Cairn India Ltd Corporate Presentation Nov 2011


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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 Ltd Corporate Presentation Nov 2011

  1. 1. CAIRN INDIACorporate Presentation November 2011 N b
  2. 2. 2DisclaimerThese materials contain forward looking statements regarding Cairn India our corporate plans future financial forward-looking India, plans,condit ion, future results of operations, future business plans and strategies. All such forward-lookingstatements are based on our managements assumptions and beliefs in the light of information available tothem at this time. These forward-looking statements are, by their nature, subject to significant risks anduncertainties and actual results performance and achievements may be materially different from those results,expressed in such 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 useof t h l f technology, acts of competitors and other changes t b i t f tit d th h to business conditions. C i diti Cairn I di undertakes no India d t kobligation 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. 3 Holding Structure IPO December 2006 2.7% 6.4% Listed on BSE & NSE in January 2007 10.0% Part of NIFTY index & DJIT30 52.1% Over 200,000 Indian retail shareholders 28.8% 28 8% Market Cap >USD11billion; amongst India’s top 20 Cairn PLC FII Total Equity of 1,903million shares; Free float ~19%* Vedanta Group Retail InstitutionsDJIT30: Dow Jones India Titans 30 Index, *Free float excludes Vedanta Groups holding As on 19Oct, 2011
  4. 4. 4World Class Asset Base Production Blocks 10 blocks in the Portfolio Exploration Potential Rajasthan (RJ-ON-90/1) RajasthanCairn (Operator) 70% RJ-ON-90/1 WI 70%ONGC 30% East Coast KG-DWN-98/2 WI 10% KG-ONN-2003/1 WI 49% Cambay (CB/OS-2) (CB/OS 2) PKGM-1 (Ravva) WI 22.5%Cairn (Operator) 40% KG-OSN-2009/3* WI 100%ONGC 50% PR-OSN-2004/1* WI 35%Tata Petrodyne 10% West Coast CB/OS-2 WI 40% Ravva (PKGM 1) R (PKGM-1) KK-DWN-2004/1 KK DWN 2004/1 WI 40%Cairn (Operator) 22.5% MB-DWN-2009/1* WI 100%ONGC 40% Sri LankaVideocon 25% SL 2007-01-001 WI 100%Ravva Oil 12.5% * Under Force Majure Q2 FY 2011-12: Average Daily Gross operated production at 169,944 boe; Cairn (Working Interest) at 99,220 boe
  5. 5. 5Growth Strategy Maximise Execute Maximise Identify recovery from Rajasthan Potential in new growth production base development Rajasthan opportunities Increased Ravva Mangala completed 2 >3,000 km2 in Barmer Discovery in first reserves by 20% in years of production; Basin under contract overseas venture in 2010 current production- p Sri Lanka 125kbopd Resource base at 6.5 >16 years of low cost bn boe Exploration and operations in Ravva Crude transports through Pipeline Appraisal drilling in Initiatives to slow Monetise Barmer Hill KG-ONN-2003/1 down production (BH) & Other Fields; decline – 4D MBA approved peak BH DoC filed, FDP New plays in seismic, seismic Infill drilling production at 175 under preparation Rajasthan R j h kbopd GBA agreement for sharing gas from the Increased recovery Vision to produce 240 Existing portfolio shared reservoir in through EOR; pilot kbopd**; significant enhancement CB/OS-2 progressing well part from MBAGBA: Gas Balancing Agreement, MBA: Mangala Bhagyam Aishwariya, ** subject to JV and GoI approval & additional investments
  6. 6. 6Financial HighlightsQ2 FY 2011-12 USD million Rajasthan Capex USD million Net Revenue ~578 Gross Net EBIDTA ~450 Exploration 626 564 Normalised/Reported Profit After Tax (PAT) ~461/167 Development ** 3,222 2,255 Cash Flow from Operations (CFFO)* ~428Qua e y o a sed epo edQuarterly Normalised/Reported EPS S INR 11.13/4.01 pe s a e 3 0 per share Total 3,848 2,819 Net Cash as on 30th Sept 2011 at USD 1,458 million*CFFO is calculated as profit after tax (excluding other income) prior to non-cash expenses (non-cash employeecost, depreciation, depletion, amortisation, and deferred tax) and exploration cost, without adjusting exceptional itemThe company started sharing Profit Petroleum with the GoI in the Rajasthan block at the rate of 20% under theProduction Sharing Contract (PSC) framework** till 30 Sept, 2011
  7. 7. 7Financial Highlights Price Realization (USD/boe) Gross Production (Kbopd) RevenueQ2 FY12 100 578 170Q1 FY12 104 830 172Q4 FY11 92 808 161Q3 FY11 74 691 174Q2 FY11 68 577 165 0 50 100 150 200 0 200 400 600 800 USD Million PAT Cash Flow from OperationsQ2 FY12* 461 428 Q1 FY12 610 576 Q4 FY11 543 577 Q3 FY11 448 455 Q2 FY11 341 337 0 200 400 600 800 0 200 400 600 800 USD Million USD Million*PAT and CFFO are without adjusting on time exceptional item of past Rajasthan royalty costs
  8. 8. 8Rajasthan - Frontier to Producing Basin Frontier Exp. Exploration & Appraisal Development & Production 1995 - 2002 Mangala Mangala Processing Terminal Bhagyam Aishwariya Oil Gas Rajasthan Raageshwari Gujarat Viramgam Kandla Jamnagar Koyali y  / Salaya Bhogat Tankers to Coastal Refineries25 discoveries to date>3,000 km² approved development area
  9. 9. 9 Rajasthan Update MPT Mangala production ~125,000 bopd; reservoir performance as per expectations t ti Produced and sold >60 mmbbls of crude to Indian refiners; gross cumulative field revenue in excess of USD 5 billion to date Bhagyam development on track; 47 wells drilled, expected to Pipeline commence production in Q4 CY 2011; subject to GoI approval Expect to exit FY 2011-12 at 175,000bopd with the support of JV Total Pipe Diameter 790 mm (32”) and GoI High Density Polyethylene Wrap Development of Aishwariya underway; plan to commence production in H2 CY 2012, subject to JV and GoI approval Si ifi Significant part of currently envisaged b i potential of 240 000 t t f tl i d basin t ti l f 240,000 Heat Tube bopd to be met from MBA fields Augmentation of processing capacity and pipeline infrastructure to Poly Urethane P l U th deliver currently envisaged basin potential in 2013 Foam InsulationData as per 20 Oct, 2011 press release
  10. 10. 10Rajasthan - Crude Marketing Delivery through ~590 km World’s longest continuously heated & insulated heated pipeline pp Mangala pipeline operational from Barmer to Salaya Sales arrangements in place for 155,000 bopd • With PSU & Private refineries • Discussions continue with GoI for further nominations Radhanpur Crude Pricing • Reference to comparable low sulphur crude - Bonny Kandla Viramgam Light • Price represents a 10-15% discount to Brent on basis Koyali of prices prevailing for 12 months to Sept 2011 Jamnagar / Salaya Bhogat Completion of Salaya to Bhogat section of pipeline including Bhogat terminal & marine facility scheduled Tankers to Coastal Refineries for H2 CY 2012 • Access to 75% of India’s refining capacity capacit Pipeline Route Existing Pipelines Refinery
  11. 11. 11 Rajasthan - Future Resource And Value Potential ~6.5 Billion boe 250 Gross Gross Initial Reserves, Resources 1 In Place ~2.5 Billion boe in Most Likely 140 35+ prospects and Potential 2 Volumes Prospective Risked Prospective Resource In Place ~4 Billion boe Gas GIIP BH 308 + Others 20 additional discovered Oil Contingent 1 The independent estimates of Reserves fields including STOIIP In Place MBA and Contingent Resources recently Barmer Hill 707 EOR carried out by D&M are in line with the CIL estimates R & S 12 2 Top 35 prospects audited by D&M A 66 risked resource 178 mmbbls 2.1 Billion boe 78 R & S STOIIP B 293 151 468 M MBA Fields, 477 Raageshwari g MBA and Saraswati 1,293 1 293 STOIIP FDP approved Risked Prospects, Barmer Hill Leads & M B A R&S Contingent 2P+2C MBA EOR +Other Fields Resource Concepts mmbbls mmbblsData as per 23 March, 2010 press release
  12. 12. 12Rajasthan - Vision For Growth • MBA Reservoir Performance MBA Technical and • EOR Pilot Implementation Operational • BH Pilots and Development • Exploration and Appraisal Current • JV Approvals Envisaged Regulatory • Additional Sales Basin potential FDP Approved 240 000 bopd 240,000 Production 175,000 • Facilities and pipeline bopd • EOR full field implementation Investment • BH staged development • Exploration
  13. 13. 13Exploration Programme Major long term player  Play based approach to building portfolio  Large proprietary database  Diversity of basin, plays and environments  Experienced team  Ongoing regional petroleum system studies  Successful exploration over 10  “Drill Bit exploration”: >190 exploratory years: Success ratio ~50% 50% /appraisal wells RJ-ON-90/1 Assessing new plays, KG-ONN-2003/1 generate new prospects Nagayalanka-1Z Nagayalanka 1Z discovered; Further Exploration & Appraisal drilling FY 2011-12 MB-DWN-2009/1 I N D I A Under Force M j U d F Majeure RAVVA Infill drilling completed KK-DWN-2004/1 Acquired 300 k 2 3D A i d km 3D; data processing in KG-DWN-98/2 KG-OSN-2009/3 progress Under Force 3 appraisal wells drilled Majeure OPERATEDNON-OPERATEDNON OPERATED SL-2007-01-001 SL 2007 01 001 PR-OSN-2004/1 3 exploration well program: 1st well encountered hydrocarbon, 2nd well Under Force Majeure SRI LANKA drilling in progress
  14. 14. 14 Exploration - Sri Lanka Block (SL 2007-01-001) Cairn Lanka 100% Working Interest (NOC back- in i 15%) • Cairn India first overseas venture India • Block Area: ~3,000 km2 • Water depth: 400 -1,900m Extension of proven hydrocarbon play (Cauvery / Mannar) Under explored, frontier basin with multiple plays SL-2007-01-001 Exploration Program • 5th generation drillship contracted from Japan Drilling Company • Drilling commenced in August 2011; 3 SRI LANKA exploration wells program • 1st well encountered hydrocarbon; 25 meter hydrocarbon column • 2nd exploration well drilling in progress 50km
  15. 15. 15Engaging with the CommunityStrategic Intent Proactive engagement with stakeholders Demonstrate leadership in corporate citizenship Partnering with communities through our principles of respect, relationship and responsibilityAreas of Focus Education Infrastructure Health Economic Development
  16. 16. 16 Summary  Rajasthan • MMangala production at i currently approved plateau of 125 000 b d l d i its l d l f 125,000 bopd • Delivery to domestic refiners through pipeline • Gross field revenue in excess of USD 5 billion • Enhanced oil recovery potential; pilot ongoing • World class resource base – focussed on delivery & growth • Vision to produce 240,000 bopd; achieve significant part from MBA • Strong economic contribution to the State of Rajasthan and Government of India  Initiatives to slow down the rate of production decline in Ravva and CB  Proven record of fast track, low cost development and production; Field Direct Opex – USD 2.3/bbl*  Success through innovative application of technology  First overseas discovery made in Sri Lanka; 2nd well drilling in progress* For the period FY 2010-11
  17. 17. 17Contact DetailsInvestor Relations Anurag Mantri, Group Financial Controller Email: M: 91 M +91 – 98103 01321Media Manu Kapoor, Director – C M K Di Corporate Aff i & Communications Affairs C i i Email: M: +91- 97178 90260Address Cairn India Ltd 4th Floor, Vipul Plaza Sun City, Sector-54 Gurgaon 122 002, India