15th Energy Summit, Indian Oil & Gas Sector – To meet future energy needsHouston, 07 May, 2013Dr. Sunil BharatiHead, Corpo...
2DisclaimerThese materials contain forward-looking statements regarding Cairn India, our corporate plans, future financial...
3Why Invest in India?o India will continue to be one of the drivers of world growth - 6.1- 6.7% growth between 2013 and 20...
4India – Growing Demand CenterWith High Import Dependence0.01.02.03.04.05.06.07.08.09.010.02006 2007 2008 2009 2015 2020 2...
51886 - 1946 1947 - 1990 1990 - 1996 1997 – till date FuturePre-independence eraNomination eraPre NELP era28 blocks, 29Fie...
6NELP has enabled FDI113148914274122665562030050010001500200025002004-05 2006-07 2008-09 2010-11FDI Inflow in P&NG sector ...
7Role of private sector has increasedo Investments in the Indian oil& gas exploration anddevelopment sector hasincreased s...
8Private sector Impact - Discoveries48275222510102030405060Reliance ONGC Cairn NIKO GSPC Jubilant NaftogazNELP1 122352121 ...
9Private sector Impact - Production56.852.48 53.510.9811.932.0501020304050607080901995-96 2005-06 2011-12Public Sector Pri...
10Private successesOne of the largest private independent E&P companies in India. More than 40discoveries – 26 in Rajastha...
11Cairn – Creating Value Consistently• Amongst top 20 global independent E&P company• Currently operates ~25% of India’s d...
12o Largest - exploration acreage holder in the private sector and gasdiscovery in Indiao ~4 tcf of resources; potential i...
13o Significant presence across the gas chain in Indiao BG Group has held interest in gas fields and thePanna / Mukta oil ...
14Cairn India – Success factorso Pioneer in innovative application of technologies• World’s longest, continuously heated a...
15th Energy Summit, Indian Oil & Gas Sector – To meet future energy needsTHANK YOU
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Cairn India - Indian Success Stories

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How the private sector has played an active role in the growth story of India.

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Cairn India - Indian Success Stories

  1. 1. 15th Energy Summit, Indian Oil & Gas Sector – To meet future energy needsHouston, 07 May, 2013Dr. Sunil BharatiHead, Corporate Affairs & CommunicationsThe role of Private sector in India’s success story
  2. 2. 2DisclaimerThese materials contain forward-looking statements regarding Cairn India, our corporate plans, future financialc o n d i t i o n , f u t u r e r e s u l t s o f o p e r a t i o n s , f u t u r e b u s i n e s s p l a n s a n d s t r a t e g i e s . A l l s u c h f o r w a r d - l o o k i n gst ateme nts ar e b as e d o n our m a nag em ent s as sum ptio n s a n d be lie fs in th e lig ht of inform at ion a va ila b le t ot h e m a t t h i s t i m e . T h e s e f o r w a r d - l o o k i n g s t a t e m e n t s a r e , b y t h e i r n a t u r e , s u b j e c t t o s i g n i f i c a n t r i s k s a n du n c e r t a i n t i e s a n d a c t u a l r e s u l t s , p e r f o r m a n c e a n d a c h i e v e m e n t s m a y b e m a t e r i a l l y d i f f e r e n t f r o m t h o s eexpressed in suc h statements. Factors that may cause actual results, performance or achievements to differfrom expectations include, but are not limited to, regulatory changes, future levels of industry product supply,demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and useo f t e c h n o l o g y , a c t s o f c o m p e t i t o r s a n d o t h e r c h a n g e s t o b u s i n e s s c o n d i t i o n s . C a i r n I n d i a u n d e r t a k e s n oobligation to revise any such forward-looking statements to reflect any changes in Cairn India’s expectationswith regard thereto or any change in circumstances or events after the date hereof.
  3. 3. 3Why Invest in India?o India will continue to be one of the drivers of world growth - 6.1- 6.7% growth between 2013 and 2014o Share of the working age population will continue to riseo More opened economy - the sum of Indian goods and servicestraded in 2011-12 is more than 55 % of GDPo A stable and democratic political structure and a transparentand independent legal systemSource: The Rise of the East, Implications for the Global Economy, by P. Chidambaram, Minister of Finance, Government of India,at the South Asian Institute and Mahindra Humanities Center at Harvard University
  4. 4. 4India – Growing Demand CenterWith High Import Dependence0.01.02.03.04.05.06.07.08.09.010.02006 2007 2008 2009 2015 2020 2025 2030 2035Liquids ProductionLiquids ConsumptionMillionbarrelsperImport Bill toreach US$ 400billionSource: International Energy Outlook 2011Import Bill for2011 atUS$120 billion
  5. 5. 51886 - 1946 1947 - 1990 1990 - 1996 1997 – till date FuturePre-independence eraNomination eraPre NELP era28 blocks, 29FieldsNELP era254 blocksOALPPSC RegimeHow has regulatory regime evolved
  6. 6. 6NELP has enabled FDI113148914274122665562030050010001500200025002004-05 2006-07 2008-09 2010-11FDI Inflow in P&NG sector (US$ million)o India offerssignificantopportunitieso The FDI figurescould be muchhighero Global spend issignificantly higherSource: Indian Petroleum & Natural Gas Statistics, 2011-12
  7. 7. 7Role of private sector has increasedo Investments in the Indian oil& gas exploration anddevelopment sector hasincreased significantlyo Investment made by Indianand foreign companies wasof the order of US $20 bn:US $12 bn on exploration &US $8 bn on development ofdiscoveriesSource: Economic Survey 2012-13, Infraline Graph. Figures in US$ million010002000300040005000600070008000NELP I NELP II NELPIIINELPIVNELPVNELPVINELPVIINELPVIIIExploration DevelopmentNA
  8. 8. 8Private sector Impact - Discoveries48275222510102030405060Reliance ONGC Cairn NIKO GSPC Jubilant NaftogazNELP1 122352121 10510152025Reliance ONGC Cairn GSPC Essar Oil Focus Hardy HOEC BG InterlinkPre-NELPNote: Indicative list of discoveries under NELP / Pre-NELP as on 31 March2012. Red Highlighted are Public Sector companies.Source: Hydrocarbon Exploration & Production Activities, 2011-12, DGH, p 119
  9. 9. 9Private sector Impact - Production56.852.48 53.510.9811.932.0501020304050607080901995-96 2005-06 2011-12Public Sector Private SectorHydrocarbon Production O+OEG (MMT)Source: Hydrocarbon Exploration & Production Activities Reports, DGH & Indian Petroleum & Natural Gas Statisticso Incrementalproduction is largelydue to the privatesector success …o … even as publicsector manages tosustain its production
  10. 10. 10Private successesOne of the largest private independent E&P companies in India. More than 40discoveries – 26 in Rajasthan alone. Significant Resource BaseOne of the largest integrated Oil & Gas companies in India. Successfulexploration programs in the D6 Block led to gas discoveries in the KG BasinSignificant presence across the gas chain in IndiaPartnered with Reliance Industries for the KG Basin and has an asset inHazira field
  11. 11. 11Cairn – Creating Value Consistently• 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$)0.5bn* 6.0bn 12bn*Market Cap of Cairn Energy PLC end 1999Well poised forfurther GrowthRavva Re-developmentRajasthan &CB/OS-2discoveriesWorld classRajasthandevelopmentInternationalForaySri LankadeepwaterdiscoveriesS Africa entry1999 2007 2012Cairn IndiaIPO (2007)VedantaAcquisition
  12. 12. 12o Largest - exploration acreage holder in the private sector and gasdiscovery in Indiao ~4 tcf of resources; potential investments of over US$ 5 billionover the next three to five yearso BP took a 30% stake in multiple oil and gas blocks in Indiao By the end of 2012, the KG D6 block produced 2 tcf of gas and 22mm bbls of oil; saved more than US$ 35 bn in importsRIL – Success
  13. 13. 13o Significant presence across the gas chain in Indiao BG Group has held interest in gas fields and thePanna / Mukta oil and gas fields since 2002o In June 2012, the PMT JV crossed a major landmark - 500mmboe of oil and gas production from the PMT fieldso Expanding in Asia-Pacific region - completed a long-term salesagreement for up to 2.5 mtpa of LNG to IndiaBG – Success
  14. 14. 14Cairn India – Success factorso Pioneer in innovative application of technologies• World’s longest, continuously heated and insulated crude oil pipeline• Enhanced oil recovery in early stage of field lifeo Low cost operator• Capabilities to operate assets on a very cost-effective basis• One of the lowest field direct operating costo Project Execution• In less than 3 years, production from Rajasthan crossed 100 million barrels• In the Cambay Basin, commenced natural gas production in 28 months• Rajasthan discovery to production in five years; a significant achievementgiven the characteristic of crude oil
  15. 15. 15th Energy Summit, Indian Oil & Gas Sector – To meet future energy needsTHANK YOU

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