ONGC reports that BP expects a 44% increase in the oil production from India's biggest field.

According to Oil and Natural Gas Corp, BP, a global energy giant, has committed to increasing oil production by 44 percent and gas output by 89 percent from India's biggest field, located off the west coast of India, over a ten-year contract.

ONGC announced BP on Wednesday as its technical services provider to help boost output. The baseline production is 45.47 millions metric tons of crude oil and 70.40 BCM of gas.

Shell, a major energy company, also took part in the tender. The company was looking for advanced technologies and expertise to manage complex mature reservoirs in order to boost production.

BP predicted an increase of 44% in oil production to 65.41 millions tons, and a gas output of 89% to 112,63 BCM. The Mumbai High field was discovered in 1975.

India, which is the third largest oil consumer and importer in the world, wants to increase its oil production. It has been stagnant for many years.

ONGC stated in its filing that the increase in production will begin in the next financial year, which begins April 1, and is expected to reach full scale by 2027-2028.

The explorer stated that the incremental production could generate an additional $10.30 billion in oil and gas revenues for the country, as well as contributions of $5 billion from royalties, cess, and other levies.

According to ONGC, BP would receive a fee based upon a percentage of revenue generated from incremental production after recovering the incremental costs.

A tender document from last year showed that the field had reached its peak production of 471,000 barrels of oil per day in March 1985. By April 2024 it was down to 134,000 barrels.

(source: Reuters)