BP's Big Move: Boosting India's Mumbai High Production

Shares of ONGC surged after UK's BP Plc won a bid to enhance production at Mumbai High oil field. With plans to boost crude oil by 44% and natural gas by 89% in a decade, BP has been selected as the Technical Service Provider to steer this ambitious project.

Shares of Oil and Natural Gas Corporation (ONGC) rose by 3% on Wednesday. This uptick comes as BP Plc from the UK successfully secured a bid to enhance production at the Mumbai High oil and gas field.

BP pledged to increase crude oil production by a substantial 44% and natural gas output by 89% within a 10-year span. Following this development, ONGC's stock settled at Rs 271.25 on BSE, marking a 2.94% rise. The firm's market valuation experienced a surge of Rs 9,749.72 crore, reaching Rs 3,41,240.07 crore.

ONGC announced BP Exploration (Alpha) Ltd as their Technical Service Provider to boost production levels at the site. Last June, ONGC sought foreign expertise to counteract dwindling output, inviting global partners to contribute without equity stakes but in exchange for revenue shares of new production. BP was the sole bidder fulfilling the requirements, while Royal Dutch Shell did not finalize pricing terms.

(With inputs from agencies.)