BP Secures Landmark Deal With India's ONGC: Details

BP p.l.c. BP has been selected by India’s ONGC as a Technical Services Provider (TSP) to enhance production from Mumbai High Field.

Notably, Shell and BP took part in the pre-bid process, with BP ultimately submitting the bid.

Under the agreement, BP is anticipated to receive a fixed fee for the initial two years, followed by a performance-based service fee linked to a share of net incremental production revenue, after recovering costs.

The contract duration is ten years and BP projects a significant increase in crude oil and gas production during the period, with crude output rising by ~44% from 45.47 MMT – 65.41 MMT baseline production and gas production growing by ~89% from 24.94 BCM – 47.22 BCM.

The company expects combined oil and gas output to rise by ~60%, from 70.40 MMToe – 112.63 MMToe.

The production boost is anticipated to be visible from FY26, with full-scale output targeted by FY28.

The incremental increase is expected to generate up to $10.3 billion in additional oil and gas revenue and up to $5 billion in incremental contributions to the Indian government through royalties, cess, and other levies.

Last month, BP and XRG’s new joint venture, Arcius Energy, will focus on building a competitive gas portfolio in Egypt.

Investors can gain exposure to the stock via Texas Capital Funds Trust Texas Capital Texas Oil Index ETF OILT and Amplify ETF Trust Amplify Natural Resources Dividend Income ETF NDIV

Price Action: BP shares closed lower by 2.23% at $31.12 on Wednesday.

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