Further expanding on their previous technical services collaboration for Mumbai High, state-owned Oil and Natural Gas Corporation (ONGC) appointed English oil major BP as their technical services provider (TSP) for their overall Western Offshore Basin.

The basin — which comprises of 43 blocks — is among the most important avenues for ONGC. About 60% of oil and 70% of ONGC’s gas output originates from Western Offshore.

Under the latest agreement, the English oil major would be working with ONGC to identify focussed interventions across reservoirs, wells and production facilities.

“The collaboration will seek to moderate natural production decline, improve hydrocarbon recovery and operational efficiency, and support sustained production growth,” read a statement from ONGC.

The New Delhi-headquartered explorer would retain complete ownership and control of the assets.

Further, under the terms of the contract, BP would be receiving a fixed fee for the initial two years. This would be followed by a service fee based on the revenue generated from the net incremental production from the basin with their interventions.

The agreement further expands on the technical services contract signed by the two oil majors for Mumbai High in February last year.