across reservoirs, wells and production facilities. The collaboration is designed to improve hydrocarbon recovery, enhance operational efficiency and support sustained production growth through focused reservoir, well and facility management initiatives. The signing ceremony took place in the presence of Union Petroleum and Natural Gas Minister Hardeep Singh Puri and Petroleum Secretary Neeraj Mittal.

As per the contract bp will receive a fixed fee during the first two years and thereafter a service fee linked to a percentage share of revenue from net incremental hydrocarbon production. The agreement builds on the Mumbai High Technical Services Contract and ONGC reported that the first year of collaboration there delivered encouraging results, moderating production decline and achieving growth through optimisation and enhanced surveillance. The companies said the expanded collaboration is expected to support efforts to improve output from mature oil and gas fields and contribute to long-term energy security.