NEW DELHI: State-run explorer ONGC has roped in BP as technical partner to boost oil and gas production from India's crown jewel Mumbai High, which will become the UK major's second operating project in India and mark the first notable MNC entry in the country's upstream sector. following reforms initiated by govt.
BP bagged the 10-year contract, bids for which were invited in June last year, outbidding rival Shell - the only other bidder - with an offer to raise output by upto 60% over the baseline production. BP is no stranger to India's upstream sector, having bought 30% stake in Reliance Industries s KG-D6 block off the Andhra coast for $7.2 billion in 2011.
But unlike in KG-D6, the ONGC contract does not entail any transfer of stake in Mumbai High. As the technical service provider, BP's role will be limited to reviewing the field's performance, identifying improvements and implementing suitable technological interventions/practices for raising production.
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