Oil and Natural Gas Corporation (ONGC) and BP expanded their strategic partnership by signing a Technical Services Agreement (TSA) for ONGC’s Western Offshore Basin, marking a significant step towards enhancing production from India’s largest mature oil and gas assets. The agreement, signed on Thursday, extends the companies’ successful collaboration beyond Mumbai High and reinforces their shared commitment to improving hydrocarbon recovery, operational efficiency, and India’s long-term energy security.
BP to Provide Technical Expertise Across Forty-three Offshore Blocks
BP will act as the Technical Services Provider (TSP) for ONGC’s Western Offshore Basin, which comprises 43 offshore blocks and remains the company’s most productive hydrocarbon-producing region. For more than four decades, the basin has played a crucial role in meeting India’s energy demand. Through this expanded partnership, BP will deploy its global technical expertise, advanced technologies, and best operational practices across the basin’s assets. Importantly, ONGC will retain full ownership and operational control of all fields, while BP will work closely with ONGC’s technical teams to optimise reservoir performance, improve well productivity, and enhance production facility operations.
Focus on Improving Recovery and Operational Efficiency
The collaboration is designed to address the natural production decline associated with mature oil and gas fields. Together, ONGC and BP will implement advanced reservoir management techniques, optimise well performance, strengthen production surveillance, and improve facility management. These measures are expected to increase hydrocarbon recovery, enhance operational efficiency, and sustain production growth over the long term.
Performance-Linked Commercial Model
The agreement also introduces a performance-based commercial structure. During the first two years, BP will receive a fixed service fee. Thereafter, the company will earn a performance-linked fee based on a share of the additional revenue generated from incremental hydrocarbon production. This model aligns both organisations’ interests by linking technical performance with measurable production outcomes.
Builds on Successful Mumbai High Collaboration
The agreement builds upon the Technical Services Agreement for Mumbai High, signed in February 2025. According to ONGC, the first year of collaboration delivered encouraging results by slowing the natural production decline and achieving output growth through well optimisation, enhanced reservoir surveillance, and targeted improvements in field and facility management. The positive performance at Mumbai High provided the foundation for expanding the partnership across the broader Western Offshore Basin.
Leadership Reaffirms Commitment to Energy Security
Arun Kumar Singh, Chairman and CEO of ONGC, said, “Building on the encouraging outcomes at Mumbai High, this expanded collaboration will support improved recovery, greater efficiency and sustained production growth.” Kartikeya Dube, Chairman of BP India and Senior Vice President, BP, said the company looks forward to leveraging its global expertise to maximise production from the Western Offshore Basin while contributing to India’s energy security objectives.
Strengthening India’s Domestic Oil and Gas Production
As India’s largest exploration and production company, ONGC accounts for nearly 64% of the country’s domestic crude oil and natural gas production, making it a cornerstone of the nation’s energy sector. As reported by thehindubusinessline.com, by combining ONGC’s extensive operational experience with BP’s advanced technologies and international expertise, the expanded partnership is expected to improve recovery from mature offshore assets, extend field life, and support India’s efforts to enhance domestic hydrocarbon production while reducing dependence on imports.
