State-run ONGC Ltd is looking for a technical partner to help increase oil and gas production from its Mumbai High field. In a post on X (formerly Twitter) on Friday, ONGC announced that it would select this service provider through an international competitive bidding process. Interested companies need to submit their bids by 15 September.
Mumbai High Field’s Current Status
Mumbai High, a significant oil and gas field that started production in 1976, is now in its mature stage. ONGC has already tried various methods to enhance production from this field. According to ONGC, Mumbai High still has a lot of potential if best-in-class technologies and global operational practices are applied. They are looking for a global technical service provider to assist in achieving this.
Role and Responsibilities
The chosen service provider will work with ONGC for an initial period of 10 years, with an option to extend for another five years. Their responsibilities will include a comprehensive review of the field’s performance, focusing on wells, reservoirs (including water injection), and facilities management. They will also help in implementing technological improvements to boost production.
The scope of work includes integrated reservoir analysis and creating a detailed plan for field development. To be eligible, bidding companies must be international oil and gas majors with annual revenues over $75 billion.
Background and Future Plans
Previously known as Bombay High, this field is located about 160 kilometers in the Arabian Sea and was discovered in February 1974. Production began on May 21, 1976. During its golden jubilee celebrations in February, ONGC revealed that Mumbai High has produced 527 million barrels of oil and 221 billion cubic meters of gas so far, accounting for about 70% of India’s domestic production to date.
Financial Performance and Market Response
This announcement aligns with broader efforts by the Indian government and state-owned companies to boost domestic hydrocarbon production and reduce reliance on imports. In the fourth quarter of FY24, ONGC reported a 78% increase in consolidated net profit, reaching ₹11,526.53 crore, up from ₹6,478.23 crore the previous year. The company also made 11 new discoveries in FY24, including six onshore and five offshore fields.
On Friday, ONGC’s stock closed at ₹260.40 on the BSE, marking a 3.19% increase from its previous close.
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