State-run Oil And Natural Gas Corporation (ONGC) has expanded its partnership with global energy major BP to its Western Offshore Basin, extending the collaboration beyond Mumbai High as India seeks to arrest production decline from mature oil and gas fields that remain critical to the country’s energy security.
The two companies on Thursday signed a Technical Services Contract (TSP) under which BP will provide technical expertise across 43 blocks in ONGC’s Western Offshore Basin, the company’s largest hydrocarbon-producing region that has supported India’s oil and gas production for more than four decades.
The agreement marks a significant expansion of the partnership that began with Mumbai High in February 2025. According to ONGC, the first year of collaboration at Mumbai High helped moderate natural production decline and deliver output growth through well optimisation, enhanced surveillance, and focused reservoir and production facility management.
Building on those results, the partnership will now deploy advanced technologies, global technical expertise and operating practices across the broader Western Offshore Basin.
ONGC, which contributes around 64% of India’s domestic crude oil and natural gas production, will retain full ownership and operational control of the assets. BP will work alongside ONGC’s multidisciplinary teams to identify and implement interventions across reservoirs, wells and production facilities to improve hydrocarbon recovery, enhance operational efficiency and support sustained production growth.
The Western Offshore Basin comprises 43 producing blocks and is ONGC’s most prolific producing region.
Revenue and Risk Allocation
Under the agreement, BP will receive a fixed fee during the first two years, followed by a performance-linked service fee linked to a share of revenue generated from net incremental hydrocarbon production, aligning payments with production gains.
The agreement was signed in the presence of Petroleum and natural gas minister Hardeep Singh Puri and Petroleum Secretary Neeraj Mittal.
“Building on the encouraging outcomes at Mumbai High, this expanded collaboration will support improved recovery, greater efficiency and sustained production growth,” ONGC Chairman and CEO Arun Kumar Singh said.
BP India Chairman and Senior Vice President Kartikeya Dube said, “We look forward to bringing bp’s global expertise to support enhanced production from the Western Offshore Basin and strengthen India’s energy security.”
Sustaining India’s Hydrocarbon Bedrock
The expanded collaboration comes as ONGC focuses on improving recovery from ageing offshore assets through technology-led interventions to sustain domestic crude and natural gas production from some of the country’s most important producing fields.