Oil and Natural Gas Corporation (ONGC), India’s premier state-owned energy company, has embarked on a quest for international technical expertise to enhance oil and gas production from its renowned Mumbai High field, located in the Arabian Sea.
With the Mumbai High field having commenced production nearly five decades ago in 1976, it now stands at a mature stage of production. In its pursuit of increasing output, ONGC has issued an international tender to enlist the services of a globally renowned technical provider. The chosen partner will collaborate with ONGC to implement strategies aimed at maximizing production from the Mumbai High field. Situated 160 kilometres off the coast of Mumbai, the Mumbai High field currently contributes approximately 38 per cent of India’s oil production. Despite reaching a peak output of 40,000 barrels per day (bpd) in 1989, the field’s current production stands at 134,000 bpd, alongside approximately 10 million standard cubic metres per day of gas.
With substantial remaining reserves estimated at 80 million tonnes (610 million barrels) of oil and over 40 billion cubic metres of gas, there exists significant potential for further extraction. The selected technical service provider will be tasked with delivering innovative solutions to enhance production levels from the Mumbai High field. Under the proposed collaboration, the service provider will operate under a contractual agreement spanning ten years, with the option of extension for an additional five years. Remuneration will include a fixed fee, supplemented by a share of revenue generated from incremental production above an agreed baseline.
ONGC’s strategic move underscores its commitment to leveraging cutting-edge technology and global expertise to optimize resource extraction and maximize value creation. By forging international partnerships and tapping into specialized knowledge, ONGC aims to bolster its position as a leading player in India’s energy landscape and contribute to the nation’s energy security and economic growth.
