CAIRN ENERGY PLC 06S0171DE00 Building a business in India - Dr Mike Watts AAPG, Houston 06S0171DE00 April 2006
PREFACE This presentation and the associated slides and discussion contain forward-looking statements regarding Cairn, our corporate plans, future financial condition, future results of operations, future business plans and…
CAIRN IN SOUTH ASIA Cairn Energy PLC listed London Stock Exchange 1988 Current Market Capitalisation 5 billion 25 oil & gas discoveries Developed reserves 450 mmboe (Sangu, Ravva & Gujarat) Rajasthan resource base 1 billion…
BUILDING A BUSINESS IN INDIA Cairn's operated share of India's domestic oil production INDIA 2005 8% 2010 30% 06S0171DE00 based on current trends and Rajasthan peak production 4
INDIA - LARGELY NEGLECTED BY WESTERN INDUSTRY Exploration Drilling by Western Majors 1880 to early 1990s INDIA SE Asia 8,000 wells India 12 wells 06S0171DE00 Source Wood Mackenzie 5
Generalised History of Oil Industry in India 25 Early History Nationalisation GoI Small Fields Policy NELP ERA New Western Entrants 20 INDIA ONSET OF NELP V NELP VI ENI RESERVES billions boe INDEPENDENCE LIBERALISATION 15…
EXPLORATION SUCCESS Bibyana Reliance Qadirpur Cairn Cairn Rajasthan Sangu ONGC Cairn Daewoo Cambay ONGC GSPC Total Reliance Reliance Coal bed methane gas Deepwater Cairn Blocks Yetagun ONGC/Cairn Other Blocks…
INDIAS GROWTH & INVESTMENT OPPORTUNITY GDP (USbn) 2000 GDP (USbn) Growth forecast 2020 / 2030 US China Japan US Germany INDIA UK Japan France Brazil Italy Russia Canada Mexico China Germany Brazil France Mexico Italy INDIA UK…
CAIRN IN SOUTH ASIA VISION South Asia as hydrocarbon-rich destination Rapidly growing energy markets Favourable investment climate FOCUS Sustained investment and re-investment in South Asia for more than a decade Rajasthan - new…
SOUTH ASIA BUSINESS 25 discoveries 1996 - 2006 Developed reserves 450 mmboe Undeveloped resource 1 billion boe (Sangu, Ravva Lakshmi & Gauri) Frontier Rajasthan gross Exploration production target 150,000 bopd NE Exploration P…
EXPLORE/DISCOVER/DEVELOP 06S0171DE00 11
RAJASTHAN & CAMBAY BASINS CAMBAY BASIN NELP VI Blocks BARMER BASIN Reserves Current oil in place 3.5 billion boe 2.6 billion boe Current resource 1 billion mmboe Current 2P reserves 666 mmbbls oil 42 mmboe gas Rajasthan…
RAJASTHAN BHAGYAM BLOCK OVERVIEW SHAKTI N-H-2 N-I BHAGYAM-SOUTH-1 Extended Development MANGALA Area 1,228 km2 AISHWARIYA VIJAYA VANDANA Barmer N-R-4 Development Area N-E-1 AISHWARIYA 1,858 km2 GS-V-1…
RAJASTHAN Estimate of additional recovery or GROSS RESOURCE Current estimates contingent resource volume assuming successful EOR CAIRN ESTIMATES to 2041 2P EOR EOR 2P Reserves 2P STOIIP RF Reserves Contingent + EOR RF to 2041…
RAJASTHAN AN EXAMPLE OF A WORLD SCALE DEVELOPMENT Main Northern Fields BHAGYAM E&A Costs 450 million Production Capacity: 20 - 40+ kbopd Total life of field development (gross) costs US2 billion (2005 money) Northern MANGALA…
RAJASTHAN PROJECT ALIGNMENT PRIZE 2008 onwards PSC Target peak production Sovereign contract 150,000 bopd Government of Fast Project 50-60 billion gross Maximum Volumes revenues at current India Highest Price prices…
CAMBAY BASIN CB-X APPROVED 21/03/2006 Suvali INDIA CB/OS-2 Terminal CB/OS-2 Lakshmi Shell /Total LNG Terminal Ambe ti MUMBAI th Tap Nor zi r a Ha Gauri NELP VI Blocks Current oil facilities and pipeline…
KG BASIN NELP VI Blocks RAVVA KG-ONN-2003/1 KG-DWN-98/2 CHENNAI Ravva facilities INDIA 0m Ravva 40 EURR 300 mmboe GSPC ONGC Reliance Oil Discovery Feb 2006 Worlds biggest Gas Discoveries 2002, 2003, 2005…
BENGAL BASIN NW SE NELP VI Blocks BHUTAN INDIA BANGLADESH DHAKA MYANMAR SANGU-2 MAGNAMA 10 PROSPECT 5 7 SANGU FIELD 3 Tcf unrisked Manpura SANGU Prospect Hatia Magnama Prospect Prospect SANGU SOUTH SANGU…
EVOLUTION OF CAIRN BUSINESS MODEL New Partial IPO increases autonomy Growth of the Indian business to unlock Opportunities and create even more value BHAGYAM & AISHWARIYA Cairn India Listed on the 2008 Material Rajasthan Bombay…
PARTIAL IPO OF INDIAN BUSINESS Aim to create two world class businesses: one based in India focussed on E&P one based in the UK primarily focussed on South Asia Exploration Consistent with objective of optimising and…
CAIRN GROWTH India 3rd fastest growing economy in the world Rising reserves & resources Increasing production Leverage to oil price Strategic position Right place . right time To examine partial IPO of Indian business…