ONGC picks BP arm to help ramp up Mumbai High production, sees 60% more output

Oil exploration and production major ONGC has picked the subsidiary of BP Plc for technical services to enhance production from its offshore Mumbai High field, a company filing said on January 8.

In a weak market, shares of ONGC are higher by over 1.3% at 10:45am on January 8, partly helped by a rise in international crude oil prices after supplies from Russia and OPEC members tightened. Brent crude prices are past $77 per barrel while US West Texas Intermediate prices rose past $74.50.

BP Plc's subsidiary, BP Exploration (Alpha) will be expected to review the field's performance and identify improvements in the reservoir, facilities and wells, in order to 'enhance' the production from MH field. BP has cited at potential production improvement in its assessment of the offshore well. "The TSP has indicated a substantial increase in Oil plus Oil-Equivalent Gas (O+OEG) production (up to 60%) from baseline production levels over 10 years contract period," the statement said.

While ONGC said is focusing on 'unlocking the potential' of new hydrocarbon resources through green field projects, it is also looking at 'enhancing' recovery from mature fields like Mumbai High, which remains a top priority for increasing domestic production. Production from Mumbai High offshore field commenced in 1976.