State-owned Oil and Natural Gas Corporation (ONGC) is projecting a $10.3-billion revenue surge through increased oil and gas output from the Mumbai High field, following a partnership with BP’s technical services arm.

In a statement, ONGC said BP Exploration (Alpha) Ltd, a subsidiary of BP Plc, has been appointed as the technical service provider (TSP) to enhance production at the Arabian Sea-based oil and gas field.

“The TSP has indicated a potential increase of approximately 44 per cent in crude oil output, from 45.47 million tonnes (mt) to 65.41mt, and an 89 per cent rise in gas production, from 24.94 billion cubic meters to 47.22 billion cubic meters, over a 10-year period,” ONGC said.

The combined increase in oil and gas output is expected to reach 112.63mt of oil equivalent, a 60 per cent jump from the baseline production of 70.40 mt.

Production growth is anticipated to begin in the fiscal year starting April 2025, with full-scale visibility from 2027-28. ONGC estimates this will generate additional revenue of $10.3 billion (net of levies) and contribute $5 billion to government coffers through royalties, cess and other charges.

Last year, ONGC issued a global tender seeking international expertise to reverse declining production at its flagship Mumbai High fields. The tender offered a share of incremental production revenue and a fixed fee but excluded any equity stake.

Under the arrangement, BP will receive a fixed fee for the first two years, followed by a revenue-linked service fee after recouping incremental costs. “The TSP will evaluate field performance and implement advanced reservoir, facilities and well-management techniques to boost output,” ONGC said.

Mumbai High, located 160 kilometers off India’s western coast, was discovered in 1974 and reached peak production in 1989 with 476,000 barrels of oil per day and 28 billion cubic meters of gas.

Output at present stands at 132,265 barrels per day and 13 billion cubic meters of gas annually, a fraction of its peak levels. Without intervention, production was forecast to drop to 75,000 barrels per day of oil and 4.5 million cubic meters per day of gas by 2037-38.

“While unlocking new hydrocarbon resources remains critical, enhancing recovery from mature fields like Mumbai High is a priority for bolstering domestic output,” ONGC said.

India’s exploration and production sector is vital for meeting its energy demands.