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Build I Consolidate I Deliver
Message from the Chairman
Introducing Cairn India
This is Cairn
Producing Assets
Growth Journey
Asset Portfolio
World-class Resource Base
Application of Technology: Many Firsts
Cairn in Numbers
Competitive Advantage
Inclusive Growth Initiatives
HSEQ
Human Capital
1
5
7
9
10
12
15
16
18
19
21
23
24
Content
C a i r n I n d i a L i m i t e d 1C a i r n I n d i a L i m i t e d 1
Message from the Chairman
Our nation is heavily dependent on imports to meet the
growing demand for oil & gas. Every day, we import ~3.4
million barrels of crude oil. Such high dependence on imports
has its own adverse economic consequences; last year, our
nation spent more than US$ 400 million on oil imports per
day. With demand for oil & gas expected to increase further, it
is critical to address energy security concerns.
India has enormous hydrocarbon potential. It is imperative
to boost domestic oil & gas E&P activities. Conducive policy
framework, pricing reforms and application of new technology
and innovation can significantly reduce our dependence on
imports.
It is in this context that Cairn India’s contribution to nation’s
energy security should be evaluated.
In FY2012 crude oil production from the Rajasthan block
touched 175,000 barrels of oil per day. This was made possible
because Cairn India got requisite approval for higher crude
off-take from the Mangala field and the commencement of
production from the Bhagyam, Raageshwari and Saraswati
fields in Rajasthan block.
In less than three years since commencing production, Cairn
India reached a significant milestone of 100 million barrels
cumulative oil production from the Rajasthan operations.
In FY2012 Cairn India carried out a comprehensive review of
the resource potential in the Rajasthan block. The resource
base for the block is now estimated to be 7.3 billion barrels of
oil equivalent in-place – an increase of over 11%.
Navin AgarwalChairman
C a i r n I n d i a L i m i t e d2 C a i r n I n d i a L i m i t e d2
C a i r n I n d i a L i m i t e d 3C a i r n I n d i a L i m i t e d 3
The high exploration potential of the Block is evident from
the fact that more than 100 prospects and leads have been
identified. Ongoing exploration is an integral part of petroleum
operations in any block and also consistent with international
practice.
Cairn India believes that an expeditious execution of such
an exploration programme will create value, enhance energy
security for the nation and deliver significant additional
financial benefits for the Government.
Ravva and Cambay fields continue to create enduring value.
Thus, Cairn India’s world class assets continue to play a
significant role in enhancing our nation’s energy security and
contributing to the national exchequer. In a single year, Cairn
India reduced the nation’s oil import bill by ~US$ 6 billion and
contributed ~US$ 2.4 billion to the national exchequer.
Cairn India’s HSE vision is to be a “safe operator leading the
industry in safety standards and demonstrate top quartile
HSE performance among peers”. We continue to excel in HSE
performance and for the last three years achieved top quartile
performances among the global majors.
Cairn India is committed to the highest standards of CSR. It
is the Company’s conviction that business growth should
empower communities and create value for all stakeholders.
Looking forward, based on the revised estimates, the total
Rajasthan resource base now supports a potential production
of 300,000 barrels of oil per day, subject to approvals from
the Government of India and our joint venture partner, the
Oil and Natural Gas Corporation Limited (ONGC) and further
investments. Such a production level is equivalent to more
than ~35% of India’s current crude oil production, which will
help reduce the annual import bill by over US$ 10 billion and
contribute annual revenue of US$ 5 billion to the Government.
Following initial success in Sri Lanka, Cairn India is further
expanding its international footprint: we have now successfully
concluded a new acquisition in South Africa. This is a step
forward in achieving Cairn India’s strategic goal of growing its
resource base by acquiring exploration and appraisal assets not
only in India but also outside Indian sub-continent.
C a i r n I n d i a L i m i t e d4 C a i r n I n d i a L i m i t e dC a i r n I n d i a L i m i t e d4
C a i r n I n d i a L i m i t e d 5C a i r n I n d i a L i m i t e d 5
Introducing Cairn India
We discover the past to create a new future! We did it by
discovering oil and gas resources in Andhra Pradesh, Gujarat
and Rajasthan in India and in Sri Lanka. We did it by opening up
three frontier basins with over 40 discoveries; 25 in Rajasthan
alone. We want to do more in India and in other parts of the
world.
In a journey towards excellence that began in 1994 with 3,000
bopd operated production, we have now set our eyes and
evaluating the potential to produce 300,000 bopd from the
Rajasthan’s Barmer basin alone.
During this exciting journey, we have taken the Ravva
production to a peak level of 60,000 bopd, discoverd gas in
the west coast of India and delivered to market in 28 months,
made one of the largest onshore discovery in India by finding oil
in Barmer Basin in Rajasthan, built the world's longest heated
pipeline, produced 100 million barrels in just three years from
the Rajasthan block, successfully drilled the first Deepwater
exploration well in Sri Lanka and now farmed in an offshore
block in South Africa to explore.
This amazing journey has enriched our experience and has
been our key differentiator. I would list five and let you read
this brochure to find out more. At Cairn:
• Safetycomesfirstaswefirmlybelieveallliveshave
equal value
• Peopleaddvalueandmakeadifference
• OperationalExcellenceisawayoflife
• Useoftechnologyisactivelyencouraged
• Stakeholdersareourpartners&wewishtoemergeas
partner of choice
Today, this journey of value creation is undertaken in Cairn by
a multicultural talent pool of over 1,500 employees and our
vision is to emerge as the leading independent world class oil
& gas company.
Elango P
C a i r n I n d i a L i m i t e d6
• Become a global, world class E&P company
• Establish a diversified and sustainable portfolio
• Deliver long term value to host Governments, local
communities and stakeholders
• Pioneering energy and enriching lives
• Pioneering spirit, Teamwork, Respect and Ownership
• Innovative thinking and a "can do" attitude
• Commitment towards the communities
• Safeguard the environment
Vision and Core Values
C a i r n I n d i a L i m i t e d6
C a i r n I n d i a L i m i t e d 7
• Oneofthelargestindependentoilandgasexplorationand
production companies in India
• Amongsttop20globalindependentE&Pcompanies
• Marketcapitalisationof~US$12billion*
• TogetherwithitsJVpartnersaccountfor~25percentof
India’s crude oil production
• DiscoveredtheMangalafieldinBarmer,Rajasthanin2004;
largest onshore oil discovery in India in more than two
decades
• Opened3newfrontierbasinswithover40discoveries
including 25 in the Rajasthan block
• Over1billionbarrelsofreserves/resourcesbase
• Builtworld’slongest(~600kms)continuouslyheatedand
insulated pipeline
• Portfolioof10blocks-oneblockinRajasthan,twoonthe
west coast and five on the east coast of India and one each in
SriLankaandSouthAfrica**
• ThreeproducingassetsinIndia:RajasthanandCambayinthe
west and Ravva in the east
*October2012**Farm-inagreementsignedon16August2012;subjecttoSouthAfricanregulatoryapprovals
This isCairn
• Cairn Energy acquired Command Petroleum Ltd in 1996
• Became one of the first UK companies to invest in the Indian oil and gas sector
• CairnEnergysuccessfullyconcludedtheflotationofitsIndianbusinessinJanuary2007;heldthemajorityshareholdingin
Cairn India Limited
• August2010sawtheannouncementofashareholderleveltransactionbetweenCairnEnergyandVedantaResourcesplc
• TheVedantaGroupbecamethepromoterofCairnIndiainDecember2011
History
C a i r n I n d i a L i m i t e d8 C a i r n I n d i a L i m i t e d8
Rajasthan (RJ-ON-90/1)
• Key assets in Rajasthan: The Mangala, Bhagyam and
Aishwariya (MBA) fields
• Block current production: ~175,000 bopd
• Raageshwari: Commenced production in March, 2012;
currently producing ~ 250 bopd
• Bhagyam:StartedproductioninJanuary,2012;producing
at ~ 25,000 bopd
• Saraswati: Began production in May, 2011 currently
producing ~250 bopd
• Throughnextfiscal(2013-14)planstospendUS$1.2bn
Ravva (PKGM-1), Andhra Pradesh
• 17th year of successful operations
• Produced more than double the initial estimates of crude oil
and natural gas
• Example of how technology can play a central role in
accessing new reserves
• Field direct operating cost one of the lowest amongst
Cairn’s peers
• Explorationdrillingplannedfor2013
Cambay (CB/OS-2), Gujarat
• Example of optimal asset utilisation
• Tolling and processing of ONGC’s North Tapti gas
• Application of advanced geophysical tools: Transformed the
block from a predominantly gas field to an oil field
• Advanced reservoir modelling studies resulted in incremental
recoverable volumes from the reservoir zones
• DrillingcampaignexpectedtocommenceinFY2013
Producing Assets
C a i r n I n d i a L i m i t e d 9
C a i r n I n d i a L i m i t e d1 0
1998-2011• Year1998:Ravvasatellitegasdiscoveries
• Year2000:Cambaydiscoveries-Lakshmi,Gauri,Ambe
• LakshmigasfieldDiscovery-to-productionin28months
• Ravva-3,700to35,000bopdin26months
• January2004:Mangala(Rajasthan,India)discovery,consideredtobethelargestonshoreoildiscoveryinIndiain
morethantwodecades
• January2007:CairnIndiaLimitedlistedontheBombayStockExchangeandtheNationalStockExchangeofIndia
• June2008:CairnawardedanexplorationlicencebytheSriLankagovernment
• August2009:CommencedproductionfromtheMangalafieldinRajasthan,India
• October2009:CompletedfinancingarrangementsforUS$1.6billiontofundtheRajasthanproject
• June2010:World’slongest(~600km)continuouslyheatedandinsulatedpipelineoperational
C a i r n I n d i a L i m i t e d1 0
C a i r n I n d i a L i m i t e d 1 1
Growth Journey
2012
C a i r n I n d i a L i m i t e d 1 1
• FY2012:Cairnbooked70mmboeasgrossprovedandprobablereservesfollowingpositiveresultsfrom
theEORpolymerpilotintheRajasthanblock
• June2012:Ravvafieldproducedmorethan249mmbblsofcrudeandsold309bcfofgas;morethan
doubletheinitialestimates
• June2012:Inlessthan3years,100millionbarrelscumulativeproductionfromRajasthan-reducedoil
importsby~US$9billionandcontributed~US$3billiontothenationalexchequer
• August2012:Signedafarm-inagreementwithPetroSAtoexploreintheOrangeBasin,westcoastof
SouthAfrica(subjecttoSouthAfricanregulatoryapprovals)
• October2012:Morethan40discoveriesintotalincluding25inRajasthan
Signed a farm-in agreement with PetroSA
to explore hydrocarbons in August 2012.
The closure of the transaction is subject to
South African regulatory approvals
South Africa block
Asset Portfolio
SOUTH AFRICA
C a i r n I n d i a L i m i t e d12
Operated Block Non-operated Block
KG-ONN-2003/1 block
Further appraisal drilling
in 2013
KG-OSN-2009/3 block
In exploration period
PR-OSN-2004/1 block
In exploration period
MB-DWN-2009/1 block
In exploration period
CB/OS-2 block
Drilling campaign
expected to commence
in FY2013
KG-DWN-98/2 block
In the process of
selling stake to ONGC,
ourJVpartner
PKGM-1 block
Exploration drilling
planned for 2013
Sri Lanka block
Exploration drilling
planned for mid 2013
as part of Phase II
programme
RJ-ON-90/1 block
Continue to assess
existing and new plays
to generate additional
prospects in the block
INDIA
C a i r n I n d i a L i m i t e d 1 3
Rajasthan BlockDiscoveries
BHAGYAM
N-I-NORTH
SHAKTI
SHAKTI NE
N-I
NC WEST OIL & GAS
BHAGYAM SOUTH
MANGALA
MANGALA BARMER HILL
AISHWARIYA
N-E
VANDANA
VIJAYA
GS-V
SARASWATI CREST
SARASWATI
KAAMESHWARI
RAAGESHWARI OIL
SHAHEED TUKARAM OMBALE
RAAGESHWARI DEEP GAS
GUDA
OIL FIELDGAS FIELDOIL DISCOVERYGAS DISCOVERYOIL SHOWSOIL DISCOVERY & GAS SHOWS
DEVELOPMENT AREA 2Awarded November 2008
N-P
DEVELOPMENT AREA 3Awarded December 2008
KAAMESHWARI WEST-6 GAS
KAAMESHWARI WEST-3 GAS
KAAMESHWARI WEST-2 OIL
DEVELOPMENT AREA 1Awarded October 2004
0 5
KILOMETRES
10 20
BHAGYAM
N-I-NORTH
SHAKTI
SHAKTI NE
N-I
NC WEST OIL & GAS
BHAGYAM SOUTH
MANGALA
MANGALA BARMER HILL
AISHWARIYA
N-E
VANDANA
VIJAYA
GS-V
SARASWATI CREST
SARASWATI
KAAMESHWARI
RAAGESHWARI OIL
SHAHEED TUKARAM OMBALE
RAAGESHWARI DEEP GAS
GUDA
OIL FIELDGAS FIELDOIL DISCOVERYGAS DISCOVERYOIL SHOWSOIL DISCOVERY & GAS SHOWS
DEVELOPMENT AREA 2Awarded November 2008
N-P
DEVELOPMENT AREA 3Awarded December 2008
KAAMESHWARI WEST-6 GAS
KAAMESHWARI WEST-3 GAS
KAAMESHWARI WEST-2 OIL
DEVELOPMENT AREA 1Awarded October 2004
0 5
KILOMETRES
10 20
C a i r n I n d i a L i m i t e d1 4
World-classResource Base
• Production potential: 300,000 bopd; represents ~35 per cent of India’s current domestic production
• Reduction in import bill: ~US$ 10 billion annually
• JVinvestments:~US$4.5billion;planstospendUS$1.2billionthroughnextfiscal(2013-14)
Potential from the Rajasthan block
Rajasthan Resource Potential (mm boe)Total
% increase from previous
RJ gross in-place resource
Expected UltimateRecovery
7,27811
1,73924
Note:
*Gross EUR Includes EOR potential of 300 mm boe
MBARS – Mangala, Bhagyam, Aishwariya, Raageshwari, Saraswati
Company upgraded the numbers as on 31 March, 2012
Under Development Future Development & Prospective Resource
2,168 3,100
1,044 (~48%)
165 (~8%)
2,010
Gross in-place
Gross EUR* Gross in-place
Gross EUR Gross in-place
Gross EUR
MB
AR
S*
BH
+19
Dis
c
EX
PLO
RA
TIO
N
530 (~17%)
C a i r n I n d i a L i m i t e d 1 5
Application of Technology:Many Firsts
Drilling with casing technology in Offshore; also set the world
record for deepest 20” casing drilling
Deployment of Rotary steerable assemblies for ERD wells in the
Indian offshore; drilled first ERD well in shallow non consolidated
formations
Implemented Synthetic Based Mud in land projects in India
Executed Rotary steerable assemblies onshore in India
Introduced light weight cement slurries, jetting of the surface
conductors in deep water
Coiled tubing catenary for the first time anywhere in South East
Asia as well as the Middle East
E-line based tractor operations to provide conveyance in high
angle extended reach offshore wells
Retrofit sand screens through tubing on Inflatable plugs without
utilising rig in offshore
Straddle stimulation technology through a tele-coil for
production and injection wells
Straddle packer technology to stimulate a 2800 m horizontal
well in a single intervention
Mechanical Straddle packers to achieve conformance in EOR
wells and initiated polymer injection
Coiled tubing operation from offshore platform without utilising
a dedicated vessel
Drilling Services
Well Services
C a i r n I n d i a L i m i t e d16
Well completion
Under-balance perforation using TCP guns
Installation of the Expandable Sand Screen
(ESS); first in the world
New Wellhead design for hot water
circulation and Artificial Lift
Inflow Control Devices (ICDs) deployment
in Deviated and Extended Reach wells
Sand control screen with integral SSD
design
State of the art high rate Progressive Cavity
Pumps (PCPs) of capacity upto 4,000 bopd
State of the art high rate Electric
Submersible Pumps (ESPs) on large scale
in India
HighrateJetPumpsinstalledincirculation
SSDs as artificial lift method
Enhanced Oil Recovery
Oil
rate
(b
op
d)
Time
Start of Polymer Injection
Water cut
Wat
er c
ut
(%)
Oil rate
Schematic illustrating success of polymer pilot; appreciable decline in
the water-cut following polymer injection with a simultaneous increase
in the oil rate.
Accordingly, the Company has booked 2P reserves of 70 mm boe. Going
forward, post Mangala implementation, we also intend to implement
chemical flooding in Bhagyam and Aishwariya fields. The current
assessment of the EOR resource base is more than 300 mm boe of
incremental recoverable oil from the MBA fields.
RTTS SAFETY JOINT
CROSSOVER
CROSSOVER
7” RTTS PACKER (TOP)
7” RTTS PACKER (BOTTOM)
VERTICAL SHOCK ABSORBER
2-7/8” EUE 6.4# PUP JOINT
2-7/8” DEBRIS SUB
2-7/8” EUE 11.65#PUP JOINT3 3/8” TDF AND DCI HOUSING
TCP SPACER
TCP SPACER
TCP SPACER
TCP GUNS - LOADED 6spf HMX DP
TCP GUNS - LOADED 6spf HMX DP
TCP GUNS- LOADED 18spf RDX BH
3 3/8” TDF AND DCI HOUSING
PORTED BULL PLUG
Innovative pipeline design and operation – use of Skin Effect Heat Management System to heat the pipeline for flow assurance of Rajasthan crude
SEHMS
C a i r n I n d i a L i m i t e d 17
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Cairn in Numbers
In t
ho
usa
nd
bar
rels
India’s Production with Cairn
& its JV partners
India’s Production without
Cairn & its JV partners
Source: BP Statistical Review of World Energy, June 2012
Import Savings per day due to
Cairn & its JV partners’ production
In t
ho
usa
nd
US
$
1100
1000
900
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
800
700
600
500
18500
16500
14500
12500
10500
8500
6500
4500
2500
500
C a i r n I n d i a L i m i t e d1 8
CompetitiveAdvantage
Pioneer in technology application
• Successanoutcomeofinnovativeapplicationof
technology
• World’slongestcontinuouslyheatedandinsulatedpipeline
• Enhancedoilrecoveryinearlystageoffieldlife
Resource Base and Management
• Continualincreaseinresourcebase
• PotentialresourcefortheRajasthanblockestimatedat7.3
bn boe in-place
• Prudentresourcemanagementstrategy;Ravvafield
increased crude oil production from an initial 3,700 bopd to
35,000 bopd in 26 months
Low cost operator
• Capabilitiestooperateassetsonaverycost-effective
basis
• FielddirectoperatingcostfortheRavvablockoneof
the lowest amongst Cairn’s peers
Project execution
• DevelopmentofRajasthanupstreamfacilities
• Constructionoftheworld’slongestheatedpipeline
• Inlessthanthreeyears,productionfromtheRajasthan
block crossed 100 million barrels
• IntheCambayBasin,commencednaturalgasproductionin
28 months following discovery
• Rajasthandiscoverytoproductioninfiveyears;asignificant
achievement given the characteristic of crude oil
Human Capital
• Successstoryaresultofexceptionaltalentand
“Can Do” spirit
• Over1,500“CanDoers”–diverseinternationalworkforce
• Unrelentingcommitment
C a i r n I n d i a L i m i t e d 1 9
C a i r n I n d i a L i m i t e d2 0 C a i r n I n d i a L i m i t e d2 0
VocationalSkilltrainingforemployment
Support Enterprise Development
Cairn Enterprise Centre
• CommittedtothehigheststandardsofCorporateSocialResponsibility(CSR)
• Through3Rsideologyof‘Respect,RelationshipsandResponsibility’makes a difference in its area of operations
• CSRpolicyinlinewiththeGoI’svisionoffosteringinclusivegrowth
Health -MobileHealthVans
Education - Rural Library Programme I Science on Wheels
Economic Development - Dairy Development I Agri-advisory Services
Infrastructure Development - Solar Electrification for rural villages
Inclusive Growth
Initiatives
State-of-the-art ‘not for profit’ initiative for Skill Development
Strong linkage to employment
Cairn Centre of Excellence
Focus areas
C a i r n I n d i a L i m i t e d 2 1
C a i r n I n d i a L i m i t e d2 2
• Environment
Management System
(EMS) as per the ISO-
14001:2004 standard
• Conservation of Energy
• Carbon Management
Strategies
• Bio-diversity
• Global Reporting
Initiative
Environment
• Health, Safety and Environment (HSE) vision is to be a
“safe operator leading the industry in safety standards and
demonstrate top quartile HSE performance among peers”
• Committed to maintain highest HSE standards
• Corporate Responsibility Management System (CRMS) to
support the delivery of commitments
• Set new benchmarks in HSE practices
• Rajasthan, Suvali and Ravva operations certified for ISO
14001: 2004 standards
• Suvali and Ravva also certified for OHSAS 18001: 2007
• Adopted several international standards, processes and
procedures as part of HSE management system
HSEQ
• HSE Management of
the Contractors
• Occupational Health
• Cairn Observation
Programme
• Cairn Incident
Management System
• Installations in Barmer,
JaloreandRadhanpur
have been declared as
‘Prohibited Area’.
• Thar Falcons: Border
Home Guards for
Rajasthan Assets
• TheCB/OS-2blockcompletedmorethan10millionLTI-freehoursofoperations
• Rajasthan Upstream projects completed more than 10 million LTI-free hours of operations
• The Mangala development pipeline recorded more than five million LTI-free hours of operations
• For FY2012, the average uptime of processing and pipeline infrastructure facilities in Rajasthan has been more than 98 per cent;
similartotheCB/OS-2performance
Key performance highlights
Health and Safety Security
• HSEA Audits
• Asset Integrity Assurance
Surveys
• Project HSEQ Reviews
• Completion Assurance
Process
Quality and Assurance
C a i r n I n d i a L i m i t e d 2 3
• Cairn prides in attracting, engaging and developing the best-
in-class talent and setting employees for success in a high
performance and high nurturance environment
• Success story a result of exceptional talent and the “Can-
Do” spirit; over 1,500 such “Can Doers”
• For FY2013 to date completed ~3,559 man-days of training;
2,151 functional competence building, 607 HSE and 801
behavioural training
• Key HR systems: Competency Management System and the
“Can-Do” behavioural competency framework
• Enhancing HR process capacities like Performance
Management and Induction Program
• Firm belief: Passion, participation and support of employees,
Cairn India continues to march ahead in its journey to
create value for the nation
Hea
dco
un
t
Hea
dco
un
t
Hea
dco
un
t
Functional/TechnicalTraining
Data as of FY ending March
HSE
Behavioural Training
IncreasingtalentbaseintheCompanyMan-daysspentindifferenttypesoftrainings
2010 2011 2012
1,352
1,318
1,399
4,329
812
800
HumanCapital
C a i r n I n d i a L i m i t e d2 4
Cairn India Limited3rd & 4th Floors, Vipul Plaza, Sun City Sector 54, Gurgaon 122 002, India+91 124 459 3000
www.cairnindia.com