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© 2011 Cairn India Limited                             Corporate Presentation                                 February 2012
2DisclaimerThis material contains forward-looking statements regarding Cairn India and its affiliates, our corporate plans...
3Holding Structure     IPO December 2006                                                                                  ...
4Overview                Top 20 independent E&P company with market cap of >USD13 bn   Leading      Operates ~20% of India...
5World Class Asset Base                                                    10 blocks in the Portfolio   Production Blocks ...
6Strengths Proven technical expertise Low cost, project execution skills Innovative application of technology             ...
7Operational HighlightsMangala field consistently producing at 125,000 bopd sinceAugust 2010; continue to pursue higher of...
8Financial Overview          USD m                  Q3 FY 2011-12                                       2011-             ...
9Production Profile and Price Realization               Oil Price Realization (RHS)         Brent (RHS)   Rajasthan   Ravv...
10Low Cost and EBITDA Margin                                                      Other Costs   Field Direct              ...
11Rajasthan - Frontier to Producing Basin     Frontier Exp.                            Exploration & Appraisal      Develo...
12Rajasthan - Production and Crude Offtake  Produced and sold >70 mmbbls of crude to Indian refiners;  gross cumulative fi...
13   Rajasthan – Resource and Value PotentialResource          Under Development                            Future Develop...
14Rajasthan Capex & Funding                             Capex                                    Gross Cash (USD m)       ...
15Exploration ProgrammeMajor long term player                                         Play based approach to building port...
16                                  2007-01-Exploration - Sri Lanka Block (SL 2007-01-001) Cairn Lanka 100%; Working Inter...
17Engaging with the CommunityStrategic Intent    Proactive engagement with stakeholders    Demonstrate leadership in corpo...
18Summary    Rajasthan     • Mangala producing at 125,000 bopd since August 2010; pursue higher offtake of 150,000bopd    ...
For More Information log on to:www.cairnindia.com
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Cairn India Corporate Presentation Feb 2012

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Cairn has been exploring for hydrocarbons in India for more than 15 years. Today, it has a proven track record of making exploration discoveries and fast tracking them to production. Three out of the seven landmark oil discoveries made in India between 2000 and 2005 were by Cairn and its Joint Venture (JV) partners. The Mangala discovery in Rajasthan in 2004 was the largest onshore discovery in the country in the past two decades.
The Mangala Field commenced production on 29 August 2009 after it was dedicated to the nation by the Honourable Prime Minister of India, Dr. Manmohan Singh at the Mangala Processing Terminal in Barmer, Rajasthan.
For more info log onto www.cairnindia.com

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Transcript of "Cairn India Corporate Presentation Feb 2012"

  1. 1. © 2011 Cairn India Limited Corporate Presentation February 2012
  2. 2. 2DisclaimerThis material contains forward-looking statements regarding Cairn India and its affiliates, our corporate plans, future financialcondition, future results of operations, future business plans and strategies. All such forward- looking statements are based onour managements assumptions and beliefs in the light of information available to them at this time. These forward-lookingstatements are by their nature subject to significant risks and uncertainties; and actual results, performance and achievementsmay be materially different from those expressed in such statements. Factors that may cause actual results, performance orachievements to differ from expectations include, but are not limited to, regulatory changes, future levels of industry productsupply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and use oftechnology, acts of competitors and other changes to business conditions. Cairn India undertakes no obligation to revise anysuch forward-looking statements to reflect any changes in Cairn Indias expectations with regard thereto or any change incircumstances or events after the date hereof. Unless otherwise stated the reserves and resource numbers within thisdocument represent the views of Cairn India and do not represent the views of any other party, including the Government ofIndia, the Directorate General of Hydrocarbons or any of Cairn India’s joint venture partner.
  3. 3. 3Holding Structure IPO December 2006 Other Institutions Retail MF Listed on BSE & NSE in January 2007 FI 2% 3% 5% 10.1% 2% FII 6% 21.8% Part of NIFTY index & DJIT30 6.4% Over 200,000 retail shareholders 59% 22% Market Cap >USD13 bn; amongst India’s top 20 Cairn PLC Total Equity of 1,903 m shares; Free float ~19%** Vedanta Group* 59.0% Board comprises of 8 members; 4 independents, 3 nominees from Vedanta Group, 1 Cairn India ExecutiveDJIT30: Dow Jones India Titans 30 Index,**Free float excludes Cairn PLC holding*Twin Star Mauritius Holdings Ltd 38.8%, Sesa Goa Ltd 18.5% , Sesa Resources Ltd 1.7%, As on 18 Jan, 2011
  4. 4. 4Overview Top 20 independent E&P company with market cap of >USD13 bn Leading Operates ~20% of India’s domestic crude oil production (~170,000 boepd) E&P Player >1 billion barrels reserves / resources base; Net Cash of >USD1.2 bn Diverse international workforce of 1,300+ people Opened up 3 new frontier basins with over 40 discoveries USD 4 bn Rajasthan Project – Discovery to Production in 5 years Proven Capabilities Built world’s longest (~600 kms) continuously heated and insulated pipeline Low cost operator; Innovation through application of technology Become a global, world class E&P company Establish a diversified & sustainable portfolio Vision Deliver long term value to Government, Local Communities and all stakeholders
  5. 5. 5World Class Asset Base 10 blocks in the Portfolio Production Blocks Exploration Potential Rajasthan (RJ-ON-90/1) (RJ-ON- RajasthanCairn (Operator) 70% RJ-ON-90/1 WI 70% 10.1%ONGC 30% East 21.8% Coast 6.4% KG-DWN-98/2 WI 10% KG-ONN-2003/1 WI 49% Cambay (CB/OS-2) (CB/OS- PKGM-1 (Ravva) WI 22.5%Cairn (Operator) 40% KG-OSN-2009/3* WI 100%ONGC 50% PR-OSN-2004/1* WI 35%Tata Petrodyne 10% West Coast CB/OS-2 59.0% WI 40% (PKGM- Ravva (PKGM-1) KK-DWN-2004/1 WI 40%Cairn (Operator) 22.5% MB-DWN-2009/1* WI 100%ONGC 40% Sri LankaVideocon 25% SL 2007-01-001 WI 100%Ravva Oil 12.5% * Under Force Majure Q3 FY 2011-12: Average Daily Gross operated production at 169,580 boe; Cairn (Working Interest) at 98,969 boe
  6. 6. 6Strengths Proven technical expertise Low cost, project execution skills Innovative application of technology Non- Non-OECD Company with Strong balance sheet Global Capabilities Partnership and community development Global, multi cultural workforce “Fastest growing “Mangala: Project of “Golden Peacock energy company in the Year 2011” Award for Corporate Asia, 2011” - Project Management Social – Platts 250 Institute (PMI) Responsibility, 2011”
  7. 7. 7Operational HighlightsMangala field consistently producing at 125,000 bopd sinceAugust 2010; continue to pursue higher offtake of 150,000bopdBhagyam field commenced production; safely proceeding toreach its currently approved plateau rate of 40,000bopd 10.1%Target to exit FY 2011-12 at 175,000bopd from Mangala and 21.8% 6.4%Bhagyam fieldsDevelopment of Aishwariya field underway with EPC contractorsengagedSignificant part of currently envisaged basin potential of 240,000bopd to be met from MBA fields in CY 2013Bagged 12 awards in the “Silver Jubilee Mines Safety Week” 59.0%function at Bikaner, Rajasthan under the aegis of the DirectorateGeneral of Mines SafetyTwo successive discoveries in frontier Mannar Basin, Sri Lanka;notified the Government of Sri Lanka of its intention to enterPhase 2 of the exploration period
  8. 8. 8Financial Overview USD m Q3 FY 2011-12 2011- 2010- Q3 FY 2010-11 FY2011- 9 Mth FY2011-12 2010- 9 Mth FY 2010-11 Revenue 610 691 2,019 1,452 Opex 92 102 290 241 EBITDA 467 567 1,622 1,160 DD&A 75 64 221 160 Other Income (incl 82 8 223 6 forex) PBT (before 469 494 1,583 951 exceptional item) Tax 23 46 66 100 PAT 446 448 1,223* 851 EPS (INR per share) 11.9 10.6 30.2 20.4 CFFO 421 455 1,425 900* Includes exceptional item of one time Rajasthan royalty adjustment Reduced nation’s crude oil import dependency by ~USD 1.5 bn on a gross basis in Q3 FY 2011-12 Gross contribution to the national exchequer (excluding direct taxes) was ~USD 500 m in Q3 FY 2011-12
  9. 9. 9Production Profile and Price Realization Oil Price Realization (RHS) Brent (RHS) Rajasthan Ravva Cambay 180 174 172 120 170 169 161 117 160 109 105 113 106 101 100 140 86 103 94 120 80Kboepd 76 USD/bbl 100 60 80 60 125 125 125 40 118 125 40 39 33 38 36 37 20 20 10 10 9 9 8 0 0 Q3 Q4 Q1 Q2 Q3 FY 2010-11 FY 2011-12
  10. 10. 10Low Cost and EBITDA Margin Other Costs Field Direct (USD/boe) Opex (USD/boe) 11 11 11 10 10 Low Cost Operator with field direct operatingcost at ~USD 2.1 / boe 9 8 9 9 8 2 3 2 2 2 Ravva field direct operating cost is amongst thelowest in the world Q3 Q4 Q1 Q2 Q3 EBITDA Margin (%) High EBITDA Margin of more than 75% primarily 82 84 85 78 77due to lower costs Q3 Q4 Q1 Q2 Q3 FY 2010-11 FY 2011-12
  11. 11. 11Rajasthan - Frontier to Producing Basin Frontier Exp. Exploration & Appraisal Development & Production 1995 - 2002 Mangala Mangala Processing Terminal Bhagyam Aishwariya Oil Gas Rajasthan Raageshwari Gujarat Viramgam Kandla Jamnagar Koyali / Salaya Bhogat Tankers to Coastal Refineries25 discoveries to date, >3,000 km2 approved development area
  12. 12. 12Rajasthan - Production and Crude Offtake Produced and sold >70 mmbbls of crude to Indian refiners; gross cumulative field revenue in excess of USD 6.5 bn to date Sales arrangements in place for 170,000 bopd 10.1% • With PSU & Private refineries 21.8% • Discussions ongoing with GoI and private players for FY 6.4% 2012-13 Crude Pricing • Reference to comparable low sulphur crude - Bonny Light • Price represents an average of 10-15% discount to Brent on basis of prices prevailing for 12 months to Dec 2011 59.0% Construction work on ~80 km Salaya to Bhogat section of pipeline including Bhogat terminal & marine facility is ongoing • Access to 75% of India’s refining capacity
  13. 13. 13 Rajasthan – Resource and Value PotentialResource Under Development Future Development & Prospective Resource TotalPotential Gross Inplace MBARS 2.10 BH + 19 Disc. 1.90 EXPLORATION ~2.50 ~6.5 bn boe Gross Recoverable ~1.0* (~48%) 0.14 (~7%) 0.25 (~10%) ~1.4 bn boeExpected GrossProduction Significant part of 240 175 Note- *Gross Recoverable Includes EOR potential of 308 mmbbls MBARS – Mangala, Bhagyam, Aishwar iya, Raageshwari, Saraswati 2011- Exit FY 2011-12 2013** CY 2013** ** Sometime in CY 2013 Resource Data as on 31 Production in kbopd March 2011
  14. 14. 14Rajasthan Capex & Funding Capex Gross Cash (USD m) Debt (USD m) Gross Net Exploration (till FY 0.63 0.56 2010-11) 889 1,249 1,447 1,734 Development 1,449 Till FY 2010–11 2.99 2.09 FY 2011-12 E ~0.50 ~0.35 695 598 422 276 235 FY 2012-13 E* 1.00 -1.25 0.70 - 0.87 Q3 Q4 Q1 Q2 Q3 Cash Position (as on 31-Dec-11) FY 2010-11 FY 2011-12 Gross Cash 1.45 Net Cash Company with debt equity ratio of 0.03 as Debt (0.24) on 30th Sept 2011 Net Cash 1.21 * ~70% of the capex is expected to be spent on the MBA, facilities including pipelineNumbers in USD bn
  15. 15. 15Exploration ProgrammeMajor long term player Play based approach to building portfolio Large proprietary database Diversity of basin, plays and environments Experienced team Ongoing regional petroleum system studies Successful exploration >10 years: Success ratio ~50% 10.1% 21.8% 6.4% RJ-ON-90/1 Assessing new plays, KG-ONN-2003/1 generate new prospects Nagayalanka-1Z discovered; Exploration & Appraisal well drilling in progress MB-DWN-2009/1 Under Force Majeure RAVVA Infill drilling completed KK-DWN-2004/1 59.0% Acquired 300 km2 3D; data processing and KG-DWN-98/2 KG-OSN-2009/3 interpretation completed Under Force Decided to sell off the Majeure OPERATED stake SL-2007-01-001 NON-OPERATED Two successive discoveries; notified PR-OSN-2004/1 the Govt. of SL of its intention to Under Force Majeure enter 2nd Phase of exploration SRI LANKA
  16. 16. 16 2007-01-Exploration - Sri Lanka Block (SL 2007-01-001) Cairn Lanka 100%; Working Interest (NOC back-in 15%) • Cairn India’s first overseas venture 10.1% • Block Area: ~3,000 km2 • Water depth: 400 - 1,900m 21.8% 6.4% Under explored, frontier basin with multiple plays Exploration Program • First phase of exploration completed SL-2007-01-001 SL-2007-01- • Successive discoveries in two of three exploration wells drilled 59.0% • Establishment of working hydrocarbon system in the basin SRI LANKA • Notified to the Govt. of SL of its intention to enter phase 2 of exploration 50km
  17. 17. 17Engaging with the CommunityStrategic Intent Proactive engagement with stakeholders Demonstrate leadership in corporate citizenship 10.1% Partnering with communities through our principles of respect, relationship and responsibility 21.8% 6.4% Enterprise Centre to create pool of skilled manpower Micro Vendor Development – local employment and trainingAreas of Focus Education 59.0% Infrastructure Health SRI LANKA Economic Development
  18. 18. 18Summary Rajasthan • Mangala producing at 125,000 bopd since August 2010; pursue higher offtake of 150,000bopd • Bhagyam field, 2nd largest discovery in Rajasthan block commenced production • Delivery to domestic refiners through worlds longest continuously heated and insulated pipeline 10.1% • Gross field revenue in excess of USD 6.5 bn • Enhanced oil recovery pilot continues to progress well 21.8% 6.4% • World class resource base – focussed on delivery & growth • Significant part of currently envisaged basin potential of 240,000 bopd to be met from MBA fields in CY 2013 Initiatives to slow down the rate of production decline in Ravva and CB Proven record of fast track, low cost development and production; Field Direct Opex – USD 2.1/bbl* 59.0% Gross contribution to the national exchequer (excluding direct taxes) ~USD 9 bn till date Success through innovative application of technology SRI LANKA Two successive discoveries in frontier Mannar basin in Sri Lanka; notified the Govt. of SL of its intention to enter Phase 2 of exploration* For the period Q3 FY 2011-12
  19. 19. For More Information log on to:www.cairnindia.com
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