oil india limited€¦ · ppt file · web view · 2017-11-07presentation may, 2013 strictly ......
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Oil India: Brief Overview
Strong Financials
Strong Reserve Base
Integrated O&G Player
Large Acreage
Rich Heritage
Total 2P reserves of over 941 mmboe; with reserve replacement ratio of over 123% in FY12
Presence across Oil & Gas Value Chain (E&P, Transportation and Downstream)
World Class Infrastructure to support growth
Domestic acreage: 86,729 sq. km over 58 blocks International acreage: 38,944 sq. km
Market cap : Rs. 35,366 cr * FY13 Total Revenue: Rs 11,456 cr FY13 PAT : Rs. 3589 cr
Independent India’s first commercial oil discoveries, with the first one being made in 1953
India’s Premier Oil & Gas “Navratna” Company Engaged in the Exploration, Development,Production and Transportation of Crude Oil and Natural Gas in India
2
* Market cap as on 27.05.13
OIL Shareholding Structure
Source: Company Reports.(1) Shareholding data as on 27.05.2013(2) The share price data has been adjusted for the bonus issuance
Listed on BSE / NSE
Market Cap: Rs.35,366 crore
Share price (52 Week High / Low) : Rs.618 / Rs.431
Number of shares: 601.12 mn
Key shareholders % Shareholding
Indian Oil Corporation 4.45%
Bharat Petroleum Corporation 2.23%
Hindustan Petroleum Corporation 2.23%
HSBC Bank (Mauritius) Ltd. 2.68%
HDFC Standard Life Insurance Company Limited 1.04%
HDFC Trustee Company Limited-Top 200 Fund 0.90%
HDFC Trustee Company Limited- HDFC Equity Fund 0.84%
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD 0.76%
GOI68.4%
Others16.0%
DII7.9%
FII7.7
Dividend FY131st Interim Dividend/Share: Rs.11.002nd Interim Dividend/Share: Rs.12.00
Final Dividend/share: Rs.7.00
1959 1961 1962–1963 1981 200419991982 2008 2009–2013
Evolution and Key Milestones
LPG plant set-up using Turbo Expander Technology
Formed as a JV with Burmah Oil Company
Transformed into equal partnership JV company between Burmah Oil Company and Government of India
Became a wholly owned Government of India enterprise
Participated first time in NELP
NRL-Siliguri Product Pipeline (660km) commissioned
OIL enters the field of installation, commissioning and maintenance of Crude oil pipelines
Completed construction of a 401km pipeline from Duliajan to Guwahati and a 756km pipeline from Guwahati to Barauni
Entered into a MoU with IOCL for pursuing overseas exploration and production opportunities
IPO in September 2009 raising a total of Rs.27.7 bn
Received Navratna status
10% OFS by GOI
"Company of the year" among all Navratna and Miniratna companies at the PSE Excellence Award
E&P Company of the Year Award by Petrofed for the year 2010-11
Wind energy project commissioned
4
Integrated Oil & Gas Player
NRL – Numaligarh Refinery Limited. BCPL – Brahmaputra cracker and Polymer Limited. DNPL – Duliajan-Numaligarh Pipeline Limited.
PSC for 3 blocks has been signed under NELP IX
Transportation DownstreamProductionExploration
Crude Oil
– 1,157 km pipeline~6MMT capacity
Multi-product
– 660km pipeline;1.72MMT capacity
Overseas Pipeline
– 10% stake in 741km pipeline (Sudan)
Natural Gas
– 23% stake in 192 km DNPL in North East
Refining & Marketing Petroleum Products
– 26% equity stake in NRL
Gas Cracker Project
– 10% equity stake in BCPL
City Gas Business –
– Signed MOU with GAIL, HPCL, IOCL and BPCL/ONGC
50 years of experience
Advanced recovery techniques to maximize production
FY’13 Produced 3.7 MMT of Crude oil:
– 39 installations
– 1,544 km pipelines
FY’13 Produced 2.64 bcm of Natural Gas:
– 26 installations
– 583 km pipelines
Domestic: 65 E&P blocks
International: US, Venezuela , Gabon, Egypt, Iran, Libya, Nigeria, Timor Leste, and Yemen
New Discoveries: 19 Small to medium size discoveries (reserve size less than 30 mn bbls) during last three years (FY10–12)
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Our Vision
Fastest Growing Energy Company with Highest Profitability
Delight Customers with Quality Products and Services at Competitive Prices
Learning Organization, Nurturing Initiatives, Innovations and Aspirations with Best Practices
Team, Committed to Honesty, Integrity, Transparency and Mutual Trust creatingEmployee Pride
Fully Committed to Safety, Health and Environment
Responsible Corporate Citizen Deeply Committed to Socio-economic Development in its Areas of Operations
“The Fastest Growing Energy Company With a Global Presence Providing Value to Stakeholders”
6
Strategic Plan 2020-21
2012 2020
Growth
Decades of Experience 7
Maintain & Enhance Reserves & Production from Current Fields
Inorganic Growth (India and Overseas)
Vertical Integration Along the Oil & Gas Value Chain
Selectively Diversify in Alternative Energy
Diversify into Unconventional Hydrocarbons
Be World Leader in the Field of IOR / EOR
Accelerated Exploration Initiatives
46.1
15
346 364 381415
445
524 559480
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
CAGR 10.4%
Source: BP Statistical Review of World Energy, June 2012.
Domestic Industry Environment
Significant Supply Deficit in the Domestic Market (1)
Total Consumption162.3
75.1%
61.1
24.5%
Crude Oil (mmtoe) Natural Gas (bcm)
Deficit Production
Source: BP Statistical Review of World Energy, June 2012.
(mmtoe)
Steady Growth in Domestic Energy Consumption Driven by India’s Economic Growth Story Energy Sources
(%)Energy Sources – India
Energy Sources – Global
Natural gas10%Coal
53%
Oil29%
Hydro electricity5% Renewables
2%Nuclear energy1%
Natural gas24%
Nuclear energy5%
Renewables2%
Hydro electricity6%
Oil33%
Coal30%
40.4
121.9
(%)
Deficit
Deficit
8
Robust Domestic Fundamentals
(1) Source: MoPNG.(2) Source: BP Statistical Review of World Energy June 2012.(3) Source: DGH, HEDA report 2010.
36
125
Gas OilBCM mmbpd
Among largest net importers of oil globally
Dependence on Imports in past decade
Only 22% of India well explored (as of 31 March 2011)
0.65% of World’s Oil reserves (2)
0.77% of World’s Gas reserves (2)
India - the 4th largest Energy consumer in world (2)
Robust long-term consumption outlook
Strong Domestic Demand
India Remains a Net Importer of
Crude (1)
India – A Fraction of Global
Reserves (2)
India – Significantly
Under-explored (3)
% of Total Oil ConsumptionDomestic Consumption Outlook
2030
2005
India: Exploration Status
FY2011
4.3
2.6
Explored22%
Un-explored
12%
Initiated Explor'n
44%
Poorly Explored
22%Imports81%
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PEL Nomination
1,445
PML Nomination
5,095 JV/PSC (NO)316
NELP (Operator)
18,464NELP (NO)
61,296
Overseas (PI)38,749 CBM
113
Domestic Asset Overview
Blocks Op N/Op Total
NELP 12 15 27Pre-NELPJV - 2 2PEL (Nom) 7 - 7PML 21 - 21CBM - 1 1Total 40 18 58
Source: Company information.NO – Non-operatorPI – Participatory Interests
30%
85%
25%
10%
50%
85%
15%
10%
40%AA-ONN
20%
10%
90%KG-ONN
20%MN-DWN
40%
40%
30%
20%KG-DWN15%KGDWN
AN-DWN
AN-DWN
KG-OSN
Strongpresence inprospectiveEast Coast
+
60%RJ-ONN
75%RJ-ONN
20%AA-ONN
NELP I-VIII
Nomination ML(s) / PEL(s)
JVC Blocks
OIL as Operator
Joint+
Total Area – 125,478Sq km
AA-ONN
AA-ONN-2009/4
AA-ONN
16%AAP-ON
AA-ONN
AA-ONN
MZ-ONN
WB-ONN
KG-DWN
KG-DWN
AN-DWN
AN-DWN
AN-DWN
10%
30%
30%
MN-OSN
ASSAM +AP
30%GK-OSN-2010/1
AA-ONN 40%
ASSAM +AP
Map Not to Scale
Significant India Presence in Regions with Proven Commercial Production or Known Accumulation of Hydrocarbons
CY-OSN-2009/2 50%
AA-ONN-2004/2 100%
Kharsang 40%
AS-CBM2008/IV 40%
AA-ONN 50%
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With Dominant International Footprint
6,725sq.km2,600sq.km
25%(GSPC)
EGYPTBlock 3Block 4
3,500sq.km
20%(OVL)
IRANFarsi Offshore
50 sqkm20%USColoradoJulesburg Basin
1,295sq.km17.5% (Summit)
NIGERIAOPL 205
3,761sq.km45%GABON Shakti
203sq.km180sq.km
3.5% VENEZUELACarabobo 1 NorthCarabobo 1 Central
1,853sq.km364sq.km
12.75% (Medco)
YEMENBlock 82 Block 83
Total Area –38,749sq.km
741sq.km 10%SUDAN Pipeline
OperatorArea (Sq. km)OIL’s Participating Interest (%)
Dominant International Footprint with Balanced Presence in Exploration Acreages & Producing Properties
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1,788sq.km
12.5%(Reliance)
TIMOR LISTEBlock K
7,087sq.km2,710sq.km6,629sq.km
50%50% 25%(Sonatrach)
LIBYA Area 86Area 102/4Area 95/96
Major Projects
MizoramMZ-ONN-2004/1
(NELP-VI)
Gulf of Mannar CY-OSN-2009/2( NELP-VIII) –
Block Shakthi (Onshore Gabon,
West Africa)
Project Carabobo (Onshore, Venezuela)
Area: 3,213 Sq. Km
Pre-drilling in progress, 5 locations released for drilling
1352 LKM of 2D seismic survey completed.
3D survey expected to start soon.
Area: 1,621 Sq. Km
Processing of acquired data completed.
Data sent for Interpretation.
2D API 511 LKM, 3D API 1621 SQKM and three well 2D and 3D acquisition and processing completed.
Area: 3,761.65 Km²
Less explored, geo-politically stable, oil-rich country
2 locations released for drilling
Drilling of third well is in progress.
Area: 549 Sq. Km
Pre-drilling in progress, 4 locations released for drilling.
Drilling of 1st well expected to start by June end.
KG BasinKG-ONN-2004/1 (
NELP-VI)
Two blocks (383 sq. km) in Orinoco heavy oil belt in Venezuela.
Production from first well started in December,2012
Current production from three well is 1800 bopd.
Overseas acquisitions – Focus and Available Resources
Balanced overseas portfolio
Acquire producing/development
/discovered blocks
Both, Oil & Gas – Offshore/Onshore
Individual Target Production level upto
30,000 boe/d
Operatorship in On-shore blocks
Joint operator/Active non-operator in
off-shore blocks
Dedicated Multifunctional Team pursuing M&A opportunities
Utilising Expertise of International M&A Advisers and Technical consultants to identify and pursue opportunities
Adequate Knowledge Base/Technical and Commercial capabilities across Organisation
Strong Financial Resources (Cash/Borrowing Capability)
IOCL as Partner – International network/ complete Value chain
Active and Focused Management Support for M&A
Focus for Overseas acquisitions Available Resources
17
International Acquisition Strategy
International Strategy
Prepared by International consultants and adopted by Board
Seek to acquire exploration acreages / producing properties
Employ capital in the midstream and downstream, limited for
the purpose of creating additional value in the upstream
A Two Period Strategy:
OIL focuses its international efforts to:
– Launch platforms for international core areas
– Acquire companies/enter partnerships as a non-operator
– Build skills in new onshore, offshore and gas plays
– Make organizational change to operate assets
– Sustain its core areas as an Asset manager
– Acquire companies and enter partnerships to grow its
core areas launched in Period I
– Develop partnerships with technology companies to
achieve efficiencies
International Partnerships and Alliances
Implement its acquisition strategy utilizing joint ventures with other leading players in the industryPartnering strategy with potential midstream and downstream investments in order to retain focus on capital employed in E&P
Sust
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Significant Reserve Base and Production Scale
Total Reserves (1) Proved and Developed Reserves – Split by Type
Consistent Reserve Replacement Ratio Over One Steady Production Growth
(mmbbl)
Source: Company InformationNote: (1) Data as of April 1, 2012.
Proved developed reserves of approximately 225 mn barrels and natural gas reserves of 199 mn barrels
2.041.69 1.65 1.42 1.23
FY08 FY09 FY10 FY11 FY12Crude OIL
5.10 5.60 5.90 5.90 6.8410.30 9.40 9.70 8.40 8.41
FY08 FY09 FY10 FY11 FY12Production Accretion Accretion
1P Reserves represent:
10 Years current production of Crude Oil 12 Years current production of Natural Gas 11 Years current production of O+OEG
19
473
8.10
11.0412.72
20.21
FY08 FY09 FY10 FY11
2.62
4.26
3.46
4.47
5.19
FY08 FY09 FY10 FY11 FY12
IOR/EOR Initiatives
Improvement in Production(in mm bbl)
26
Improvement in crude oil reserve(in mm bbl)
OIL has made investments in excess of Rs.2425 crore in IOR/EOR initiatives during last five years
Excellent Oil and Gas Infrastructure
Two 2D and One 3D Seismic
crew
Six Logging Trucks
14 W/over Rigs11 Drillings
Rigs
72 Production Installations
5,000km O&G Pipelines
~150k KL Crude Storage
Source: Company presentation
Infrastructure to Support E&P Activities Production and Storage Facilities
In-house Expertise and Integration across Energy Infrastructure
20
Presence Across Value Chain
In-House Expertise
Seismic APISeismic API(2D and 3D)(2D and 3D)
DrillingDrilling
WirelineWirelineLoggingLogging
FieldFieldDevelopmentDevelopment
ProductionProduction
TransportationTransportation
IOR/EORIOR/EOR Field/Reservoir Field/Reservoir ManagementManagement
OIL is a fully self-serviced E&P company
21
OIL intends to continue an active strategy of vertical integration into downstream sectors such as refining, processing, distribution and retailing, cracking and fractionation of gas
This vertical integration strategy is aimed at to achieve following objectives– Diversification of revenue sources– Improving profitability by extending operations into higher-margin segments of the product value chain
26% equity stake in Numaligarh Refinery Limited (NRL).
The other equity holders in NRL are BPCL and the Government of Assam
MOUs with HPCL, BPCL, ONGC and IOC for laying, building, operating or expanding city gas distribution networks.
Commissioned Wind Energy Project in Rajasthan.
LNG: MOU with Kakinada Seaports
10% equity stake in Brahmaputra cracker and Polymer Limited (Assam)
Process natural gas, naphtha or any other petroleum product
Distribute and market petrochemical products in India and abroad
Refining and Marketing City Gas / LNG projectsGas cracker Project
Downstream Operations
22
13.017.3 15.5
9.4 10.4
17.1
8.6 10
.8
16.7
0.3
0.6
0.9
FY10 FY11 FY12
Corporate Tax Cess Dividend Others
Strong Government LinkageGovernment Owned Enterprise and continued government support evidenced by the recently awarded
“Navratna” status to the company making it more autonomous.
2nd Largest Public Sector E&P company
– Contributed Rs.68 bn to the exchequer in the FY2011–12
Management Independence
– A Navratna company with liberty to take financial decision upto Rs.10 bn, ability to raise Rs.30 bn
– Board power has been enhanced to USD 600mn for acquisition.
Contributions to Exchequer
(Rs. in bn)
Note: (1) Others include Service Tax, Custom Duties. (2) Others include PEL Fees and Electricity Duties.
Central Government State Government
11.5
13.5
13.4
3.5 5.
0 5.0
0.2
0.1
0.1
FY10 FY11 FY12Royalty VAT/Sales Tax Others
(1)
31.3 39.114.2 15.2 18.6
39.1
23
21
32
FY13 FY14
1,795
500
FY13 FY14
XIIth 5year Plan: Rs.1,90,030 mn
3D Seismic Surveys Development DrillingExploratory Drilling
19
38
FY13 FY14
Significant Investment Lined Up
Annual Plan 2013–14: Rs.35,809 mn
Exploration32%
Development21%
Capital Equipment
17%
Overseas17%
Investments1% Survey
12%
Substantial Increase in Exploratory and Development Drilling Planned
24
No. of wellNo. of wellSq km
2,415
2,352
2,633 2,639
FY10 FY11 FY12 FY 13
25.5725.67
27.53
26.21
FY10 FY11 FY12 FY 13
Crude Oil and Natural Gas Production
Crude Oil Production Natural Gas Production
(in mm scm)(in mm bbl)
26
Attractive Cost Structure
(US$/boe)
OIL has the Advantage of Low Finding and Development Costs
OIL's integrated oil and gas infrastructure enables the company to manage costs efficiently by optimizing manpower costs, using in-house services, adapting cost-saving technology, effectively using geological data and expertise
Source: Company Information.
Crude Oil Production Cost Natural Gas Production CostUSD / MMBTUUSD/Barrel
1.14 1.231.27 1.38
6.80 7.24 7.62 8.23
1.22
27
2.823.80 3.80
4.024.22
5.45 5.51 5.19
FY09 FY10 FY11 FY12 FY13
Finding Costs F&D Costs
5.1 5.2 5.32 5.85 5.67
1.35 1.61 1.97 2.112.19
0.250.270.330.430.35
FY09 FY10 FY11 FY12 FY13
Raising Cost Depreciation Depletion
0.89 0.94 0.96 1.02 0.89
0.170.19
0.22 0.270.25
0.080.08 0.09 0.08 0.08
FY09 FY10 FY11 FY12 FY13
Raising Cost Depreciation Depletion
8.11
2.4.11
2.99
Natural Gas PricingNatural Gas Price at USD 4.2/mmbtu for 10000 Cal (inclusive of royalty) was last approved in May,2010.
OIL’s cost of natural Gas production is around USD 3.06/mmbtu.
Cost of exploration and Development in NELP block is much higher.
To make Natural Gas production attractive, there is need for price revision.
Govt. formed Rangarajan committee for reviewing pricing of Natural Gas.
The committee had recommended Natural Gas price as average of :
Net back Price of Indian LNG import at well head of exporting countries
Average price prevailing at major natural gas market.
For every USD one increases in Natural Gas Price:
OIL’s PAT will improve by ~Rs 220 crore.
OIL’s contribution to exchequer will be increased by ~Rs 254 crore – ~Rs 78 crore to State Govt and ~Rs 176 crore to Central Govt
2009–10 2010–11 2011-12 2012-13
ONGC 11,554 24893 44,465 49,421
OIL 1,549 3293 7,352 7892
GAIL 1,326 2111 3,183 2687
Total 14,430 30297 55,000 60,000
2009–10 2010–11 2011-12 2012-13
ONGC 80% 82% 81% 81%
OIL 11% 11% 13% 14%
GAIL 9% 7% 6% 5%
Total 100% 100% 100% 100%
Sharing of Subsidy by Upstream Companies
Rs. in crore % Sharing% SharingRs. In cr.
Realised Price (USD/Barrel)
FY08 FY09 FY10 FY11 FY12
Gross Realized Price Realized Price after Subsidy/Discount Net Realized Price
28
68.5
86.1
114.7 109.6119.7
111.4
56.2 58.5 59.8 53.638.9
55.439.8 41.4 42.5
33.124.9
34.7
FY 10 FY 11 FY 12 FY13 Q4 FY12 Q4 FY13
72,414 79,056 83,20698,632 99,476
FY09 FY10 FY11 FY12 FY 13
35,68043,800 48,050
61,110 61,234
FY09 FY10 FY11 FY12 FY13
Growing Revenue and Profit
Source: Company financials
30% 31% 31% 33%
50%
FY09 FY10 FY11 FY12 FY13
CAGR 12.5%
CAGR 8.3% CAGR 14.5%
EBITDA
Dividend Payout Ratio
Revenue
Net Profit
(Rs.mn)(Rs.mn)
(As a % of Profit)(Rs.mn)
30
21,61726,105 28,879
34,469 35,893
FY09 FY10 FY11 FY12 FY 13
Leverage Remains Low
Source: Company financials
Book Value Per Share
Total Equity
Earnings Per Share
Total Debt
(in Rs.)(in Rs.)
(Rs.mn)(Rs.mn)
31
101 114 120143
60
FY09 FY10 FY11 FY12 FY 13
436572
649738
320
FY09 FY10 FY11 FY12 FY13
FY13 EPS is based on post bonus issue
share capital
93,310
137,637
156,019177,213
FY09 FY10 FY11 FY13
192,115
FY12
565375
10,143
101
FY09 FY10 FY11 FY13FY12
10,578
FY13 Book Value is based on post bonus issue share capital
Guidance: FY’14
2013-14 (Target)
Crude oil production 3.95 MMT
Natural gas production 2,740 mmscm
Increase in Exploratory and Development Drilling Meterage Increase in Work Overs Enhanced Water Injection
Endeavour to Enhance LPG production through NGL Recycling
Endeavour to Reduce Gas Flaring by Inducting LNG Technology
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Awards and Accolades
OIL was awarded the prestigious BUSINESS LEADERSHIP AWARD in OIL & GAS SECTOR by NDTV Profit on 7th January 2012.
E&P Company of the Year Award at the Petrofed Oil & Gas Industry awards for the year 2010-11
First Prize for Oil Industry Safety Award in Oil & Gas Assets (Onshore) Category
Motivational Leadership Award for 2010–11 at the World HRD Congress
Best Environment Management and Sustainable Development Award by Indian Chamber of Commerce
Gold Award in Petroleum Sector for Outstanding Achievement in Safety Management by the Greentech Foundation
Greentech HR Gold Award 2012 for training excellence
Performance Excellence Award 2011 by Indian Institute of Industrial Engineering
Golden Peacock Award for CSR for 2012
33