BP Plc secures Bid to Operate ONGC's Mumbai High Fields

BP Plc has successfully secured a bid to operate ONGC's large Mumbai High oil and gas field, proposing a potential increase of up to 60 percent in output compared to the baseline, according to a statement from the state-owned firm on Wednesday. 

In June of last year, Oil and Natural Gas Corporation (ONGC) issued a tender seeking foreign partners to help reverse the declining production at its flagship Mumbai High fields. The tender offered a share of revenue from any incremental production, along with a fixed fee, but did not include an equity stake. 

Two bidders responded to the tender: BP and Royal Dutch Shell. Following the bid evaluation process, ONGC announced that BP Exploration (Alpha) Ltd, a wholly-owned subsidiary of BP Plc, UK, has been selected as the technical service provider (TSP).

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"The TSP will review the field performance and identify improvements in reservoir, facilities and wells to enhance the production from Mumbai High field. The TSP has indicated a substantial increase in oil plus oil equivalent gas production (up to 60 percent) from baseline production levels (reputed third-party vetted production estimates with natural decline) over 10 years contract period."

ONGC said it had issued an international competitive bidding (ICB) tender on June 1, 2024, 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.

The TSP would have to do a comprehensive review of the field performance and identify improvements as well as implement suitable technological interventions and practices for improving production and recovery, it said. ONGC sought bids from firms with annual revenue of at least USD 75 billion, according to the tender document.

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