Oil and Natural Gas Corporation (ONGC) and global energy major bp have signed a new Technical Services Contract (TSC) to enhance hydrocarbon production from ONGC’s Western Offshore Basin, reinforcing their collaboration to improve recovery from India’s key offshore oil and gas assets. The agreement was signed in the presence of Union Minister for Petroleum and Natural Gas Hardeep Singh Puri and Petroleum Secretary Dr Neeraj Mittal. It follows the successful implementation of a similar technical services arrangement for Mumbai High and extends the partnership to ONGC’s broader Western Offshore Basin operations.
As India’s largest exploration and production company, ONGC contributes nearly 64 per cent of the country’s domestic crude oil and natural gas output. The Western Offshore Basin, comprising 43 producing blocks, has served as the backbone of India’s offshore hydrocarbon production for more than four decades and continues to play a vital role in ensuring the nation’s energy security.
Under the new contract, bp will serve as the Technical Services Provider (TSP), bringing advanced technologies, international expertise and global operational practices to support production enhancement across mature offshore fields. ONGC will continue to retain complete ownership and operational control of all assets while working jointly with bp’s multidisciplinary teams to identify opportunities for improving reservoir performance, well productivity and production facility efficiency.
The collaboration is expected to slow the natural decline in production from ageing fields, improve hydrocarbon recovery and increase operational efficiency through targeted technical interventions. The focus will be on optimizing reservoir management, strengthening production surveillance and implementing advanced engineering solutions to maximize output from existing assets.
As part of the commercial framework, bp will receive a fixed service fee during the initial two years of the contract. Thereafter, compensation will be linked to a share of the revenue generated from incremental hydrocarbon production achieved through the joint improvement initiatives.
The expanded partnership builds on the Technical Services Contract signed for Mumbai High in February 2025. During the first year of that engagement, the two companies implemented several production optimization measures, including enhanced well surveillance, reservoir management improvements and facility optimization programmes, helping stabilize production and deliver measurable output gains.
Commenting on the agreement, ONGC Chairman and CEO Arun Kumar Singh said the encouraging results achieved at Mumbai High have laid the foundation for extending the collaboration to the Western Offshore Basin. He noted that the partnership is expected to improve recovery rates, enhance operational performance and support sustained production growth.
bp India Chairman and Senior Vice President Kartikeya Dube said the company looks forward to leveraging its global technical expertise to help unlock additional production potential from the Western Offshore Basin while contributing to India’s long-term energy security objectives.
Oil and Natural Gas Corporation (ONGC) is India’s largest exploration and production (E&P) company and a key contributor to the nation’s energy security. The company has discovered seven of India’s eight producing sedimentary basins and holds the largest exploration acreage in the country. With extensive in-house expertise spanning the entire upstream oil and gas value chain, ONGC possesses strong capabilities in exploration, production, and a wide range of oilfield services.
Demonstrating its commitment to sustainable resource development, ONGC has consistently maintained a Reserve Replacement Ratio (RRR) of over 1.0 for its proved and probable (2P) reserves over the past decade, reflecting its ability to replenish reserves while supporting long-term production growth.
bp is one of the largest international energy companies operating in India, with a diverse portfolio spanning the energy value chain. Its operations in the country include oil and gas exploration and production, natural gas trading, mobility and aviation fuels, clean energy initiatives, global business services, and maritime operations.
bp has established several strategic partnerships in India, including its fuel and mobility joint venture, Jio-bp, with Reliance Industries Limited, as well as its Technical Services Provider collaboration with ONGC. Through these partnerships and investments, bp continues to support India’s evolving energy needs while contributing to the transition toward a lower-carbon future.
