New Delhi [India], June 25 : State-owned Oil and Natural Gas Corporation (ONGC) and global energy company bp on Thursday signed a Technical Services Contract (TSC) aimed at enhancing hydrocarbon production from ONGC's fields in the Western Offshore Basin.
Under the agreement, bp has been appointed as the Technical Services Provider (TSP) for ONGC's fields in the Western Offshore Basin. The development marks an expansion of the existing collaboration between the two companies, which began with the Technical Services Provider contract for Mumbai High.
ONGC said the Western Offshore Basin is its most prolific hydrocarbon-producing basin, comprising 43 blocks. The basin has been a major contributor to India's energy requirements for more than four decades.
As India's National Oil Company, ONGC accounts for around 64 per cent of the country's domestic crude oil and natural gas production and plays a key role in strengthening India's energy security.
According to the company, the new agreement will facilitate the deployment of advanced technologies, global technical expertise and operating practices across some of India's most important mature hydrocarbon assets.
The agreement was signed in the presence of Union Petroleum and Natural Gas Minister Hardeep Singh Puri and Petroleum Secretary Neeraj Mittal.
Under the arrangement, 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 is aimed at moderating natural production decline, improving hydrocarbon recovery, enhancing operational efficiency and supporting sustained production growth.
As per the terms of the contract, bp will receive a fixed fee during the first two years. Thereafter, the company will receive a service fee linked to a percentage share of revenue generated from net incremental hydrocarbon production.
The agreement builds on the Technical Services Contract signed between ONGC and bp for Mumbai High in February 2025.
According to ONGC, the first year of collaboration at Mumbai High delivered encouraging results. The two companies were able to moderate production decline and achieve production growth through optimisation of existing wells, enhanced surveillance and focused reservoir, well and facility management initiatives.
Commenting on the development, ONGC Chairman and CEO Arun Kumar Singh said, "Building on the encouraging outcomes at Mumbai High, this expanded collaboration will support improved recovery, greater efficiency and sustained production growth."
bp India Chairman and bp Senior Vice President Kartikeya Dube said, "We look forward to bringing bp's global expertise to support enhanced production from the Western Offshore Basin and strengthen India's energy security."
The agreement is expected to support efforts to improve output from mature oil and gas fields while contributing to the country's long-term energy security objectives.