Cairn India Corporate Overview September S0245BG24

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Merilyn Chapman
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1 1 Cairn India Corporate Overview September 2008

2 2 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 forwardlooking 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 India s expectations with regard thereto or any change in circumstances or events after the date hereof.

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

3 3 Cairn Group Structure Cairn Energy PLC Listed on London Stock Exchange Non-exec Chairman Norman Murray CEO Sir Bill Gammell FD Jann Brown ExpD Dr Mike Watts Other Shareholders Petronas 65% 90% DYAS 22.3% 12.7% 10% Cairn India (CIL) Listed on Bombay & National Stock Exchange Non-exec Chairman Sir Bill Gammell MD&CEO Rahul Dhir ED&CFO Indrajit Banerjee ED&COO Rick Bott Capricorn Energy Unlisted subsidiary CEO Mike Watts FD Jann Brown

7% 10% Cairn India (CIL) Listed on Bombay & National Stock Exchange Non-exec Chairman Sir Bill Gammell MD&CEO

4 4 Cairn India - Highlights Rajasthan on track for first commercial production H Resource potential to support plateau production of 175,000 bopd from Mangala, Bhagyam and Aishwariya (MBA) fields in Rajasthan Resource base of over 800 mm boe net Rajasthan upstream and midstream development estimated costs from 2008 to end 2009 $1.8 billion net Pipeline construction commenced Exploration portfolio provides exposure to net unrisked recoverable resources of > 1 billion boe

800 mm boe net Rajasthan upstream and midstream development estimated costs from 2008 to end 2009 $1.

5 5 Overview of Assets Rajasthan Exploration (RJ-ON-90/1) Cairn (Operator) 100% Rajasthan Development Cairn (Operator) 70% ONGC 30% Total 14 blocks 2 producing: Ravva and CB/OS-2 Operated gross field production 71,082 boepd (working interest 18,764 boepd)* Gross production target expected >=175,000 bopd RJ-ON-90/1 1 under Development Rajasthan block under development Cambay (CB/OS-2) Cairn (Operator) ONGC Tata Gross Production* 15,830 boepd 40% 50% 10% CB/OS-2 RAVVA Gross Production* 55,252 boepd 11 under exploration Including one in Sri lanka 6 operated in India Exploration ongoing in all blocks except CB/OS-2 Ravva Cairn (Operator) 22.5% ONGC 40% Videocon 25% Ravva Oil 12.5% Note : *Q2 08 figures

under development Cambay (CB/OS-2) Cairn (Operator) ONGC Tata Gross Production* 15,830 boepd 40% 50% 10% CB/OS-2 RAVVA Gross Production* 55,252 boepd 11 under exploration

6 6 Rajasthan World Class Resource Base Rajasthan block including Mangala, the largest oil discovery in India since billion STOIIP MBA 2 billion boe under development 1.7 billion boe small and tight field potential Will contribute to >=20% of domestic production (at peak) MBA gross 2P reserves and resources (to 2041) 685 mmbbls (net 479 mmbbls) MBA Chemical EOR potential > 300 mmbbls MBA fields sustainable production N-P Northern Appraisal Area Declaration of Commerciality submitted KAMESHWARI-WEST-3 KAMESHWARI-WEST-2 BHAGYAM Development Area 1 Awarded Oct 2004 N-I-NORTH SHAKT I SHAKTI-NE N-I MBA Mangala, Bhagyam & Aishwariya fields NC WEST OIL & GAS BHAGYAM SOUTH MANGALA MANGALA BARMER HILL AISHWARIYA N-E VIJAYA & VANDANA KAMESHWARI-WEST-6 GS-V-1 SARASWATI CREST SARASWATI KAMESHWARI RAAGESHWARI OIL RAAGESHWARI GAS GUDA Oil Gas

potential > 300 mmbbls MBA fields sustainable production N-P Northern Appraisal Area Declaration of Commerciality submitted KAMESHWARI-WEST-3 KAMESHWARI-WEST-2 BHAGYAM Development Area 1 Awarded Oct

7 7 Rajasthan - 2P Reserves and Resource Estimates Gross STOIIP 2P Gross Reserves/ Resources 2P Net Reserves/ Resources (mmboe) Cairn D&M Cairn D&M Cairn D&M Rajasthan MBA fields Rajasthan MBA EOR 2,054 2, RJ Small Fields Saraswati & Raageshwari Oil RJ Other Fields 1,397 1, Total 3,751 3,478 1,077 1, P 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 pending

755 772 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

8 Mangala - Oil In Place Growth Mangala STOIIP mmbbls 1500 December 2007: Mangala resources update submitted to Director General Hydrocarbons, Government of India P50=82 9 DoC (June 2004) DoC (Aug. 2004) Update P50=95 6 P50=107 1 P50=120 2 FDP (Oct. 2005) IPO Dec 2006 Dec 2007 P50= D Seismic, PHIE, SWE ( 2 Wells ) Additional 2D Seismic, PHIE, SWE ( 7 Wells ) Post STM 3D Seismic, PHIE, SWE ( 7 Wells ) Post STM 3D Seismic, PHIE, SWE, DS Data ( 7 Wells ) Pre STM 3D Seismic, PHIE, SWT, DS Data ( 9 Wells )

2004) Update P50=95 6 P50=107 1 P50=120 2 FDP (Oct.

9 9 Rajasthan - Upstream Target First Oil H Major approvals in place Civil works commenced Major contracts awarded Road construction Pumps (various) Drilling rigs Civil Construction for Mangala Main construction contract for upstream Site grading work at Mangala Processing Terminal (MPT) 90% complete in priority areas First Engineers for Rajasthan Operations recruited

Construction for Mangala Main construction contract for upstream Site grading work at Mangala

10 10 Rajasthan - Midstream Pipeline Pipeline construction commenced June 2008 Shifting of delivery point from Barmer to Gujarat coast approved Completion scheduled for 2009 Construction of sites for heating stations underway Major contracts awarded: 24 and 8 linepipe Pipeline Engineering Procurement & Construction (EPC) contract Heat management system Bhatinda Rajasthan Mangala Kot Panipat DELHI Mathura Gas engine generators Infrastructure accesses ~75% of India s refining capacity through a combination of public sector and private refiners Tankers to Coastal Refinerie s Mundra Salaya Kandla Jamnagar Gujarat Viramgam Koyali Pipeline Route Existing Pipelines Refinery

management system Bhatinda Rajasthan Mangala Kot Panipat DELHI Mathura Gas engine generators Infrastructure accesses ~75% of India s refining capacity through a

11 11 MBA Fields - Enhanced Oil Recovery (EOR) EOR Potential: > 300 mmbbls Enhanced Oil Recovery Objective Extended or enhanced production plateau Reduced water handling Reduced energy requirement 2009: EOR first field pilot production Oil Rate (bopd) FDP Production Level Potential Optimisation Potential Delivery with EOR Plateau Enhancement * Plateau Extension 2011: Approval process for offtake rate : Mangala Field Wide Implementation 10 Years Bhagyam and Aishwariya to follow * Subject to Government Approval

Production Level Potential Optimisation Potential Delivery with EOR Plateau Enhancement * Plateau Extension 2011: Approval

12 Exploration Overview Re-evaluation of prospects and leads portfolio, plus new blocks has resulted in a cumulative un risked prospective resource of >1 billion boe NELP VII: award pending RJ-ONN-2003/1 1 well CB-ONN-2002/1 Drilled 1 st well, 2 wells to follow GS-OSN-2003/1 Entered 2 nd Phase RJ-ON-90/1 Up to 3 Wells KK-DWN-2004/ km 2D INDIA VN-ONN-2003/1 500 km 2D Seismic/ Q3 INDIA RAVVA 1 well drilled KG-DWN-98/2 1-3 Wells planned GV-ONN-2003/1 550 km 2D Seismic/ Q4 GV-ONN-2002/1 1 Well KG-ONN-2003/1 Acquired 500 km 2D Seismic; 255km2 3D PR-OSN-2004/1 OPERATED NON-OPERATED SL Block awarded SRI LANKA Acquired 3100km 2D Seismic Cairn India / Capricorn Blocks Cairn India Limited Blocks

VN-ONN-2003/1 500 km 2D Seismic/ Q3 INDIA RAVVA 1 well drilled KG-DWN-98/2 1-3 Wells planned GV-ONN-2003/1 550 km 2D Seismic/ Q4 GV-ONN-2002/1 1 Well KG-ONN-2003/1 Acquired 500 km

13 13 Financial Highlights

14 14 Financial Highlights 2007/08 Revenue in $ MM ** Financial Summary $120 $100 $80 $60 $40 $20 $ 62 $19 $41 $2 $67 $10 $17 $3 $3 $54 $54 $74 $76 $29 $37 $10 $85 $19 $3 $105 $30 $63 $67 $8 WI based boepd Average Realised Price Gas per mscf ($) Oil per bbl ($) Per boe ($) Q , Q , Q , Q , Q , Q , $0 Q Q Q Q Q Q Cash flow from operations Tax Cash Cost Production Cost per boe * Conversion Rate: Q1 07 Rs.44.1; Q2 07 Rs.41.3; Q3 07 Rs ; Q4 07 Rs ; Q1 08 Rs.39.82; Q2 08 Production cost /boe are based on working interest ** Includes other income $ 8.2m for Q1 07, $ 8.5 m for Q2 07, $ 8.6m for Q3 07, $ 6.8m for Q4 07, $ 5.5m for Q1 08 & $ 7.8m for Q2 08 Cash flow operations worked out as PAT prior to non-cash expenses( non-cash employee cost,dd&a, exploration cost and deferred tax).

11 Q1 08 18,023 4.22 100.01 74.58 Q2 08 18,764 4.35 128.23 95.19 $0 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Cash flow from operations Tax Cash Cost Production Cost per boe ($) @ 6.10 4.60 5.

15 15 Gross Rajasthan Development Cost Summary Cumulative Costs till 2007 Particulars USD MM Total ( ) Upstream Total Pipeline Total (Upstream+Pipeline) Cairn 1, ,587 1,811

( 2008 + 2009) 286 22 308 216 Upstream Total

16 16 Sources of Funds ( ) Existing debt facility Particulars Cash availability as at 1 st Jan 2008 Underwriting commitment for additional debt facility USD MM Plus : Cash generation from operations Note: The Company has placed equity with Petronas & Oriental Global Tamarind Fund for USD 625 mm. The object of this mobilisation is to provide financial flexibility for future investments

from operations Note: The Company has placed equity with Petronas & Oriental Global Tamarind Fund

17 17 Summary First oil from Mangala on schedule for H Rajasthan growing resource base with long term growth potential MBA potential plateau gross production 175,000 bopd EOR for MBA : Potential for plateau extension and enhancement Pipeline construction commenced Shifting of delivery point from Barmer to Gujarat coast approved Further exploration and growth opportunities Well placed for future growth

plateau extension and enhancement Pipeline construction commenced Shifting of delivery point from

2015 Cairn India Limited. Cairn India Limited Corporate Presentation November 2015

2015 Cairn India Limited. Cairn India Limited Corporate Presentation November 2015 2015 Cairn India Limited Cairn India Limited Corporate Presentation November 2015 2 Disclaimer This material contains forward-looking statements regarding Cairn India and its affiliates, its corporate