Oil and Natural Gas Corp. Ltd. (ONCG) and bp plc. signed a technical services contract to enhance production from ONGC’s fields in Western Offshore basin.

Under the agreement, bp has been appointed as the technical services provider (TSP) for the basin, which includes 43 blocks and is ONGC’s most prolific hydrocarbon producing basin.

ONGC will retain complete ownership and operational control of the assets. bp will work with ONGC’s multidisciplinary teams to identify and implement focused interventions across reservoirs, wells, and production infrastructure. The collaboration will seek to moderate natural production decline, improve hydrocarbon recovery and operational efficiency, and support sustained production growth.

Under the terms of the contract, bp will receive a fixed fee for the first 2 years, followed by a service fee linked to a percentage share of revenue generated from net incremental hydrocarbon production.

The agreement builds on the TSP 1 contract signed by ONGC and bp for Mumbai High in February 2025. During the first year of collaboration, the two companies successfully moderated production decline and delivered growth through optimization of enhanced surveillance and focused reservoir, well and facility existing wells, management initiatives.