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CORPORATE PRESENTATION – Cairn Energy Plc

Cairn Energy Plc · May 1, 2007 · 62 slides

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Slides

  1. CORPORATE PRESENTATION – Cairn Energy Plc – slide 1
    Corporate Presentation - May 2007 CAIRN INDIA CORPORATE PRESENTATION May 2007
  2. CORPORATE PRESENTATION – Cairn Energy Plc – slide 2
    Corporate Presentation - May 2007 3 PRESENTATION AND OVERVIEW Introduction - Rahul Dhir, Chief Executive Officer Overview of Rajasthan basin and Enhanced Oil Recovery (EOR) Ananthakrishnan, General Manager Rajasthan Reservoir…
  3. CORPORATE PRESENTATION – Cairn Energy Plc – slide 3
    Corporate Presentation - May 2007 4 FIRST QUARTER OPERATIONAL HIGHLIGHTS Rajasthan midstream solution progressing well with ONGC - discussions on going with Government of India (GoI) First oil production from Mangala on schedule…
  4. CORPORATE PRESENTATION – Cairn Energy Plc – slide 4
    Corporate Presentation - May 2007 5 FIRST QUARTER FINANCIAL HIGHLIGHTS Gross operated production 74,830 barrels of oil equivalent per day (boepd) (working interest 19,811 boepd) Consolidated revenue - Rs. 2,726 million (US 62…
  5. CORPORATE PRESENTATION – Cairn Energy Plc – slide 5
    Corporate Presentation - May 2007 6 CAIRN INDIA OVERVIEW 15 Blocks in India including Gross 2 recently awarded NELP production target VI blocks 150,000 bopd 2 Producing: Ravva and CB/OS-2 RJ-ON-90/1 Operated Gross Field…
  6. CORPORATE PRESENTATION – Cairn Energy Plc – slide 6
    Corporate Presentation - May 2007 7 CAIRN INDIA STRONG PRODUCTION GROWTH Net (WI) Projected Production 115,000 Maximise and sustain production from current operational assets Execute Main Rajasthan developments boepd…
  7. CORPORATE PRESENTATION – Cairn Energy Plc – slide 7
    Corporate Presentation - May 2007 8 RAJASTHAN PROJECT SCHEDULE 2005 2006 2007 2008 2009 Pre-Construction Approvals Central Ground Water Authority (CGWA) Environmental Clearance (EC) Field Development Plan (FDP) Defence…
  8. CORPORATE PRESENTATION – Cairn Energy Plc – slide 8
    Corporate Presentation - May 2007 9 OVERVIEW OF RAJASTHAN OVERVIEW OF RAJASTHAN BASIN AND EOR Ananthakrishnan General Manager Rajasthan Reservoir Development 07S0682EG63
  9. CORPORATE PRESENTATION – Cairn Energy Plc – slide 9
    Corporate Presentation - May 2007 10 PRINCIPLES: PETROLEUM RESOURCES Petroleum Resources are the estimated quantities of Hydrocarbons on or within the earths crust; both in known and yet to be discovered accumulations Estimates…
  10. CORPORATE PRESENTATION – Cairn Energy Plc – slide 10
    Corporate Presentation - May 2007 11 2007 RESOURCES CLASSIFICATION SYSTEM Production Project Maturity Sub-classes RESERVES are those quantities of petroleum anticipated to be RESERVES On Production commercially recoverable by…
  11. CORPORATE PRESENTATION – Cairn Energy Plc – slide 11
    Corporate Presentation - May 2007 12 2007 RESOURCES CLASSIFICATION SYSTEM Probabilistic Guidelines for Reserve Classification SPE/WPC 90% Proved Probability 1-P 50% Probable 2-P Possible 10% 3-P 07S0682EG63
  12. CORPORATE PRESENTATION – Cairn Energy Plc – slide 12
    Corporate Presentation - May 2007 13 REPORTING: OBLIGATIONS Directorate General of Hydrocarbons (DGH, Government of India (GoI)) Requires reporting of Proved, Probable and Possible reserves CIL to report annually Reserves…
  13. CORPORATE PRESENTATION – Cairn Energy Plc – slide 13
    Corporate Presentation - May 2007 14 DISCOVERING A WORLD CLASS BASIN CAMBAY BASIN BARMER BASIN Estimated ultimate Rajasthan Current oil in place recovery RJ-ONN-2003/1 3.6 billion (bn) boe 3.6 billion (bn) boe RJ-ON-90/1…
  14. CORPORATE PRESENTATION – Cairn Energy Plc – slide 14
    Corporate Presentation - May 2007 15 CAIRN INDIA WORLD CLASS RESOURCE BASE Exploration Potential 15 blocks Gross prospective unrisked potential 1.5 bnboe (Net 360 mmboe) 4.5 1.4 bn boe 3.1 2.2 0.9 Ravva, Cambay…
  15. CORPORATE PRESENTATION – Cairn Energy Plc – slide 15
  16. CORPORATE PRESENTATION – Cairn Energy Plc – slide 16
    Corporate Presentation - May 2007 17 OVERVIEW - RAJASTHAN BLOCK World class oil discoveries in Rajasthan - RAJASTHAN BLOCK RJ-ON-90/1 First Oil 2009 MAY 2007 140 wells drilled, 22 discoveries to date 4 fields currently…
  17. CORPORATE PRESENTATION – Cairn Energy Plc – slide 17
    Corporate Presentation - May 2007 18 MANGALA - OIL IN PLACE GROWTH 1700 1600 1500 P10= +20% Stock tank oil initially in place (mmbbls) 1400 1300 P10=1336 1200 P50=1202 P10=1166 Pre STM 3D Seismic, PHIE, SWT, DS…
  18. CORPORATE PRESENTATION – Cairn Energy Plc – slide 18
    Corporate Presentation - May 2007 19 OVERVIEW - MANGALA DEVELOPMENT Static model update for 2P STOIIP completed Petrophysics and Seismic interpretations Mangala Oil Field Water pipeline updated Modeling of 1P and 3P cases in…
  19. CORPORATE PRESENTATION – Cairn Energy Plc – slide 19
    Corporate Presentation - May 2007 20 OVERVIEW - BHAGYAM DEVELOPMENT Field Development Plan submitted Plateau Oil rate 40,000 bopd 81 wells: 51 prod. and 31 injectors Tie-back to Mangala CPF Recovery Factor 31% STOIIP and…
  20. CORPORATE PRESENTATION – Cairn Energy Plc – slide 20
    Corporate Presentation - May 2007 21 RAJASTHAN EOR OPPORTUNITY Current EOR Gross 2P Contingent Resources for Mangala, Bhagyam and Aishwariya assuming successful EOR is 196MMbbls Cummulative Oil Produced Cum Oil Oil/Fluid…
  21. CORPORATE PRESENTATION – Cairn Energy Plc – slide 21
    Corporate Presentation - May 2007 22 EOR UPDATE Chemical Flood Laboratory Experiments completed at Surtek Polymer Flood: 15% of STOIIP Alkali-Surfactant-Polymer (ASP) Flood: 30% of STOIIP In-house Polymer Simulation studies…
  22. CORPORATE PRESENTATION – Cairn Energy Plc – slide 22
    Corporate Presentation - May 2007 23 POLYMER LABORATORY EXPERIMENT 100 100 Oil Cut (Volume%) incremental 10 10 oil recovery 1 1 Core Flood experiment carried 0 0 10 20 30 40 50 60 70 80 90 100 0 out in Reservoir 100…
  23. CORPORATE PRESENTATION – Cairn Energy Plc – slide 23
    Corporate Presentation - May 2007 24 ASP LABORATORY EXPERIMENT 100 100 incremental oil recovery Oil Cut (Volume%) 10 10 1 1 Core Flood experiment carried 0 0 10 20 30 40 50 60 70 80 90 100 0 out in Reservoir 100…
  24. CORPORATE PRESENTATION – Cairn Energy Plc – slide 24
    Corporate Presentation - May 2007 25 EOR FIELD ANALOGUES - POLYMER SPE 57288 Daqing, China incremental recovery over water flood is more than 12% STOIIP SPE 89175 Distinguished Author Series Significant progress has been made…
  25. CORPORATE PRESENTATION – Cairn Energy Plc – slide 25
    Corporate Presentation - May 2007 26 EOR FIELD ANALOGUES - ASP SPE 57288 Daqing, China Numerical simulation and pilot results both showed that more than 20% STOIIP oil recovery were obtained SPE 89175 Distinguished Author…
  26. CORPORATE PRESENTATION – Cairn Energy Plc – slide 26
    Corporate Presentation - May 2007 27 VIEW OF HARRY CHANG (SPE distinguished author on EOR) PAPER 89175 Mangala presents an unique EOR opportunity Reservoir/Fluid properties and timing very favorable Polymer Flooding Mature and…
  27. CORPORATE PRESENTATION – Cairn Energy Plc – slide 27
    Corporate Presentation - May 2007 28 POSSIBLE EOR IMPLEMENTATION STRATEGY Indicative Schedule 2006-07 2007 2008 2009 2010 2011 2012 2013 2014 Jan-Mar A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J…
  28. CORPORATE PRESENTATION – Cairn Energy Plc – slide 28
    Corporate Presentation - May 2007 29 SUMMARY Mangala reservoir studies continuing, On target for 1st Oil in 2009, Mangala High Density 3D seismic acquisition in progress Reservoir evaluation of other discoveries in progress…
  29. CORPORATE PRESENTATION – Cairn Energy Plc – slide 29
    Corporate Presentation - May 2007 30 OVERVIEW OF CRUDE OIL/PSC OVERVIEW OF CRUDE OIL/ PRODUCTION SHARING CONTRACTS (PSCs) Elango Director Strategy 07S0682EG63
  30. CORPORATE PRESENTATION – Cairn Energy Plc – slide 30
    Corporate Presentation - May 2007 31 RISK MITIGATION - HIGHLIGHTS Oil Sales Alignment on Sellers Price Discussions with MRPL to establish off-take levels Working with ONGC & GoI to have other PSUs nominated Proposed…
  31. CORPORATE PRESENTATION – Cairn Energy Plc – slide 31
    Corporate Presentation - May 2007 32 RAJASTHAN - RJ-ON-90/1: PSC Crude Sale To GoI nominee (s) until India attains self sufficiency At the field for sales to GoI nominee Delivery Point Can be shifted with approval of GoI…
  32. CORPORATE PRESENTATION – Cairn Energy Plc – slide 32
    Corporate Presentation - May 2007 33 RJ-ON-90/1: PROGRESS ON EVACUATION Issues Current Status Next Steps MRPL is the GoI nominee GoI to appoint Nominees to Off-take Discussions with MRPL to lift remaining Crude establish…
  33. CORPORATE PRESENTATION – Cairn Energy Plc – slide 33
    Corporate Presentation - May 2007 34 RJ-ON-90/1: PROPOSED PIPELINE Bhatinda Panipat Proposed Pipeline gives access to 75% of Indias Refining Capacity DELHI Current Capacity in Refineries Location Capacity 2009-10 Mathura…
  34. CORPORATE PRESENTATION – Cairn Energy Plc – slide 34
    Corporate Presentation - May 2007 35 RJ-ON-90/1: CRUDE QUALITY Rajasthan crude is of low sulphur, waxy and has high pour point quality Illustrative Properties Mangala Brent Bench Mark* API 27.41 38.0 26.6 Sulphur 0.14 0.44…
  35. CORPORATE PRESENTATION – Cairn Energy Plc – slide 35
    Corporate Presentation - May 2007 36 RJ-ON-90/1: CRUDE PRICING FOB price for crude as defined in PSC Based on appropriate basket of crude oils which are quoted in Platts Crude Oil Market Wire Basket to have mixture and weight…
  36. CORPORATE PRESENTATION – Cairn Energy Plc – slide 36
    Corporate Presentation - May 2007 37 PSC STRUCTURE: SHARING OF CASH FLOWS AllCairn All CairnAcreage Acreage Sales Revenue has100% has 100%cost cost Gross Revenue recoveryterms recovery terms 0 - 12.5% of sales revenue…
  37. CORPORATE PRESENTATION – Cairn Energy Plc – slide 37
    Corporate Presentation - May 2007 38 PSC TERMS: COMPARISON Ravva CB-OS/2 RJ-ON-90/1 Royalty Rs. 481 per 0% to Cairn 0% to Cairn tonne; fixed Paid by Licencee Cess Rs. 900 per 0% to Cairn 0%* tonne, plus 2% Paid by Licencees…
  38. CORPORATE PRESENTATION – Cairn Energy Plc – slide 38
    Corporate Presentation - May 2007 39 ATTRACTIVE FISCAL AND OPERATING TERMS Low to moderate royalty rates between 0% to 12.5% 100% cost recovery -costs offset against first available income Profit Oil split based on rate of…
  39. CORPORATE PRESENTATION – Cairn Energy Plc – slide 39
    Corporate Presentation - May 2007 40 OVERVIEW OF EXPLORATION OVERVIEW OF EXPLORATION David Ginger Director Exploration 07S0682EG63
  40. CORPORATE PRESENTATION – Cairn Energy Plc – slide 40
    Corporate Presentation - May 2007 41 EXPLORATION INVESTMENT HIGHLIGHTS Cairn US 1.1 billion (gross) 0.74 billion (net) in exploration since 1994 World class resource base from successful exploration: 1994: 101 mmboe gross 2P…
  41. CORPORATE PRESENTATION – Cairn Energy Plc – slide 41
    Corporate Presentation - May 2007 42 CAIRN INDIA: OIL and GAS FOUND EVERY YEAR SINCE 1998 1998 Ravva satellite gas discoveries - RD5, RG & RH 1999 Rajasthan - Guda 2000 Cambay discoveries - Lakshmi, Gauri, Ambe 2001 KG Deepwater…
  42. CORPORATE PRESENTATION – Cairn Energy Plc – slide 42
    Corporate Presentation - May 2007 43 EXPLORATION: COMMITMENT TO FUTURE GROWTH Current Portfolio: D & M estimated net prospective recoverable resources from mapped prospects = 360 MMBOE, unrisked (August 2006) Commitment…
  43. CORPORATE PRESENTATION – Cairn Energy Plc – slide 43
    Corporate Presentation - May 2007 44 NEW EXPLORATION ORGANISATION EXPERIENCE IN DEPTH Exploration organisation now established in Gurgaon 60 employees including 39 management and technical personnel. Senior technical personnel…
  44. CORPORATE PRESENTATION – Cairn Energy Plc – slide 44
    Corporate Presentation - May 2007 45 SUMMARY OF RECENT & FORTHCOMING NELP and NON-OPERATED EXPLORATION ACTIVITY 2007 Exploration Activity GV-ONN-97/1 13 - 15 wells, RJ-ON-90/1 VN-ONN-2003/1 Drilled Tisua-1 & 4 - 5 seismic…
  45. CORPORATE PRESENTATION – Cairn Energy Plc – slide 45
    Corporate Presentation - May 2007 46 RJ-ON-90/1: PROSPECTS and LEADS/LEAD AREAS Northern Appraisal Area, BHAGYAM Area D. Extension MANGALA approved for 6 months AISHWARIYA from May 2007 Currently drilling Saraswati…
  46. CORPORATE PRESENTATION – Cairn Energy Plc – slide 46
    Corporate Presentation - May 2007 47 COMPARISON OF BARMER and CAMBAY BASINS Barmer Rajasthan 140 wells RJ-ONN-2003/1 22 discoveries RJ-ON-90/1 RJ-ON-90/1 Cairn 100% Barmer exploration interest Basin Cairn 70% production…
  47. CORPORATE PRESENTATION – Cairn Energy Plc – slide 47
    Corporate Presentation - May 2007 48 RAVVA: ADDITIONAL EXPLORATION POTENTIAL 5 KM SHALLOW OIL & GAS RAVVA EXPLORATION LM 403 Prospect MM301 Prospect 07S0682EG63
  48. CORPORATE PRESENTATION – Cairn Energy Plc – slide 48
    Corporate Presentation - May 2007 49 BIHAR GV-ONN-2002/1: SEISMIC PROGRAMME Seismic Programme Aeromagnetic Survey Plane 500 km commitment Aeromagnetic survey completed 500 km 2D seismic programme commenced acquisition mid…
  49. CORPORATE PRESENTATION – Cairn Energy Plc – slide 49
    Corporate Presentation - May 2007 50 KRISHNA GODAVARI BASIN: KG-DWN-98/2 2000 - NELP 1 Block signed: 8 year PSC in 3 phases. Initially a 100% Cairn equity. 2,780 line km 2D and RAVVA 1,500 sq km 3D seismic acquired immediately…
  50. CORPORATE PRESENTATION – Cairn Energy Plc – slide 50
    Corporate Presentation - May 2007 51 EXPLORATION SUMMARY Successful and continuously active explorer, developer and producer for over 13 years in India; exploration has added value to Cairn Exploration upside from world-class…
  51. CORPORATE PRESENTATION – Cairn Energy Plc – slide 51
    Corporate Presentation - May 2007 52 OVERVIEW OF FINANCE OVERVIEW OF FINANCE Indrajit Banerjee Chief Financial Officer 07S0682EG63
  52. CORPORATE PRESENTATION – Cairn Energy Plc – slide 52
    Corporate Presentation - May 2007 53 CAIRN INDIA GROUP STRUCTURE Standalone Consolidated Post the acquisition of Indian assets from Cairn UK Holdings Limited Cairn India Holdings Limited is a 100% subsidiary of Cairn…
  53. CORPORATE PRESENTATION – Cairn Energy Plc – slide 53
    Corporate Presentation - May 2007 54 CURRENT PRODUCING ASSETS AND RAJASTHAN Rajasthan 50% (Exploration) CAIRN ENERGY Rajasthan 35% (Development) INDIA PTY LIMITED Ravva 22.5% CB/OS-2 6.7% CAIRN ENERGY CB/OS-2 33.3% INDIA…
  54. CORPORATE PRESENTATION – Cairn Energy Plc – slide 54
    Corporate Presentation - May 2007 55 CAIRN INDIA CONSOLIDATED RESULTS Q1 07 Particulars INR Million USD Million Revenue 2,364 54 Other Income 362 8 Total Income 2,726 62 Production Costs (473) (11) Staff, Admin & Other costs…
  55. CORPORATE PRESENTATION – Cairn Energy Plc – slide 55
    Corporate Presentation - May 2007 56 COST STRUCTURE - Q1 07 Revenue INR 2,726 mm ( US 62 mm) 2800 Q107 2400 Volumes 2000 WI based (boepd) 19,811 1,801 (US 41 mm) Average Price Realisation INR Million 1600 1200 Gas per…
  56. CORPORATE PRESENTATION – Cairn Energy Plc – slide 56
    Corporate Presentation - May 2007 57 PAST and FUTURE EXPENDITURE Historic Planned (2007-2009) Rajasthan capex estimated to To 2006 680 mm (net to Cairn 630 mm) first oil US 1.1 bn (Net) RJ-ON-90/1 Capex planned for further…
  57. CORPORATE PRESENTATION – Cairn Energy Plc – slide 57
    Corporate Presentation - May 2007 58 SOURCES AND USES OF FUNDS Total funding requirements (2007 2009): Development and related infrastructure : US1.2bn Proposed Pipeline (Subject to GoI approval) : US500mm Exploration and…
  58. CORPORATE PRESENTATION – Cairn Energy Plc – slide 58
    Corporate Presentation - May 2007 59 SHAREHOLDING NON PROMOTER HOLDINGS Bo d y Co rp o ra te s , 4% Total share capital 1,778 million shares FI / B a nk s / FIIs , 35% Mutua l Fund s , 15% Non-Promoter Holding as a % of…
  59. CORPORATE PRESENTATION – Cairn Energy Plc – slide 59
    Corporate Presentation - May 2007 60 CAIRN INDIA SUMMARY Well placed for future growth First Oil from Mangala on schedule for 2009 Five fold production increase by 2010 Ongoing cash flow from current operations in Ravva and…
  60. CORPORATE PRESENTATION – Cairn Energy Plc – slide 60
    Corporate Presentation - May 2007 61 APPENDIX 07S0682EG63
  61. CORPORATE PRESENTATION – Cairn Energy Plc – slide 61
    Corporate Presentation - May 2007 62 REPORTING TIMETABLE UK INDIA 2007 Q1 2006 full year results Q2 AGM 2007 Q1 results 2007 half year results Q3 2007 half year results AGM Q4 2007 Q3 results 2008 Trading update Trading…
  62. CORPORATE PRESENTATION – Cairn Energy Plc – slide 62
    Corporate Presentation - May 2007 63 GLOSSARY Government of India (GoI) Field Development Plan (FDP) International Finance Corporation (IFC) New Exploration Licensing Policy (NELP) Enhanced Oil Recovery (EOR) Working Interest…

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