CAIRN INDIA - Meet/219300_ materials contain forward-looking statements regarding Cairn India, ... performance andachievements may bematerially ... Cairn India Ltd 4th Floor, Vipul

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Text of CAIRN INDIA - Meet/219300_ materials contain forward-looking statements regarding Cairn India, ......

  • CAIRN INDIA

    Corporate Presentation

    December 2011

  • 2

    Disclaimer

    These materials contain forward-looking statements regarding Cairn India, our corporate plans, future financial

    condi t ion, future resul ts of operat ions, future business plans and strategies. Al l 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

    uncertaint ies and actual results, performance and achievements may be material ly dif ferent 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.

  • 3

    Holding Structure

    IPO December 2006

    Listed on BSE & NSE in January 2007

    Part of NIFTY index & DJIT30

    Over 200,000 Indian retail shareholders

    Market Cap >USD11billion; amongst Indias top 20

    Total Equity of 1,903million shares; Free float ~19%*

    DJIT30: Dow Jones India Titans 30 Index, *Free float excludes Cairn PLC holding

    FII

    6.4%

    Vedanta Group

    59.0%

    Cairn PLC

    21.8%

    Institutions2.6%

    Retail

    10.1%

    As on 8Dec, 2011

  • 4

    World Class Asset Base

    Cambay (CB/OS-2)

    Cairn (Operator) 40%

    ONGC 50%

    Tata Petrodyne 10%

    Ravva (PKGM-1)

    Cairn (Operator) 22.5%

    ONGC 40%

    Videocon 25%

    Ravva Oil 12.5%

    Rajasthan (RJ-ON-90/1)

    Cairn (Operator) 70%

    ONGC 30%

    Production Blocks Exploration Potential

    Sri Lanka

    SL 2007-01-001 WI 100%

    East Coast

    KG-DWN-98/2 WI 10%

    KG-ONN-2003/1 WI 49%

    PKGM-1 (Ravva) WI 22.5%

    KG-OSN-2009/3* WI 100%

    PR-OSN-2004/1* WI 35%

    Rajasthan

    RJ-ON-90/1 WI 70%

    West Coast

    CB/OS-2 WI 40%

    KK-DWN-2004/1 WI 40%

    MB-DWN-2009/1* WI 100%

    Q2 FY 2011-12: Average Daily Gross operated production at 169,944 boe; Cairn (Working Interest) at 99,220 boe

    10 blocks in the Portfolio

    * Under Force Majure

  • 5

    Growth Strategy

    Maximise

    recovery from

    production base

    Execute

    Rajasthan

    development

    Maximise

    Potential in

    Rajasthan

    Identify

    new growth

    opportunities

    Increased Ravva

    reserves by 20% in

    2010

    >16 years of low cost

    operations in Ravva

    Initiatives to slow

    down production

    decline 4D seismic,

    Infill drilling

    GBA agreement for

    sharing gas from the

    shared reservoir in

    CB/OS-2

    Mangala completed 2

    years of production;

    current production-

    125kbopd

    Crude transports

    through Pipeline

    MBA approved peak

    production at 175

    kbopd

    Increased recovery

    through EOR; pilot

    progressing well

    >3,000 km2 in Barmer

    Basin under contract

    Resource base at 6.5

    bn boe

    Monetise Barmer Hill

    (BH) & Other Fields;

    BH DoC filed, FDP

    under preparation

    Vision to produce 240

    kbopd**; significant

    part from MBA

    Discovery in first

    overseas venture in

    Sri Lanka

    Exploration and

    Appraisal drilling in

    KG-ONN-2003/1

    New plays in

    Rajasthan

    Existing portfolio

    enhancement

    GBA: Gas Balancing Agreement, MBA: Mangala Bhagyam Aishwariya, ** subject to JV and GoI approval & additional investments

  • 6

    Financial Highlights

    *CFFO is calculated as profit after tax (excluding other income) prior to non-cash expenses (non-cash employee cost,

    depreciation, depletion, amortisation, and deferred tax) and exploration cost, without adjusting exceptional item

    The company started sharing Profit Petroleum with the GoI in the Rajasthan block at the rate of 20% under the

    Production Sharing Contract (PSC) framework

    ** till 30 Sept, 2011

    Q2 FY 2011-12 USD million

    Net Revenue ~578

    EBIDTA ~450

    Normalised/Reported Profit After Tax (PAT) ~461/167

    Cash Flow from Operations (CFFO)* ~428

    Quarterly Normalised/Reported EPS INR 11.13/4.01 per share

    Rajasthan Capex USD million

    Gross Net

    Exploration 626 564

    Development ** 3,222 2,255

    Total 3,848 2,819

    Net Cash as on 30th Sept 2011 at USD 1,458 million

  • 7

    Financial Highlights

    165

    174

    161

    172

    170

    68

    74

    92

    104

    100

    0 50 100 150 200

    Q2 FY11

    Q3 FY11

    Q4 FY11

    Q1 FY12

    Q2 FY12

    Price Realization (USD/boe) Gross Production (Kbopd)

    577

    691

    808

    830

    578

    0 200 400 600 800

    Revenue

    341

    448

    543

    610

    461

    0 200 400 600 800

    Q2 FY11

    Q3 FY11

    Q4 FY11

    Q1 FY12

    Q2 FY12*

    PAT

    USD Million

    337

    455

    577

    576

    428

    0 200 400 600 800

    Cash Flow from Operations

    USD Million

    USD Million

    *PAT and CFFO are without adjusting on time exceptional item of past Rajasthan royalty costs

  • 8

    Rajasthan - Frontier to Producing Basin

    Development & ProductionExploration & Appraisal

    ViramgamGujarat

    Rajasthan

    Koyali

    Tankers to

    Coastal Refineries

    Jamnagar

    / Salaya

    Kandla

    Bhogat

    AishwariyaBhagyam

    Mangala

    Oil

    Gas

    Raageshwari

    Mangala

    Processing

    Terminal

    Frontier Exp.

    1995 - 2002

    25 discoveries to date

    >3,000 km approved development area

  • 9

    Rajasthan Update

    Mangala production ~125,000 bopd; reservoir performance as per

    expectations

    Produced and sold >60 mmbbls of crude to Indian refiners; gross

    cumulative field revenue in excess of USD 5 billion to date

    Bhagyam ready to commence production, subject to GoI approval

    Expect to exit FY 2011-12 at 175,000bopd with the support of JV

    and GoI

    Development of Aishwariya underway; plan to commence

    production in H2 CY 2012, subject to JV and GoI approval

    Significant part of currently envisaged basin potential of 240,000

    bopd to be met from MBA fields

    Augmentation of processing capacity and pipeline infrastructure to

    deliver currently envisaged basin potential in CY 2013

    Total Pipe Diameter

    790 mm (32)

    Poly Urethane

    Foam Insulation

    Heat Tube

    High Density

    Polyethylene Wrap

    MPT

    Pipeline

    Data as per 20 Oct, 2011 press release

  • 10

    Rajasthan - Crude Marketing

    Worlds longest continuously heated & insulated

    pipeline operational

    Sales arrangements in place for 155,000 bopd

    With PSU & Private refineries

    Discussions continue with GoI for further nominations

    Crude Pricing

    Reference to comparable low sulphur crude - Bonny

    Light

    Price represents a 10-15% discount to Brent on basis

    of prices prevailing for 12 months to Sept 2011

    Completion of Salaya to Bhogat section of pipeline

    including Bhogat terminal & marine facility scheduled

    for H2 CY 2012

    Access to 75% of Indias refining capacity

    Viramgam

    KoyaliJamnagar

    / Salaya

    Kandla

    Mangala

    Delivery through ~590 km

    heated pipeline

    from Barmer to Salaya

    Radhanpur

    Bhogat

    Refinery

    Existing Pipelines

    Pipeline Route

    Tankers to Coastal Refineries

  • 11

    Rajasthan - Future Resource And Value Potential

    mmbblsmmbbls

    Gross Initial

    In Place

    Volumes

    20 additional

    discovered

    fields including

    Barmer Hill

    MBA Fields,

    Raageshwari

    and Saraswati

    FDP approved

    2.1 Billion boe

    ~4 Billion boe

    ~6.5 Billion boe

    Contingent

    In Place

    MBA

    STOIIP

    R & S STOIIP

    In Place

    Prospective

    Most Likely

    1,293

    M

    468

    B

    293

    A

    78

    R & S

    Gas

    GIIP

    Oil

    STOIIP

    Contingent

    Resource

    R & S 12

    M

    477

    B

    151

    A 66

    707

    2P+2C

    MBA

    EOR

    308

    MBA EOR

    140

    BH

    + Others

    Barmer Hill

    +Other Fields

    Risked

    Prospective

    Resource

    250

    Risked

    Prospects,

    Leads &

    Concepts

    ~2.5 Billion boe in

    35+ prospects

    Gross Reserves,

    Resources 1 and Potential2

    1 The independent estimates of Reserves and Contingent Resources recently carried out by D&M are in line with the CIL estimates

    2 Top 35 prospects audited by D&M risked resource 178 mmbbls

    Data as per 23 March, 2010 press release

  • 12

    Rajasthan - Vision For Growth

    FDP

    Approved

    P