CAIRN INDIA
Corporate Presentation
J l 2011July 2011
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DisclaimerDisclaimer
These materials contain forward looking statements regarding Cairn India our corporate plans future financialThese materials contain forward-looking statements regarding Cairn India, our corporate plans, future financialcondit ion, future results of operat ions, future business plans and strategies. Al l such forward- lookingstatements are based on our management's assumptions and beliefs in the light of information available tothem at this t ime. These forward-looking statements are, by their nature, subject to significant risks anduncertaint ies and actual results performance and achievements may be material ly dif ferent from thoseuncertaint ies and actual results, performance and achievements may be material ly dif ferent from thoseexpressed 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 use
f t h l t f t it d th h t b i dit i C i I di d t kof technology, acts of competitors and other changes to business condit ions. Cairn India undertakes noobligation 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.
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Holding StructureHolding Structure
IPO December 2006
Listed on BSE & NSE in January 2007
2.6%7.1%Listed on BSE & NSE in January 2007
Part of NIFTY index & DJIT30
9.4%
Over 200,000 Indian retail shareholders28 8%
52.1%
Market Cap >USD13 billion; amongst India’s top 20
28.8%
Total Equity of 1,902 million shares; Free float ~19%* RetailFII
InstitutionsVedanta GroupCairn PLC
DJIT30: Dow Jones India Titans 30 Index, *Free float excludes Vedanta Groups holding As on 27July, 2011
Institutions
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World Class Asset BaseWorld Class Asset Base
Production Blocks Exploration Potential 10 blocks in the Portfolio
Rajasthan (RJ-ON-90/1)
Cairn (Operator) 70%
ONGC 30%
Rajasthan
RJ-ON-90/1 WI 70%
Cambay (CB/OS 2)
ONGC 30%East Coast
KG-DWN-98/2 WI 10%
KG-ONN-2003/1 WI 49%Cambay (CB/OS-2)
Cairn (Operator) 40%
ONGC 50%
Tata Petrodyne 10%
PKGM-1 (Ravva) WI 22.5%
KG-OSN-2009/3 WI 100%
PR-OSN-2004/1 WI 35%Tata Petrodyne 10%
R (PKGM 1)
West Coast
CB/OS-2 WI 40%
KK DWN 2004/1 WI 40%Ravva (PKGM-1)
Cairn (Operator) 22.5%
ONGC 40%
Videocon 25% S i L k
KK-DWN-2004/1 WI 40%
MB-DWN-2009/1 WI 100%
Videocon 25%
Ravva Oil 12.5%
Sri Lanka
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 StrategyGrowth Strategy
Maximise Execute Maximise IdentifyMaximise recovery from
production base
Execute Rajasthan
development
MaximisePotential in Rajasthan
Identifynew growth
opportunities
Increased Ravva reserves by 20% in 2010
Mangala current production-125kbopd; potential to reach 150
>3,000 km2 in Barmer Basin under contract
Frontier exploration drilling to commence in Sri Lanka2010
>16 years of low cost operations in Ravva
pkbopd*
Crude transports through Pipeline
Resource base at 6.5 bn boe
in Sri Lanka
Exploration and Appraisal drilling in
Initiatives to slow down production decline – 4D seismic Infill drilling
through Pipeline
MBA approved peak production at 175
Monetise Barmer Hill (BH) & Other Fields; BH DoC filed, FDP under preparation
pp gKG-ONN-2003/1
New plays in seismic, Infill drilling
GBA agreement for sharing gas from the
production at 175 kbopd
Increased recovery through EOR; pilot
under preparation
Vision to produce 240 kbopd**
p yRajasthan
Existing portfolioshared reservoir in CB/OS-2
through EOR; pilot ongoing
kbopd** 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 - 12Financial 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 depletion amortisation and deferred tax) and exploration costcost, depreciation, depletion, amortisation, and deferred tax) and exploration costThe 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 HighlightsFinancial Highlights
Price Realization (USD/boe) Gross Production (Kbopd) Revenue
161
172
74
92
104
Q3 FY11
Q4 FY11
Q1 FY12
691
808
830
95
165
174
67
68
74
Q1 FY11
Q2 FY11
Q3 FY11
184
577
691
0 50 100 150 200 0 200 400 600 800
USD Million
543
610
Q4 FY11
Q1 FY12
PAT
577
576Cash Flow from Operations
62
341
448
Q1 FY11
Q2 FY11
Q3 FY11
108
337
455
0 200 400 600 800USD Million
0 200 400 600 800USD Million
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Rajasthan - Frontier to Producing BasinRajasthan - Frontier to Producing Basin
Development & ProductionExploration & AppraisalFrontier Exp.1995 2002
Mangala Mangala Processing Terminal
1995 - 2002
AishwariyaBhagyam
OilGas
Rajasthan
Raageshwari
ViramgamGujarat
KoyaliJamnagar
Kandla
y
Tankers toCoastal Refineries
Jamnagar / Salaya
Bhogat
25 discoveries to date>3,000 km² approved development area
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Rajasthan UpdateRajasthan Update
Mangala production ~125,000 bopd; reservoir performance as per t ti
MPT
expectations
148 Mangala wells drilled; 96 completed, 64 producing
Saraswati commenced production in May 2011; currently 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
Pipeline
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
Total Pipe Diameter 790 mm (32”)
High Density
Reservoir performance & surface facilities ready to support Mangala production of 150,000 bopd; subject to JV and GoI approval
Polyethylene Wrap
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 P l U th
Heat Tube
Development of Aishwariya underway; plan to commence production in H2 CY 2012, subject to JV and GoI approval
Poly Urethane Foam Insulation
Data as per 26 July, 2011 press release
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Rajasthan - Crude MarketingRajasthan - Crude Marketing
World’s longest continuously heated & insulated Mangala
Delivery through ~590 km heated pipeline
pipeline operational
Sales arrangements in place for 155,000 bopd
Mangalap pfrom Barmer to Salaya
• With PSU & Private refineries
• Discussions continue with GoI for further nominations
Radhanpur
Crude Pricing
• Reference to comparable low sulphur crude - Bonny Light
ViramgamKandla
Radhanpur
• Price represents a 10-15% discount to Brent on basis of prices prevailing for 12 months to June 2011
KoyaliJamnagar
/ SalayaBhogat
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 capacit
Tankers to Coastal Refineries
• Access to 75% of India’s refining capacity
Refinery
Existing Pipelines
Pipeline Route
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Rajasthan - Future Resource And Value PotentialRajasthan - Future Resource And Value Potential
Gross Initial~6.5 Billion boe 250Gross
1Gross InitialIn Place Volumes
~4 Billion boeIn Place
Prospective
Most Likely
Gas
140
Risked ProspectiveResource
~2.5 Billion boe in35+ prospects
Reserves, Resources 1
and Potential 2
20 additionaldiscovered
fields includingContingent
In Place
GasGIIP
OilSTOIIP
MBA
308 BH+ Others
1 The independent estimates of Reserves and Contingent Resources recentlyfields including
Barmer Hill
2.1 Billion boeR & S STOIIP
78
R & S 12
A 66
707MBA EOR
and Contingent Resources recently carried out by D&M are in line with the CIL estimates
2 Top 35 prospects audited by D&M risked resource 178 mmbbls
MBA Fields,Raageshwari MBA
R & S STOIIP
1 293
468
293
M477
B151
gand SaraswatiFDP approved
MBASTOIIP1,293
M B A R & S ContingentResource
2P+2C MBA EORBarmer Hill
+Other Fields
RiskedProspects,
Leads & Concepts
mmbblsmmbbls
Data as per 23 March, 2010 press release
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Rajasthan - Vision For GrowthRajasthan - Vision For Growth
TargetMangala
Processing Terminal
FDP Approved Production
PotentialProduction
240 000 bopd
MBA• Reservoir Performance• EOR Pilot Implementation• BH Pilots and Development• Exploration and Appraisal
Technical and Operational
FDP
Production Capacity
205,000 bopd
240,000 bopd
• JV Approvals• Additional SalesRegulatory
ApprovedProduction
175,000bopd
• Facilities and pipeline• EOR full field implementation• BH staged developmentInvestment• Exploration
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Exploration ProgrammeExploration Programme
Major long term player Play based approach to building portfolio Major long term player Large proprietary database Experienced team Successful exploration over 10
years: Success ratio ~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
KG-ONN-2003/1
Nagayalanka 1Z discovered;
RJ-ON-90/1Assessing new plays,
generate new prospects
years: Success ratio 50% /appraisal wells
Nagayalanka-1Z discovered; Further Exploration &
Appraisal drilling FY 2011-12
I N D I AMB-DWN-2009/1Exploration activity
d 2D i iRAVVA
Infill drilling in progress
KK-DWN-2004/1
A i d 300 k 2 3D
commenced; 2D seismic in Q1 CY 2012
SL 2007 01 001
Acquired 300 km2 3D;data processing in
progress
NON OPERATED
OPERATED
KG-DWN-98/2
3 appraisal wells drilled
KG-OSN-2009/33D seismic planned
by end 2011
PR-OSN-2004/1
Under Force Majeure
SL-2007-01-001
Drilling to commence in August2011 – 3 wells SRI LANKA
NON-OPERATED
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Exploration - Sri Lanka Block (SL 2007-01-001)Exploration - Sri Lanka Block (SL 2007-01-001)
Cairn Lanka 100% Working Interest (NOC back-i 15%)
India
in 15%)
• 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
SRI LANKA
Japan Drilling Company
• Drilling to commence in August 2011; 3 wells planned
50km
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Rajasthan – Capex & FundingRajasthan – Capex & Funding
USD billion
Capex Gross Net Financed By
USD billion
Exploration (up to 2006)* 0.61 0.57
Development
Net Cash** 1.03
E i ti d bt f ilit ** 0 68CY 2007 0.31 0.22
CY 2008 & 2009 1.76 1.23
Existing debt facility** 0.68
Total 1.70
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
*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 CommunityEngaging with the Community
Strategic IntentStrategic Intent
Proactive engagement with stakeholders
Demonstrate leadership in corporate citizenship
Partnering with communities through our Partnering with communities through our principles of respect, relationship and responsibility
Areas of Focus
Education
Infrastructure
Health
EconomicDevelopment
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SummarySummary
Rajasthan
M l d i i l d l f 125 000 b d• Mangala production at its currently approved plateau of 125,000 bopd
• 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 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 DetailsContact Details
Investor RelationsInvestor Relations
Anurag Mantri, Group Financial Controller
Email: [email protected]
M 91 98103 01321M: +91 – 98103 01321
Media
M K Di C Aff i & C i iManu Kapoor, Director – Corporate Affairs & Communications
Email: [email protected]
M: +91- 97178 90260
Address
Cairn India Ltd
4th Floor, Vipul Plaza
Sun City, Sector-54
Gurgaon 122 002, India
www.cairnindia.com