waxy crude transportation

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© 2013 Cairn India Limited 'Waxy Crude Transportation' April 2013 1

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This presentation by Sh. Jagdeep highlights the problems & solutions to Waxy crude transportation

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Page 1: WAXY CRUDE TRANSPORTATION

© 2013 Cairn India Limited

'Waxy Crude Transportation'

April 2013

1

Page 2: WAXY CRUDE TRANSPORTATION

2 Corporate Presentation

Disclaimer

This material contains forward-looking statements regarding Cairn India and its affiliates, our corporate plans, future financial condition, 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, 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 of technology, acts of competitors and other changes to business conditions. Cairn India undertakes 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. Unless otherwise stated the reserves and resource numbers within this document represent the views of Cairn India and do not represent the views of any other party, including the Government of India, the Directorate General of Hydrocarbons or any of Cairn India’s joint venture partner.

Page 3: WAXY CRUDE TRANSPORTATION

3 Corporate Presentation

Overview

• Amongst top 20 global independent E&P company; Market

Cap >US$10bn

• Q3 FY 2012-13 average daily gross operated production of

over 200,000 boepd; Currently operating ~25% of India’s

domestic oil production

• Proven and Probable resource base over 1bn boe

• Part of NIFTY, DJIT30 & MSCI index*; Free float ~31%**

• Interim dividend of INR 5 per share paid for FY 2012-13 in

Nov12

“Fastest growing energy company in the world, 2012” - Platts Top 250

“Runners up award to Raageshwari Oil Mine by National

Safety Awards (Mines) by GoI”

“16 awards in 26th Mines Safety week 2012 under aegis of DGMS, Ajmer”

*DJIT30: Dow Jones India Titans 30 Index , MSCI: Morgan Stanley Composite Index

**Float excludes Cairn Energy PLC holding

Vedanta Group - Twin Star Mauritius Holdings Ltd 38.7%, Sesa Goa Ltd 18.4% , Sesa Resources Ltd 1.7%,

Shareholding as on 06 March, 2013

MF

2.8%

Retail

2.4%

Other

58.8%

Vedanta Group

10.3%

Cairn PLC

14.8% FII

7.9%

FI 3.1%

Page 4: WAXY CRUDE TRANSPORTATION

4 Corporate Presentation

Consistent Value Creation across Upstream E&P Chain

• Strong Balance sheet with net cash of over US$ 2.5 bn

• Increasing production profile; Enhanced focus on exploration

• Strong pipeline of exploration, development and production assets

• Unique manpower skill set across the E&P value chain

Early

Beginnings

Execution

Success

Exploration

Success

Market Cap (US$)

0.5bn* 6.0bn 12bn

*Market Cap of Cairn Energy PLC end 1999

Well poised for

further Growth

Ravva Re-development

Rajasthan & CB/OS-2 discoveries

World class Rajasthan

development

International

Foray

Sri Lanka deepwater discoveries

S Africa entry

1999 2007 2012

Cairn India

IPO (2007) Vedanta

Acquisition

Page 5: WAXY CRUDE TRANSPORTATION

5 Corporate Presentation

Vision and Strategy

Leverage our Strengths ...

• Strong E& P Player

o Proven track record

of exploration and

development success

o Significant production

and cash flow

generation

• Global Talent

o Diverse talent of

>1,400 people

• Low Cost Operator

o Innovative application

of technology

... through a focused strategy ...

• Realize full potential of

world-class Rajasthan

asset through aggressive

exploration & fast track

development

• Build material positions in

2-3 focused core areas

internationally

• Leverage strong presence

in India to build a larger

portfolio of Indian assets

... to achieve our Vision

• Best-in-class E&P

company

• Balanced Portfolio of

assets

• Partner of Choice for

Stakeholders

• Superior business

performance

Page 6: WAXY CRUDE TRANSPORTATION

6 Corporate Presentation

World Class Asset Portfolio

• Q3 FY 2012-13: Average Daily Gross operated production at 205,014 boe; Cairn (WI - Working Interest) production at 128,058 boe

• FY 2011-12 Reserve and Resource Replacement Ratio of 175%

Offshore

KG-DWN-98/2^ WI 10%

PKGM-1 (Ravva)# WI 22.5%

KG-OSN-2009/3* WI 100%

PR-OSN-2004/1* WI 35%

CB/OS-2# WI 40%

MB-DWN-2009/1* WI 100%

International

SL 2007-01-001 WI 100%

South Africa -

Block 1**

WI 60%

# Producing Blocks ; *Under Force Majeure – GoI granted conditional approval, discussions in progress for unrestricted access

** Farm in agreement signed on 16 August, 2012; Assignment of 60% interest and ownership granted by SA regulatory authorities, other approval on schedule

^ Cairn India is in final stages of executing the farm-out to its JV partner, ONGC; GoI approvals have been obtained

Onshore

RJ-ON-90/1)# WI 70%

KG-ONN-2003/1 WI 49%

SRI LANKA

PR-OSN-2004/1

KG-DWN-98/2

KG-ONN-2003/1

KG-OSN-2009/3

INDIA

MB-DWN-2009/1

CB/OS-2

RJ-ON-90/1

RAVVA

SL-2007-01-001

SOUTH

AFRICA BLOCK 1

Operating Blocks Non-Operating Blocks

Page 7: WAXY CRUDE TRANSPORTATION

7 Corporate Presentation

JOURNEY OF GROWTH

Page 8: WAXY CRUDE TRANSPORTATION

8 Corporate Presentation

MANGALA DEVELOPMENT

PIPELINE PROJECT

Page 9: WAXY CRUDE TRANSPORTATION

9 Corporate Presentation

PIPE LINE STORY – A FILM

Page 10: WAXY CRUDE TRANSPORTATION

10 Corporate Presentation

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11 Corporate Presentation

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12 Corporate Presentation

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Page 13: WAXY CRUDE TRANSPORTATION

13 Corporate Presentation

SEHMS = Skin Effect Heat Management

System

Why SEHMS?

Established technology

Electrical heating system based on the

principles of skin and proximity effects.

Ability to maintain the pipe line temperatures

above pour point and WDT.

Ability to restart from complete cool down

conditions.

SEHMS has been operating reliably as

designed since June 10

Flow Assurance in Midstream Facilities: SEHMS

Total Pipe Diameter

790 mm (32”)

Poly Urethane

Foam Insulation

Heat Tube

High Density

Polyethylene Wrap

Page 14: WAXY CRUDE TRANSPORTATION

14 Corporate Presentation

Skin Effect Heat Management System (SEHMS)

Power Source and Temperature Monitoring

• Power requirement – 40 W / m

• Voltage – Approx. 4000 V

• Installation as per Indian Electricity Rules

• No Current Flow on Outside Skin of Tube

• System Earthed & Grounded with Earth fault automatic

trip

• Remote Emergency Shut-down capability

Heat Tube

Termination

RTD’s

• Current Flows Through Center

Conductor

• Current Returns Through Inside Skin of

Outer Tube

IN Crude Oil Pipeline

Gas Pipeline

OUT

IN OUT

SKIN EFFECT HEAT

MANAGEMENT

SYSTEM GAS ENGINE

GENERATOR – 1 MW

Page 15: WAXY CRUDE TRANSPORTATION

15 Corporate Presentation

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