Incremental output from Mumbai High may generate additional $10.3 billion revenue: ONGC

ONGC said that international oil and gas major BP has been selected as the technical services provider (TSP) for the mature oil and gas field at Mumbai High. Despite employing various schemes for recovery at the Mumbai High, which began production in 1976, the field continues to witness challenges, forcing the state-run exploration & production (E&P) major to deploy advanced interventions through the TSP, ONGC said.

Over the decades, ONGC implemented various enhancement schemes in the field to boost production and recovery such as gas and water shut-off jobs, side-tracking poor producers, enhancing water injection support, gas-lift, and infill drilling has been implemented to maintain production. However, the field continues to experience production related challenges, necessitating more advanced interventions. The TSP has indicated a substantial potential increase of around 44 per cent in crude oil, from a baseline production of 45.47 million tonnes (MT) to 65.41 MT. Gas output can increase by about 89 per cent from 24.94 billion cubic meters (BCM) to 47.22 BCM for the ten-year contract period, the CPSU said. In terms of Oil + Oil equivalent of Gas (O+OEG), the increase works out to around 60 per cent from 70.40 million tonnes of oil equivalent (MToe) to 112.63 MToe. “The increase is expected to be visible from FY26 with full scale visibility expected from FY28. This incremental production is expected to generate additional oil and gas revenue (net of levies) of upto $10.30 billion and incremental contribution to government of India’s exchequer by way of royalty, cess and other levies up to the tune of $5 billion,” ONGC revealed.

The TSP will receive a fixed fee for the first two years, followed by a Service Fee based on a percentage share of the revenue from net incremental hydrocarbon production, after recovering incremental costs.

By engaging a TSP, ONGC aims to realise the enhanced potential of MH field by leveraging cutting-edge technologies and global best practices, securing its future contribution to India’s energy landscape. Through this ICB tender, ONGC invited international operators with proven technical expertise, financial strength, and a track record in similar projects.

All the major International Oil Companies (IoCs) were invited to participate. Shell and BP expressed their interest and participated in the pre-bid process and finally a bid was submitted by BP. “After the bid evaluation process, BP Exploration (Alpha), a wholly-owned step-down subsidiary of BP Plc, UK has been selected as TSP. The TSP will review the field performance & identify improvements in reservoir, facilities and wells to enhance the production from MH field,” it added.

In a separate statement, BP said “As the TSP, BP will conduct a comprehensive review of the field’s performance and identify improvements as well as implement suitable technological interventions and practices for improving production and recovery from this important national resource.” Mumbai High, which accounts for almost 25 per cent of India’s production. The field is estimated to have a balance reserve of 80 million tonnes (610 million barrels) of oil and over 40 bcm of gas, it added.

Kartikeya Dube, Head of Country at BP India, said “We are excited to partner with ONGC and look forward to bringing our international experience and technical expertise to this project. This project further underpins our commitment to exploration and production of oil and gas in India and supports its vision for energy independence and security.”