Cairn Energy is an independent oil and gas exploration and production company that has had significant success in India. It operates about 25% of India's domestic oil production and has a proven resource base of over 1 billion barrels of oil equivalent. Some of Cairn's key accomplishments in India include discovering India's largest onshore oil field Mangala in Rajasthan in 2004, successfully developing multiple producing fields in Rajasthan, building large infrastructure like a 600km crude oil pipeline, and applying innovative technologies. However, Cairn also faced challenges such as an unknown geology in Barmer Basin and military tensions limiting exploration. It has demonstrated operational excellence, best environmental practices, and a focus on developing talent to achieve continued growth.

1. 15th Energy Summit, Indian Oil & Gas Sector – To meet future energy needs
Challenges in realizing the potential
Calgary, 09 May, 2013
Dr. Sunil Bharati
Head, Corporate Affairs & Communications

2. 2
Consistent Value Creation
• Amongst top 20 global independent E&P company
• Currently operates ~25% of India’s domestic oil production
• Proven and Probable resource base over 1bn boe
Early
Beginnings
Execution
Success
Exploration
Success
Market Cap
(US$)
0.5bn* 6.0bn 12bn
*Market Cap of Cairn Energy PLC end 1999
Well poised for
further Growth
Ravva Re-
development
Rajasthan &
CB/OS-2
discoveries
World class
Rajasthan
development
International
Foray
Sri Lanka
deepwater
discoveries
S Africa entry
1999 2007 2012
Cairn India
IPO (2007)
Vedanta
Acquisition

3. 3
Policy & Regulatory – Key enablers
o A stable and democratic political structure, a belief in the rule of
law, and a transparent and independent legal system
o Competitive and transparent bidding process to auction blocks
o Private sector participation incentivized
o Key reforms underway – will make operations more conducive.
Examples include, A Committee on PSC mechanism, Policy
clarity in exploration in development areas among others

4. 4
Challenges in realizing the potential of
abundant oil and gas opportunities
o Barmer Basin completely unknown
o India-Pakistan major military stand-off following militant attack on
the India Parliament in December 2001; exploration activity
stopped in Rajasthan
o Limited understanding of basin development, but general view of
poor reservoir quality

5. 5
Challenges in realizing the potential of
abundant oil and gas opportunities
o After several unsuccessful attempts, over the last many years,
Cairn India discovered Mangala – largest onshore discovery in
India in more than two decades and 5th largest for the world in
2004
o Monetized Five producing fields in the Rajasthan block
o Successful exploration with >10 years success ratio of ~50%;
play based approach to build portfolio

6. 6
Execution in large-scale
Infrastructure
o Largest operations in a desert
o Built the world’s longest, continuously heated and insulated
crude oil pipeline; ~600 km long which passes through 2 States
and 8 districts
o Central Processing Terminal that enables crude oil processing
of more than 175,000 bopd
o Facilities continually upgraded to support higher production levels
in line with the production ramp-up

7. 7
Pioneer in innovative application of
technologies
o Application of enhanced oil recovery techniques in early stages
of field life
o 70 mm bbls booked as gross proved and probable reserves
o Successful deployment of Skin Effect Heat Management
System (SEHMS) for crude oil pipeline
o SEHMS ensures that the crude oil remains above 65 C
throughout the pipeline

8. 8
Operational excellence
o Multi-well pad design - Enhanced the success of an extensive
drilling campaign
o Custom-made rapid rig design - allowed faster and efficient
drilling operations on multi-slot well pads
o Smaller footprint and self deploying design allowed for ease of
transport and faster onsite rig-up – high cost efficiencies

9. 9
Environment – Best practices in
Water utilization
o Increased oil recovery requires injection water to maintain
reservoir pressure
o Barmer Oil fields – located in Thar Desert – arid region with very
poor & limited fresh water resource; fresh water also a life line of
the local communities
o Recourse to Saline water – improving recovery factors
o Maximized re-injection of produced water to support reservoir
pressure

10. 10
Human Capital
o Cairn prides in attracting, engaging and developing the best-in-
class talent
o Success story a result of exceptional talent and the “Can-Do”
spirit; over 1,300 such “Can Doers”
o Competency Management System and the “Can-Do” behavioral
competency framework to develop and nurture talent
o Building a leadership pipeline – continue to invest in business and
functional leaders

11. 15th Energy Summit, Indian Oil & Gas Sector – To meet future energy needs
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