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India's Exploration and Production (E&P) sector is vital for meeting the nation's growing energy demands, driven by rapid economic growth.
Being the National Oil Company (NOC), ONGC plays a crucial role, contributing around 75 per cent of the country's domestic crude oil and natural gas production. According to ONGC, Mumbai High (MH), a prolific multi-layered field located in the Mumbai offshore area, was discovered by ONGC in 1974 and started production in 1976. While ONGC focuses on unlocking the potential of new hydrocarbon resources through greenfield projects, enhancing recovery from mature fields like MH also remains a top priority for increasing domestic production. Over the decades, ONGC has implemented various enhancement schemes in MH field to boost production and recovery. Various measures like gas and water shutoff jobs, side-tracking poor producers, enhancing water injection support, gas-lift, and infill drilling have been implemented to maintain production. However, the field continues to experience production-related challenges, necessitating more advanced interventions. In order to overcome these challenges and to realize the full potential of MH, ONGC issued an International Competitive Bidding (ICB) tender to engage a Technical Services Provider (TSP) for Mumbai High Field with expertise in managing complex mature reservoirs and implementing advanced recovery technologies and best operational practices. 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 were invited to participate. Shell and BP expressed their interest and participated in the pre-bid process and finally bid was submitted by BP. After the bid evaluation process, M/s BP Exploration (Alpha) Ltd., 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. TSP has indicated a substantial potential increase of ~ 44 per cent in crude oil (from baseline production of 45.47 MMT to 65.41 MMT) and ~ 89 per cent increase in gas production ( from 24.94 BCM to 47.22 BCM) for the ten-year contract period. In terms of O+OEG, the increase works out to ~60 per cent (from 70.40 MMToe to 112.63 MMToe). The increase is expected to be visible from FY'26 with full scale visibility expected from FY'28. This incremental production is expected to generate additional oil and gas revenue (net of levies) of upto USD 10.30 Billion and incremental contribution to GoI Exchequer by way of royalty, cess and other levies upto the tune of USD 5 billion. 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 realize the enhanced potential of MH field by leveraging cutting-edge technologies and global best practices, securing its future contribution to India's energy landscape. (ANI)
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