ONGC Seeks Global Expertise for Mumbai High Revival

ONGC will not give equity in Mumbai High fields to foreign companies. Instead, they seek technical help from global giants to reverse production decline. Foreign firms will earn from incremental revenue and a fixed fee, but ONGC will handle all costs and risks. The government aims to boost domestic oil production.

Oil and Natural Gas Corporation (ONGC) has declared that it will not divest any equity stake in its flagship Mumbai High fields to foreign entities, seeking instead to harness international expertise to reverse the declining output. A senior government official revealed this on Tuesday.

The foreign companies involved will receive compensation from additional production revenue and a fixed fee for their contributions, while ONGC will retain operational control and cover all related expenses. Any potential risks will be absorbed solely by ONGC, ensuring the foreign partners receive their fees irrespective of success.

Mumbai High, under ONGC's jurisdiction without authority to sell stakes, is currently inviting bids from technical service providers (TSPs) to aid in rejuvenating its production. India relies heavily on oil imports, a dependency the government is keen to reduce by boosting domestic output. ONGC's latest initiative seeks global expertise to identify enhancements and implement technological upgrades.