India's exploration and production sector is critical to meeting the country's rising energy needs and ONGC plays a central role, accounting for about 75 per cent of India's domestic crude oil and natural gas production. The Mumbai Offshore Basin is ONGC's most prolific hydrocarbon-producing basin and comprises 43 blocks, of which 28 blocks are under the nomination regime with the balance under OALP, NELP and DSF regimes. These blocks have contributed a substantial share of ONGC's crude oil and natural gas production and have remained under continuous development for four decades.

While ONGC continues to unlock new hydrocarbon resources through greenfield projects, enhancing recovery in mature fields remains important. ONGC entered a technical services provider contract with BP Exploration Alpha Ltd for the Mumbai High field in early January 2025. Mumbai High contributes about 38 per cent of total western offshore oil and oil equivalent gas (O+OEG) production. Initial TSP implementation showed moderation of the earlier decline trajectory and stabilisation of output through focused well, reservoir and facility management.

Building on that experience, ONGC issued an international competitive bidding tender to engage a TSP for the entire Western Offshore excluding the Mumbai High field, inviting major international oil companies. After evaluation, M/s BP Exploration Services India Limited, a wholly owned step-down subsidiary of BP Plc, UK, has been selected. The company indicated a substantial potential increase of about 10.8 per cent in crude oil from a baseline of 46.25 million tonnes (mn t) to 51.26 mn t and about 31.5 per cent growth in gas from 82.68 billion cubic metres (bn m3) to 108.69 bn m3 over the 10-year contract period.

In terms of oil and oil equivalent gas, the projected uplift is about 24.1 per cent from 128.93 million tonnes of oil equivalent (mn toe) to 159.96 mn toe. The increase is expected to be visible from FY’27, with full-scale visibility from FY’30; the TSP will receive a fixed fee for the first two years and thereafter a service fee linked to revenue from net incremental hydrocarbon production after recovery of incremental costs.