Global energy major BP Plc has secured a contract to serve as the technical service provider (TSP) to Oil and Natural Gas Corporation (ONGC) for the PSU’s flagship Mumbai High oil and gas field, with a contract to increase output up to 60 per cent over baseline levels, ONGC said on Wednesday.

ONGC, grappling with declining production at India’s most prolific oil field, floated an international tender in June 2024 to seek foreign expertise.

The tender, which attracted bids from BP and Royal Dutch Shell, offered a share of revenue from incremental production and a fixed fee but did not involve equity stakes.

BP Exploration (Alpha) Ltd, a wholly owned subsidiary of BP Plc, emerged as the winner following a competitive evaluation process.

“We are delighted to have been selected by ONGC as the technical services provider for Mumbai High. We look forward to bringing our long experience of optimising performance and recovery from major mature fields worldwide to help unlock and enhance production from Mumbai High, India’s largest oil & gas field,” said William Lin, EVP Gas and Low Carbon Energy, BP.

Discovered in 1974 and operational since 1976, Mumbai High lies 160 kilometres off the coast of Mumbai in the Arabian Sea. Once producing a peak of 476,000 barrels per day (bpd) of oil and 28 billion cubic meters (bcm) of gas in 1989, output has steadily declined. The field now produces 134,000 bpd of oil and 13 bcm of gas annually, accounting for 38 per cent of India’s oil output and 14 per cent of its gas consumption.

ONGC estimates the field still holds 80 million tonnes of oil and 40 bcm of gas in reserves, necessitating advanced recovery techniques to tap into its remaining potential.

“BP has indicated a substantial increase in oil and oil-equivalent gas production—up to 60 per cent over baseline levels—during the 10-year contract period,” ONGC said.

The collaboration signifies a shift in ONGC’s strategy after previous resistance to privatising stakes in Mumbai High.

A 2021 proposal by the oil ministry to transfer 60 per cent ownership and operational control of Mumbai High and adjoining Bassein fields to private entities faced strong opposition from ONGC and government officials