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CAIRN INDIA Corporate Presentation J l 2011 July


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Disclaimer These materials contain forward-looking forward looking statements regarding Cairn India, India our corporate plans, plans future financial condit ion, future results of operations, future business plans and strategies. All such forward-looking statements are based on our management's assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are, by their nature, subject to significant risks and uncertainties and actual results, results performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from 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 use off technology, t h l acts t off competitors tit and d other th changes h t business to b i conditions. diti C i Cairn I di undertakes India d t k no obligation to revise any such forward-looking statements to reflect any changes in Cairn India’s expectations with regard thereto or any change in circumstances or events after the date hereof.


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Holding Structure IPO December 2006 2.6%

7.1%

Listed on BSE & NSE in January 2007 9.4%

Part of NIFTY index & DJIT30 52.1%

Over 200,000 Indian retail shareholders

28 8% 28.8%

Market Cap >USD13 billion; amongst India’s top 20

Total Equity of 1,902 million shares; Free float ~19%*

DJIT30: Dow Jones India Titans 30 Index, *Free float excludes Vedanta Groups holding

Cairn PLC Vedanta Group Institutions

FII Retail

As on 27July, 2011


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World Class Asset Base Production Blocks

10 blocks in the Portfolio

Exploration Potential Rajasthan

Rajasthan (RJ-ON-90/1) Cairn (Operator)

70%

ONGC

30%

RJ-ON-90/1

WI 70%

East Coast

Cambay (CB/OS-2) (CB/OS 2) Cairn (Operator)

40%

ONGC

50%

Tata Petrodyne

10%

KG-DWN-98/2

WI 10%

KG-ONN-2003/1

WI 49%

PKGM-1 (Ravva)

WI 22.5%

KG-OSN-2009/3

WI 100%

PR-OSN-2004/1

WI 35%

West Coast

R Ravva (PKGM (PKGM-1) 1) Cairn (Operator)

22.5%

ONGC

40%

Videocon

25%

Ravva Oil

12.5%

CB/OS-2

WI 40%

KK DWN 2004/1 KK-DWN-2004/1

WI 40%

MB-DWN-2009/1

WI 100%

S iL Sri Lanka k SL 2007-01-001

WI 100%

Q1 FY 2011-12: Average Daily Gross operated production at 171,801 boe; Cairn (Working Interest) at 99,640 boe


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Growth Strategy Maximise recovery from production base Increased Ravva reserves by 20% in 2010 >16 years of low cost operations in Ravva Initiatives to slow down production decline – 4D seismic Infill drilling seismic, GBA agreement for sharing gas from the shared reservoir in CB/OS-2

Execute Rajasthan development

Maximise Potential in Rajasthan

Identify new growth opportunities

Mangala current production-125kbopd; potential to reach 150 p kbopd*

>3,000 km2 in Barmer Basin under contract

Frontier exploration drilling to commence in Sri Lanka

Crude transports through Pipeline MBA approved peak production at 175 kbopd Increased recovery through EOR; pilot ongoing

Resource base at 6.5 bn boe Monetise Barmer Hill (BH) & Other Fields; BH DoC filed, FDP under preparation Vision to produce 240 kbopd**

Exploration and Appraisal pp drilling g in KG-ONN-2003/1 plays y in New p Rajasthan Existing portfolio enhancement

GBA: Gas Balancing Agreement, * subject to Joint Venture (JV) and GoI approval, ** subject to JV and GoI approval & additional investments


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Financial Highlights Q1 FY 2011 - 12

Net Revenue

~USD 830 million

EBIDTA

~USD 706 million

Profit After Tax (PAT)

~USD 610 million

Cash Flow from Operations (CFFO)*

~USD 576 million

Quarterly EPS

INR 14.3 per share

Net Cash**

~USD 1,025 million

Gross Cumulative RJ Development Capex**

~USD 3,115 million

*CFFO is calculated as profit after tax (excluding other income) prior to non-cash expenses (non-cash employee cost depreciation cost, depreciation, depletion depletion, amortisation amortisation, and deferred tax) and exploration cost The company started sharing Profit Petroleum with the GoI in the Rajasthan block at the rate of 20% under the Production Sharing Contract (PSC) framework ** as on 30 June, 2011


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Financial Highlights Price Realization (USD/boe)

Gross Production (Kbopd) 104

Q1 FY12

Q2 FY11

68

Q1 FY11

67 0

50

808

161

74

Q3 FY11

830

172

92

Q4 FY11

Revenue

691

174 577

165 184

95 100

150

200

0

200

400

600

800

USD Million PAT Q1 FY12

Cash Flow from Operations 576

610

Q4 FY11

543

Q3 FY11

577

448

Q2 FY11

455

341

Q1 FY11

337

62 0

108 200

400 USD Million

600

800

0

200

400 USD Million

600

800


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Rajasthan - Frontier to Producing Basin Frontier Exp. 1995 - 2002

Exploration & Appraisal

Development & Production Mangala

Mangala Processing Terminal

Bhagyam

Aishwariya

Oil Gas

Rajasthan Raageshwari

Gujarat Kandla



Jamnagar / Salaya Bhogat

Tankers to Coastal Refineries

25 discoveries to date >3,000 km² approved development area

Viramgam

Koyali y


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Rajasthan Update  Mangala production ~125,000 bopd; reservoir performance as per expectations t ti

MPT

 148 Mangala wells drilled; 96 completed, 64 producing  Saraswati commenced production in May 2011; currently producing at the rate of 250 bopd  Produced and sold >50 mmbbls of crude to Indian refiners; gross cumulative field revenue in excess of USD 4 billion to date  Construction activity on Train 4 at MPT commenced; expected to commission in Q4 CY 2011 to take the capacity to 205,000 bopd  Reservoir performance & surface facilities ready to support Mangala production of 150,000 bopd; subject to JV and GoI approval

Pipeline

Total Pipe Diameter 790 mm (32”) High Density Polyethylene Wrap

Heat Tube

 Bhagyam development on track; 33 wells drilled, expected to commence production in Q4 CY 2011; subject to GoI approval  Development of Aishwariya underway; plan to commence production in H2 CY 2012, subject to JV and GoI approval Data as per 26 July, 2011 press release

P l U Poly Urethane th Foam Insulation


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Rajasthan - Crude Marketing  World’s longest continuously heated & insulated pipeline operational

Delivery through ~590 km heated p pipeline p from Barmer to Salaya

Mangala

 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 Light • Price represents a 10-15% discount to Brent on basis of prices prevailing for 12 months to June 2011  Completion of Salaya to Bhogat section of pipeline including Bhogat terminal & marine facility scheduled for H2 CY 2012 • Access to 75% of India’s refining capacity capacit

Kandla

Bhogat

Jamnagar / Salaya

Tankers to Coastal Refineries

Pipeline Route Existing Pipelines Refinery

Viramgam

Koyali


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Rajasthan - Future Resource And Value Potential ~6.5 Billion boe

Gross Initial In Place Volumes

~2.5 Billion boe in 35+ prospects

Most Likely Prospective

~4 Billion boe

20 additional discovered fields including Barmer Hill

250

Gross Reserves, Resources 1 and Potential 2

140 Risked Prospective Resource

In Place

Gas GIIP

Oil STOIIP

BH + Others

308

Contingent In Place

1 The independent estimates of Reserves

707

and Contingent Resources recently carried out by D&M are in line with the CIL estimates

MBA EOR

R & S 12

2.1 Billion boe

78 R & S STOIIP

293

468 MBA Fields, Raageshwari g and Saraswati FDP approved

risked resource 178 mmbbls

B 151 M 477

MBA STOIIP

1 293 1,293

M

2 Top 35 prospects audited by D&M

A 66

B

A

mmbbls

Data as per 23 March, 2010 press release

R&S

Contingent Resource

2P+2C

MBA EOR

Barmer Hill +Other Fields

mmbbls

Risked Prospects, Leads & Concepts


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Rajasthan - Vision For Growth

Mangala Processing Terminal MBA FDP Approved Production Capacity 205,000 bopd FDP Approved Production 175,000 bopd

Target Technical and Operational

• • • •

Reservoir Performance EOR Pilot Implementation BH Pilots and Development Exploration and Appraisal

Regulatory

• JV Approvals • Additional Sales

Investment

• • • •

Facilities and pipeline EOR full field implementation BH staged development Exploration

Potential Production 240 000 bopd 240,000


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Exploration Programme  Major long term player  Large proprietary database  Experienced team  Successful exploration over 10 years: Success ratio ~50% 50%

 Play based approach to building portfolio  Diversity of basin, plays and environments  Ongoing regional petroleum system studies  “Drill Bit exploration”: >190 exploratory /appraisal wells

RJ-ON-90/1 KG-ONN-2003/1

Assessing new plays, generate new prospects

MB-DWN-2009/1 Exploration activity commenced; d 2D seismic i i in Q1 CY 2012

Nagayalanka-1Z Nagayalanka 1Z discovered; Further Exploration & Appraisal drilling FY 2011-12

I N D I A RAVVA Infill drilling in progress

KK-DWN-2004/1 Acquired A i d 300 km k 2 3D; 3D data processing in progress

KG-DWN-98/2 3 appraisal wells drilled

OPERATED NON OPERATED NON-OPERATED

SL 2007 01 001 SL-2007-01-001 Drilling to commence in August 2011 – 3 wells

PR-OSN-2004/1 SRI LANKA

Under Force Majeure

KG-OSN-2009/3 3D seismic planned by end 2011


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Exploration - Sri Lanka Block (SL 2007-01-001)  Cairn Lanka 100% Working Interest (NOC backi 15%) in • Block Area: ~3,000 km2 • Water depth: 400 -1,900m

India

 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 to commence in August 2011; 3 wells planned

SRI LANKA

50km


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Rajasthan – Capex & Funding USD billion

Capex

Gross

Net

Financed By

Exploration (up to 2006)*

0.61

0.57

 Net Cash**

1.03

 Existing E i ti debt d bt facility** f ilit **

0 68 0.68

Development CY 2007

0.31

0.22

CY 2008 & 2009

1.76

1.23

CY2010

0.75

0.50

Total Capex up to CY 2010

3.43

2.52

Additional Sources

Estimated CY 2011

1.25

0.88

Total Actual & Estimated

4.68

3.40

 Cash flow from producing blocks i.e. Rajasthan, Ravva and CB

Total

1.70

*Exploration Cost: During the initial years the entire exploration costs was borne by Cairn India and hence the net number is > 70%. ** data as on 30 June, 2011


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Engaging with the Community Strategic Intent  Proactive engagement with stakeholders  Demonstrate leadership in corporate citizenship  Partnering with communities through our principles of respect, relationship and responsibility Areas of Focus  Education  Infrastructure  Health  Economic Development


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Summary  Rajasthan • Mangala M l production d i at iits currently l approved d plateau l off 125 125,000 000 b bopd d • Delivery to domestic refiners through pipeline • Gross field revenue in excess of USD 4 billion • Enhanced oil recovery potential; pilot ongoing • World class resource base – focussed on delivery & growth • Vision to produce 240,000 bopd • 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  Increasing exploration potential; enhanced resource base through NELP VIII  Sri Lanka frontier exploration drilling campaign to commence in August 2011 * For the period FY 2010-11


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Contact Details Investor Relations Anurag Mantri, Group Financial Controller Email: cilir@cairnindia.com M +91 M: 91 – 98103 01321 Media M Manu Kapoor, K Director Di – Corporate C Aff Affairs i & Communications C i i Email: cilmediainfo@cairnindia.com M: +91- 97178 90260 Address Cairn India Ltd 4th Floor, Vipul Plaza Sun City, Sector-54 Gurgaon 122 002, India www.cairnindia.com

Cairn India- Corporate Presentation July 2011  

http://www.cairnindia.com These materials contain forward looking statements regarding Cairn India our corporate plans future financial cond...

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