State-owned Oil and Natural Gas Corporation (ONGC) had in June last year floated a tender seeking foreign partners to reverse declining output at its flagship Mumbai High fields, offering a share of revenue from incremental production plus a fixed fee but not any equity stake.
The tender attracted two bidders – BP and Royal Dutch Shell.
“After the bid evaluation process, BP Exploration (Alpha) Ltd, a wholly-owned step-down subsidiary of BP Plc, UK has been selected as the technical service provider (TSP),” ONGC said in a stock exchange filing.
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“The TSP will review the field performance and identify improvements in reservoir, facilities and wells to enhance the production from Mumbai High field. The TSP has indicated a substantial increase in oil plus oil equivalent gas production (up to 60 per cent) from baseline production levels (reputed third-party vetted production estimates with natural decline) over 10 years contract period.” ONGC said it had issued an international competitive bidding (ICB) tender on June 1, 2024 to engage a Technical Services
Provider (TSP) for Mumbai High Field with expertise in managing complex mature reservoirs and implementing advanced recovery technologies and best operational practices.
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Through this ICB tender, the company invited bids from international operators with proven technical expertise, financial strength, and a track record in similar projects.
ONGC sought bids from firms with annual revenue of at least USD 75 billion, according to the tender document.
The TSP would have to do a comprehensive review of the field performance and identify improvements as well as implement suitable technological interventions and practices for improving production and recovery, it said.
Bidders were asked to quote quarterly incremental production they can enable over the 10-year contract period as well as the percentage share of the revenue they want from the sale of oil and gas produced over and above the baseline production.
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