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Cairn India
Rajasthan Northern Area Development Projects
Contractors / Suppliers PresentationJanuary 2006
Cairn India
Northern Field Developments
Contents
Cairn India
Field Development Plans
Mangala Field Development Status Contracting Strategy Local Content strategy Execution strategy
Cairn team
Payment for work done
Project objectives
Core issues
Strategic view
Expectations
Cairn India
Cairn India
In India since 1995
Head Quartered at Gurgaon, Haryana
Two Existing producing assets at Ravva, CB-OS/2 including Lakshmi and Gauri
With New World Class Resource Base in Rajasthan where :- Cairn has 100% interest during Exploration Phase 70% interest during Development & Production Phase
with ONGC as JV partners having 30% interest
Cairn India
Ravva – Facilities
Onshore Plant Capacity
Gross Fluid Handling
90,000bpd
Crude 70,000bpd
Gas Processing 2.7 MMSCMD
Water Injection 1,10,000 bpd
ETP 20,000bpd
Crude Storage 1 Million BBLS
Power Generation 10MW
Opex <$1/boe
ISO 14001 certified - Zero flaring
Uptime of Equipment : >96%
Offshore
Platforms 8 (Unmanned)
Export Facility Single Point Mooring
Sub-sea Pipelines 22, total ~170KM
Cairn India
Cairn India
Cairn India
Onshore Plant Capacity
Gas Processing 150 MMSCFD
Crude 5,000 bpd
ETP 3,000 bpd
Crude Storage 28,300 bbls
Power Generation
5MW
CB-OS/2 : Lakshmi & Gauri Facilities
Offshore
Platforms 3 (Unmanned)
Sub-sea Pipelines
36 KM, 24 inch
5 KM, 12 inch
ISO 14001 certified
Uptime of Equipment : >96%
Cairn India
Cairn India
CBOS/2 – Future Development
Declaration of commerciality Jan 2006FDP under preparation
Lakshmi
Gauri
North TaptiAmbe
Hazira
Shell /TotalLNG Terminal
4 well drilling programme in 2007 to access untapped natural gas & apprise further crude oil potential
SuvaliTerminal
FDP approved in March 2006Development for gas is ongoing
Ambe
Lakshmi & Gauri CB-X
Cairn India
Cairn India
Rajasthan – Block Overview Major discoveries in Rajasthan
~130 wells drilled, 20 discovers to date
Significant discoveries are Mangala, Aishwariya and Bhagyam
New oil province established – resource base around1 billion barrels
Over US$600m (net risked capital) investment to date
Target Block Production ~150,000bopd
Total original block area
= 11,108 km2
Cairn India
Northern Field Developments
Field Development Plans
We are aiming for Saraswati and Raageshwari oil fields to be on stream in 2007 subject to GOI approval and finalisation of an oil sales agreement. As of today some wells are available for export of oil
Mangala oil field, including Raageshwari gas field and the Thumbli water aquifer, is the first major field to be developed
Next in line will be Bhagyam / Shakti and Aishwariya oil fields, 6 and 12 months behind Mangala respectively. Detailed design and engineering is being run in parallel
A single MPT (Main Process Terminal) will be constructed to accommodate these fields
Cairn India
Northern Field Developments
Field Development Plans (cont)
Other smaller fields will be looked at on a case by case basis as the infrastructure surrounding the larger discoveries are completed e.g. Raageshwari Oil
Cairn continue to appraise further areas of the existing Rajasthan blocks
Cairn India
Rajasthan – Development Schedule
“l ”
Procurement start
“ ”
MANGALA / RAAG GAS
BHAGYAM / SHAKTI
AISHWARIYA
SARASWATI
RAAGESHWARI OIL
2008 2009FIELD / ITEM 2005 2006 2007
Land Acquisition / ClearancesProject Definition (Concept/FEED)Detailed Design & EngineeringFabrication / ConstructionWellsCommissioning / Start Up
Land Acquisition / ClearancesProject Definition (Concept/FEED)Detailed Design & EngineeringFabrication / ConstructionWellsCommissioning / Start Up
Land Acquisition / ClearancesProject Definition (Concept/FEED)Detailed Design & EngineeringFabrication / ConstructionWellsCommissioning / Start Up
Land Acquisition / Clearances / Eng.Fabrication / Construction / WellsCommissioning / Start Up
Land Acquisition / Clearances / Eng.Fabrication / Construction / WellsCommissioning / Start Up
“ ”
“ ”
FDP approved
CGWA appr. rec.
EC granted
FDP app. expected
DOC app. expected
Legend:
“
Cairn India
Northern Field Developments
Current Status
Sanction Funding in place
Target for Mangala oil at 100,000 Boe/day is 2009
Procurement EOI’s issued expect complete early 2007 RFQ’s issued expect complete end 2007
Cairn India
Northern Field Developments
Current Status (cont)
Engineering
Mangala and Raageshwari gas detailed design at 20%
Bhagyam, Shakti, Aishwariya concept selection complete FEED in progress and due to complete April 2007
Site
Pioneer Camp (site office) in place
Site fence erection in progress at Terminal site
Cairn India
Northern Field Developments
Current Status (cont)
Still to be developed
Raageshwari Oil Field
Raageshwari deep gas
Other small fields following main infrastructure completion
Other Projects
X-port Pipeline – FEED/concept select in progress – to complete January 2007
Expected value $340m (Rs 1,500 crore)
Cairn India
Northern Field Developments
FDP Approval of MARS Fields
Government Approval May 2006
Funding Banking Syndicate (+ IFC) Signed
Detail design contract Mustang Engineering, Houston
Oil sales agreement
Principles embedded in PSC - Detailed negotiations ongoing
Land acquisition Phase 1 & II now completed}
Environmental clearance Granted by MoEF
Water usage approval Granted by Rajasthan State
Supplementary gas source for fuel supply
Raageshwari gas
Water source Substantial saline aquifers
Approvals Status
Cairn India
Mangala Processing Facilities
Animated views of Mangala processing
facilities
Slug Catcher
Cairn India
Mangala Field Development
Contract Strategy
Detailed Design Work Man hour reimbursable at rates Existing contract for Mangala with Mustang Engineering Houston.
Work subcontracted to L&T Valdel in Bangalore and JPK Triune in Delhi
Procurement Lump sums supply – currently by Cairn, option for main contractors
to procure for and on behalf of Cairn
Main Contracts Based on cost reimbursable rates measurable using RHICOMS (Rider Hunt International Common Norms) Bill of quantities with agreed measure on a monthly basis
Commissioning and Start-up will be by Cairn with contractor support at reimbursable man hour rates
Cairn India
Mangala Field Development
Local Content Strategy
We are committed to maximising local content levels. Main contractors will be required to meet the minimum local content requirements.
We intend to nominate subcontractors where we feel confident that a local contractor would have the required experience and quality standards required
Cairn India
Mangala Field Development
Execution Strategy
Site living and sleeping accommodation will be provided by Cairn through a separate sub-contract. We would expect any site offices to be provided by the individual contractors. Cairn will provide and give access to any land required for offices and storage of materials.
We would expect personnel to be rotated out of site
Procurement of key long lead equipment is being carried out by Cairn from their India HQ at Gurgaon.
Manufacturing and materials will be based on preferred Indian content
Cairn India
Mangala Field Development
Execution Strategy (cont)
Main Contracts, preferred Indian JV or partner contractors with experience and capability, execution to mechanical completion, bulk procurement
Contact split as follows Main Civil Contractor Main Mechanical Main Instrument and Electrical Pipeline (s) Camp Provider Freight forwarding ICS (integrated Control System)
Cairn India
Mangala Field Development
Execution Strategy (cont)
Main Civil Work Scope All civil engineering work with in the development area. To include
roads, all building, tank, plant and process equipment and pipe work foundations, excavations, underground concrete tanks and separation pits and the like.
Main Mechanical Work Scope All mechanical equipment installation, hook-up and mechanical
commissioning to hand over. To include all site erected tanks and associated pipe work.
Cairn India
Mangala Field Development
Execution Strategy (cont) Main E& I work Scope
To include all HV and LV cable installation terminations, transformers, JB’s and testing to mechanical completion. Includes all security installation work and telecommunications. Include inter field HV transmission lines
Pipeline To include all interconnecting pipelines from Thumbli Field to Mangala
and from Raageshwari to Mangala. To include all excavation, rail and road crossings, welding and backfilling. To include commissioning to mechanical completion.
Cairn India
Mangala Field Development
Execution Strategy (cont)
Camp Contractor Provision of 130 client accommodation and 2500 construction
accommodation camps. To include provision of all hotel services for multi cultural work force. Provision of camp to include provision of water and sewage management and waste disposal.
ICS Contractor Provision of all hard ware and software associated with the
development of a fully integrated process control system. Provision will include the function testing and commissioning of the system. Contract to include provision for ongoing maintenance work
Cairn India
Mangala Field Development
Execution Strategy (cont)
Note
All contracts will have potential for the extension of the work to include the development of the Bhagyam, Aishwariya and Shakti fields currently in FEED design.
Cairn India
Northern Field Developments
Payment
Cairn Finances are in place as widely reported.
Work will be carried out on RHICOMS. Work will be measure monthly and appropriate valuation submitted for payment.
Mobilisations and de-mobilisations to site are Lump Sum
Cairn are implementing a SAP financial system such that all payments will be expedited effectively
Cairn India
Northern Field Developments
Project Objectives
Schedule – to meet 2009 production target
Quality - to meet international standards and achieve greater than 98% reliability of the process plant in continuous operation
Safety – zero fatalities and a TCRF of less than 0.7
Environmental – to have zero releases and minimal long term environmental impact
Cost - to meet approved budgets
Cairn India
Northern Field Developments
Core Issues
Remote location little or no infrastructure
Low indigenous skill base in Rajasthan but who have high expectations
Water supply currently aim to develop water aquifers at Thumbli but this will be in parallel with construction work
Safety is always a challenge but zero fatalities is a must
Cairn India
Northern Field Developments
Expectations
We expect to have RFQ’s for Mangala developments issued by the end third quarter of 2007. Long lead items by end first quarter 2007
We expect to place all main contracts by end of 2 Q 07
Expected start dates on site as follows :
Civil End 2Q 2007 Mechanical End 3Q2007 E&I End 3Q 2007 Pipeline (infield) End 4Q 2007