ONGC ties up with BP to boost output from Western Offshore Basin

NEW DELHI: Public sector behemoth Oil and Natural Gas Corporation on Thursday signed a new technical services contract with UK’s BP to boost output from the Western Offshore Basin.A similar technical services contract was signed between the two companies for Mumbai High in Feb last year.ONGC accounts for nearly 64% of India’s domestic crude oil and natural gas production. Comprising 43 blocks, Western Offshore Basin is ONGC’s most prolific hydrocarbon-producing basin and has contributed significantly to India’s energy requirements for over four decades.Company, in a statement, said the agreement will facilitate wider deployment of advanced technologies, global technical expertise and best-in-class operating practices across some of India’s most important mature hydrocarbon assets.ONGC will retain complete ownership and operational control of the assets. BP will work closely with ONGC’s multidisciplinary teams to identify and implement focused interventions across reservoirs, wells and production facilities.The collaboration will seek to moderate natural production decline, improve hydrocarbon recovery and operational efficiency, and support sustained production growth.Under the terms of contract, BP will receive a fixed fee for first two years, followed by a service fee linked to a percentage share of revenue generated from net incremental hydrocarbon production.

During the first year of collaboration at Mumbai High, the two companies successfully moderated production decline and delivered growth through optimisation of existing wells, enhanced surveillance and focused reservoir, well and facility management initiatives, ONGC said in a statement.“Building on the encouraging outcomes at Mumbai High, this expanded collaboration will support improved recovery, greater efficiency and sustained production growth,” ONGC chairman and CEO Arun Kumar Singh said.