Indian Oil Company Chooses UK-based Company for Mumbai High TSP – Big Oil Production Boost of 60 per cent
Improving reservoir management and facilities to unlock higher production potential
Mumbai High, an oil-producing field located offshore in Mumbai, has been a key asset for the Oil and Natural Gas Corporation (ONGC). Discovered in 1974 and starting production in 1976, the field has been a vital part of the country’s oil production. As part of its strategy to boost domestic production, ONGC is focusing on improving recovery from mature fields like Mumbai High while exploring new hydrocarbon resources.
Engagement of Technical Services Provider (TSP)
To enhance production from the Mumbai High Field, ONGC issued an International Competitive Bidding (ICB) tender on June 1, 2024, seeking a Technical Services Provider (TSP). The aim was to select a provider with the expertise in managing complex, mature reservoirs and implementing advanced recovery technologies. BP Exploration (Alpha) Ltd., a subsidiary of BP Plc, UK, was chosen as the TSP after a thorough evaluation. The TSP will assess field performance and suggest improvements to increase production over the next 10 years.
Production Enhancement Goals
The selected TSP has forecasted a significant increase in oil and oil equivalent gas (O+OEG) production, potentially up to 60 per cent above baseline production levels. This increase will be achieved through strategic improvements in reservoir management, facilities, and wells. The contract aims to substantially boost production and ensure the field remains a crucial contributor to the country’s energy needs.
Financial Performance Highlights
Quarterly and Half-Year Results
ONGC’s financial performance for Q2 FY25 showed a 17.1 per cent increase in net profit, which rose to Rs 11,984 crore compared to Rs 10,238 crore in Q2 FY24. However, sales revenue decreased by 3.5 per cent due to lower crude oil prices, with crude oil realization dropping by 6.4 per cent to Rs 6,561 per barrel.
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Investment and New Projects
The company’s board approved an interim dividend of 120 per cent, amounting to Rs 7,548 crore. ONGC is also increasing its stake in OPaL, a petrochemical company, to 95.69 per cent. Additionally, ONGC is focused on increasing gas production with projects expected to yield 5 MMSCMD and 4 MMSCMD of gas by FY26.
Disclaimer: The article is for informational purposes only and not investment advice