BP PLC (LSE:BP.) has won a contract to help boost production substantially from the largest oil field in India over the next ten years.
State-owned ONGC, the operator of the Mumbai High Field, has brought in the UK oil giant as a technical service provider for a fixed fee initially followed by a share of net revenue after two years.
Over the ten years, BP, which won the contract after a competitive, tender, has contracted to boost oil output from the field by 44% and gas production by 89% increasing revenues by around US$10.3 billion and royalties by US$5 billion.
Having hit a peak of 471,00 barrels a day in 1985, production from the field is now running at around 134,000bpd, ONGC said.
India is the world’s third-biggest user of imported oil and gas and wants to increase its production significantly to offset this dependence on foreign production.