State-run Oil and Natural Gas Corp. Ltd (ONGC) is optimistic about a major recovery in crude oil output from the Mumbai High field within the next 13–14 months, as it collaborates with UK-based energy giant BP on enhanced oil recovery (EOR) initiatives.
Partnership and EOR Plans
- ONGC and BP signed a contract earlier this year under which BP acts as the technical services provider (TSP) for the Mumbai High field, India’s largest offshore oil asset.
- ONGC retains ownership and operational control, while BP receives a fixed fee for two years for deployed personnel, followed by a service fee linked to incremental oil and gas production.
- The collaboration aims to stabilize the field’s production decline and restore it to robust growth.
CEO Outlook
Arun Kumar Singh, Chairman and CEO of ONGC, told reporters on Friday:
“It has been only four months since this partnership started in April 2025. Green shoots are good. Small wins will come in 7–8 months, but big wins will take around a year and a half. The contract estimates two years for developments to happen.”
Pankaj Kumar, ONGC Director (Offshore), added that preliminary indications from the study phase are encouraging:
“Mumbai High is a huge field. Our internal team is working closely with BP, studying data. Initial signs are positive.”
Global Asset Acquisition Plans
Speaking on acquisitions amid geopolitical uncertainty, Singh noted that ONGC Videsh Ltd (OVL) remains open to acquiring international assets that are commercially viable. He emphasized:
“Troubled times don’t last more than a year or two. If an asset is priced reasonably and offers future potential, we should consider it.”
