ONGC and bp expanded their technical partnership to improve recovery, boost production efficiency, and strengthen energy security across the Western Offshore Basin.
ONGC and bp have strengthened their strategic partnership by signing a new Technical Services Contract (TSC) on 25 June 2026, extending their collaboration beyond the Mumbai High field to cover ONGC’s assets across the Western Offshore Basin. The agreement was signed in the presence of India's Minister of Petroleum and Natural Gas, Shri Hardeep Singh Puri, and Dr. Neeraj Mittal, Secretary, Ministry of Petroleum and Natural Gas, underscoring the significance of the partnership in supporting India's long-term energy security objectives.
Under the new agreement, bp has been appointed as the Technical Services Provider (TSP) for ONGC’s fields in the Western Offshore Basin. This marks an important milestone in the relationship between the two companies, expanding on the successful technical services arrangement established for Mumbai High in February 2025. The broader scope of the partnership is expected to facilitate the deployment of advanced technologies, international technical expertise, and globally recognized operational practices across one of India's most productive hydrocarbon regions.
ONGC remains India's leading national oil company and plays a critical role in ensuring the country's energy security. The company contributes approximately 64 percent of India's domestic crude oil and natural gas production. Its Western Offshore Basin, comprising 43 hydrocarbon blocks, is the company's most productive offshore region and has served as a cornerstone of India's oil and gas production for more than four decades. The basin continues to be one of the country's most strategically important energy assets.
Despite the expanded technical collaboration, ONGC will retain full ownership as well as operational control of all the assets covered under the agreement. bp's responsibility will focus exclusively on providing technical services and working alongside ONGC's multidisciplinary teams to identify opportunities for improving field performance. The collaboration will include detailed evaluation and optimization of reservoirs, production wells, and surface production facilities to maximize operational efficiency.
The partnership aims to slow the natural decline in production that typically affects mature oil and gas fields while increasing hydrocarbon recovery through targeted technical interventions. In addition, both companies intend to enhance production efficiency, improve asset performance, and support sustainable growth in output from the Western Offshore Basin. The agreement also establishes a performance-linked commercial framework under which bp will receive a fixed service fee during the initial two years of the contract. Thereafter, its compensation will include a service fee tied to a percentage of the revenue generated from net incremental hydrocarbon production, creating a strong incentive for delivering measurable improvements.
The new contract builds upon the encouraging results achieved during the first year of collaboration under the Mumbai High Technical Services Contract signed in February 2025. During that period, ONGC and bp successfully reduced the rate of production decline and achieved production growth by optimizing existing wells, strengthening production surveillance, and implementing focused reservoir management, well optimization, and facility improvement initiatives. These achievements demonstrated the effectiveness of combining ONGC's operational experience with bp's global technical capabilities.
Commenting on the expanded partnership, ONGC Chairman and CEO Shri Arun Kumar Singh stated that the positive outcomes achieved at Mumbai High provided a strong foundation for extending the collaboration. He expressed confidence that the new agreement would contribute to higher hydrocarbon recovery, improved operational efficiency, and sustained production growth across the Western Offshore Basin.
bp India Chairman and bp Senior Vice President Shri Kartikeya Dube also welcomed the agreement, stating that bp looks forward to applying its global expertise and technical knowledge to support enhanced production from the Western Offshore Basin while contributing to India's energy security. He emphasized that the collaboration reflects a shared commitment to maximizing the value of India's mature offshore assets through advanced technology, operational excellence, and close cooperation between the two organizations.
Impact of the ONGC-bp Deal
On Stock/Product: ONGC shares were trading at ?240.05 on BSE, down from the previous close of ?244.45 — a muted near-term market reaction. However, the long-term outlook is positive. The deal builds on a similar Mumbai High contract from February 2025, which delivered encouraging first-year results, signalling credibility. As bp's advanced technologies moderate production decline across 43 Western Offshore Basin blocks, ONGC's output and revenues are expected to improve over the medium term, potentially lifting valuations.
On Chemical Commodity Prices (ChemAnalyst-tracked): The deal's impact on ChemAnalyst-tracked chemicals like petrochemicals, polymers, and fertilizers will be gradual and indirect. Crude oil and its derivatives form a significant portion of input costs for commodity chemicals, and any sustained increase in oil prices translates into higher production costs. Conversely, if this collaboration successfully boosts domestic crude and gas supply from the Western Offshore Basin, it could ease India's import dependence, putting mild downward pressure on crude-linked feedstock costs — benefiting petrochemicals, PP, benzene, and naphtha-derived products tracked by ChemAnalyst over the longer term.
