ONGC is looking for foreign partners for Mumbai High oil field, in return will get a share in the revenue

Oil and Natural Gas Corporation (ONGC), a public sector company, is seeking foreign partners to help it reverse the decline in production at its major oil field Mumbai High. They have been offered a share of the revenue generated by increased production as well as a fixed fee in exchange. However, no equity stake will be awarded.

On June 1, ONGC issued an international tender seeking global technical service providers (TSPs) with an annual revenue of at least $75 billion. TSPs must conduct a thorough review of the field's performance in order to identify areas for improvement. To improve production, appropriate technical interventions must be implemented.

Bidders will have to tell about the baseline production along with incremental production every quarter during the 10-year contract period. Apart from this, they will also have to tell how much share they want in the revenue from the sale of increased oil and gas production. Bids are to be given by September 15, 2024.

The tender document states that the TSP offering the highest incremental production and the lowest revenue share will also be paid a fixed service fee for its efforts. Mumbai High Field (formerly Bombay High Field) is India's largest oil field, located about 160 km in the Arabian Sea off the Mumbai coast.

ONGC shares closed 3.25 percent higher at Rs 260.50 on Friday. ONGC has given a return of about 32 percent to investors in the last 6 months. At the same time, in the last year, investors have made more than 68 percent profit from the company.