Page 154 - CW E-Magazine (21-1-2025)

Hydrocarbons

OPTIMISING HYDROCARBON RECOVERY
ONGC to get BP’s help to enhance production

at Mumbai High fi eld

Oil and Natural Gas Corporation “TSP has indicated a substantial
(ONGC) has announced the selec- potential increase of ~ 44% in crude oil
tion of BP Exploration (Alpha) Ltd., a (from baseline production of 45.47-mn
wholly-owned step-down subsidiary of mt to 65.41-mn mt) and ~ 89% increase
UK’s energy giant BP, as the Technical in gas production (from 24.94-bcm to
Service Provider (TSP) for its Mumbai 47.22-bcm) for the ten-year contract
High (MH) fi eld. period. The increase is expected to be
visible from FY’26 with full scale visi-
“The TSP will review the fi eld per- mented various initiatives in MH fi eld bility expected from FY’28. This incre-
formance & identify improvements to boost production and recovery, the mental production is expected to gene-
in reservoir, facilities and wells to en- fi eld continues to experience produc- rate additional oil and gas revenue (net
hance the production from MH fi eld,” tion related challenges, necessitating of levies) of upto $10.30-bn and incre-
ONGC said in a press release. MH, more advanced interventions, it added. mental contribution to GoI Exchequer
located in the Mumbai offshore area, In order to overcome these challenges by way of royalty, cess and other levies
was discovered by ONGC in 1974 and and to realise the full potential of MH, upto the tune of $5-bn,” ONGC said.
started production in 1976. ONGC had issued an International Com-
petitive Bidding (ICB) tender on June “We look forward to bringing our long
ONGC said though it focuses on 2024 to engage a TSP with expertise in experience of optimising performance and
unlocking the potential of new hydro- managing complex mature reservoirs and recovery from major mature fi elds around
carbon resources through greenfi eld implementing advanced recovery tech- the world to help unlock and enhance
projects, enhancing recovery from nologies and best operational practices. production from Mumbai High, India’s lar-
mature fi elds like MH also remains a Shell and BP expressed their interest and gest oil & gas fi eld (25% of India’s oil pro-
top priority for increasing domestic participated in the pre-bid process and duction),” commented Mr. William Lin,
production. Even as ONGC has imple- fi nally bid was submitted by BP. EVP Gas and Low Carbon Energy, BP.

MAKING UP FOR LOSSES
Govt. may give Rs. 35,000-crore LPG subsidy to

IOC, BPCL, HPCL

The government is likely to pro- resultant drastic fall in their earnings adding that provision of the subsidy is
vide a subsidy of Rs. 35,000-crore to in the April-September (fi rst half of likely to be made in the Union Bud-
state-owned Indian Oil Corporation Ltd. current 2024-25 fi scal year). The total get for 2025-26 that Finance Minister
(IOC), Bharat Petroleum Corporation under-recovery on LPG sales for the Nirmala Sitharaman will present on
Ltd. (BPCL), and Hindustan Petroleum industry in the current fi scal is estimated February 1. Prices of domestic LPG
Corporation Ltd. (HPCL) to make up at about Rs. 40,500-crore. Against this, are regulated by government to insulate
for losses they incurred on selling the the government is likely to provide domestic households from high market
fuel this fi scal. Rs. 35,000-crore in total, spread over rates. Regulated prices are lower than
two fi nancial years, according to media the Saudi CP – the international bench-
The three fuel retailers have kept reports. mark used to price domestic LPG. This
the price of domestic LPG unchanged is because domestic LPG production is
at Rs. 803 per 14.2-kg cylinder since IOC, BPCL and HPCL are likely not suffi cient to meet the local demand
March 2024 despite a rise in input raw to get Rs. 10,000-crore during the cur- and the fuel has to be imported. This
material cost. This led to under- rent 2024-25 fi scal and the remaining leads to under-recoveries and conse-
recoveries on LPG sales, and the Rs. 25,000-crore in the next, they said, quent losses to the fuel retailers.

154 Chemical Weekly January 21, 2025

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