Analyst Meet - 3rd Feb09

Cairn India Analyst Presentation Mumbai February 2009

CAIRN INDIA LTD

Analyst PresentationMumbai, February 2009


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Disclaimer

These materials contain forward-looking statements regarding Cairn India, 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 Indias expectations with regard thereto or any change in circumstances or events after the date hereof.

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AgendaCairn India Overview - Rahul Dhir, Chief Executive Officer Rajasthan Project: Rick Bott, Chief Operating Officer S V Nair, Director Projects H P Bhalla, Director Midstream Rajasthan Reserves - Ananthakrishnan , Head Reservoir Development Rajasthan Crude Marketing - P Elango, Director Strategy Producing Assets - Santosh Chandra, Director Drilling and Petroleum Engineering Exploration - David Ginger, Director Exploration Finance - Indrajit Banerjee, Chief Financial Officer Conclusion - Rahul Dhir, Chief Executive Officer09S0004AE00


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Cairn Overview Rahul Dhir Chief Executive Officer

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OverviewRajasthanFocused on delivery and growth World class resource base Enhanced Oil Recovery (EOR) potential Pipeline route allows access to multiple buyers Large volume on long term basis Increased delivery, consistent cash flow Funding in place to deliver core project and pipeline

Maximise production from current producing assets Increasing exploration potential Strong economic contribution to the State of Rajasthan (GoR) and Government of India (GoI)09S0004AE00


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Overview - Journey Since IPOMaximise recovery from production baseSuccessful drilling Ravva and CB/OS-2

Execute Rajasthan developmentFirst production Mangala Q3 2009 Major regulatory clearances obtained Delivery point shifted

Maximise Potential in Rajasthan>3,000 km2 under long term contract Growing resource base Increased Mangala recovery EOR Monetise Barmer Hill and other fields

Identify new growth opportunitiesUnrisked potential: 1.4 billion bbls New leads in existing portfolio Seismic programmes completed Acreage in Sri Lanka

Maintaining low operating cost base

Time lapse (4D) seismic in Ravva

Major contracts awarded Mangala FDP revision submitted

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Overview - Cairn India AssetsRajasthan Exploration (RJ-ON-90/1) Cairn (Operator) Rajasthan Development Cairn (Operator) ONGC 70% 30%RJ-ON-90/1

100%

Total 14 blocks2 Production Blocks Operated gross field production ~63,000 boepd (net to Cairn ~16,500 boepd) 1 Development Block Rajasthan block under development Mangala, Bhagyam and Aishwariya fields with a further 22 discoveries 11 Exploration Blocks 6 operated in India and Sri LankaRAVVA

Gross production target expected 175,000 bopd

CB/OS-2

Gross Production* ~13,500 boepd

Cambay (CB/OS-2) Cairn (Operator) ONGC Tata 40% 50% 10%

RavvaGross Production* ~49,000 boepd

Cairn (Operator) ONGC Videocon Ravva Oil

22.5% 40% 25% 12.5%

All Q4 2008 figures09S0004AE00


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Overview - Transformational Growth~200,000 bopd Gross

Increase in productionGross: 200% Working Interest >600%

Cairn India production including peak output from Mangala, Bhagyam and Aishwariya fields

~63,000 bopd GrossProduction from Cairn India assets Ravva and Cambay Working Interest

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Q4 2008

2011


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Overview - Rajasthan FundingEstimated Costs Gross 2008 and 2009 Upstream Pipeline Net to Cairn 2008 and 2009 Gross 2010 and 2011 US$ billion 2.0 1.2 0.8 1.4 1.5 1.8 Financed By Cash available (1st Jan08) Cash flow from operation in 2008 Preferential allotment Existing debt facility (drawn to date US$ 640mm) Total Capital Optimisation 2008 / 2009 ~US$ 600 million Gross Bhagyam and Aishwarya phasing Drilling optimisation Startup with smaller train Additional Sources Cash flow from operations 2009 and beyond Proposed additional debt facility US$ million 441

182 625 850 2,098

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Rajasthan Project Rick Bott Chief Operating Officer

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Rajasthan - Overview1995 - Production Sharing Contract (PSC) awarded 1997 - acquired 10% interest 2002 - acquired 100% interest 2004 - Mangala discovery 2007 - IPO of Cairn India ~80% total gross reserves of Cairn India 25 discoveries to date Production Target 175,000 bopd from Mangala, Bhagyam and Aishwariya (MBA) Peak production will account for >20% of Indias estimated oil production09S0004AE00N-I-North Shakti Shakti NE NC West Oil and Gas N-I

Development Area-2 Awarded: Nov 2006 Area: 430 km2BHAGYAMBhagyam South N-E

MANGALAMangala Barmer Hill

AISHWARIYAVijaya and Vandana

N-R N-P

Kameshwari West

Development Area-1 Awarded: Oct 2004 Area: 1,859 km2GS-V

Saraswati Kameshwari

Kameshwari West Development Area Area: 822 km2

RAAGESHWARI OIL RAAGESHWARI EAST RAAGESHWARI GAS

Guda


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Rajasthan - Reserves and Resource Base

MBA Fields

> 2 billion boeunder development Reserves and Resources

over 1 billion boe

Gross 2P recoverable (to 2041) 685 mmbbls

Chemical EOR resource potential > 300 mmbbls

Work on reserves, resources and potential production from remaining fields ongoing including: Barmer Hill potential ~400 mmbbls STOIIP09S0004AE00


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Rajasthan - Production ScheduleMangala Processing Terminal (MPT) four processing trains; capacity 205,000 bopd: Train 1 (30,000 bopd capacity) Q3 2009 Initial export by trucking175,000 bopd

Schematic

Train 3 (50,000 bopd capacity) H1 2010 Mangala 125,000 bopd plateau Train 4 (75,000 bopd capacity) 2011 MBA plateau 175,000 bopd EOR 2013 onwards full field implementation09S0004AE00

Oil Rate

Train 2 (50,000 bopd capacity) Q4 2009 Additional Mangala production, export by pipeline

EOR Potential to extend and enhance plateau

Current FDP

MBA Water flood

Q3 2009

10 Years


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Rajasthan - Recovery SystemFuel Gas Distribution System Gas Recovery System Export Oil Storage Separator + Heat Export Pipeline

Water InjectorVertical WellFresh Water Water Table

Horizontal Well

Heat

Saline Water Abstraction

T Sali humbli ne A quif er

OilBar me rH ill F at eh g arh09S0004AE00


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Rajasthan - Project DeliveryACTIVITYDetailed Engineering and Design Land Acquisition / Right Of User (RoU) and Statutory Approvals Procurement (Long Leads items) Construction Mobilisation

UPSTREAM Status

PIPELINE PROJECT Status

Nearing Completion

Construction Activities

MPT Production facilities RGT facilities Mangala well pads Thumbli water fields Terminal buildings, sub stations etc Intra field pipelines In Progress

Export Pipeline AGIs Viramgam Terminal Radhanpur Terminal

Pipeline Works (Infield and Main Export) Drilling Rigs Mobilisation Development Drilling Commissioning and First Oil09S0004AE00

In Progress NA

Feb 2009 Q3 2009

NA Q4 2009


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Rajasthan - ContractsStaggered contracting strategy civil and main contractEarly award of civil contract (Dec 2007) to fast track site development Major contracts awarded to Indian contractors

Orders for long lead items placed in 2007Mitigate cost pressures Guaranteed delivery as per the project schedule Timely order of the line pipe

Strategic use of local resourcesUnskilled labour and equipments for civil works hired locally

Drilling and completion tubularsFirst in India - supply chain management contract

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Rajasthan S V Nair Director Projects

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Rajasthan - Development LayoutIntegrated upstream and midstream development focused around MPT with local power and water supply Six fields under development focused around MBA Raageshwari Gas Terminal (RGT) and Thumbli water field supply Intra field pipelines Viramgam Terminal Above Ground Installations (AGIs) Highest onshore production rate wells in IndiaExport Oil Pipeline Gas and Condensate Pipeline FlowBhagyam Field Aishwariya Field Intra field pipelines and crossings Barmer

MPT and well pads

Thumbli water field well pads and facilities

RGT & well pads

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Rajasthan - Mangala Processing TerminalSteam Turbine Generators1 3

Steam Boilers2

Oil Export Tanks

Water Tanks

Power Water Injection Water Produced Water Export Oil Pipeline Fluids from Well Pads09S0004AE00

Oil Settling Tanks


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Rajasthan - MPT Construction ProgressBoiler Area Boiler Area Pipe rack 2

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Rajasthan - MPT Construction ProgressOff Spec & Settling Tanks Well Pad 9

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Rajasthan H P Bhalla Director Midstream

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Rajasthan - Export PipelineHeated and insulated pipeline ~600 km More than 30 heating stations 1 Mega Watt power generator at heating stations Pipeline passing through two states: Rajasthan and Gujarat All land acquired for AGIs and terminals

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Coastal Terminal

Pipeline Route


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Rajasthan - Pipeline Schematic35 SEHMS Sanchore Pigging Station Heated crude oil pipeline

Mangala Processing TerminalRaageshwari Gas supply

Gas pipeline

Viramgam Intermediate Terminal storage, pumping and export

Buyer

Coastal Terminal storage and export

Distribution to Refiners

Wankaner Pigging Station

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Rajasthan - Pipeline Construction Work

Pipe laying 09S0004AE00


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Rajasthan - Viramgam Terminal

Cairn constructed oil storage tank 09S0004AE00


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Rajasthan Resources Ananthakrishnan Head Reservoir Development

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Rajasthan Resources - Cairn MBA 2P EstimatesSTOIIP (mmboe)2,054

2P Gross (mmboe)

2P Net (mmboe)

MBA & MBA EOR

685MBA MBA EOR MBA EOR MBA

479

308

216

Cairn Total

2,054

Cairn Total

993

Cairn Total

695

2P Reserves and Resources Gross & Cairn Net 2007 year end Cairn India Limited and DeGolyer & MacNaughton 2P Reserves include estimates of expected production during the current PSC term (14 May 2020 for Rajasthan) 2C Resources are those volumes expected to be produced outside the current PSC term (end of field life) or where development planning or approval is pending09S0004AE00


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Rajasthan Resources - MangalaApplication of cost effective technology has resulted in: 20% increase in STOIIP over FDP 30% increase in reserves and resources 25% increase in plateau rate1071 956 Post STM 3D Seismic, PHIE, SWE ( 7 Wells ) 829 Additional 2D Seismic, PHIE, SWE ( 7 Wells ) Post STM 3D Seismic, PHIE, SWE, DS Data ( 7 Wells )1500

1293 1202 Pre STM 3D Seismic, PHIE, SWT, DS Data ( 9 Wells )

Mangala STOIIP mmbbls

1000

2D Seismic, PHIE, SWE ( 2 Wells )

500

0

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DoC (June 2004)

DoC Update (Aug. 2004)

FDP (Oct. 2005)

IPO Dec 2006

Dec 2007


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Rajasthan Resources - Bhagyam And AishwariyaBhagyamField Development Plan (FDP) approved: Offtake rate 40,000 bopd Front End Engineering Design (FEED) completedBhagyam 3D

AishwariyaAishwariya STOIIP increased to 293 mmbbls from the FDP approved STOIIP of 213 mmbbls Increase in STOIIP provides a commensurate increase in field recoverable volumes to 64 mmbbls Production potential increase from 10,000 bopd to 20,000 bopd subject to regulatory approvals

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Rajasthan Resources - EORIncreased reserves Better sweep efficiency Better displacement efficiency Plateau extension / enhancement Mobilise more oil Increase in production rate Reduced costs Reduced water handling Reduced energy requirementSchematic EOR Potential to extend and enhance plateau

175,000 bopd

Current FDP

Oil Rate

MBA Water flood

Q3 2009

10 Years

EOR potential from MBA fields ~300 mmbbls

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Rajasthan Resources - EOR

Courtesy : SNF09S0004AE00


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Rajasthan Resources - EOR ProcessesAlkaline-Surfactant-Polymer (ASP) Flooding Original oilSand Grain

Oil Saturation Display at Pore Level Reduction in Trapped OilRemaining oil Water

Initial Polymer Flooding

After Waterflood

After ASP flood

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Rajasthan Resources - EOR Analogue FieldsAnalogue Field Performance Two large oil fields in China (Daqing and Shengli) have produced ~100 mmbbls oil per annum by polymer flooding alone in recent yearsIncremental polymer flooding recovery ~12% STOIIP

Daqing - ASP Pilot Performance

ASP pilots in Daqing since 1994 indicate incremental recovery of ~20-25% of STOIIP ASP pilots in Shengli reported incremental recovery of >20% of STOIIP

Incremental Recovery, %

SPE 77871, Wang Demin (2002)

Time

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Rajasthan Resources - EOR Laboratory StudiesCore Flood: Two independent laboratories indicate 30-40% incremental recovery from ASPOil Cut, % Cumulative Oil, %

Simulation: Indicates significant potential for ASP/Polymer flooding compared to water flooding Incremental recovery expected to be ~15% from MBA fields (~300 mmbbls)

Cum Oil Cum Cut

Incremental ASP recovery post water flood in laboratory test

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Rajasthan Resources - EOR Potential TimelinesEOR potential from MBA fields is ~300 mmbbls Mangala EOR pilot planning under final review 2011: Approval process 2013 - 2014: Mangala field wide implementation Bhagyam and Aishwariya to followMangala Processing Terminal

Mangala Discovery Well January 2004

Export Oil Pipeline

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Rajasthan Resources - Barmer HillPotential STOIIP 400 mmbbls Low permeability reservoir Further technical studies underway fracture stimulation required Wells tested in Mangala and Aishwariya at 30 - 250 bopd Development options under consideration Recoveries in analogue fields: Primary recovery 7-10% Secondary recovery >20%

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Rajasthan Resources - Small FieldsN-I-North

SHAKTI

Shakti NE NC West Oil and Gas N-I

Low cost development through technology application Low Cost drilling Modular facilitiesBhagyam

Mangala

MANGALA BARMER HILLAishwariya Vijaya and Vandana

Leveraging existing infrastructure: Tie in to MPT

Bhagyam South N-E

N-R N-P

Status: Kameshwari West Development Area awarded Shakti FDP submitted Guda FDP under preparation

Kameshwari West GS-V

Saraswati Kameshwari

Raageshwari Oil Raageshwari East Raageshwari Gas

GUDA

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Rajasthan Crude Marketing P Elango Director Strategy

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Rajasthan Crude - Marketing OverviewIndia currently:Imports*: ~2.4 mmbbls/day Produces*: >680,000 bbls/day Exports: ~400,000 bbls/day of product

Sufficient demand for Rajasthan crude GoI in process of confirming nominees for crude oil sales Initiate sales by Q3 2009 Pipeline route allows access to multiple buyers and refineries

* Source: MoPNG Petroleum Statistics 2007-200809S0004AE00


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Rajasthan Crude - QualityClassification Range Crudes

Light API o

> 31

Bombay High (39.3) Brent (38.0), WTI (38.7) Dubai (30.4)

Indian Crude Slate : 2007 - 2008

Medium

22 31

Rajasthan (28.4)Maya (21.1) Duri (21)

HeavyKey Elements API Viscosity Pour Point Sulphur Yield

< 22Quality

Medium Sour 59.5% (Dubai)

Transportation

Heavy Sour 5.1% (Maya)

Light Sweet 19.8%

Medium Sweet 14.5%

Light Sour 1.0%

(Oman)

(Rajasthan) (BH, Brent)

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API (American Petroleum Institute) Classification


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India - Crude QuantityIndian Crude Slate : 2007 - 2008Imported 78.1% Domestic 21.9%

60.8% 75.9% 100%

Domestic 79.7%

39.2% 24.1%

Rajasthan Crude 20.3%

Coastal Refineries

Inland Refineries Imported

Private Refineries Indigenous

Rajasthan peak production 175,000 bopd will represent >20% of domestic production09S0004AE00

Imported & Domestic Quantity : MOPNG Data Future : Assuming Indian production remains at current levels.


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Rajasthan Crude - SalesContractors sell Crude to government (or its nominee) on price determined as per PSC

Government Nominees

Government purchases full volume

Free Marketing

GoI to appoint nominees

Contractor can freely lift, sell & transport the balance volume

Delivery Point at the outlet flange of the export terminal or the customers facilities in India

Agreement on a Crude Oil lifting procedure

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Rajasthan Crude - MarketingBhatinda

Multiple Customers On land and coastal Access to 75% of Indias refining capacityRajasthan

Panipat

DELHI

Mathura

Multimodal sales Neat and blend options Multimodal transport Trucking, pipeline and tankersJamnagar

Mangala

Viramgam

Crude Oil Sales Agreement (COSA) Long and short termTankers to Coastal Refineries

Koyali

GujaratPipeline Route Existing Pipelines Refinery Cairn blocks

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Rajasthan Crude - SummaryTargets achieved: GoI agreed to shifting of Delivery Point GoI agreed to nominate multiple buyers Blending studies carried out Evaluated the supply chain constraints Ongoing Appointment of multiple nominees by GoI Agreement of reference crude basket for pricing with GoI Agreement of COSA / lifting procedures with buyers

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Producing Assets Santosh Chandra Director Drilling and Petroleum Engineering

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Producing AssetsCB/OS-2 - Onshore Plant CapacityCrude Gas Processing Crude Storage 10,000bpd 150 MMscfd 28,000 bbls Crude Gas Processing Crude Storage

RAVVA - Onshore Plant Capacity70,000bpd 95 MMscfd 1 Million bbls

CB/OS-2 - OffshorePlatforms Sub-sea Pipelines 3 ~35 KM Platforms Export Facility

RAVVA - Offshore8 Single Point Mooring ~170 KM

Sub-sea Pipelines

CB/OS-2


RAVVA


Cambay (CB/OS-2) Ravva Cairn (Operator) ONGC Tata 40% Cairn (Operator) 50% 10% ONGC Videocon 40% 25% 12.5% 22.5%

All Q4 2008 figures09S0004AE00

Ravva Oil


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Producing Assets - Ravva FieldField MilestonesIncreased production from 3,700 bopd to 50,000 bopd now in decline Plateau extended to 8 years, reserves doubled Produced >200 mmbbls Health, Safety and Environment (HSE): 2.4 million hours with no Lost Time Injuries (LTI) ISO14001 and OHSAS18001 Certified

2008 Business ResultsDrilling campaign completed Gross Production ~53,500 boepd Field direct Opex ~1.5 $/Boe Contract for 4D seismic awarded

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Producing Assets - CB/OS-2 Cambay BasinField MilestonesDiscovery to delivery in 26 months HSE Standards 1.4 million hours with no LTI ISO14001 and OHSAS18001 Certified

2008 Business ResultsOffshore rig campaign completed successfully Gross Production ~13,800 boepd Field direct Opex ~2.7 $/boe Facilities upgraded

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Producing Assets - Forward StrategyMaintain world class QHSE standards and operating practices Enhance value through maximising production and reserves Application of technology 4D seismic in Ravva Pursue exploration opportunities Continue top quartile performance for operating costs

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Exploration David Ginger Director Exploration

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Exploration - Platform for FutureMajor long term playerLarge proprietary database Experienced team Successful exploration over 10 years: Success ratio ~40%

Cairn Rajasthan

Play based approach to building portfolioDiversity of basin, plays and environments Regional petroleum system studies ongoing in key basins Drill Bit exploration; 181 exploratory wells versus 56 obligation wells

Cairn Cambay

INDIACairn Ravva ONGC/Cairn Deepwater

Oil & Gas Seeps Recent Discoveries09S0004AE00


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Exploration - Integrated Application of TechnologyReprocessed and enhanced regional gravity data used in integrated basin modeling

OLD

Cairn reprocessed

INDIA

Fully integrated Petroleum systems modeling09S0004AE00

Acquisition and processing of best in class seismic data in KG and Palar Basins


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Exploration - PortfolioNet Unrisked Prospective Resource (mmboe)

Portfolio ContentFrontier and Emerging Plays 66% Play Extensions 23%

Deep Water 61%

Onshore 28%

Appraisal 11%

Shallow Water 11%

Consistent growth since IPO: building a portfolio to deliver continued growth >1,400 mmboe net unrisked resource potential Rajasthan discovery December 2008 90% operated by Cairn India09S0004AE00


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Exploration - Raageshwari East DiscoverySeparate oil discovery adjacent to Raageshwari field Test: 500 bopd and 0.4 mmscfd, 40o API waxy oil 10.24m net pay, 81m gross in 2 oil columns Lowest known oil in area deepened by 60m Upside: future drilling and possible 3D seismicRaageshwari-East-1Z

Raageshwari Oil Field

Raageshwari Deep Gas

Most Likely Oil

Possible Upside

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Exploration - Kameshwari West Development AreaThird Development Area awarded by GoI Kameshwari West Development Area: 822 km2Kameshwari West 2, 3 and 6 discoveries Kameshwari West 2 and 3 lie in new play in Upper Barmer Hill/Lower Dharvi Dungar SandstonesDevelopment Area-2 Awarded: Nov 2006 Area: 430 km2

Development Area-1 Awarded: Oct 2004 Area: 1,859 km2

Total area under long term contract: 3,111 km2Mangala (Development Area-1): 1,858 km2 Bhagyam (Development Area-2): 430 km2Kameshwari West Development AreaArea: 822 km2

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Exploration - Sri Lanka: Block SL 2007-01-001Cairn Lanka 100% Working Interest (NOC back-in 15%) Block Area: 3,000 km2 Water depth: 200-1,800 m Extension of proven hydrocarbon play (Cauvery / Mannar)SL 2007 01 001

India

Under explored, frontier basin with multiple plays Future Work 2D / 3D seismic - 2009 / 2010 Drilling in 2011

SRI LANKA

Prospects & Leads 50km09S0004AE00


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Exploration - Ongoing ProgrammeRJ-ONN-2003/1 2 to 4 wells

VN-ONN-2003/1Finish processing of 2D seismic. Decision on Phase II

GV-ONN-2003/1Complete 550 km 2D seismic; processing and interpretation

GV-ONN-2002/1Complete drilling operations, decision on Phase II

RJ-ON-90/1Drilling and 3D seismic to continue resource additions

CB-ONN-2002/12 wells 2009

KG-ONN-2003/12 wells 2009 3 wells 2010

GS-OSN-2003/11 well in 2010 KK-DWN-2004/1 Complete 3,800 km 2D. Processing and Interpretation

INDIA

RAVVAPlanning appraisal & exploration wells to support production

KG-DWN-98/23 wells 2009; Ultradeep drilling 2010

SL-2007-01-001OPERATED NON-OPERATED 09S0004AE00

PR-OSN-2004/1 SRI LANKA8,000 km2, 2010 Drilling 2011

Seismic:5,000km 2D, 1,000km2 3D by 2010 Drilling 2011


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Finance Indrajit Banerjee Chief Financial Officer

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Finance - Consistent Cash Flow from OperationsUS$ million 86 71 6017 2 8 33 14 3 9 17 3 9 29 10 7 30

100 74 7620 3 6 25 8 8 23 2

102

Cash cost

6027 21 1

Tax Other income Cash flow from operations (CFFO)

57

59

50

18 20

45

45

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2007

2008

**CFFO = PAT + Exploration + Deferred Tax + Other Non cash Other Income Cash cost = Production cost + G&A + Interest paid Other Income = Income from Investments Tax = Current Tax + FBT on ESOP. Conversion Rate: Q107 Rs.44.14; Q207 Rs.41.26; Q307 Rs. 40.53; Q407 Rs. 39.43; Q108 Rs.39.82; Q208 Rs.41.65; Q308 43.65; Q408: 48.7209S0004AE00


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Finance - Cost Efficient OperationsProduction cost at Ravva and CBUS$ / boe 7.22 6.25 4.883.04 3.85 4.05 3.72 3.16 Other costs Field Direct Opex

7.14 6.18 5.93 4.833.42 2.96

4.593.67

3.36 1.84Q1

2.53Q4

3.09

3.02

2.51Q3

0.92Q2 Q3 Q1 Q2

1.87Q4

2007

2008

Field Direct costs excludes the workover costs(Q107: $1.12/bbl, Q407: $4.24/bbl, Q208: $0.88/bbl, Q308: $0.58/bbl) Conversion Rate: Q107 Rs.44.14; Q207 Rs.41.26; Q307 Rs. 40.53; Q407 Rs. 39.43; Q108 Rs.39.82; Q208 Rs.41.65; Q308 43.65; Q408: 48.72 Production cost /boe are based on working interest09S0004AE00


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Finance - Price RealisationOil Price Realisation140128 122 118 112 118 116 100

Gas Price Realisation6

120

54.2

4.7 4.4 4.1

4.8 4.6 4.4 4.2

100

91 77 71 61 69 69 58 56 59 75 83 89 94

97

4

US$ / mscf

US$ / bbl

80

3.9

3.9

3.9

3.9

3.9

3.9

3.9

3.9

3

60

57 56

Ravva

54

2

40

CB-OS/2

Brent20

1

Ravva CB-OS/2

0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2007

2008

2007

2008

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Finance - Rajasthan Funding 2009Estimated Costs Gross 2008 and 2009 Upstream Pipeline Net to Cairn 2008 and 2009 Gross 2010 and 2011 US$ billion 2.0 1.2 0.8 1.4 1.5 1.8 Financed By Cash available (1st Jan08) Cash flow from operation in 2008 Preferential allotment Existing debt facility (drawn to date US$ 640mm) Total Capital Optimisation 2008 / 2009 ~US$ 600 million Gross Bhagyam and Aishwarya phasing Drilling optimisation Startup with smaller train Additional Sources Cash flow from operations 2009 and beyond Proposed additional debt facility US$ million 441

182 625 850 2,098

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Finance - Government of India ShareProfit Petroleum 65% US$192.3 million Ravva US$279 million

Income Tax 3% US$12 million Service Tax 3% US$9 million

Cess 3% US$10 million Royalty 2% US$7 million

Sales Tax 23% US$78 million

Corporate Taxes US$21 million

CB/OS-2 US$39 million

Total Contribution 2008

US$339 million

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Finance - Rajasthan Profit SharingGross Revenue Gross Revenue: Sales Revenue Cost Petroleum: 100% Cost recovery of Exploration, Development and Production costs (upstream and pipeline) Profit Petroleum: (Gross Revenue Cost Petroleum)

Cost Petroleum

Profit Petroleum

JV share in Profit Petroleum 80.7060..50%

GoI share in Profit Petroleum 20.3040..50%

GoI Profit Petroleum: Based on Investment Multiple applied on Fiscal Year basis

Cairn - 70% (WI)Development 70% Exploration 100%09S0004AE00

ONGC - 30% (WI)Development 30%


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Finance - SummaryFunding in place to deliver core Rajasthan project and pipeline Consistent performance of Cash Generation from efficient operations Achieved an average Gross Profit Margin of 83% in last 2 years Crude selling price consistent with benchmark Forward production predominantly oil

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Conclusion Rahul Dhir Chief Executive Officer

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ConclusionRajasthan Focused on delivery and growth World class resource base Enhanced oil recovery potential Pipeline route allows access to multiple buyers Large volume on long term basis Increased delivery, consistent cash flow Funding in place to deliver core project and pipeline Maximise production from current producing assets Increasing exploration potential Strong economic contribution to the State of Rajasthan and Government of India09S0004AE00

Documents

Analyst Meet - 3rd Feb09