Global energy giant BP (NYSE:BP) has secured a contract to significantly increase oil and gas production from India's largest offshore field, Mumbai High, according to operator Oil and Natural Gas Corp (ONGC).
BP will act as the technical service provider, aiming to boost crude output by 44% and gas output by 89% over the next decade.
ONGC announced on Thursday that BP had won the tender, which sought expertise in advanced recovery technologies for mature reservoirs.
Shell also participated in the bidding process.
The goal is to increase production from a baseline of 45.47 million metric tons of crude and 70.40 billion cubic meters (BCM) of gas.
BP projects raising these figures to 65.41 million tons of oil and 112.63 BCM of gas.
This initiative aligns with India's ambition to rapidly increase domestic oil and gas production, which has remained stagnant in recent years.
As the world's third-largest oil importer and consumer, India is keen to reduce its reliance on foreign energy sources.
Production increases are expected to begin in the next fiscal year, starting April 1, with full-scale impact anticipated by 2027-28.
ONGC estimates the increased output could generate up to $10.30 billion in additional oil and gas revenue for the country, along with up to $5 billion in contributions from royalties, cess, and other levies.
Meanwhile, BP will receive a fixed fee for the first two years, followed by a service fee based on a percentage of the revenue from net incremental production, after cost recovery, according to ONGC.
The Mumbai High field, discovered in 1974, reached peak production of 471,000 barrels per day of oil in March 1985.
However, production had declined to approximately 134,000 bpd by April 2024, highlighting the need for enhanced recovery efforts.