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Key figures, picked by EA AI

  • Production45.47MMT+89%
  • Revenue$10.30billion
Oil & Gas

ONGC engages technical services provider to boost production from Mumbai High Field

Energy Asia 2 min read
Mumbai High

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EA AI summary
  • In a significant move to enhance production from the Mumbai High Field, ONGC has onboarded a Technical Services Provider (TSP) following an International Competitive Bidding (ICB) process.
  • As the National Oil Company (NOC), ONGC is responsible for approximately 75% of the country's domestic crude oil and natural gas production.
  • The Mumbai High Field, discovered in 1974 and operational since 1976, is a multi-layered reservoir that has been a focal point for ONGC's production efforts.
  • Over the years, ONGC has implemented various enhancement schemes in the Mumbai High Field, including gas and water shut-off jobs, side-tracking poor producers, and infill drilling.
  • The TSP has projected a potential increase of approximately 44% in crude oil production, rising from a baseline of 45.47 MMT to 65.41 MMT, and an impressive 89% increase in gas production, from 24.94 BCM to 47.22 BCM, over the ten-year contract period.

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In a significant move to enhance production from the Mumbai High Field, ONGC has onboarded a Technical Services Provider (TSP) following an International Competitive Bidding (ICB) process. This initiative is crucial for addressing the challenges faced in the Exploration and Production (E&P) sector, which is essential for meeting India’s growing energy demands amid rapid economic growth.

As the National Oil Company (NOC), ONGC is responsible for approximately 75% of the country’s domestic crude oil and natural gas production. The Mumbai High Field, discovered in 1974 and operational since 1976, is a multi-layered reservoir that has been a focal point for ONGC’s production efforts. While the company is committed to exploring new hydrocarbon resources, enhancing recovery from mature fields like Mumbai High remains a top priority.

Over the years, ONGC has implemented various enhancement schemes in the Mumbai High Field, including gas and water shut-off jobs, side-tracking poor producers, and infill drilling. Despite these efforts, the field continues to face production-related challenges, prompting the need for advanced interventions.

The recent ICB tender invited international operators with proven expertise in managing complex mature reservoirs. BP Exploration (Alpha) Ltd., a subsidiary of BP Plc, UK, emerged as the selected TSP after a thorough bid evaluation process. The TSP is expected to review field performance and identify improvements in reservoir management, facilities, and wells to significantly enhance production.

The TSP has projected a potential increase of approximately 44% in crude oil production, rising from a baseline of 45.47 MMT to 65.41 MMT, and an impressive 89% increase in gas production, from 24.94 BCM to 47.22 BCM, over the ten-year contract period. This incremental production is anticipated to generate additional revenue of up to $10.30 billion and contribute around USD 5 billion to the Government of India through royalties and other levies.

For the first two years, the TSP will receive a fixed fee, transitioning to a service fee based on a percentage share of the revenue from net incremental hydrocarbon production after recovering costs. By leveraging cutting-edge technologies and global best practices, ONGC aims to unlock the full potential of the Mumbai High Field, securing its vital role in India’s energy landscape for years to come. 

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