ONGC, the state-run oil and gas producer, and BP have entered into a technical services agreement for ONGC's Western Offshore Basin, broadening their partnership beyond Mumbai High as both companies aim to enhance production from some of India's major mature hydrocarbon resources.

The contract was executed, Oil and Natural Gas Corporation (ONGC) announced in a statement.

According to the contract, BP will act as the Technical Services Provider (TSP) for ONGC's Western Offshore Basin, which includes 43 blocks and is the company’s most productive area.

ONGC stated that the basin has significantly supplied India's energy demands for over forty years.

The collaboration will enhance the implementation of cutting-edge technologies, specialized knowledge, and operational methods throughout the basin's assets. ONGC will maintain complete ownership and operational authority over the fields, whereas BP will collaborate with ONGC teams on reservoir management, well optimization, and enhancements to production facilities.

The firms seek to reduce natural production drops, enhance hydrocarbon extraction, and boost operational effectiveness to facilitate sustained output expansion.

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According to the agreement, bp will get a set fee for the initial two years, thereafter a service fee linked to performance based on a portion of revenue from additional hydrocarbon production.

The agreement is based on a technical services contract established for Mumbai High in February 2025.

ONGC stated that the initial year of partnership contributed to reducing the production decline and achieving output growth by optimizing wells, improving monitoring, and implementing specific reservoir and facility management strategies.

"Following the promising results at Mumbai High, this broadened partnership will facilitate enhanced recovery, increased efficiency, and consistent production growth," stated ONGC Chairman and CEO Arun Kumar Singh.

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Kartikeya Dube, Chairman and Senior Vice President of BP India, stated that the company aims to utilize its global experience to boost output from the Western Offshore Basin and reinforce India's energy security.

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ONGC constitutes roughly 64 percent of India's domestic crude oil and natural gas output, positioning it as a crucial foundation of the nation's energy sector.