PRESENTATION BY :DHEERAJ MEHTA

CAIRN ENERGYCairn Energy plc is an independent Scottish oil and gas exploration and production company headquartered in Edinburgh. The company was founded in 1981 by Sir Bill Gammell, formerinternational Rugby player.It has operational interests in Albania, Bangladesh, Greenland, Nepal and Tunisia and produces around 33,000 barrels of oil equivalent per day. It previously had major activities in India, where it made more than 20 discoveries in Rajasthan, including a major oil discovery at Mangala; these were sold through the spin-off of its Indian subsidiary Cairn India to Vedanta Resources in December 2010.

CAIRN INDIA

In 2006, Cairn spun off its production interests in Western and Eastern India into a separate company called Cairn India Limited. Acreage held by its subsidiary Cairn India included the Mangla area in Rajasthan, which is thought to contain up to 1 billion barrels (160×106 m3) of recoverable reserves and came on stream in 2009.In September 2010, Vedanta Resources said that it was interested in buying a controlling stake in Cairn India. Vedanta Resources acquired a 58.5% stake in Cairn India on 8 December 2011, for $8.67 billion.Navin Agarwal is the new chairman of Cairn India.

Cairn India limited vision

“To be a best-in-class E&P Company with a balanced portfolio delivering value through superior business performance and partnerships”

Cairn India limited mission

• To become a global, world-class E&P company.

• To establish a diversified and sustainable portfolio.

• To deliver long-term value to host Governments, Local Communities and all Stakeholders.

CAIRN STRATEGYBelieve that building strong, open and lasting Relationships with stakeholders is essential for improving transparency, enhancing trust, maintaining ‘social license to operate’: relationships with employees, communities, jointventure partners, governments or regulators. Seeking win-win relationships with all stakeholders is one of cairn guidingprinciples. Understanding stakeholders’ needs and concerns is vital for cairn. We regularly interact with district administration officials, as well as the generalpublic and community leaders, to plan and implementlong-term socio-economicdevelopment measures.

Unlocking RJ Potential

Execution Focus

Accelerating Exploration

Production Growth

Top Quartile HSE Standards

• Largest ever Capex Program • Reduce Discovery to Delivery Cycle Time • Expand Infrastructure

• RJ, Ravva & Others • International Activity

• Sustained Volume Growth • Top Quartile Cost • Leveraging technology to improve recovery

Among Top 10 E&P Companies World-wide in HSE Performance

Level of strategies

• Corporate level strategies (CLS)-Cairn India board of directors.

• Strategies business unit(SBU)-management committees in cairn India

• Functional level strategies (FLS)

Corporate level strategies (CLS)-Cairn India board of directors

1. Mr. Navin Agarwal Chairman, Non-Executive Director2. Mr. Tarun Jain N on-Executive Director3. Ms. Priya Agarwal N on-Executive Director4. Mr. Aman Mehta N on-Executive Independent Director5. Mr. Naresh Chandra N on-Executive Independent Director6. Dr. Omkar Goswami N on-Executive Independent Director7. Mr. Edward Story N on-Executive Independent Director8. Mr. P Elango Interim CEO & Whole Time Director

Management Committees at Cairn India

• Executive Committee• Central Committee for Stakeholder

Relations• Contracts Committee• Risk Management Committee• Ethics Committee• Grievance Committee• People Panel• Operating Unit Steering Committee• Sustainability Steering Committee

S W

O T

1. Excellent operations from Rajasthan and Mangala Processing terminal, Mangala field is considered to be largest onshore hydrocarbon find in India2. Robust system and very innovative technologies in place3. Ranked as world's fastest growing energy company4. Strong focus on CSR activities5. Strong brand name and reputation

1. Increasing cost due of raw materials2. Strong government regulations andpolicies means slow operational efficiency

1. India's growing energy requirements2. Buyout of Cairn India by Vedanta resources3. Heavy industrialization causing an increase in demand for fuel4.Demand-Supply gap in India

1.Possibilities of reduction in subsidies on natural gas by government of India causing a fall in demand2.Economic instability and fluctuations in India's policies

Pestel analysis

P• Govt. production sharing agreement.• Subjected to risky geopolitical violence.

E• Cairn enjoy taxbreaks and favourable corporate conditions.• Inability to determine prices

S• The change in lifestyle indirectly affects Cairn.• Not as effective in their CSR policies and

pollution control

T• Innovativeexploratory and drilling technology.• Shifting attitude Towards Renewable

energy.

E• Oil discovery inpreviously unexploited territories.• Activities result incarbon emissions.

L• legal limitations andembargoes on their activities.• Policy uncertaintiesand government breach of contract.

PORTAL FIVE FORCES

Main competitors for cairn India limited

• Adani Welspun Exploration Limited

• Dolphin Offshore Enterprises (India) Limited

• Great Eastern Energy Corporation Ltd.

• GVK Oil & Gas Ltd.• Oil and Natural Gas Corporation

Limited• Oil India Limited• Reliance India limited• BG Group• Asian Oilfield Services Ltd.• Aban Offshore Ltd.• Alpha Geo (India) Ltd

Bargaining power of suppliers

In case of Cairn Energy Plc. the suppliers consists of countries where the oil wells are located as well as other organizations that develop various machinery that are used by the company in oil and gas explorations. The bargaining power of suppliers in Cairn Energy Plc. case can be said to b every high since oil and gas is only available in selected country. In addition, the bidding system that is usually adopted by most of countries that have oil and gas reserves is a good indicator of the high bargaining power that the suppliers have as the countries have the power to decide which company to award the exploration tender to.

Bargaining power of BuyersMumbai: State-owned Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL) have shown interest in buying crude oil from Cairn India Ltd . Cairn sells crude only to two Gujarat-based private refiners —Reliance Industries Ltd in Jamnagar and Essar Oil Ltd in Vadinar. A 590km pipeline moves crude oil from Cairn’s Barmer fields in Rajasthan to Salaya in Jamnagar district. With a new 79km pipeline connecting Salaya to a terminal in the Arabian Sea close to commissioning, Cairn is seeking new customers to supply crude through the sea route. Once the pipeline from Cairn’s Barmer field in Rajasthan reaches the coastal terminal in Gujarat, these state-owned firms could source crude from it. Selling to the state-run marketers could help Cairn potentially improve its earnings over time.

Substitutes of oil and natural gas

a)Unconventional resources such as shale gas and CBM, b)Renewable energy Resources such as-1) Wind energy 2) Hydroelectric power3) Solar energy 4) Tidal energy 5) Geo-Thermal energyc)Nuclear energy

New entrants in oil and gas industry

Low, Despite the attractiveness of oil and gas industry in India, the threat of new entrant is very low mainly because of two reasons High capital investment requirement and Economies of scale. Capital investment requirement in oil & gas industry is substantial as the investment requirement for setting up the production facilities, development of oil field requires specific technology and skilled labour. As a result of specific labour and resources requirement the entry barriers are high. Also the cost of drilling, services on the oil field and requirement of scientific research and material is also substantial