Cairn India Limited Corporate Brouchure


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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.
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Cairn India Limited Corporate Brouchure

  1. 1. Cairn India Limited Delivering Growth through Transformation
  2. 2. ContentCairn India’s journey 03Our Journey since IPO: Consistent delivery of growth 05Our Heritage 05Our Vision and Core Values 07Discovering Energy for Growing Economies 08Growing assets in the region 13Developing the Rajasthan Discoveries 15Rajasthan Upstream 18Exploring to Discover 24People Our Assets 27Highest Priority Safe Operations 28Competitive Advantage 31Producing Hydrocarbons Responsibly 32
  3. 3. Rahul DhirForeword Managing Director & CEOThe pursuit to harness energy, which plays an instrumentalrole in economic growth, continues unabated.As in the past, it is expected that the demand for energy will is encapsulated in the 3R’s – Respect, Relationships andcontinue to outpace supply in future. This makes it critical for Responsibility. Working closely with our stakeholders andall growing economies to secure energy supplies to meet the communities in our areas of operation, Cairn India has helpedgrowing needs of the people. in making a difference to their lives.We, at Cairn India, believe that successful growth can only Cairn has in the last 15 years of its presence in India madebe based on the principles of sustainability, affordability, more than 40 discoveries, including Mangala, the biggestinclusiveness and sensitivity to our environment. onshore oil discovery in India in the last two decades. By the end of 2011, Cairn India will be contributing more than 20% ofCairn India is listed on the Bombay and National Stock India’s domestic crude production.Exchanges and has a market capitalisation of more than USD14 billion. We are among the fastest growing Exploration and This brochure is a statement of our business philosophy andProduction companies in the world with a strong heritage of outlines the key drivers of our performance as a companyexploration success and a proven track record of fast track pioneering in the quest for energy and enriching lives.development and low cost operations.Our foundation is built on a relentless focus on execution, costconsciousness and innovative application of technology. Webelieve in working towards common objectives with a strongethos of teamwork. Rahul Dhir Managing Director & CEOStakeholder and community relationships are an integral partof our business. Cairn India’s approach to dealing with these
  4. 4. 02Three out of the seven landmark oildiscoveries made in India between2000 and 2005 were by Cairn andits Joint Venture partners
  5. 5. Delivering Growth through Transformation 03Cairn India’s JourneyCairn has been exploring for hydrocarbons The Mangala discovery in Rajasthan in production. We have a world classin India for more than 15 years. Today, 2004 was the largest onshore discovery in resource base and are focused on theit has a proven track record of making the country in the past two decades. delivery of the Rajasthan development asexploration discoveries and fast tracking we continue successful production fromthem to production. Three out of the seven The company operates the largest our existing assets.landmark oil discoveries made in India producing oil field in the Indian privatebetween 2000 and 2005 were by Cairn and sector and has pioneered the use ofits Joint Venture (JV) partners. cutting-edge technology to extend
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  7. 7. Delivering Growth through Transformation 05Our Journey Since IPOConsistent Delivery of GrowthOn 9 January 2007, Cairn India Limited was maintaining low operating costs in Ensuring the company is welllisted on the Bombay Stock Exchange and existing producing fields positioned to take advantage of growththe National Stock Exchange of India. Cairn • Optimising recovery from the Ravva opportunities in the regionEnergy PLC, the parent company holds and Cambay fields through • New acreage in Sri Lankaa 62.25%* interest while Petronas has a deployment of state of the art • Complete portfolio evaluation14.9%* interest in Cairn India Limited. This technology • Planning new exploration activitiesprovided Cairn India with a new platform • Developing the world class Mangala and programmesfor its next stage of growth by: field in Rajasthan, the largest onshore hydrocarbon discovery inCapitalising on the strong development India since 1985and operational expertise• Sustained production from and * As at March 2011Our HeritageThe story began in 1979, when Sir Bill 1996, an Australian-quoted company with this, along with the other discoveries inGammell, our chairman, founded Cairn interests in South Asia. Rajasthan, will form the core of the futureEnergy. In 1988, the company was listed developments in India.on the London Stock Exchange. Sir Bill Cairn Energy PLC, a FTSE 100 company, wasGammell became its first Chief Executive one of the first UK companies to invest in the Today, South Asia is one of the mostand has held this position for more than Indian oil and gas sector. Ravva in eastern exciting investment destinations for thetwo decades, overseeing the organisation’s India was the first offshore oil and gas field to hydrocarbon sector. Cairn India, alongtransformation to one of the largest be developed, followed by the Lakshmi gas with its joint venture partners, has investedindependent exploration and production field in western India, which was discovered billions of dollars in a variety of projectscompanies in Europe. As the Indian oil in 2000 and commenced production in 2002. and developments in this region.and gas market deregulated in the early1990s, Cairn’s focus turned to this region, In January 2004, Cairn added the Mangalaacquiring Command Petroleum Ltd in oil field in Rajasthan to its assets and
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  9. 9. Delivering Growth through Transformation 07Our Vision and Core ValuesCairn India’s vision of pioneering to grow collectively in this part of the livelihoods whilst aiming to safeguard theenergy and enriching lives is built on the world. Respect for individuals within the of our core values of pioneering organisation, a healthy diversity of culturesspirit, teamwork, respect and ownership. and professional experience has helped For more than a decade Cairn has beenThese are embodied in the way we Cairn to pursue its vision of being a pioneer undertaking pioneering activities in theconduct our business and engage with in the field of energy. Cairn has also field of energy. Through the core valuesour stakeholders. successfully demonstrated its commitment of pioneering spirit, teamwork, respect towards the communities in which it and ownership we have built a significantOver the years, innovative thinking and a operates through responsible actions hydrocarbon resource base in the country.can do attitude within teams helped Cairn that has helped in creating sustainable
  10. 10. 08Discovering energyfor growing economiesA decade of achievement • Mangala Field Development Plan (FDP)Exploration approved within 30 months of discovery• More than 40 Hydrocarbon discoveries: Production Onshore • Operates the largest producing oil field in Offshore the Indian Private Sector - Shallow • Combined field direct Opex of Ravva and CB/OS-2 is - Deep approximately USD 2/barrel of oil equivalent (boe)Development • Pioneered use of cutting-edge technologies to extend• Fast-track development production life• Lakshmi gas field discovery in May 2000 and first gas Sales by October 2002 • Gas sales contract with public and private buyers• Ravva, developed from a 3,700 barrels of oil per day • Oil sales to four major refineries across India (bopd) field to a 35,000 bopd field in 26 months, then plateau production of 50,000 bopd for nine years
  11. 11. Delivering Growth through Transformation 09 Cairn is focused on creating value for our stakeholders through exploration and production. We continue to maximise the potential of Rajasthan and recovery from the existing producing assets whileidentifying new growth opportunities
  12. 12. 10Cairn India is committed to continuing investmentfor growth and is focused on creating shareholdervalue by developing its world class resource basein Rajasthan, maximising recovery from the existingresource base and seeking to continue Cairn’s trackrecord of exploration successgrowing our assetsPrODuCIng ASSetS low-cost operating base by focusing on CB-X, a marginal gas field in the transition oil field life-cycle planning, continuous zone of the CB/OS-2 block was inravva Field, Krishna-godavari Basin, monitoring of operational costs and production between June 2007 andAndhra Pradesh the innovative application of operating August 2009. The Lakshmi and Gauri fieldsThe Ravva oil and gas field in the Krishna- technologies. Ravva completed 15 years commenced production of oil in addition toGodavari Basin was developed in of continuous operations on 28 October its gas production in 2005.partnership with ONGC, Videocon and 2009. Originally estimated to produce 101Ravva Oil, under a production sharing million barrels of crude oil, Ravva has now Cairn is the operator of the CB/OS-2 block.contract (PSC) that runs until 2019. produced more than 225 million barrels. The PSC was signed in 1998 with ONGCCurrently, eight unmanned offshore and Tata Petrodyne Limited as partners andplatforms are being operated. A 225- Cairn India is confident of the field’s runs until 2023.acre onshore processing facility at considerable remaining reserve potentialSurasaniyanam processes natural gas and of further oil production from The natural gas and crude oil from theseand crude oil from the Ravva field. The this block. The Company and its JV fields is processed at an 82-acre onshoreRavva onshore terminal operates to the partners have completed a 4D seismic processing facility at Suvali owned by theinternationally recognised environmental acquisition campaign, first in India, to JV partners. The plant is certified to ISOstandard – ISO 14001 – and has the identify bypassed oil zones and have now 14001 & OSHAS 18001 standards and hascapacity to handle 70,000 barrels of oil commenced infill drilling. the capacity to process 150 mmscfd ofper day (bopd), 95 million standard cubic natural gas and 10,000 bopd of crude oil.feet per day (mmscfd) of natural gas and CB/OS-2, Cambay Basin, gujarat The application of advanced geophysical110,000 barrels per day of injection water. In 2002, gas production commenced from tools has helped map thin oil sands whichThe terminal also has the capacity to store the Lakshmi gas field, which is situated in are beyond normal seismic resolutionone million barrels of crude oil onshore. Block CB/OS-2 in the Cambay Basin of the capability. These techniques have west coast of India in the Gulf of Khambat. transformed the CB/OS-2 block from aThe Ravva field is one of the most efficient The Gauri offshore gas field was discovered predominantly gas field to an oilfields in the world and has maintained its in 2001 and came on-stream in 2004.
  13. 13. Delivering Growth through Transformation 11field through the discovery of an oil leg. DeVelOPment PrOJeCt further 300 mmboe or more of EnhancedTubing sand screens were used for the Oil Recovery (EOR) potential. The MBAfirst time in the Cambay Basin as a sand rajasthan – Barmer Basin fields will contribute more than 20% ofcontrol measure. The Cambay asset has Cairn has developed a good understanding domestic crude production when theywitnessed the use of several cutting- of this reservoir through extensive seismic reach the currently approved plateau rateedge technologies which have increased and appraisal work. of 175,000 bopd.throughput at a lower unit cost. The Mangala field, which was discovered The Mangala Field commenced productionCairn India signed a Term Sheet agreement in January 2004, is the largest onshore oil on 29 August 2009 after it was dedicatedto produce Gauri share of GBA (Gas discovery in India in more than 20 years. to the nation by the Honourable PrimeBalancing Agreement – for sharing of gas The Mangala, Bhagyam and Aishwariya Minister of India, Dr. Manmohan Singh atfrom the shared reservoir formation) gas (MBA) fields have recoverable oil reserves the Mangala Processing Terminal in Barmer,through the Hazira facilities in December and resources of nearly 1 billion barrels, Rajasthan. Cairn India has embarked on the2009. The gas production and sales also which includes proven plus probable (2P) journey of transformational growth in oilcommenced in the same month. This is a gross reserves and resources of 694 million production levels with its Rajasthan fieldsfirst arrangement of its kind in the country. barrels of oil equivalent (mmboe) with a commencing production.
  14. 14. 12It has been recognised that the significantreserves and resources discovered inRajasthan are ideal candidates for theapplication of advanced techniques tooptimise and increase recoverable volumes.Utilisation and development of thesetechnologies is key element to realise thefull potential of the block
  15. 15. Delivering Growth through Transformation 13Developing therajasthan DiscoveriesCairn first came to Rajasthan in 1997 with Work on the development of the Bhagyam and three observation wells, has beenthe belief that the key ingredients for field, the second largest field in Rajasthan, drilled, completed and hooked up to thecommercial success were present, but has commenced. Development drilling facilities. Water injection and productionit took perseverance and more than a has started with a total of 19 Bhagyam phase also commenced in December,dozen wells to discover the Mangala field, development wells drilled to date. Crude 2010. This pilot will be used to refine thefollowed by Aishwariya, Bhagyam and oil production from the Bhagyam field is EOR process and facilities with an aim toother discoveries. To date, 25 discoveries expected to commence in H2 CY 2011 and roll out EOR on a field wide basis. Thehave been made in the Rajasthan block. achieve approved plateau levels by year current assessment of the EOR resource end 2011. The sub-surface well results so base is more than 300 million barrelsThe Mangala, Bhagyam and Aishwariya far have been as per expectations. (mmbbls) of incremental recoverable oil(MBA) fields in the northern area of the from the MBA fields alone.Block are currently under development Assessment of production impactwith over 125 development wells already and design optimisation is currently Barmer Hilldrilled in Mangala. The Mangala field underway due to increased reserves in the A pilot hydraulic fracturing programmewas dedicated to the nation on 29 August Aishwariya field. Production is scheduled to test the potential of the Barmer Hill2009. Since then, Mangala production to commence in H2 CY 2012 subject to JV Formation is in the final stages of planninghas ramped up to the currently approved and GoI approval. and its implementation is subject toplateau rate of 125,000 bopd. GoI approval. The pilot programme will Thus, the MBA fields together have allow evaluation of the appropriate costThe focused effort on drilling high capacity the potential to generate peak plateau effective technology for a fully optimisedhorizontal wells in Mangala and the production of more than 175,000 bopd. development of this resource base. Areservoir performance supports higher declaration of commerciality for the Barmerplateau levels. Surface and sub-surface Enhanced Oil Recovery Hill was submitted to the GoI in March,facilities are ready to support production of As a demonstration of our commitment for 2010 and a FDP is under preparation.150,000 bopd from Mangala, subject to JV early use of advanced recovery techniques Optimal recovery techniques utilising largeand Government of India (GoI) approval. to increase the oil recovery from the world fracture treatments and potential use ofIn addition to Mangala, as per the currently class MBA fields in Rajasthan, the chemical multiple staged horizontal well fracs, willapproved FDPs Bhagyam and Aishwariya EOR pilot trials in the Mangala field started be demonstrated and refined during thishave the potential to produce 40,000 bopd in early 2010. The first phase of EOR pilot and subsequent pilots.and 10,000 bopd respectively. consisting of four injectors, one producer
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  17. 17. Delivering Growth through Transformation 15rajasthan upstreamThe Rajasthan Field Development Area Mangala, Bhagyam and Aishwariya fields design of MPT to preserve water, a scarce(FDA) consists of three contiguous areas: and has a nameplate capacity to process resource in the desert state of Rajasthan,(i) Development Area 1 - Mangala, 205,000 bopd of crude with scope for by recycling and reusing water for boiler Aishwariya, Raageshwari and further expansion. Trains One, Two feed, injection purposes and when used as Saraswati (MARS) and Three are commissioned and the power fluid.(ii) Development Area 2 - Bhagyam construction of Train Four is underway.(iii) Development Area 3 - Kameshwari The gas from the Raageshwari field, West. Processing crude oil from four trains located 90 kms away from MPT, is used requires the MPT to have an extensive to heat the boilers and, more importantly,Cairn India and its JV partner ONGC have water heating, circulating and recycling to heat the waxy crude along thean area of 3,111 km2, under long term system, gas recovery systems, heat and approximately 670 kms Barmer to Bhogatcontract on the Rajasthan licence spread power systems and built-in fire and safety pipeline.across the districts of Barmer and Jalore. systems. The infrastructure to and from the MPT involves some 500 kms of intra- Developing the Barmer toAt peak production, the Mangala, and inter-field pipelines and 80 kms of Bhogat PipelineBhagyam and Aishwariya fields together inter- field roads.will produce 175,000 barrels of oil per day Cairn India took on the crude pipeline(bopd) - which is estimated to account Steam is the main source of heat to extract project to overcome the followingfor more than 20% of India’s crude oil and evacuate the Rajasthan crude. The challenges:production. Subject to GoI approval and advantage of steam is that it is an efficient, • To reach maximum potential buyersadditional investments, the Rajasthan pollution-free and a renewable resource. • Resolve the flow assurance issuesresource base now provides a basis for All power requirements of the MPT are posed by the quality of the crude oila vision to produce 240,000 bopd or met by captive power plants, comprising • Minimum effect on the environment37% more than the currently approved four 12 MW Steam Turbine Generators and minimum foot printpeak production, which could ultimately and three 2 MW Emergency Diesel • Build a technically sound andtranslate to about 35% of India’s domestic Generators. operations friendly evacuationcrude oil production. system The water to generate steam and floodmangala Processing terminal (mPt) the oil reservoirs to help evacuate the The Mangala Development Pipeline crude comes from a saline water aquifer Project (MDPP) starts at the MPT inSpread over an area of 1.6 km2, the MPT at Thumbli, which is 22 kms away from Barmer and passes through the two statesis designed to process crude from the MPT. Due care was taken during the of Rajasthan and Gujarat, eight districts
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  19. 19. Delivering Growth through Transformation 17 Developing the world’s longest continuously heated and insulated pipeline demonstrates the technical expertise being applied to secure energy from the Rajasthan fieldsand travels approximately 670 kms before it The pipeline crosses all major crude oil (ROU) under the Petroleum andreaches the coastal location of Bhogat near carrier pipelines in the western part of Mineral Pipelines Act , 1962Jamnagar on the western coast of India. India and offers the potential of blending • More than 750 crossings of various the Rajasthan crude with the other crudes types starting from Railways, NationalThe MDPP Evacuation system is a 24” that are carried in the other pipelines. As and State highways, Rivers, Canals,crude oil pipeline which uses a Skin Effect it terminates at the coastal location, the other roads and other pipelines etcHeat Management System (SEHMS) to marine facilities are designed to load theensure that the crude oil remains above crude oil carriers to transport the crude oil The MPT to Salaya section (approx. 590the Wax Appearance Temperature (WAT) to other coastal refineries as well. This way kms) is now operational along with the finalof 65 C, throughout the pipeline. It has o the pipeline accesses 75% of India’s delivery infrastructure to each buyer. Thean 8” gas line which feeds gas to all the refining capacity. pipeline system has demonstrated safeAbove Ground Installations (AGI) located and efficient operations and is transportingat approximately 20 kms distance on the The pipeline project has a few first to its name: 125,000 bopd to various refiners.pipeline. The AGIs produce the necessary • It is the world’s longest continuouslypower to keep the pipeline heated to the heated and insulated pipeline using Construction work on the Salaya to Bhogatrequired temperature. The pipeline has SEHMS technology section (approx. 80 kms) pipeline including36 AGIs and an intermediate pumping • For the first time in India an insulation the Bhogat terminal and marine facility is instation and terminal at Viramgam. The plant has been set up especially progress with completion targeted inpipeline also extends up to Radhanpur, for this project by the line pipe H2 2012.where a terminal has been constructed to manufacturerfacilitate the crude oil sales to Indian Oil • Engagement with more than 40,000Corporation Limited through their land owners and land users whilepipeline network. obtaining required Right of User
  20. 20. 18exploring to DiscoverAt present, out of the 10 blocks where Over the last two years, a full re-evaluation SOutHeASt InDIACairn India has exploration and appraisal of the Barmer Basin has been undertaken. Krishna godavari Basininterests, nine blocks are in India and one All 170 exploration and appraisal wells The Company holds a strong positionin Sri Lanka. These blocks are located in were re-examined, new studies were in the Krishna Godavari basin with boththe Krishna-Godavari Basin, Palar-Pennar started and 2,733 km of 3D seismic data 2 existing production from the Ravva FieldBasin, Kerala Konkan Basin, Cambay was re-processed and re-interpreted. Cairn and prospective acreage in onshore andBasin, Barmer Basin and the Mannar Basin India has also acquired over 2.2 km of offshore blocks. Our commitment to thisoffshore Sri Lanka. cores to help gain a better understanding basin was further consolidated with the of the geographical and reservoir award of the sought after KG-OSN-2009/3The prospect and lead portfolio being models. As a result of these studies, the block in the NELP VIII for which adeveloped and matured by Cairn India is Rajasthan prospect portfolio has increased Production Sharing Contract was signed ondiversified and comprises a balanced mix substantially to 250 mmboe recoverable 30 June 2010.of risk and potential reward. risked mean prospective resources with an upside potential, equivalent to a most ravva (Cairn India 22.5%, Operator)nOrtHern InDIA likely in place resource of 2,500 mmboe. A major review of the block-widerajasthan Discovering and developing these resources additional potential is being undertaken.Barmer Basin - rJ-On-90/1 will be an important step in realising the full A review of Contingent Resources was(Cairn India 70%, Operator) production potential of Rajasthan. completed in early 2009, resulting in smallThere remains a significant and as yet but significant additions to the resourceuntested prospective resource potential to Technical evaluation work continues to base, although further drilling is requiredpursue in the Barmer Basin of the assess existing and new plays in the basin to monetise these. A second study toRajasthan block. to generate further prospects in Rajasthan. assess the additional undiscovered
  21. 21. Delivering Growth through Transformation 19 Cairn India is in an exciting period of growth and is pursuing a range of exploration and appraisal programmes in its key Rajasthan acreage and otherexploration blocks throughout India and in Sri Lanka. Cairn India pursues a strategy of accessing and applying appropriate leading-edge technologies to ensure it builds competitive advantage in all exploration projects
  22. 22. 20Cairn India holds exploration licencesfor various geographic areas in eastern,western, northern India and Sri Lanka.These interests provide us opportunitiesto develop our business in the long termpotential within the field both in untested as part of the future plan for commercial mOVIng BeyOnD: SrI lAnKAdeeper horizons and in adjacent structures development of this discovered oil and Sl 2007-01-001 (Cairn lankais ongoing and is expected to add new gas resource. The southern area appraisal 100% - a wholly owned subsidiaryexploration prospects. Further evaluation period was completed in December 2009 of Cairn India)of the commerciality of these prospects is with the declaration of commerciality Cairn Lanka Private Limited, the whollyunderway prior to drilling. submitted to the Directorate General of owned subsidiary of Cairn India, Hydrocarbons (DGH). commenced its 3D seismic survey in theKg-Onn-2003/1 (Cairn India 49%, Mannar Basin in Sri Lanka on 10 DecemberOperator) PAlAr-PennAr BASIn 2009 and the data is currently beingTwo wells Nagayalanka-1z and Krishna-1 Pr-OSn-2004/1 (Cairn India 35%, processed. The acquisition programme,were drilled during Q2 FY 2010-11. Oil Operator) which was launched by the Honourableflow at the rate of 75 bopd and gas at the Following interpretation of 3,100 line km President of Sri Lanka, Mahinda Rajapaksa,rate of 0.27 mmscfd were established in of offshore 2D seismic data, 800 km2 of 3D fulfilled the commitment of 1450 km2 of 3Dthe Nagayalanka-1z well and a discovery seismic data a geotechnical study and pore seismic data acquisition. Exploration drillingdeclared. Preparations are ongoing for pressure studies have been completed. is planned to commence in July 2011.further exploration and appraisal drilling. The block is currently under Force Logistical preparations and detailed studies Majeure. are currently ongoing ahead of the drillingKg-DWn-98/2 (Cairn India 10%, non- schedule.Operator. OngC is the operator) KerAlA-KOnKAn BASInThe northern area of this PSC is now in an KK-DWn-2004/1 (Cairn India 40%, The Mannar basin is an unexplored frontierappraisal phase following completion of the OngC is the operator) petroleum province with both structuralexploration period. The first of three wells A 3,840 line km 2D seismic programme and stratigraphic appraise existing discoveries in the block was completed in 2009 and followingwas spudded in Q4 2009. Two further interpretation of the data, 300 km2 of 3Dwells will be drilled by the end of Q2 2010, acquisition was completed.
  23. 23. Delivering Growth through Transformations 21
  24. 24. Portfolio of Assets in India and Sri Lanka
  25. 25. Rajasthan Block Map
  26. 26. 24Using innovative technologies is a way of life withus. We are ready to face the energy challenges ofthe future, our focus on technology helps us to stayahead in an environmentally responsible manner.Cairn India has applied technology and gainedsignificant operational experience in the deserts ofRajasthan, the highly populated plains of Bihar, theshallow waters of Cambay and the deepwaters of theKrishna Godavari and Kerala Konkan basinsPioneering technologyFor more than a decade, Cairn has been there have been 10 discoveries. Some exploration activities. The concept ofsuccessfully discovering and bringing to of the important ones are Annapurna, under balance perforation using TCP gunsproduction new oilfields to increase its Padmavati and Kanakdurga, in depths was implemented for the first time in Indiahydrocarbon resource base through the ranging from 400 m to 2800 m. during the first drilling campaign in Ravvause of latest technologies. in the year 1996-98. This resulted in high Ravva: At the Ravva field, Cairn and deliverability wells thereby minimising theCairn has established new benchmarks its JV partners have built a success story capital expenditure in the field.with its ability to manage reservoirs and by putting new technologies into actionmaximise recovery to increase the reserve through sub-surface work, cost effective At Ravva, new technology such as coiledbases of the fields it operates. operations and the implementation of tubing catenary was implemented on best reservoir management practices. location for the first time in South EastBy introducing clean technologies, Three development drilling campaigns Asia as well as the Middle East. A Dragstreamlining maintenance and improving were carried out in the last decade to drill Reducing Agent (DRA) was also appliedrecovery rates through innovative 32 development wells and the field has in the multiphase pipeline that resulted inapplications that are cost effective, Cairn produced at plateau rates of approximately enhancing and sustaining the plateau rate.India has successfully maximised the oil and 50,000 bopd for the last nine years. Cairn Cairn also introduced Produced Watergas output from mature and new fields. has completed the ambitious programme Re-Injection (PWRI) in an offshore field. of 4D seismic to access the remainingCairn India pioneered India’s first hydrocarbons and infill drilling is to As part of its continued commitment todeepwater discovery on the east coast. Of commence to identify bypassed oil zones. green technology, Cairn India has installedthe 14 wells drilled by the joint venture in The innovations at Ravva have set a solar plant for the remote managementKrishna-Godavari deepwater since 2001, a benchmark for future fields and of the well heads located offshore Ravva.
  27. 27. Delivering Growth through Transformation 25In addition, a 400 watts wind generator CB/OS-2 block has also witnessed hydrocarbon resources within the statehas also been installed to lower diesel cutting-edge technologies in the other well of Rajasthan with a sustained focus onconsumption on cloudy days. These services like: cost and the application of innovativeinnovations have helped the ISO 14001 technology. The use of high densityaccredited Ravva field to emerge as one of • The plastic plug technique was 3D seismic surveys has enhanced thethe top shallow water oil developments. successfully used for zone isolation in understanding of the reservoir and helped one of the Gauri wells for the first time in precise identification of well locationsCambay: In the western coast of in India, which proved to be a cheaper leading to reduced finding costs.Gujarat, Cairn has been using advanced option than other methods for thegeophysical tools like spectral same purpose. The use of pad-based drilling coupled withdecomposition and Time Frequency • Successful well interventions in highly mobile drilling rigs has allowed a largeContinuous Wavelet Transformation deviated wells with more than 88 o number of wells to be drilled in a shortto map the complexity of the thin play deviations at 1800 m depths with the time frame with a reduced environmentalreservoir, which is beyond seismic help of Slickline catapults and tractors. footprint and lower infrastructure andresolution. This technique has helped • For the first time in India, through drilling costs.transform CB/OS-2 to develop from a tubing and sand screens werepredominately gas producing block to an successfully installed in one of the The focused effort on drilling of highoil producing block. wells in Lakshmi, thus enhancing its capacity horizontal wells in Mangala and production. the reservoir performance from the fieldExpandable Sand Screen (ESS) on supports higher plateau levels.the sea bed was installed for the first rajasthan: Cairn India and its JVtime in the world, in the Gauri fields. partner ONGC, continue to develop the
  28. 28. 26
  29. 29. Delivering Growth through Transformation 27People Our AssetsIts our people...with unlimited capabilitiesAt Cairn India, we believe that world class operations in India. The people that Cairn Cairn India is an equal opportunityresults can be delivered only by world class employs represent the foundation of this employer, where practices and policiespeople, facilitated by a world class working multicultural organisation. Over the years, enable employees to build a strong andenvironment. Cairn has employed some of the brightest sustainable career path. minds in the industry and the skills ofThe company unlocks the potential of its these people are critical to the success of a Cairn is committed to fostering anemployees by creating a high performance dynamic organisation. entrepreneurial environment for itsculture. employees. Over time it has built a depth Our people development initiatives are of knowledge and strong sets of culturalThe HR policies and practices provide an aimed at building leaders who will take values. Around 80% of our employees areenabling work environment that motivates the organisation forward in line with its professionally qualified and are led by anevery employee to rise to the challenge of vision and values. Cairn encourages a team experienced management team. Theirdelivering extraordinary results. spirit that fosters a focused and motivated passions for the business, ability to adapt to working environment, creating a climate new technology and commercial acumenCairn India has developed a strong pool where employees have an opportunity to have played a vital role in the success ofof skilled manpower over the years of its maximise their potential. our organisation.
  30. 30. 28 As an organisation that focuses on sustainable growth, Cairn India is fully aware of its responsibilities during hydrocarbon exploration and production. It is for this reason that Health, Safety and Environmental (HSE) policies receive our highest priorityHighest Priority: Safe OperationsHealth, Safety and Environment are • UK Safety Case approach, which has • International HSE standards areintegral to Cairn India’s business been applied to the CB/OS-2 being applied in the construction ofmanagement systems. The company is development the Rajasthan upstream project workscommitted to accomplishing excellence in • UK Control of Major Accident and in the Rajasthan-GujaratHSE across all its operations, and to protect Hazards (COMAH) Regulations, pipeline projectour employees and contractors who come which are being applied to the • The DuPont ‘STOP’ system hasinto contact with the physical and natural Rajasthan Development. All operating been introduced throughout Cairnenvironments in which they work. Cairn sites are ISO 14001 certified India operations as a tool to improvestrives to minimise any impacts to the • The Rajasthan project successfully behavioural safetyenvironment arising out of its activities. completed forty million man hours • Cairn India has in place safety policiesCairn India has adopted several without a lost time injury (LTI) for road transportation, aviation andinternational standards, processes and • CB/OS-2 and Ravva sites Safety marine operationsprocedures in its management system, Management Systems are OHSASsome of which are: 18001 certified
  31. 31. Delivering Growth through Transformation 29 Staff participation is critical for HSE to function effectively. To ensure this, there is a HSE Leadership Team in place. Itcomprises Cairn India’s senior management, which provides leadership on HSE matters, reviews performance and identifies opportunities for improvements
  32. 32. 30With a five fold increase in productionvolumes forecast for the next decade, thedevelopment work is in full swing
  33. 33. Delivering Growth through Transformation 31Competitive Advantagelow cost operating capability: Cairn management and achieving recovery • 4D seismic surveys in Ravva to tapIndia has over the years demonstrated of crude over an extended plateau. In further potential of the fieldthat it is capable of operating its assets the Ravva field in the KG Basin, Cairnon a very cost effective basis. The direct increased crude oil production from a level nurturing Skills: Over the years, Cairnoperating cost of its Ravva block is in the of 3,700 bopd in 1994 to 35,000 bopd in India has grown significantly to becomerange of USD 2 per barrel, amongst one 26 months and ultimately to the plateau of a more than USD 14 billion company. Inof the lowest in the world. This allows 50,000 bopd in 1999. In 2009, the Ravva the process, it has strengthened its coreproduction to be profitable even at USD 9 - block completed 15 years of production capability with a blend of experienced12 per barrel crude prices. and is still going strong. and young professionals from various backgrounds. The employees haveProject execution: Cairn India has Success through technology: Cairn a passion for the business and in ademonstrated world-class and skilled India has been a leader in the application fast-moving environment they adaptproject execution with the development of latest technologies to enhance the to changes, using their technical andof Rajasthan upstream facilities and resource base and in finding solutions for commercial acumen, managing risk andconstruction of the world’s longest overcoming different technical issues. uncertainty and making ‘brave’ decisionsinsulated and heated pipeline. Cairn is in the pursuit of our vision. High corporatecommissioning India’s only heated Single • Executing the world’s longest governance standards, coupled withBuoy Mooring (SBM) facility at Gujarat insulated and continuously heated professional management, distinguishCoast for handling Rajasthan crude oil crude oil pipeline from Barmer in Cairn India from its peers.and contributing more than 20% to India’s Rajasthan to Bhogat on the coastdomestic production. As the operator of of Gujarat. Partnership: Working with localthe Lakshmi field in the Cambay Basin, • Horizontal well drilling to produce communities, Central Government, StateCairn commenced natural gas production from sheet sands - oil flow rate Governments and JV partners, Cairn Indiain less than 30 months following discovery. >11,500 bopd achieved from the first has developed an in-depth understandingThe Rajasthan discovery to first oil was horizontal producer well – a record in of the regulatory environment and has laiddone in five years; another enviable the country the foundations for strong relationships.achievement. • Application of Enhanced Oil Recovery We strive to create value for our technology in Rajasthan, pioneered shareholders through strong corporatenurturing resources: Cairn India has a in using the technique in the governance and business ethics.proven track record of prudent reservoir initial phases of field life
  34. 34. 32Producing Hydrocarbons ResponsiblyCorporate Social responsibility: making a differencethrough social innovationOur Vision, values and mission reSPeCt reSPOnSIBIlItyCairn India is committed to the People are Cairn India’s key asset and the Cairn India is operating in many areas thathighest standards of Corporate Social attitude of the Cairn team is critical to its face economic, social and environmentalResponsibility (CSR). We are committed business culture. Cairn’s entrepreneurial challenges. It has the responsibility toto creating value through leadership in spirit is underpinned by a depth of understand these CSR challenges, identifycorporate social responsibility. It is our knowledge and a strong set of cultural the potential impact of its activities and,conviction that continuous business core values, including integrity, social and through engaging with stakeholders, lookgrowth, sustainable communities and the environmental responsibility, teamwork, for opportunities for mutual benefit.creation of value for our stakeholders go nurturing of individual creativity, riskhand-in-hand. management and developing alliances with key partners.Cairn India has made good progress in bothdeveloping and implementing its approach relAtIOnSHIPSto managing the CSR challenges facingthe business. Specific attention has been Relationships are the key to developingplaced on the emerging CSR issues such any business and Cairn India’s successas assessing and managing biodiversity in the region for more than a decaderisks, security, human rights and the would not have been possible withoutpotential impact of climate change on doing the consistent support of all stakeholders,business. We have found that the use of a from Governments, regulators and JV‘rights aware’ approach has helped us to partners to the people living near our sites.address some of the more complex issues The level of support and understandingthat the Company faces and we are working on the ground is something we haveto raise awareness about this approach. worked hard to bring about in our businessCairn India proactively engages with development activities and we are proudcommunities and stakeholders to arrive of what we have achieved – and continueat a collective vision and joint to achieve – wherever we are operational.implementation plan.Our goal is to make a positive social impactin every area in which we operate. Ourvision encapsulates Corporate SocialResponsibility in the 3 R’s.
  35. 35. Delivering Growth through Transformation 33
  36. 36. 34Cairn India received the TERI Corporate Award forSocial Responsibility 2008 and the Golden PeacockAward for Corporate Social Responsibility 2011 inrecognition of its community engagement initiatives.These awards recognise corporate leadership inenvironmental management and good corporatecitizenship across the country.Our Objectives its stakeholders and communities, we have Cairn in areas of operationAt Cairn we believe in sustainable set forward some objectives we would like to • Demonstrating leadership in corporatedevelopment, which we interpret as achieve as a responsible corporate citizen. citizenshipgrowing our business in a socially and These are: These objectives are further segregatedenvironmentally responsible way while • Proactive management of stakeholder into strategic objective, external andmeeting the legitimate interests of our expectations to obtain and maintain a internal, primarily for the purpose ofstakeholders. We also believe in taking ‘Social License to Operate’ greater focus and maintaining a balancean active role in empowering local • Partnering with the community for between the sub-goals of the variouscommunities to achieve their ambitions. socio-economic development stakeholders and Cairn.To achieve the collective vision of Cairn, • Achieving a positive perception of • Establish thought leadership through supporting pioneering initiatives towards progressive social changeStrAtegIC The strategic objectives are designed to establish best practices in the field of CSR • Explore new models for future business and to charter a new path for others to follow. Cairn India intends to: • Enhance communication and have strategic partnerships for greater impact and leverage The external objectives are aimed towards • Positive engagement with stakeholders for enabling ease of business activities - positive engagement with the externalexternAl a social license to operate – and risk mitigation and reputation management stakeholders, to gain their support for the • Addressing expectations of key stakeholders through socio-economic CSR activities and develop a vision based development on reasonable expectations and needs of the external stakeholders. These external • Overall development of communities and improvement of social infrastructure objectives are aimed towards: • Following compliance and standards The internal objectives are directed towards • Creating wider ownership, participation and spokespersons for CSRInternAl seeking active participation of internal stakeholders, namely employees, investors • Reputation enhancement with internal stakeholders – attracting and and supply chain members. The internal retaining best talent objectives are aimed towards:
  37. 37. Delivering Growth through Transformation 35 Infrastructure Economic STAKEHOLDERS Development SeCOnDAry Four Panchayat tertIAry thematic PrImAry District Administration Local NGOs areas Land contributors Local Industries Regional NGOs Local community Regulatory Authorities Media Political Representatives Education Health Academic InstitutionsWe believe that building lasting 1 • Effective communication of strategy and performancerelationships needs transparency and • Good corporate governance and risk/involvement of all stakeholders which leads opportunity management • Climate change strategyto mutual trust, social license to operate and • Award of exploration permitsfostering partnership with our communities, • Granting Operational Permits 6 • To be treated fairly and honestly • Compliance monitoring • Long term relationshipsjoint venture partners, governments and • Opportunities for growthregulators. Seeking win-win relationships • Commercial relationships 2 • Clear policies and principles • Meetings • Partnerships for progresswith all our stakeholders is one of our • Training and capacity building • Partnerships for conservation of theguiding principles and has always helped environment • Community development projectsus to understand each other’s needs and towork together for everyone’s growth. 2 3 NGOS B ators gul u si neWe regularly interact with district d Re s sp An aadministration officials, as well as the r tn t en er s rnmcommunities and key influencers to plan 4 stitutions Gove Empand implement innovative and acceptable 1 lo yees Indevelopment models which have proved to StAKeHOlDerSbe a torch bearer for other similar activities in 5 vesto ic Inthe area. rs 8 adem Co c nt 6 A raAlliances - It is increasingly difficult for any ies to rs c nit andorganisation to develop all the capabilities u o mm uppliers C sneeded to foster new innovations. We at 7Cairn believe that requisite knowledge can 3 • Adherence to global standards 7 • Good neighboursoften only be developed in conjunction with • Employment opportunities • Direct interaction for feedback and • Community development and welfare performance reportingthose possessing specific understanding • Commercial relationship • Public consultationsof the desired objectives which includes • Grievance mitigation 4 • Competitive pay • Community investmentprivate sector companies, as well as non- • Challenging, high quality work • Opportunity for developmentprofit research institutes, universities, and 8 • Preparing business leaders • Continuing professional of tomorrowgovernment bodies. Cairn CSR forges development for all employees • Research • Consultation on organisational • Partnershipdifferent levels of partnership looking at initiatives • Developing and teaching the local needs and delivering high end Cairn India Case studiesprogrammes aimed at improving the social 5 • Responsible investment • Research on impact in the creation of • Legal compliance sustainable social, • Fair returnsmilieu. The list below is a showcase of some environmental and economic value. • Meetings with investment analysts • Partnership for implementation of theof our partnerships and programmes taken • IFC audit and annual monitoring projectsup so far. report to IFC • Participation in surveys for Key interest and expectations investment analysts • Regular reporting Engagement
  38. 38. 36Partners Flagship programmesInternational Finance Corporation Cairn-IFC Linkage Programme, which was for 3 years, is now being continued by Cairn(IFC) independently. The programme has three components i) Livelihoods promotion through the establishment of an Enterprise Centre, ii) Child and Maternal Health Initiatives iii) Dairy DevelopmentHelpAge India Two Mobile health Vans are operational in Barmer District covering more than 60 villages. Health awareness campaigns organised in six districts of Gujarat along the pipeline to read India trust Set up 40 libraries in Barmer District and 25 libraries in rural areas of Gujarat.reuters Connecting more than 10,000 farmers through mobile based SMS service for providing agri inputs and advisory.multi Commodity exchange (mCx) Gramin Suvidha Kendra (GSK) an innovative partnership model with Department of Post, Government of India leveraging rural Post offices to provide agri inputs to Farmers across pipeline.