BP Inks ONGC Technical Services Pact for Offshore Fields

BP signed a Technical Services Contract with ONGC, India's state-owned oil company, for fields in the Western Offshore Basin. The agreement was announced June 25 in the presence of Petroleum Minister Hardeep Singh Puri and Secretary Dr Neeraj Mittal. BP will act as a technical services provider, working with ONGC teams on well interventions and reservoir management. The deal extends an existing collaboration that already covers the Mumbai High field.

The expanded scope matters for BP's position in India, one of the world's fastest-growing energy markets. ONGC is the country's largest crude oil and natural gas producer. Its mature offshore fields have seen declining output. BP brings deepwater and reservoir expertise that could help arrest that decline. For BP, the contract adds fee-based revenue without the capital intensity of an equity stake. The deal follows a broader strategic push by the company to sell technical services in regions where it does not hold production rights.

BP is also exploring a sale of its UK North Sea assets. The company has held talks with Ithaca Energy, a North Sea-focused producer, about a deal valued at roughly £2 billion, according to people familiar with the matter. Earlier negotiations stalled. BP continues to look at a sale to Ithaca or other potential buyers, the Financial Times reported. A North Sea divestment would fit BP's strategy of shifting capital toward higher-margin projects and low-carbon energy, while reducing exposure to aging, high-cost assets.