Cairn India Challenges in realising the potential


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Dr Sunil Bharati, Head - Corporate Affairs and Communications discusses the challenges in realizing the potential of Oil and Gas opportunities.

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Cairn India Challenges in realising the potential

  1. 1. 15th Energy Summit, Indian Oil & Gas Sector – To meet future energy needsChallenges in realizing the potentialCalgary, 09 May, 2013Dr. Sunil BharatiHead, Corporate Affairs & Communications
  2. 2. 2Consistent Value Creation• Amongst top 20 global independent E&P company• Currently operates ~25% of India’s domestic oil production• Proven and Probable resource base over 1bn boeEarlyBeginningsExecutionSuccessExplorationSuccessMarket Cap(US$)0.5bn* 6.0bn 12bn*Market Cap of Cairn Energy PLC end 1999Well poised forfurther GrowthRavva Re-developmentRajasthan &CB/OS-2discoveriesWorld classRajasthandevelopmentInternationalForaySri LankadeepwaterdiscoveriesS Africa entry1999 2007 2012Cairn IndiaIPO (2007)VedantaAcquisition
  3. 3. 3Policy & Regulatory – Key enablerso A stable and democratic political structure, a belief in the rule oflaw, and a transparent and independent legal systemo Competitive and transparent bidding process to auction blockso Private sector participation incentivizedo Key reforms underway – will make operations more conducive.Examples include, A Committee on PSC mechanism, Policyclarity in exploration in development areas among others
  4. 4. 4Challenges in realizing the potential ofabundant oil and gas opportunitieso Barmer Basin completely unknowno India-Pakistan major military stand-off following militant attack onthe India Parliament in December 2001; exploration activitystopped in Rajasthano Limited understanding of basin development, but general view ofpoor reservoir quality
  5. 5. 5Challenges in realizing the potential ofabundant oil and gas opportunitieso After several unsuccessful attempts, over the last many years,Cairn India discovered Mangala – largest onshore discovery inIndia in more than two decades and 5th largest for the world in2004o Monetized Five producing fields in the Rajasthan blocko Successful exploration with >10 years success ratio of ~50%;play based approach to build portfolio
  6. 6. 6Execution in large-scaleInfrastructureo Largest operations in a deserto Built the world’s longest, continuously heated and insulatedcrude oil pipeline; ~600 km long which passes through 2 Statesand 8 districtso Central Processing Terminal that enables crude oil processingof more than 175,000 bopdo Facilities continually upgraded to support higher production levelsin line with the production ramp-up
  7. 7. 7Pioneer in innovative application oftechnologieso Application of enhanced oil recovery techniques in early stagesof field lifeo 70 mm bbls booked as gross proved and probable reserveso Successful deployment of Skin Effect Heat ManagementSystem (SEHMS) for crude oil pipelineo SEHMS ensures that the crude oil remains above 65 Cthroughout the pipeline
  8. 8. 8Operational excellenceo Multi-well pad design - Enhanced the success of an extensivedrilling campaigno Custom-made rapid rig design - allowed faster and efficientdrilling operations on multi-slot well padso Smaller footprint and self deploying design allowed for ease oftransport and faster onsite rig-up – high cost efficiencies
  9. 9. 9Environment – Best practices inWater utilizationo Increased oil recovery requires injection water to maintainreservoir pressureo Barmer Oil fields – located in Thar Desert – arid region with verypoor & limited fresh water resource; fresh water also a life line ofthe local communitieso Recourse to Saline water – improving recovery factorso Maximized re-injection of produced water to support reservoirpressure
  10. 10. 10Human Capitalo Cairn prides in attracting, engaging and developing the best-in-class talento Success story a result of exceptional talent and the “Can-Do”spirit; over 1,300 such “Can Doers”o Competency Management System and the “Can-Do” behavioralcompetency framework to develop and nurture talento Building a leadership pipeline – continue to invest in business andfunctional leaders
  11. 11. 15th Energy Summit, Indian Oil & Gas Sector – To meet future energy needsTHANK YOU