Cairn India Corporate Brochure 2013


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Cairn India Corporate Brochure 2013

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Cairn India Corporate Brochure 2013

  1. 1. for Exploring Tomorrow
  2. 2. Content Vision and Core Values 3 This is Cairn 4 Asset Portfolio 5 Producing Assets 8 Creating Value 9 World-class Resource Base 12 Growth Journey 13 Rajasthan assets: FY2014 - 2016 15 Application of Technology: Many Firsts 17 Competitive Advantage 20 Inclusive Growth Initiatives 22 HSE 24 Our Talent 25
  3. 3. Cairn India is amongst the world’s fastest-growing independent oil and natural gas exploration and production companies, with 1.3 billion boe of gross proved and probable reserves and resources as of 31 March 2013 and 205,323 boepd of average operated production in FY2013. We combine a world-class asset portfolio with proven expertise across exploration, development and production. We deliver best-in-class production growth with one of the lowest operating costs to create significant value for all stakeholders. 212,442* US$ 3.2 billion US$ 2 billion >40 US$ 3 billion Re-commenced exploration in the Rajasthan block Average gross operated production (boepd) Record revenues in FY2013 Discoveries to date Cash flow generated in FY2013 Net Capex through FY2016 *Q1 FY2014 results
  4. 4. Cairn India Limited3 • Become a global, world class E&P company • Establish a diversified and sustainable portfolio • Deliver long term value to 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 Vision and Core Values Cairn India Limited3
  5. 5. Cairn India Limited 4 • Amongst top 20 global independent E&P companies • Market capitalisation > US$ 10 billion • Production from operated assets constitute ~27 per cent of India’s crude oil production • Opened 3 new frontier basins with over 40 discoveries • 1.3 billion boe of gross proved and probable reserves and resources • Built world’s longest (~600 kms) continuously heated and insulated pipeline • In 2004 discovered the Mangala field in Rajasthan; largest onshore oil discovery in India in more than two decades • Portfolio of 9 blocks - one block in Rajasthan, two on the west coast and four on the east coast of India and one each in Sri Lanka and South Africa • Three producing assets: Rajasthan and Cambay in the west and Ravva in the east of India This is Cairn • 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 History
  6. 6. Block 1 Completed 3D seismic survey in May 2013; 1 additional block under a Technical Cooperation Permit (TCP) – 1 year study period ending February 2014 South africa Asset Portfolio Cairn India Limited5
  7. 7. KG-OSN-2009/3 In exploration period PR-OSN-2004/1 In exploration period MB-DWN-2009/1 In exploration period CB/OS-2 2 new wells and 1 work-over well put into production, which led to almost doubling of the oil volumes KG-ONN-2003/1 Appraisal drilling commenced in June 2013 to evaluate size and commerciality of the second discovery - Nagayalanka-SE-1 Ravva - PKGM-1 Drill deeper prospect in H2 FY2014 Sri Lanka Exploring options to monetize existing 2 gas discoveries; evaluating appraisal scenarios RJ-ON-90/1 Aggressive exploration programme – 3 exploration wells drilled india Note: Updated till Q1 FY2014 Cairn India Limited 6
  8. 8. Cairn India Limited7 Cairn India Limited7
  9. 9. Cairn India Limited 8 Rajasthan (RJ-ON-90/1) • Five producing fields - Mangala, Saraswati, Bhagyam, Raageshwari, Aishwariya • Block current production: ~180,000 bopd* • 3.1 billion boe prospective resource • Gross recoverable risked prospective resources of 530 mmboe • Restarted exploration after a four year hiatus • Aggressive exploration programme initiated • 26 discoveries to date • Working towards monetising numerous other discoveries • Gross cumulative capital expenditure: US$ 4.5 billion Ravva (PKGM-1), Andhra Pradesh • Block current production: 28,253 boepd* • To date production more than double its initial estimates • Example of how technology can play a central role in accessing new reserves • Field direct operating cost one of the lowest amongst Cairn India peers Cambay (CB/OS-2), Gujarat • Block current production: 10,672 boepd* • Transformed the block from a predominantly gas field to an oil field • Technology driven approach has led to almost doubling of production Producing Assets *Q1 FY2014 results
  10. 10. 63,344 79,378 120,564 PAT 33.36 41.71 63.20 INR EarningsperShareIncomefromOperations 2010-11 2010-11 2010-11 2010-11 2011-12 2011-12 2011-12 2011-12 2012-13 2012-13 2012-13 2012-13 102,779 118,607 175,241 INR Million INR Million 149,103 172,887 boepd GrossProduction 205,323 Creating Value US$ 2.2 billion US$ 3.1 billion INR 63.20 Profit after tax in FY2013 Net Cash as on 31 March, 2013 Earnings per share Cairn India Limited9
  11. 11. Contribution to the Government Reducing dependence on oil imports • INR 20,000 crore contributed to the Government in FY2013 • 800% net increase in the contribution over the last 4 years • 70% of the Government’s Profit Petroleum revenue comes from our operated assets FY2010 FY2011 FY2012 5,500 10,000 15,000 20,000 FY2013 Gross Contribution in INR Crore • Operating 27% of India’s Crude oil production • 4 Oil fields brought into production in the last 2 years • 300% increase in Crude oil production in the last 4 years • Reduced India’s Crude oil imports by INR 38,500 crore during FY2013 FY2010 FY2011 FY2012 FY2013 10 20 30 27% 23% 20% 10% % Contribution to crude oil production Cairn India Limited 10
  12. 12. Cairn India Limited11
  13. 13. Cairn India Limited 12 World-class Resource Base 4,197 890 555 1,085* 70 130 Rajasthan Block Mature Assets Ravva + Cambay KG Onshore + Sri Lanka *Includes Rajasthan MBA EOR potential as of 31 March, 2013 HIIP: Hydrocarbons initially in place MBA: Mangala, Bhagyam, Aishwariya fields Other Assets Gross 2P HIIP Gross 2P Reserves & Resources Cairn India Group Reserves and Resources (mmboe) • Major discoveries - MBA fields have gross ultimate oil recovery of over 1 billion barrels from primary, secondary and enhanced oil recovery (EOR) methods • Gross estimated ultimate recovery (EUR) of CB/OS-2 block increased by ~10 mmboe • Gross 2C resources in KG-ONN-2003/1 block saw a significant increase due to the most recent discovery in the Nagayalanka SE-1 well
  14. 14. Growth Journey 1998-2012 • Year 1998 Ravva satellite gas discoveries • Year 2000 Cambay discoveries - Lakshmi, Gauri, Ambe • 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 from the Sri Lanka government • August 2009 Commenced production from the Mangala field in Rajasthan, India • June 2010 World’s longest (~600 km) continuously heated and insulated pipeline operational • October 2011 Discovery in Sri Lanka; first in 30 years. Established a working petroleum system in frontier Mannar Basin • April 2012 Made one of the largest onshore oil discovery in the KG Basin • 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 exchequer • August 2012 Signed a farm-in agreement with PetroSA to explore in the Orange Basin, west coast of South Africa Cairn India Limited13
  15. 15. 2013 • February Restarted exploration in Rajasthan • March Started production from Aishwariya – the third largest discovery in the Rajasthan block • March Commenced commercial gas sales from Rajasthan • FY2013 Made first post-listing dividend payout • April Renewed exploration in Rajasthan block led to another oil discovery — Cairn India’s 26th discovery on the block • April - June Recorded highest production with average gross operated production of ~212,442 barrels of oil equivalent per day • April - June CB/OS-2 saw almost doubling of oil production as compared to Q4 FY2013 Cairn India Limited 14
  16. 16. Cairn India Limited15 Rajasthan Assets: FY2014 - 2016 >350 development wells 530 mmboe target for renewed exploration ~100 exploration & appraisal wells US$ 2.4 bn capital expenditure 10 9 8 7 6 5 4 3 2 1 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-16 NUMBER OF RIGS 2002-03 500 450 400 350 300 250 200 150 100 50 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-16 NUMBER OF WELLS
  17. 17. Cairn India Limited 16 Over 3,000 km2 ² ~2,100 Gulf of Mexico OCS Blocks US$ 2.4 per bbl direct field operating cost 32%year-on-year production increase 97.7% uptime – top decile amongst global peers Rajasthan Block Facts Gross Proved & Probable Reserves & Resources Gross Proved & Probable Hydrocarbons Initially In Place 4.2bnboe 1.1bnboe
  18. 18. Cairn India Limited17 Application of Technology: Many Firsts Drilling Services Drilling with casing technology in Offshore; also set the world record for deepest 20” casing drilling Deployment of Rotary steerable assemblies for ERD wells in the Indian offshore; drilled first ERD well in shallow non consolidated formations Implemented Synthetic Based Mud in land projects in India Executed Rotary steerable assemblies onshore in India Introduced light weight cement slurries, jetting of the surface conductors in deep water Well Services Coiled tubing catenary for the first time anywhere in South East Asia as well as the Middle East E-line based tractor operations to provide conveyance in high angle extended reach offshore wells Retrofit sand screens through tubing on Inflatable plugs without utilising rig in offshore Straddle stimulation technology through a tele-coil for production and injection wells Straddle packer technology to stimulate a 2800 m horizontal well in a single intervention Mechanical Straddle packers to achieve conformance in EOR wells and initiated polymer injection Coiled tubing operation from offshore platform without utilising a dedicated vessel
  19. 19. Cairn India Limited 18 Well completion Under-balance perforation using TCP guns Installation of the Expandable Sand Screen (ESS); first in the world New Wellhead design for hot water circulation and Artificial Lift Inflow Control Devices (ICDs) deployment in Deviated and Extended Reach wells Sand control screen with integral SSD design State of the art high rate Progressive Cavity Pumps (PCPs) of capacity upto 4,000 bopd State of the art high rate Electric Submersible Pumps (ESPs) on large scale in India High rate Jet Pumps installed in circulation SSDs as artificial lift method Enhanced Oil Recovery Oilrate(bopd) Time Start of Polymer Injection Water cut Watercut(%) Oil rate Schematic illustrating success of polymer pilot; appreciable decline in the water-cut following polymer injection with a simultaneous increase in the oil rate. • Executed a successful polymer flood pilot in Mangala • Working towards full field implementation in FY2015 - will be one of the largest polymer flood projects in the world • Alkaline Surfactant Polymer (ASP) phase of the Mangala EOR pilot is expected to commence in Q2 FY2014 • Plans to apply chemical flooding in Bhagyam and Aishwariya Innovative pipeline design and operation – use of SEHMS to heat the pipeline for flow assurance of crude Skin Effect Heat Management System (SEHMS)
  20. 20. Cairn India Limited19 Cairn India Limited19
  21. 21. Cairn India Limited 20 Competitive Advantage Pioneer in technology application • Success an outcome of innovative application of technology • World’s longest, continuously heated and insulated pipeline • Enhanced oil recovery in early stage of field life Resource Base and Management • Continual increase in resource base • CB/OS-2: Doubling of oil production • Prudent resource management strategy; Ravva field increased crude oil production from an initial 3,700 bopd to 35,000 bopd in 26 months • To date production from Ravva asset double the initial estimates Low cost operator • Capabilities to operate assets on a very cost- effective basis • Field direct operating cost for the Ravva block one of the lowest amongst Cairn India peers Project execution • Development of Rajasthan upstream facilities • In less than three years, production from the Rajasthan block crossed 100 million barrels • In the Cambay Basin, commenced natural gas production in 28 months following discovery • Rajasthan discovery to production in five years; a significant achievement given the characteristic of crude oil Human Capital • Success story a result of exceptional talent and “Can Do” spirit • Over 1500 “Can Doers” – diverse international workforce • Unrelenting commitment
  22. 22. Cairn India Limited21 Cairn India Limited21
  23. 23. Cairn India Limited 22 • Vocational Skill training for employment • Support Enterprise Development Cairn Enterprise Centre • Cairn India is committed to the highest standards of Corporate Social Responsibility (CSR) • Through its 3Rs ideology of ‘Respect, Relationships and Responsibility’ Cairn India makes a difference in its operational areas • Cairn’s CSR policy is in line with the GoI’s vision of fostering inclusive growth Health - Mobile Health Vans Education - Integrated programme to support government schools Economic Development - Dairy Development I Agri-advisory Services Infrastructure Development - Solar Electrification for rural villages Inclusive Growth Initiatives • State-of-the-art ‘not for profit’ initiative for Skill Development • Strong linkage to employment Cairn Centre of Excellence Focus areas
  24. 24. Cairn India Limited23 Cairn India Limited23
  25. 25. Cairn India Limited 24 • Environment Management System (EMS) as per the ISO- 14001:2004 standard • Conservation of Energy • Carbon Management Strategies • Biodiversity • Global Reporting Initiative Environment • Health, Safety and Environment (HSE) vision is to be a “safe operator leading the industry in safety standards and demonstrate top quartile HSE performance among peers” • Continues to demonstrate top quartile HSE performance amongst peers, with industry leading safety standards • Safety and operational integrity a strong focus area for the Company • Committed to maintain highest HSE standards • Corporate Responsibility Management System (CRMS) to support the delivery of commitments • Rajasthan, CB/OS-2 and Ravva operations certified as per ISO 14001: 2004 standards • CB/OS-2 and Ravva also certified as per OHSAS 18001: 2007 • Adopted several international standards, processes and procedures as part of its HSE management system HSE • HSE Management of the Contractors • Occupational Health • Cairn Observation Programme • Cairn Incident Management System • Robust Emergency Management System • Cairn installations in Barmer, Jalore and Radhanpur have been declared as ‘Prohibited Area’. • Thar Falcons: Border Home Guards for Rajasthan Assets • Amongst the global top 10 Exploration & Production companies in HSE performance • The Rajasthan Operation and Projects including pipeline had 28.2 million LTI free hours in FY2013 • Rajasthan facilities and well uptime stood at 97.7% during FY2013 and figured in the top decile amongst global peers Key highlights Health and Safety Security • HSEA Audits • Asset Integrity Assurance Surveys • Project HSEQ Reviews • Completion Assurance Process Quality and Assurance
  26. 26. Cairn India Limited25 • Success story a result of exceptional talent, their contributions and the “Can-Do” spirit • Diverse and inclusive culture • Fosters a culture of entrepreneurship and meritocracy coupled with accountability and care • Talent from more than 10 nationalities • Developing Capabilities through focused programme – MPower and Great Manager Programme • Leadership Development through Power Hour coaching Functional/Technical Training HSE Behavioural Training Increasing talent base in the Company Data as of FY ending March Man-days spent in trainings 2011 2012 2013 1,142 947 1,501 4,765 1,690 1,269 Our Talent
  27. 27. Cairn India Limited 26
  28. 28. Cairn India Limited 3rd & 4th Floors, Vipul Plaza, Sun City Sector 54, Gurgaon 122 002, India +91 124 459 3000 Follow us on: Cairn_India