Oil, Deserts and Ice: A Focus on Challenges and Potential Rewards in India and Greenland, Dr Mike Watts Scottish Oil Club Wednesday 20th May 2009 Discovering hidden value through entrepreneurial exploration
Cairn Group Overview India Building a substantial business: Greenland Papua New Guinea Rajasthan on plateau will generate 20% of Indias domestic oil production Greenland Early entrant in an opening world class frontier…
Cairn - Early Entry INDIA Exploration wells drilled by the Seven Sisters oil majors 1880 1991 SE Asia India 8,000 wells 12 wells Wood MacKenzie IRAQ Qualified for Second Bid Round GREENLAND Exploration wells drilled by…
India Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial exploration
Cairn - Business in South Asia NEPAL Rajasthan BANGLADESH INDIA Lakshmi Sangu & Gauri Ravva Development & Production SRI LANKA Cairn / Capricorn Blocks 5 09S0039EE00 Discovering hidden value through…
Cairn - Business in South Asia Lakshmi & Gauri, Gujarat, India Sangu, Bangladesh Ravva, KG Basin, India 6 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Rajasthan 7 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Desert Drilling 8 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Rajasthan History Rajasthan PSC: Signed 1995 by Shell 100% Cairn acquired 10% interest in 1997 through the Bangladesh transaction Guda discovery 1998 Cairn increased interest to 50% 1999 Cairn 100% 2002 2002 to 2005 Cairn…
Impact of drill till you drop Original Exploration Area Intermediate Appraisal Area Final Development Area N-C-H N-I-1 N-H-1 N-C-F N-C-L N-C-G N-C-J N-V-I N-C-I N-D-1 N-C-E N-C-1 Mangala-4 N-C-3 N-C-D N-C-2 Mangala-2…
Mangala Mangala Discovery Well January 2004 10km 150M Mangala Processing Terminal (MPT) Mangala field compared to Edinburgh MPT area equivalent to 200 football pitches or 27 Eden Gardens cricket grounds Oil…
Rajasthan - Growing Reserves and Resource Base Total Basin Reserves and Resources The 3 MBA Fields 22 Other fields (Mangala, Bhagyam and Aishwariya) (inc Barmer Hill) Fatehgarh reservoir Ongoing work to monetise Saraswati, 2…
Rajasthan - Growing Resource Base MBA Production profile with secondary recovery by water flood Schematic Initial targeted EOR 175,000 plateau potential to MBA Enhanced Oil Recovery (EOR) bopd production extend and potential…
Cairn IPO and Current Corporate Structure 5% PLC Placing raised 161 million (2009) Cairn Energy PLC Listed on London Stock Exchange (1988) Other Shareholders 65% 90% DYAS 35% 10% Cairn India (CIL) Capricorn Listed on…
Rajasthan Development 15 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Development Overview MPT Well pads Bhagyam Mangala 350 wells 40 well pads Aishwariya Total area under long term Mangala contract: 3,111 km2 Processing Terminal Water System MPT four Extraction of saline water processing and…
Rajasthan - MBA Production Capacity and Profile Mangala Processing Terminal (MPT) four processing trains; with production capacity 205,000 bopd, targets: Train 1 (30,000 bopd capacity) mechanically complete, ready to commission and…
Rajasthan - Upstream Construction Upstream phased development making good progress 6,000 workforce Train 1 (30,000 bopd capacity) mechanically complete, ready to commission and start production Development of key elements to…
Rajasthan Mangala Train 1 19 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Rajasthan - Upstream Construction 20 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Rajasthan - Upstream Construction 21 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Rajasthan - Pipeline Construction 23 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Rajasthan - Crude Sales Highest realised price maximises Government of India (GoI) take and royalty for Government of Rajasthan GoI agreed to shifting of Delivery Point GoI agreed to nominate multiple buyers Finalise / Agreement…
Iraq 25 09S0039EE00 Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial exploration
Iraq Licensing Rounds TURKEY First Licensing Round Kirkuk Accelerated Plan Najmah Second Licensing Round Bai Hassan Gallabiyat SYRIA Qayarah Qamar IRAN Akkas Khasm Al Ahmar Naudoman Mansouriya Badrah Abu Gharab IRAQ…
Shell Southern Gas At least 30 desert flare sites could give 4 Giga watts of power Shell submitted gas marketing plan 2004 Awarded southern gas contract September 2008 Support domestic market, potential for export Funded…
Terrain 28 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Existing Fields 29 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Iraq Licensing Round Qualifiers Qualifiers for the First and subsequent rounds Qualifiers for the Second and subsequent Rounds: BHP Billiton Marathon OJSC Rosneft BP Mitsubishi OAO Tatneft Chevron Nexen JSC Kaz Munai Gas Expl.…
Iraq Second Bid Round The licensing round will be organised and executed by the Petroleum Contracts and Licensing Directorate (PCLD) of Iraq's Ministry of Oil with the support of independent external advisors and experts Abdul…
Iraq Second Bid Round Anticipated Forward Timetable Q3 2009 Data Packages for review Q4 2009 Bid submissions 2010 Presentation of offers, evaluation of bids and awards 32 09S0039EE00 Discovering hidden value through…
Iraq Second Licensing Round Second Licensing Round TURKEY Najmah IRAN SYRIA Qayarah Gallabiyat Qamar Nau doman Khasm Al Ahmar Badrah IRAQ Marjan East Baghdad Kifl Halfaya West Kifl Gharraf Majnoon JORDAN West…
Greenland Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial exploration
Greenland 35 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Greenland 36 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Greenland Political Risk GREENLAND Technical Commercial Risk Risk 37 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Greenland Key emerging Arctic province World class resource potential Favourable access to Atlantic markets Vastly underexplored 6 wells in west Greenland in an area three times the size of the North Sea Indications of working…
Greenland Potential Greenland is a world top 10 country for yet to find hydrocarbons USGS 1996 Saudi Arabia Russia Iran Brazil Iraq Greenland Nigeria Kazakhstan Venezuela Mexico Norway USGS (July 2008) risked mean…
Drilling History GRO-3 1996 Wellname 6 Offshore wells Year Gronartic 1 Onshore well Qaarsut Operator SIGGUK Land 64 Days Rig Type Only two incidents of rig moving off Days on location EQQUA Exxon, Chevron, Dong, GREENLAND…
Block Signing Ceremonies Qaqortoq early January and Nuuk late November 2008 Qaqortoq, January 2008 Nuuk, November 2008 42 09S0039EE00 Discovering hidden value through entrepreneurial exploration
West Geological Basins Central Graben system at same scale Cairn acreage offers: Baffin Basin and NORWAY sub-basins Exposure to 3 separate sedimentary basins GREENLAND Potential for material structures, leads and Qaarsut…
Community Meetings Cairn in Qaqortoq, Jan 2008 Industry Community Visit, Mar 2008 44 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Disko West 45 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Regional Slicks and Seeps Extensive satellite slicks reported GREENLAND Lancaster Sound Oil shows and gas at outcrop and in shallow boreholes onshore Nuussuaq, Disko, Svartenhuk Halvo. Satellite slick Scott Inlet…
Baffin Basin DISKO AREA SLICKS AND SEEPS Disko West Nuussuaq peninsula Surface satellite slicks 1 Faults to sea bed Cairn 3 4 Disko Exxon, Island Chevron, Cairn Dong, Nunaoil 5 6 Exxon, Husky, Husky, Nunaoil…
Fieldwork 48 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Fieldwork - Cretaceous and Tertiary Sediments 49 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Fieldwork - Pujoortoq Burnt Cliff Landslides in 1933 and 1958 Cliff section of 700m thick deepwater black marine Cretaceous shales with high organic carbon content Slope failure introduces oxygen which has an exothermic reaction…
Fieldwork - Oil Seeps and Staining in Volcanics Marrat-1 well drilled for mineral exploration in 1994 confirmed a 90m oil impregnated volcanic section 51 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Seismic Acquisition 2008 2D Seismic acquired - 10,191 km 2008 Sigguk Seismic G Tertiary Fan Complex Tilted Fault Block 50 Km 52 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Baffin Basin Disko West Structure Map Disko blocks are in a 1 favoured geological Extensive setting relative to: satellite slicks Potential source rock kitchen area Potential migration paths Areas of prime interest showing…
Baffin Basin Disko West Total Area: 23,024 km2 Water Depths 260m to 1,000m Planned 2009 Survey along potential 7,130 km 2D Seismic completed 2008 pipeline route Qaarsut GRO-3 GREENLAND Cairn (Op) 87.5% Exxon, Evaluation of…
West Greenland 55 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Lady Franklin and Atammik Blocks CSEM Survey Ikermiut-1 Sisimiut Kangerlussuaq 2008 work programme Kangamiut-1 1,600 km Controlled Nikuk-2 Nikuk-1 Source Electromagnetic Atammik Survey (CSEM) Capricorn 40% Nuuk Encana (Op)…
West Basin Lady Franklin and Atammik Evaluation of Volcanics 2008 electromagnetic survey (CSEM) ongoing Several structural leads and prospects associated with resistive responses Operator: Encana 57 09S0039EE00…
South Greenland 58 09S0039EE00 Discovering hidden value through entrepreneurial exploration
South Basin Dispersed bitumen with marine source signature 3,062 km 2D seismic completed 2008 and gas inclusions encountered in basement rocks* Narsarsuaq 3,000 km infill 2D seismic 2009 Conceptual gas development study Q2 2009…
South Basin Plate Reconstruction Hekja Kangamiut Cretaceous plate tectonic Nukik reconstruction with the GREENLAND Labrador Sea closed Snorri 1975 EastCan Qulleq Labrador Hopedale 1978 Five significant gas + Chevron…
Greenland - Forward Programme 61 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Forward Work Programme Government Target Licensing Rounds exploration 2010 & 2012 Ice management drilling studies 2009 & 2010 programme GREENLAND 2011 Disko West Ilulissat East Greenland Site surveys and potential pipeline route…
Iceberg Management 63 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Iceberg Management Detection and Measurement Marine Radar Satellite Radar HF Radar Aerial & Vessel Reconnaissance Threat Assessment Physical Intervention Observation Zone Towing, Water Cannon Prevention Zone 3 Ice (iceberg…
Conceptual Development 65 09S0039EE00 Discovering hidden value through entrepreneurial exploration
West and Southern Greenland Potential Development Scenarios Oil FPSO / FPU Oil FPSO / FPU Nuuk Oil FPSO / FPU Quebec & Rabaska Ontario market Proposed LNG 1.3 Tcf / year Terminal Gas LNG options to St Johns US or…
Concluding Remarks India Building a substantial business: Rajasthan on plateau will generate 20% of Indias domestic oil production Iraq Positioned to participate in a major bid round Greenland Early entrant in an opening world…
Icebergs Come in all Shapes and Sizes 68 09S0039EE00 Discovering hidden value through entrepreneurial exploration
Loading...
