On October 23rd, 2014, we updated our
By continuing to use LinkedIn’s SlideShare service, you agree to the revised terms, so please take a few minutes to review them.
Cairn India Corporate Brochure | 2012 Document Transcript
Build I Consolidate I Deliver
ContentMessage from the Chairman 1Introducing Cairn India 5This is Cairn 7Producing Assets 9Growth Journey 10Asset Portfolio 12World-class Resource Base 15Application of Technology: Many Firsts 16Cairn in Numbers 18Competitive Advantage 19Inclusive Growth Initiatives 21HSEQ 23Human Capital 24
Message from C a i r n I n d i a L i m i t e d 1 the Chairman Navin Agarwal ChairmanOur nation is heavily dependent on imports to meet the In FY2012 crude oil production from the Rajasthan blockgrowing demand for oil & gas. Every day, we import ~3.4 touched 175,000 barrels of oil per day. This was made possiblemillion barrels of crude oil. Such high dependence on imports because Cairn India got requisite approval for higher crudehas its own adverse economic consequences; last year, our off-take from the Mangala field and the commencement ofnation spent more than US$ 400 million on oil imports per production from the Bhagyam, Raageshwari and Saraswatiday. With demand for oil & gas expected to increase further, it fields in Rajasthan block.is critical to address energy security concerns. In less than three years since commencing production, CairnIndia has enormous hydrocarbon potential. It is imperative India reached a significant milestone of 100 million barrelsto boost domestic oil & gas E&P activities. Conducive policy cumulative oil production from the Rajasthan operations.framework, pricing reforms and application of new technologyand innovation can significantly reduce our dependence on In FY2012 Cairn India carried out a comprehensive review ofimports. the resource potential in the Rajasthan block. The resource base for the block is now estimated to be 7.3 billion barrels ofIt is in this context that Cairn India’s contribution to nation’s oil equivalent in-place – an increase of over 11%.energy security should be evaluated.
2 C aa i i r r nn C I I nn dd i i aa LL i i m i i t t ee dd m
C a i r n I n d i a L i m i t e d 3The high exploration potential of the Block is evident from Cairn India is committed to the highest standards of CSR. Itthe fact that more than 100 prospects and leads have been is the Company’s conviction that business growth shouldidentified. Ongoing exploration is an integral part of petroleum empower communities and create value for all stakeholders.operations in any block and also consistent with internationalpractice. Looking forward, based on the revised estimates, the total Rajasthan resource base now supports a potential productionCairn India believes that an expeditious execution of such of 300,000 barrels of oil per day, subject to approvals froman exploration programme will create value, enhance energy the Government of India and our joint venture partner, thesecurity for the nation and deliver significant additional Oil and Natural Gas Corporation Limited (ONGC) and furtherfinancial benefits for the Government. investments. Such a production level is equivalent to more than ~35% of India’s current crude oil production, which willRavva and Cambay fields continue to create enduring value. help reduce the annual import bill by over US$ 10 billion andThus, Cairn India’s world class assets continue to play a contribute annual revenue of US$ 5 billion to the Government.significant role in enhancing our nation’s energy security andcontributing to the national exchequer. In a single year, Cairn Following initial success in Sri Lanka, Cairn India is furtherIndia reduced the nation’s oil import bill by ~US$ 6 billion and expanding its international footprint: we have now successfullycontributed ~US$ 2.4 billion to the national exchequer. concluded a new acquisition in South Africa. This is a step forward in achieving Cairn India’s strategic goal of growing itsCairn India’s HSE vision is to be a “safe operator leading the resource base by acquiring exploration and appraisal assets notindustry in safety standards and demonstrate top quartile only in India but also outside Indian sub-continent.HSE performance among peers”. We continue to excel in HSEperformance and for the last three years achieved top quartileperformances among the global majors.
4 CC a a i i r r nn I I nn dd i i a a L L i i m i i t t e e dd m
Introducing C a i r n I n d i a L i m i t e d 5 Cairn India Elango PWe discover the past to create a new future! We did it by exploration well in Sri Lanka and now farmed in an offshorediscovering oil and gas resources in Andhra Pradesh, Gujarat block in South Africa to explore.and Rajasthan in India and in Sri Lanka. We did it by opening upthree frontier basins with over 40 discoveries; 25 in Rajasthan This amazing journey has enriched our experience and hasalone. We want to do more in India and in other parts of the been our key differentiator. I would list five and let you readworld. this brochure to find out more. At Cairn:In a journey towards excellence that began in 1994 with 3,000 • Safety comes first as we firmly believe all lives have bopd operated production, we have now set our eyes and equal valueevaluating the potential to produce 300,000 bopd from the • People add value and make a differenceRajasthan’s Barmer basin alone. • Operational Excellence is a way of life • Use of technology is actively encouragedDuring this exciting journey, we have taken the Ravva • Stakeholders are our partners & we wish to emerge as production to a peak level of 60,000 bopd, discoverd gas in partner of choicethe west coast of India and delivered to market in 28 months,made one of the largest onshore discovery in India by finding oil Today, this journey of value creation is undertaken in Cairn byin Barmer Basin in Rajasthan, built the worlds longest heated a multicultural talent pool of over 1,500 employees and ourpipeline, produced 100 million barrels in just three years from vision is to emerge as the leading independent world class oilthe Rajasthan block, successfully drilled the first Deepwater & gas company.
6 C aa i i r r nn C I I nn dd i i aa LL i i m i i t t ee dd mVision andCore Values• Become a global, world class E&P company• Establish a diversified and sustainable portfolio• Deliver long term value to host Governments, local communities and stakeholders• Pioneering energy and enriching lives• Pioneering spirit, Teamwork, Respect and Ownership• Innovative thinking and a "can do" attitude• Commitment towards the communities• Safeguard the environment
This is C a i r n I n d i a L i m i t e d 7 Cairn• One of the largest independent oil and gas exploration and • Over 1 billion barrels of reserves / resources base production companies in India • Built world’s longest (~600 kms) continuously heated and • Amongst top 20 global independent E&P companies insulated pipeline• Market capitalisation of ~US$ 12 billion* • Portfolio of 10 blocks - one block in Rajasthan, two on the • Together with its JV partners account for ~25 per cent of west coast and five on the east coast of India and one each in India’s crude oil production Sri Lanka and South Africa**• Discovered the Mangala field in Barmer, Rajasthan in 2004; • Three producing assets in India: Rajasthan and Cambay in the largest onshore oil discovery in India in more than two west and Ravva in the east decades• Opened 3 new frontier basins with over 40 discoveries including 25 in the Rajasthan blockHistory• Cairn Energy acquired Command Petroleum Ltd in 1996• Became one of the first UK companies to invest in the Indian oil and gas sector• Cairn Energy successfully concluded the flotation of its Indian business in January 2007; held the majority shareholding in Cairn India Limited• August 2010 saw the announcement of a shareholder level transaction between Cairn Energy and Vedanta Resources plc• The Vedanta Group became the promoter of Cairn India in December 2011*October 2012 ** Farm-in agreement signed on 16 August 2012; subject to South African regulatory approvals
8 CC a a i i r r nn I I nn dd i i a a L L i i m i i t t e e dd m
Producing C a i r n I n d i a L i m i t e d 9 AssetsRajasthan (RJ-ON-90/1) • Example of how technology can play a central role in accessing new reserves• Key assets in Rajasthan: The Mangala, Bhagyam and • Field direct operating cost one of the lowest amongst Aishwariya (MBA) fields Cairn’s peers• Block current production: ~175,000 bopd • Exploration drilling planned for 2013• Raageshwari: Commenced production in March, 2012; currently producing ~ 250 bopd Cambay (CB/OS-2), Gujarat• Bhagyam: Started production in January, 2012; producing at ~ 25,000 bopd • Example of optimal asset utilisation• Saraswati: Began production in May, 2011 currently • Tolling and processing of ONGC’s North Tapti gas producing ~250 bopd • Application of advanced geophysical tools: Transformed the• Through next fiscal (2013-14) plans to spend US$ 1.2 bn block from a predominantly gas field to an oil field • Advanced reservoir modelling studies resulted in incrementalRavva (PKGM-1), Andhra Pradesh recoverable volumes from the reservoir zones • Drilling campaign expected to commence in FY2013• 17th year of successful operations• Produced more than double the initial estimates of crude oil and natural gas
1 00 C aa i i r r nn C I I nn dd i i aa LL i i m i i t t ee dd m 1998-2011• Year 1998: Ravva satellite gas discoveries • Year 2000: Cambay discoveries - Lakshmi, Gauri, Ambe• Lakshmi gas field Discovery-to-production in 28 months• Ravva - 3,700 to 35,000 bopd in 26 months• January 2004: Mangala (Rajasthan, India) discovery, considered to be the largest onshore oil discovery in India in more than two decades• January 2007: Cairn India Limited listed on the Bombay Stock Exchange and the National Stock Exchange of India • June 2008: Cairn awarded an exploration licence by the Sri Lanka government• August 2009: Commenced production from the Mangala field in Rajasthan, India• October 2009: Completed financing arrangements for US$ 1.6 billion to fund the Rajasthan project• June 2010: World’s longest (~600 km) continuously heated and insulated pipeline operational
Growth C a i r n I n d i a L i m i t e d 1 11 Journey 2012• FY2012: Cairn booked 70 mm boe as gross proved and probable reserves following positive results from the EOR polymer pilot in the Rajasthan block• June 2012: Ravva field produced more than 249 mm bbls of crude and sold 309 bcf of gas; more than double the initial estimates• June 2012: In less than 3 years, 100 million barrels cumulative production from Rajasthan - reduced oil imports by ~US$ 9 billion and contributed ~US$ 3 billion to the national exchequer• August 2012: Signed a farm-in agreement with PetroSA to explore in the Orange Basin, west coast of South Africa (subject to South African regulatory approvals)• October 2012: More than 40 discoveries in total including 25 in Rajasthan
Asset12 C a i r n I n d i a L i m i t e dPortfolio SOUTH AFRICA South Africa block Signed a farm-in agreement with PetroSA to explore hydrocarbons in August 2012. The closure of the transaction is subject to South African regulatory approvals
C a i r n I n d i a L i m i t e d 13 RJ-ON-90/1 block Continue to assess existing and new plays KG-ONN-2003/1 block to generate additional Further appraisal drilling prospects in the block in 2013 INDIACB/OS-2 block PKGM-1 blockDrilling campaign Exploration drillingexpected to commence planned for 2013in FY2013 KG-DWN-98/2 block In the process of selling stake to ONGC, our JV partner KG-OSN-2009/3 block MB-DWN-2009/1 block In exploration period In exploration period PR-OSN-2004/1 block In exploration period Sri Lanka block Exploration drilling planned for mid 2013 as part of Phase II programme Operated Block Non-operated Block
Rajasthan Block 14 C a i r n I n d i a L i m i t e d Discoveries BHAGYAM N-I-NORTH S HAK TI S HAK TI N E N-I NC WE ST OIL & GAS BHAGYAM BHAGYAM SOUTH N-I-NORTH MANGALA S HAK TI MANGALA BAR M E R H ILL S HAK TI N E AIS HWAR IYA N-I N-E DEVE LOPM E NT AR EA 2 NC WE ST OIL & GAS DANA VAN Awarded November 2008 BHAGYAM SOUTHVIJAYA N-P MANGALA G S-V DEVE LOPM E NT AR EA 3 Awarded December 2008 MANGALA BAR M ESARASWATI CR E ST R H ILL KAAM E S HWAR I WE ST-6 GAS AIS HWAR IYA SARASWATI KAAM E S HWAR I WE ST-3 GAS N-E K AAM E S HWAR I DEVE LOPM E NT AR EA S HWAR I WE ST-2 OI L KAAM E 2 VAN DANA RAAG E S HWAR I OIL Awarded November 2008 DEVE LOPM E NT AR EA 1 VIJAYA S HAH E E D TU K ARAM OM BALE Awarded October 2004 N-P G S-V RAAG E S HWAR I DE E P GAS DEVE LOPM E NT AR EA 3 Awarded December 2008 SARASWATI CR E ST U DA GKAAM E S HWAR I WE ST-6 GAS FIE LD OIL SARASWATI GAS FIE LDKAAM E S HWAR I WE ST-3 GAS K AAM E S HWAR I OIL DISC OVE RY KAAM E S HWAR I WE ST-2 GAS DISCOVE RY OI L RAAG E S HWAR I OIL OIL S HOWS DEVE LOPM E NT AR EA 1 S HAH E E D TU K ARAM OM BALE Awarded October 2004 DISC OVE RY & GAS OIL S HOWS RAAG E S HWAR I DE E P GAS 0 5 10 20 G U DA KI LOM ETR ES OIL FIE LD GAS FIE LD OIL DISC OVE RY GAS DISC OVE RY OIL S HOWS OIL DISC OVE RY & GAS S HOWS 0 5 10 20 KI LOM ETR ES
World-class C a i r n I n d i a L i m i t e d 15 Resource Base Rajasthan Resource Potential (mm boe) % increase from previous Total 2,168 2,010 3,100 RJ gross in-place 11 7,278 resource Expected Ultimate 24 1,739 Recovery EXPLORATION BH+19 Disc MBARS* 1,044 (~48%) 530 (~17%) 165 (~8%) Gross Gross EUR* Gross Gross EUR Gross Gross EUR in-place in-place in-place Under Development Future Development & Prospective Resource Note: *Gross EUR Includes EOR potential of 300 mm boe MBARS – Mangala, Bhagyam, Aishwariya, Raageshwari, Saraswati Company upgraded the numbers as on 31 March, 2012Potential from the Rajasthan block• Production potential: 300,000 bopd; represents ~35 per cent of India’s current domestic production• Reduction in import bill: ~US$ 10 billion annually• JV investments: ~US$ 4.5 billion; plans to spend US$ 1.2 billion through next fiscal (2013-14)
16 C a i r n I n d i a L i m i t e dApplicationof Technology:Many FirstsDrilling ServicesDrilling with casing technology in Offshore; also set the world E-line based tractor operations to provide conveyance in highrecord for deepest 20” casing drilling angle extended reach offshore wellsDeployment of Rotary steerable assemblies for ERD wells in the Retrofit sand screens through tubing on Inflatable plugs withoutIndian offshore; drilled first ERD well in shallow non consolidated utilising rig in offshoreformations Straddle stimulation technology through a tele-coil forImplemented Synthetic Based Mud in land projects in India production and injection wellsExecuted Rotary steerable assemblies onshore in India Straddle packer technology to stimulate a 2800 m horizontal well in a single interventionIntroduced light weight cement slurries, jetting of the surfaceconductors in deep water Mechanical Straddle packers to achieve conformance in EOR wells and initiated polymer injectionWell Services Coiled tubing operation from offshore platform without utilisingCoiled tubing catenary for the first time anywhere in South East a dedicated vesselAsia as well as the Middle East
C a i r n I n d i a L i m i t e d 17Well completion Enhanced Oil RecoveryUnder-balance perforation using TCP gunsInstallation of the Expandable Sand Screen Start of Polymer Injection(ESS); first in the worldNew Wellhead design for hot watercirculation and Artificial Lift Water cutInflow Control Devices (ICDs) deploymentin Deviated and Extended Reach wellsSand control screen with integral SSDdesignState of the art high rate Progressive Cavity Water cut (%)Pumps (PCPs) of capacity upto 4,000 bopd Oil rate (bopd) Oil rateState of the art high rate ElectricSubmersible Pumps (ESPs) on large scalein India TimeHigh rate Jet Pumps installed in circulation Schematic illustrating success of polymer pilot; appreciable decline in the water-cut following polymer injection with a simultaneous increaseSSDs as artificial lift method in the oil rate. RTTS SAFETY JOINT Accordingly, the Company has booked 2P reserves of 70 mm boe. Going forward, post Mangala implementation, we also intend to implement CROSSOVER chemical flooding in Bhagyam and Aishwariya fields. The current assessment of the EOR resource base is more than 300 mm boe of 7” RTTS PACKER (TOP) incremental recoverable oil from the MBA fields. 7” RTTS PACKER (BOTTOM) VERTICAL SHOCK SEHMS ABSORBER CROSSOVER 2-7/8” EUE 6.4# PUP JOINT 2-7/8” DEBRIS SUB 2-7/8” EUE 11.65# PUP JOINT 3 3/8” TDF AND DCI HOUSING TCP SPACER TCP GUNS- LOADED 18spf RDX BH TCP SPACER TCP GUNS - LOADED 6spf HMX DP TCP SPACER TCP GUNS - LOADED Innovative pipeline design and operation – use of Skin Effect Heat 6spf HMX DP Management System to heat the pipeline for flow assurance of 3 3/8” TDF AND Rajasthan crude DCI HOUSING PORTED BULL PLUG
Cairn in18 C a i r n I n d i a L i m i t e dNumbers 1100 18500 16500 1000 14500 900 12500 In thousand barrels In thousand US$ 10500 800 8500 700 6500 4500 600 2500 500 500 1994 1995 1995 1996 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2009 2009 2010 2011 2011 India’s Production with Cairn India’s Production without Import Savings per day due to & its JV partners Cairn & its JV partners Cairn & its JV partners’ production Source: BP Statistical Review of World Energy, June 2012
Competitive C a i r n I n d i a L i m i t e d 19 AdvantagePioneer in technology application Project execution• Success an outcome of innovative application of • Development of Rajasthan upstream facilities technology • Construction of the world’s longest heated pipeline• World’s longest continuously heated and insulated pipeline • In less than three years, production from the Rajasthan • Enhanced oil recovery in early stage of field life block crossed 100 million barrels • In the Cambay Basin, commenced natural gas production in Resource Base and Management 28 months following discovery • Rajasthan discovery to production in five years; a significant • Continual increase in resource base achievement given the characteristic of crude oil• Potential resource for the Rajasthan block estimated at 7.3 bn boe in-place Human Capital• Prudent resource management strategy; Ravva field increased crude oil production from an initial 3,700 bopd to • Success story a result of exceptional talent and 35,000 bopd in 26 months “Can Do” spirit • Over 1,500 “Can Doers” – diverse international workforceLow cost operator • Unrelenting commitment• Capabilities to operate assets on a very cost-effective basis• Field direct operating cost for the Ravva block one of the lowest amongst Cairn’s peers
2 00 C a ii rr n C a n II n d ii a n d a L ii m ii tt e d L m e d
Inclusive C a i r n I n d i a L i m i t e d 21 Growth Initiatives• Committed to the highest standards of Corporate Social Responsibility (CSR)• Through 3Rs ideology of ‘Respect, Relationships and Responsibility’ makes a difference in its area of operations• CSR policy in line with the GoI’s vision of fostering inclusive growth Health - Mobile Health Vans Education - Rural Library Programme I Science on Wheels Focus areas Economic Development - Dairy Development I Agri-advisory Services Infrastructure Development - Solar Electrification for rural villages Cairn Enterprise Centre Cairn Centre of Excellence Vocational Skill training for employment State-of-the-art ‘not for profit’ initiative for Skill Development Support Enterprise Development Strong linkage to employment
22 C a i r n I n d i a L i m i t e d
HSEQ C a i r n I n d i a L i m i t e d 23• Health, Safety and Environment (HSE) vision is to be a • Rajasthan, Suvali and Ravva operations certified for ISO “safe operator leading the industry in safety standards and 14001: 2004 standards demonstrate top quartile HSE performance among peers” • Suvali and Ravva also certified for OHSAS 18001: 2007• Committed to maintain highest HSE standards • Adopted several international standards, processes and• Corporate Responsibility Management System (CRMS) to procedures as part of HSE management system support the delivery of commitments• Set new benchmarks in HSE practices Quality Health and Safety Environment Security and Assurance • HSE Management of • Environment • HSEA Audits • Installations in Barmer, the Contractors Management System • Asset Integrity Assurance Jalore and Radhanpur • Occupational Health (EMS) as per the ISO- Surveys have been declared as • Cairn Observation 14001:2004 standard • Project HSEQ Reviews ‘Prohibited Area’. Programme • Conservation of Energy • Completion Assurance • Thar Falcons: Border • Cairn Incident • Carbon Management Process Home Guards for Management System Strategies Rajasthan Assets • Bio-diversity • Global Reporting InitiativeKey performance highlights• The CB/OS-2 block completed more than10 million LTI-free hours of operations• Rajasthan Upstream projects completed more than 10 million LTI-free hours of operations• The Mangala development pipeline recorded more than five million LTI-free hours of operations• For FY2012, the average uptime of processing and pipeline infrastructure facilities in Rajasthan has been more than 98 per cent; similar to the CB/OS-2 performance
Human24 C a i r n I n d i a L i m i t e dCapital Functional/Technical Training HSE Behavioural Training 1,399 1,352 1,318 4,329 Headcount Headcount Headcount 800 812 2010 2011 2012 Man-days spent in different types of trainings Increasing talent base in the Company Data as of FY ending March• Cairn prides in attracting, engaging and developing the best- • Key HR systems: Competency Management System and the in-class talent and setting employees for success in a high “Can-Do” behavioural competency framework performance and high nurturance environment • Enhancing HR process capacities like Performance• Success story a result of exceptional talent and the “Can- Management and Induction Program Do” spirit; over 1,500 such “Can Doers” • Firm belief: Passion, participation and support of employees,• For FY2013 to date completed ~3,559 man-days of training; Cairn India continues to march ahead in its journey to 2,151 functional competence building, 607 HSE and 801 create value for the nation behavioural training
Cairn India Limited3rd & 4th Floors, Vipul Plaza, Sun CitySector 54, Gurgaon 122 002, India+91 124 459 3000www.cairnindia.com