BP wins bid to raise falling output from ONGC’s Mumbai High field

State-run ONGC on Wednesday said a subsidiary of oil and gas major BP has been selected as the technical services provider (TSP) for its Mumbai High oil producing field, which has been marred by a decline in crude oil production.

BP Exploration (Alpha), a BP Plc, UK subsidiary, was selected through an International competitive bidding tender.

“After the bid evaluation process, BP Exploration (Alpha) has been selected as the TSP. The TSP will review the field performance & identify improvements in reservoir, facilities and wells to enhance the production from MH field,” India’s largest exploration & production (E&P) company said in a BSE filing.

The TSP has indicated a substantial increase in O+OEG production (up to 60 per cent) from baseline production levels (reputed third-party vetted production estimates with natural decline) over a 10 years contract period, it added.

In a separate statement, BP said “We confirm bp’s participation in the TSP selection process for enhancement of Mumbai High production. We are pleased to know that bp has been selected as the TSP for the project.”

The company looks forward to bringing its long experience of optimising performance and recovery from major mature fields around the world to help unlock and enhance production from Mumbai High, India’s largest oil & gas field (around 25 per cent of India’s oil production), it added.

“We look forward to working with ONGC to create value for both the country and the companies involved, and supporting India’s increasing energy needs,” said William Lin, EVP Gas and Low Carbon Energy at BP.

ONGC had issued an International Competitive Bidding (ICB) tender on June 1, 2024 to engage a Technical Services Provider (TSP) for Mumbai High Field with expertise in managing complex mature reservoirs and implementing advanced recovery technologies and best operational practices.

Through this ICB tender, the CPSU invited bids from international operators with proven technical expertise, financial strength, and a track record in similar projects

Mumbai High (MH), located in the Mumbai offshore area, was discovered by ONGC in 1974 and started production in 1976. While the Company focuses on unlocking the potential of new hydrocarbon resources through green-field projects, enhancing recovery from mature fields like MH also remains a top priority for increasing domestic production.

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