Your SlideShare is downloading. ×
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Cairn India Corporate Presentation May 2012
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Cairn India Corporate Presentation May 2012

450

Published on

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 …

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

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
450
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. © 2011 Cairn India Limited Corporate Presentation May 2012
  • 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. 3Corporate Profile IPO Dec 2006; listed on BSE & NSE in Jan 2007 Other Institutions Retail MF FI 3% Part of NIFTY index & DJIT30 2% 5% 2% FII 10.1% 8% 21.8% 6.4% Amongst India’s top 20 companies; Market Cap >US$12 bn 59% 22% Total Equity of 1,908 m shares; Free float ~19%** Cairn PLC Board comprises 8 members with 4 independents 59.0% Vedanta Group* Dividend Policy approved by the Board; aim to maintain Shareholding as on 02 May 2012 payout at around 20% of annual consolidated net profitDJIT30: Dow Jones India Titans 30 Index,**Free float excludes Cairn PLC holding*Twin Star Mauritius Holdings Ltd 38.8%, Sesa Goa Ltd 18.4% , Sesa Resources Ltd 1.7%,
  • 4. 4Overview  Amongst top 20 global independent E&P company Leading  Operates ~20% of India’s domestic crude oil production “Fastest growing energy company in E&P Player  Over 1 billion barrels reserves / resources base Asia, 2011” – Platts 250  Diverse international workforce of 1,300+ people  Opened up 3 new frontier basins with over 40 discoveries  US$ 4 bn Rajasthan Project – Discovery to Production in 5 yrs “Mangala Pipeline: Proven Project of the Year  Low cost operator; Innovative application of technology 2011” Capabilities - Project Management  Built world’s longest (~600 kms) continuously heated and Institute (PMI) insulated pipeline  Become a global, world class E&P company  Establish a diversified & sustainable portfolio “Golden Peacock Vision Award for Corporate  Deliver long term value to host Governments, Local Social Responsibility, 2012” Communities and all stakeholders
  • 5. 5World Class Asset Base 10 blocks in the Portfolio Production Blocks Exploration Potential Rajasthan (RJ-ON-90/1) 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) 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% 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 FY 2011-12: Average Daily Gross operated production at 172,887 boe; Cairn (Working Interest) at 101,268 boe
  • 6. 6 Performance Highlights Operations Mangala field ramped up to 150,000 bopd post GoI approval Bhagyam field commenced production; currently producing ~25,000 bopd, target to reach its currently approved plateau rate of 40,000 bopd 10.1% 21.8% Raageshwari and Saraswati fields commenced production; RJ 6.4% cumulative production from 4 fields is 175,000 bopd RJ production to achieve an additional ~10% over the current production levels in the coming months Significant part of 240,000 bopd to be met from MBA fields in CY 2013 Development of Aishwariya field underway with EPC contractors engaged 59.0% Exploration Entered Phase 2 of exploration; two successive discoveries in frontier Mannar Basin, Sri Lanka in Phase 1 Second successive discovery in the Nagayalanka–SE-1 well in KG- ONN-2003/1 block; largest oil discovery in the onshore part of the KG basin to date
  • 7. 7Financial Overview FY 2011-12 FY 2010-11 % Change Gross Operated Production 172,887 149,103 16 (boepd) Rajasthan 128,267 100,993 27 Ravva 36,379 36,942 (2) Cambay 8,242 11,169 (26) Revenue (US$ m) 2,480 2,255 10 EBITDA (US$ m) 1,935 1,835 5 PAT (US$ m) 1,660 1,390 19 CFFO (US$ m) 1,478 1,391 6 EPS (INR per share) 41.71 33.35 25 EBITDA Margin (%)Reduced nation’s crude oil import dependency by ~US$ 6 billion on agross basis in FY 2011-12 81 78 48Gross contribution to the national exchequer (excluding direct taxes)was ~US$ 2.4 billion in FY 2011-12 FY 2009-10 FY 2010-11 FY 2011-12
  • 8. 8Profit After Tax FY 2011-12 vs FY 2010 -11 (US$ million) 1,800 224 39 19 20 1,660 153 1,600 22 1,390 1,400 125 39 1,200 1,000 800 600 400 200 0 FY Revenue Operating DDA Forex Other Interest Exceptional Tax FY 2010-11 Increase Expense Gain Income Expense Item 2011-12Revenue increase on account of higher price (US$ 102.7 vs 76.8 per boe) and volumes (Gross 172,887 bopd vs149,103 bopd)Higher PAT by 19% on account of increased production from the Rajasthan block and price realizationExceptional item on account of royalty paid in Rajasthan block being cost recoverable with retrospective effect
  • 9. 9 Reserve and Resource Update 31-Mar-11 31-Mar-12 Company achieved a reserve and resource replacement ratio of 175% during the year; gross addition in excess of production ~ 50 +11% mmboe RJ Basin Potential Rajasthan Block Potential resource for the block now estimated at 7.3 bn boe gross 7.3 In place 6.5 +24% Exploration potential now estimated at 530 mmboe gross 1.4 1.7 recoverable risked prospective resource Gross In Place Expected Ultimate Resource Recovery Increasing confidence on the Mangala EOR polymer pilot; led +24% towards booking 70 mmboe of gross 2P reserves RJ Exploration Potential 3.1 Mangala field Stock Tank Oil Initially In Place (STOIIP) increased 2.5 by 36 mmboe to 1,329 mmboe +112% Expected Ultimate Recovery (EUR) now at 1.7 billion boe 0.53 Resource base supports a basin production potential of 300,000 0.25 bopd Gross In Place Recoverable Resource Data as per FY 2011-12 press release
  • 10. 10 Rajasthan – Resource and Value PotentialResource Future Development & Prospective Under Development Total % inc from Resource previousPotential(mmboe) Gross 11% MBARS 2,168 BH + 19 Disc. 2,010 EXPLORATION 3,100 7,278 In Place Gross EUR 1,044 (~48%) 165 (~8%) 530 (~17%) 1,739 24%Expected Gross 300***Production Significant part of(kbopd) 240 *** 175 Note- *Gross EUR Includes EOR potential of 238 mmbbls; balance 70mmbbls booked as reserves MBARS – Mangala, Bhagyam, Aishwariya, Raageshwari, Saraswati ** Sometime in CY 2013 Company upgraded the numbers as on 31 March 2012 *** Subject to approvals Apr-12 CY 2013** 25 discoveries to date
  • 11. 11Rajasthan - Production and Crude Offtake Produced and sold >85 mmbbls of crude to Indian refiners; generated gross revenues in excess of US$ 7.5 billion to date Sales arrangements renewed with buyers for volumes in 10.1% excess of 175,000 bopd with PSU & Private refineries 21.8% 6.4% Crude Pricing • Reference to comparable low sulphur crude - Bonny Light • Discount guidance of an average of 10-15% to Brent The MPT to Salaya section continued to safely deliver crude oil to IOCL and private refiners • Recorded more than 3.7 million LTI-free man hours to date 59.0% • Provides access to over 1.6 mmbopd refining capacity Salaya to Bhogat pipeline section (~80 km) and the marine facility expected to be completed in H1 CY 2013
  • 12. 12Cash Position and Capex Plan Gross Cash (US$ m) Debt (US$ m) Rajasthan Block Capex Gross Net Exploration (till FY 0.63 0.56 2011-12) 1,249 1,789 Development 583 Till FY 2011–12 3.4 2.4 FY 2012-13 E* 1.00 -1.25 0.70 - 0.87 751 598 Cash Position (as on 31-Mar-12) 245 Gross Cash 1.79 FY 2009-10 FY 2010-11 FY 2011-12 Debt (0.25) Net Cash Company with debt equity ratio of 0.03 as Net Cash 1.54 on 31 Mar 2012Numbers in US$ bn * ~70% of the capex is expected to be spent on the MBA, facilities including pipeline
  • 13. 13 13 Exploration - Portfolio Current Exploration Portfolio Mix of producing, emerging, immature and Basin Type frontier acreages Significant portfolio growth since IPO Proven Producing Net unrisked prospective resource at ~2.1 bn boe Established working hydrocarbon system Emerging in Sri Lanka through successive discoveries Prospective Largest oil discovery in the onshore part of KG basin to date Immature Portfolio Growth 2,500 FrontierNet Unrisked Prospective Resource (mmboe) 2,000 1,500 1,000 500 CIL Focus Area 0 Frontier Evaluation 2007 2009 2011
  • 14. 14 Exploration - Programme Major 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 New prospects generated Second successive discovery Nagayalanka-SE-1 MB-DWN-2009/1 Under Force Majeure RAVVA Infill drilling completed KK-DWN-2004/1 59.0% Acquired 300 km2 3D; MWP of Phase 1 KG-DWN-98/2 KG-OSN-2009/3 completed Under Force Decided to sell off the Majeure OPERATED stake SL-2007-01-001 NON-OPERATED Two successive discoveries in PR-OSN-2004/1 Phase 1; entered Phase 2, acquired Under Force Majeure 600 km2 3D; drilling in mid CY 2013 SRI LANKA
  • 15. 15 Exploration - Sri Lanka Block (SL 2007-01-001) Cairn Lanka 100%; Working Interest (NOC back-in 15%) • Cairn India’s first overseas venture • Block Area: ~3,000 km2 10.1% • Water depth: 400 - 1,900m 21.8% 6.4% Under explored, frontier basin with multiple plays Establishment of working hydrocarbon system in the basin SL-2007-01-001 Exploration Program 59.0% • Phase 1 - Two Discoveries out of three wells drilled • Phase 2 - 600 km2 3D seismic completed; SRI LANKA exploration drilling in mid CY 2013 50km
  • 16. 16Engaging 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
  • 17. 17 Summary Rajasthan • Mangala field producing at 150,000 bopd post GoI approval in April 2012 • Cumulative production from four fields at 175,000 bopd • Delivery to domestic refiners through worlds longest continuously heated and insulated pipeline • Gross field revenue in excess of US$ 7.5 bn 10.1% • EOR pilot continues to progress well; 70 mmboe booked as gross proved and probable reserves 21.8% 6.4% • World class resource base, 12% increase in potential resource to 7.3 bn boe; focussed on delivery and growth • Basin production potential now at 300,000 bopd Ongoing 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 – US$ 2.2/bbl* Gross contribution to the national exchequer (excluding direct taxes) ~US$ 10 bn till date 59.0% Two successive discoveries in frontier Mannar basin in Sri Lanka; entered Phase 2 of exploration SRI LANKA Second successive discovery in KG-ONN-2003/1; largest oil discovery in the onshore part of the KG basin to date * For the period FY 2011-12

×