BP Plc has secured the contract to operate ONGC's Mumbai High oil and gas fields, offering a potential 60% boost in production over baseline levels, according to ONGC's announcement. This tender, initiated in June 2024, sought international technical expertise to reverse declining output at India’s flagship fields. BP Exploration (Alpha) Ltd, a subsidiary of BP Plc, emerged as the chosen Technical Service Provider (TSP) after outbidding Royal Dutch Shell.

The TSP’s role involves comprehensive performance reviews of the field, proposing improvements in reservoir management, facilities, and well operations to maximize production. BP’s proposal highlighted significant production increases of oil and gas equivalents over a decade, a projection validated by reputed third-party assessments.

The tender was part of ONGC’s International Competitive Bidding (ICB) initiative aimed at engaging global operators with expertise in mature reservoir management, advanced recovery technologies, and operational excellence. Participants were required to demonstrate financial strength, with an annual revenue threshold of USD 75 billion, and offer a clear plan for incremental production and revenue-sharing mechanisms.

Bidders had to specify quarterly production increments achievable over ten years and the percentage of revenue they would claim from additional output beyond baseline levels. While ONGC did not disclose specific bid details, the selection criteria prioritized the highest production increase and lowest revenue share, alongside a fixed service fee.

Mumbai High, discovered in 1974 and operational since 1976, remains India’s most prolific oil field, located 160 kilometers offshore in the Arabian Sea. Despite peaking in 1989 at 4,76,000 barrels of oil per day and 28 bcm of gas annually, output has steadily declined. Current production stands at 1,34,000 bpd of oil and 13 bcm of gas, accounting for 38% of India’s domestic production. The field holds an estimated 80 million tonnes (610 million barrels) of oil and over 40 bcm of gas, necessitating technological interventions to unlock its remaining potential.

In recent years, ONGC resisted multiple proposals to transfer stakes or operational control of Mumbai High to private or foreign firms. A 2021 oil ministry suggestion to cede 60% of Mumbai High and Bassein fields to foreign entities faced opposition. However, with declining output, ONGC opted for the TSP model to access advanced technical expertise.

The Mumbai High and adjoining Bassein fields are critical to India’s energy production, with the latter being the largest gas field, operational since 1988. ONGC’s overall crude output in FY 2023-24 was 18.4 million tonnes, slightly down from the previous year, while gas production fell by 3.2% to 19.974 bcm, underscoring the need for innovative solutions.