Hardeep Singh Puri attended as ONGC appointed BP as technical services provider for its overall Western Offshore Basin. BP will work with ONGC across 43 blocks, while ONGC keeps complete ownership and control of the assets.
About 60% of ONGC’s oil output comes from Western Offshore, along with about 70% of its gas output. ONGC said the collaboration will seek to moderate natural production decline, improve hydrocarbon recovery and operational efficiency, and support sustained production growth.
Western Offshore Basin contract
The latest agreement extends an earlier technical services collaboration between ONGC and BP for Mumbai High. This time, the scope widens to the overall Western Offshore Basin, giving BP a role across reservoirs, wells and production facilities rather than a single field.
BP would be working with ONGC to identify focussed interventions across those assets. The arrangement keeps operating control with ONGC, but adds BP’s technical role to a basin that carries a large share of the company’s output.
BP fee terms
BP will receive a fixed fee for the initial two years. After that, the service fee will be tied to revenue from net incremental production generated by the interventions in the basin.
That structure gives BP a paid role before any production-linked return starts. For ONGC, the practical test is whether the interventions first target the reservoirs, wells and production facilities that can slow decline and lift output across the 43 blocks. Hardeep Singh Puri’s presence put the deal in plain view: ONGC is adding outside technical support without giving up ownership of the assets it wants to improve.
