In a major step for India’s oil sector, Oil and Natural Gas Corporation Ltd (ONGC) has signed an agreement with global oil giant bp to enhance output from the Mumbai high oil and gas field.
Over the next decade, experts expect production to rise by up to 60%.
bp to Provide Technical Expertise
bp will serve as the technical services provider for Mumbai High, India’s largest and most productive offshore oil field.
While ONGC will retain ownership and operational control, bp will contribute its technical expertise to improve efficiency. The company will receive a service fee tied to the field’s increased production.
Targeting Significant Growth
The collaboration aims to reverse production decline and drive substantial growth.
Bp estimates that oil production could increase by 44%, while gas output might see an 89% surge over the contract period.
Major Revenue Boost for ONGC
Devdiscourse.com reports that with higher production levels, ONGC is projected to gain an additional $10.3 billion in revenue, further strengthening its position in the oil and gas sector.
