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ONGC and BP Sign Technical Services Deal to Boost Recovery in Western Offshore Basin

The agreement links BP's pay to incremental production so ONGC can bring in outside technical expertise while retaining full ownership and control.

Overview

  • The contract signed on June 25, 2026 makes BP the technical services provider for ONGC's Western Offshore Basin, which covers 43 blocks and is the company’s most prolific offshore region.
  • Under the deal BP will be paid a fixed fee for the first two years and then a performance‑linked fee that shares revenue from any incremental hydrocarbon production.
  • ONGC retains full ownership and operational control of the fields so BP will advise and carry out targeted interventions on reservoirs, wells, and facilities without any asset transfer.
  • The move builds on a February 2025 pilot at Mumbai High that ONGC says slowed decline and raised output through well optimisation and enhanced surveillance.
  • Officials framed the pact as a step to strengthen India’s energy security by slowing natural decline in ageing fields and raising recovery rates, which could reduce pressure on fuel imports and sustain jobs in offshore operations.