NEW DELHI: State-run explorer ONGC has engaged BP as a technical partner to enhance oil and gas production from India's crown jewel, Mumbai High. This collaboration will mark BP's second operational project in India and the first significant entry of a multinational corporation in the country's upstream sector following reforms initiated by the government.

BP has been awarded a 10-year contract, outbidding rival Shell with a proposal to increase output by up to 60% over baseline production. This initiative underscores BP's longstanding involvement in India's upstream sector, evidenced by its acquisition of a 30% stake in Reliance Industries' KG-D6 block off the Andhra coast for $7.2 billion in 2011.

Unlike its previous endeavors, the ONGC agreement does not involve any stake transfer in Mumbai High. As the technical service provider, BP's responsibilities will include reviewing field performance and implementing technological advancements aimed at enhancing production levels. The company will receive a fixed service fee as well as a share of the revenue generated from any additional volume sales resulting from its technical input.

The successful awarding of this bid notes a positive turn for ONGC, which has historically struggled to boost recovery rates and tackle natural production declines in the western region. The move to enter a technical partnership aligns with past efforts aimed at attracting global majors to the sector and reflects the broader fiscal and policy reforms instituted by the Modi government since taking office in 2014. For more details, visit the original article on India Times.