BP strikes oil and gas deal with India’s Oil and Natural Gas Corp
BP PLC on Monday signed a contract with Oil and Natural Gas Corp Ltd under which BP will serve as the technical services provider for the Mumbai High field, India’s largest and most prolific offshore oil field.
Delhi, India-based ONGC is the largest government-owned oil and gas explorer and producer in the country. It accounts for around 70% of India’s domestic production of crude oil and around 84% of natural gas.
ONGC will retain ownership and operational control of the field, while London-based BP will receive a fixed fee for a period of two years for its deployed personnel, followed by a service fee linked to incremental oil and gas production. BP will work closely with ONGC to stabilize the field‘s current production decline and restore it to a robust growth trajectory.
The partnership is anticipated to significantly boost domestic oil and gas production, thereby increasing revenue for ONGC, while also yielding higher service fee returns for BP.
BP will assemble a team of technical experts to commence work by March 2025, it said in a statement.
Kartikeya Dube, chair BP India said: ‘This opportunity further underpins our commitment to exploration and the production of oil and gas in India, creating value for both companies and helping support the country’s vision for energy independence and security.’
Shares in BP closed up 7.3% at 464.85 pence each in London on Monday.
BP reports full-year results on Tuesday.
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