Oil and Natural Gas Corporation has onboarded M/s BP Exploration Services India Limited (BPXS) as the Technical Services Provider (TSP) to enhance production from its Western Offshore fields. This strategic initiative excludes the Mumbai High field, which operates under a separate TSP contract with M/s BP Exploration Alpha Ltd. With BP now fully managing the Western Offshore as TSP, the focus is on stopping production decline and promoting growth from next year. The collaboration aims to leverage global technology and best practices to optimize recovery from mature assets in the Mumbai Offshore Basin, securing India's energy landscape.

Contract Scope and Selection

The TSP engagement covers the entire Western Offshore region, excluding the Mumbai High field, which accounts for approximately 38% of the total western offshore production. BPXS, a wholly-owned step-down subsidiary of BP Plc, UK, was selected following an International Competitive Bidding (ICB) Tender process. The firm will review field performance and identify improvements in reservoirs, facilities, and wells to boost hydrocarbon output.

Production Targets and Financials

The Technical Services Provider has indicated a substantial potential increase in production over the ten-year contract period. The agreement includes a fixed fee structure for the first two years, transitioning to a service fee based on a percentage share of revenue from net incremental hydrocarbon production. The production increase is expected to become visible from FY'27, with full-scale visibility anticipated from FY'30.

Gas Production Growth and Key Projects

ONGC anticipates gas production growth of 7% to 8% yearly, with new well gas rising to 25–30% this year and expected to reach 30–35% next year. Key projects are on track to support this trajectory, with the DUDP project set to open fully by September/October, adding 3–4 MMSCMD to output. Additionally, KG-98/2 gas wells are targeted for opening in July–August, further reinforcing the company's near-term production pipeline.

Opal EBITDA Outlook and Ethane Import Plans

ONGC's petrochemical arm, Opal, is targeting an EBITDA of ₹1,500 crores to ₹2,000 crores this year, reflecting a focus on improving operational and financial performance. On the feedstock front, imported ethane is anticipated by FY'29, which is expected to support Opal's production economics and long-term competitiveness. Through these combined initiatives across upstream gas growth, Western Offshore optimization, and downstream petrochemical improvements, ONGC aims to realize the enhanced potential of its asset portfolio.

Oil and Natural Gas Corporation has uploaded the audio recording of its conference call with analysts and investors regarding the financial results for the fourth quarter of the fiscal year 2026. The recording is now available on the company's official website, providing access to the management's discussion on operational performance and future outlook.

Conference Call Context

The conference call was originally scheduled for May 27, 2026, at 11:00 Hrs. IST. The session was led by the company's senior leadership, including Mr. Arun Kumar Singh, Chairman & CEO, and Mr. Yogish Nayak S., CFO. Mr. Manish Patil, Director (HR), holding the additional charge of Director (Finance), was also present to address queries regarding the quarterly performance.

Access Information

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has facilitated access to the recording. Stakeholders can listen to the earnings discussion to gain insights into the financial standing for the period ending March 31, 2026.

For any assistance regarding the recording or the conference call proceedings, stakeholders may contact the call coordinator, Mr. Anand Kukreti.