BP projects 44% jump in oil output from India’s largest field, ONGC says

Mumbai: So, BP is stepping up its game in India. They’re planning to ramp up oil production by a whopping 44% from the Mumbai High field. This is a big deal for the country, which is looking to boost its energy output.

ONGC, the operator of the field, just named BP as their technical service provider. They’re hoping to increase production from around 45.47 million metric tons of crude oil and 70.40 billion cubic meters of gas. That’s a solid baseline to work from!

Shell was also in the mix, trying to get in on the action with some advanced recovery tech. But it looks like BP is taking the lead here. They’re aiming to push oil production up to about 65.41 million tons and gas to 112.63 billion cubic meters.

India, being the third-largest oil importer, really needs this boost. The production increase is set to kick off in the next fiscal year, with full visibility expected by 2027-28. That’s not too far off!

This uptick in production could bring in around $10.30 billion in additional revenue for the country. Plus, there’s potential for up to $5 billion from various levies. It’s a win-win situation!

For the first couple of years, BP will get a fixed fee, and then it’ll switch to a service fee based on the revenue from the extra production. Sounds like a solid plan to me!

The Mumbai High field has seen better days, peaking at 471,000 barrels per day back in 1985. Now, it’s down to about 134,000 bpd. But with BP on board, there’s hope for a turnaround!