NEW DELHI, India, October 21, 2014 /PRNewswire/ --
The following release was issued by Sesa Sterlite Limited's subsidiary Cairn India Limited.
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Cairn India Limited
Second Quarter Financial Results for the period ended 30th September, 2014
Cairn India Limited (CIL), the fastest growing energy company* in the world, is pleased to announce its second quarter financial results for the period ending 30th September, 2014.
(Logo: http://photos.prnewswire.com/prnh/20140117/663814 )
Highlights
Financial
Business
* Source: 2013 Platts Top 250 Global Energy Rankings
Mr. Sudhir Mathur, CFO and Interim CEO of Cairn India commented:
"In light of the renewed optimism under the new government, we view the recent regulatory announcements as a welcome step for the Oil & Gas industry. In this time of lower crude prices, our strong balance sheet and top decile low cost profile distinctly positions us amongst global peers.
Considering that each of our development projects is on track, we are confident of achieving our targeted volume growth of 7 to 10% over the next 3 years. The continued success of our exploration and appraisal campaign will help achieve targeted 150% reserve replacement ratio in the same period."
Financial Review
INR Crore Q2 FY15 Q2 FY14 y-o-y (%) Q1 FY15 q-o-q (%)
Revenue 3,982 4,650 (14%) 4,483 (11%)
EBITDA 2,701 3,619 (25%) 3,120 (13%)
Margin (%) 68% 78% 70%
PAT 2,278 3,385 (33%) 1,093 108%
Margin (%) 57% 73% 24%
EPS (INR) - Diluted 12.10 17.68 (32%) 5.76 110%
Cash EPS (INR) 13.77 15.98 (14%) 18.17 (24%)
US$ million Q2 FY15 Q2 FY14 y-o-y (%) Q1 FY15 q-o-q (%)
Revenue 657 749 (12%) 750 (12%)
EBITDA 446 583 (24%) 522 (15%)
Margin (%) 68% 78% 70%
PAT 376 545 (31%) 183 106%
Margin (%) 57% 73% 24%
EPS (US$) - Diluted 0.20 0.28 (30%) 0.10 107%
Cash EPS (US$) 0.23 0.26 (12%) 0.30 (25%)
H1 FY15 H1 FY14 y-o-y H1 FY15 H1 FY14 y-o-y
INR Crore (%) US$ million (%)
Revenue 8,465 8,713 (3%) 1,406 1,477 (5%)
EBITDA 5,821 6,668 (13%) 967 1,130 (14%)
Margin (%) 69% 77% 69% 77%
PAT 3,371 6,512 (48%) 560 1,104 (49%)
Margin (%) 40% 75% 40% 75%
EPS (INR/US$) -
Diluted 17.86 34.04 (48%) 0.30 0.58 (49%)
Cash EPS (INR/US$) 31.96 29.50 8% 0.53 0.50 6%
Net Revenue for Q2 FY15, post profit sharing with the Government of India and the royalty expense in the Rajasthan block, was INR 3,982 crore down 14% YoY on account of lower volumes due to planned maintenance shutdown, realizations impacted by the softer global crude prices and higher profit petroleum tranche in Rajasthan. During the quarter, total profit petroleum was INR 1,322 crore (US$ 218 million) including INR 1,133 crore (US$ 187 million) for Rajasthan block. For the quarter, royalty for the RJ block was INR 908 crore (US$ 149 million).
Earnings before Interest, Tax, Depreciation and Amortisation was INR 2,701 crore for the quarter compared to INR 3,619 crore in the same period previous year impacted by increased facility and well maintenance costs related to the shutdown at Rajasthan, and exploration costs. This was in addition to lower volumes and softer realizations. The EBITDA margins came in lower at 68%. Our operating costs at Rajasthan continue to remain in single digits at USD 6.3 per barrel.
Depreciation and Depletion charge for the quarter was higher at INR 703 crore, compared to INR 547 crore in Q2 fiscal 2014, as a result of change in method of depreciation adopted in the previous quarter and an increase in asset capitalization. Profit after tax for the quarter stood at INR 2,278 crore with a Cash EPS of INR 13.77, adding to a strong cash position.
Under the ongoing USD 3 billion net capex program, 40% of which was earmarked for fiscal 2015, we invested USD 258 million net in the quarter. Gross cumulative capex on development in RJ stood at ~USD 4.7 billion (89% in DA1 and 11% in DA2) and on exploration at ~USD 1 billion.
During Q2, we disbursed the balance USD 450 million as a part of USD 1.25 billion loan facility extended to a Vedanta Group Company in the previous quarter. We ended the quarter with strong cash and cash equivalents position of ~INR 16,029 crore.
Operational Activity across the Portfolio
Asset Basin Exploration Development Production
India
1 RJ-ON-90/1 Barmer Y Y Y
2 CB/OS-2 Cambay Y Y
3 KG-ONN-2003/1 KG Onshore Y Y
4 KG-OSN-2009/3 KG Offshore Y
5 PKGM-1 (Ravva) KG Offshore Y Y Y
6 MB-DWN-2009/1 Mumbai Offshore Y
7 PR-OSN-2004/1 Palar - Pennar Y
International
Mannar, Sri
8 SL-2007-01-001 Lanka Y
Orange, South
9 Block 1 Africa Y
Exploration Review
Area
Cairn India's
Asset Basin Interest (%) JV partners (in km[2])
India
1 RJ-ON-90/1 Barmer 70% ONGC 3,111
ONGC, Tata
2 CB/OS-2 Cambay 40% Petrodyne 207
ONGC, Ravva Oil,
3 PKGM-1 (Ravva) KG Offshore 22.5% Videocon 331
4 KG-ONN-2003/1 KG Onshore 49% ONGC 315
5 KG-OSN-2009/3 KG Offshore 100% - 1,988
6 MB-DWN-2009/1 Mumbai Offshore 100% - 2,961
ONGC, Tata
7 PR-OSN-2004/1 Palar-Pennar 35% Petrodyne 9,417
International
Mannar, Sri
8 SL 2007-01-001 Lanka 100% - 3,000
Orange, South
9 Block 1 Africa 60% Petro SA 19,898
Total 41,228
During the quarter, we made significant advancements in our exploration and appraisal activities paving the way for future growth opportunities.
Rajasthan (Block RJ-ON-90/1)
We have made three new discoveries in this quarter, enhancing the discovered resource base in the Block. Since the re-commencement of exploration in the Rajasthan block in March 2013, we have established 1.4 bn boe of hydrocarbons in-place to date relative to our 3 year drill-out target of 3 bn boe. An additional ~0.6 bn boe have been discovered and are yet to be tested. To date, as a result of the 2013-16 exploration campaign, we have announced 11 new discoveries, taking the total number of discoveries in the block to 36.
Through the remainder of the financial year, activity continues to be focused upon appraisal of the Raag Deep Gas field and key oil discoveries at Raageshwari and Guda, DP, NL and V&V, flow testing the backlog of exploration discoveries made to date and drilling high impact exploration prospects. Through these activities we anticipate adding significant resources to our inventory by end FY 2015.
In addition, we are looking for every opportunity to drill early horizontal wells in order to accelerate 2C to 1P conversion.
Our 3D seismic acquisition program continues at pace in Rajasthan, with ~590 km[2]data acquired as of 30th September, 2014. The current emphasis is on improving imaging across the Guda and Guda South areas, and in the vicinity of the Raag Deep Gas field, in order to aid gas development and appraisal activities. Future programs will focus upon identification of additional prospects that will continue to replenish the prospect inventory.
A new pay zone in the Dharvi Dungar formation was encountered in the well Aishwariya-46 which flowed oil @ 182 bopd from from the Dharvi Dungar formation, making it the 36th Discovery in RJ-ON-90/1. This well represents the first Dharvi Dungar oil discovery in the northern part of Barmer basin.
Exploration well DP-1 drilled during Q4 FY14 was tested during this quarter. The well encountered a 70m gross oil bearing interval in the Barmer Hill Formation. The well has been fracced and tested, flowing oil @ 120 bopd. The DP structure is located in Development Area 1, 6 km NW of Mangala field and has an aerial extent of 21 km2. This is a significant discovery, in view of its proximity to the Mangala oil field and fast track appraisal is planned to facilitate rapid commercialization of this discovery.
During Q2 FY15, we have drilled four exploration and seven appraisal wells.
In all, over 50% of the drilled wells await testing, helping us remain on track to achieve the targeted resource base.
Ravva (Block PKGM-1)
Well RX-11, which targeted over pressured Lower Oligocene sands within LO110 exploration prospect below the Ravva field, was completed in July 2014. The well encountered gas-bearing sands in the Early Miocene but failed to encounter reservoir quality sands at the primary target level. Evaluation of the potential of the gas-bearing Early Miocene reservoir sands across the block is underway.
KG Onshore (Block KG-ONN-2003/1)
The Declaration of Commerciality for the Nagayalanka discovery was approved by the Management Committee on 9th July 2014. Operatorship for development activities has been transferred to ONGC as per the PSC and preparation of the Development Plan is underway.
KG Offshore (Block KG-OSN-2009/3)
Processing of the recently acquired 3D seismic survey across the block is complete and delivery of fast track volume is expected soon. Planning is underway for an additional 3D & 2D seismic program in the remaining area, with acquisition expected to begin January 2015. Exploration is focused upon building a high quality prospect inventory across multiple play types. Planning for a four well drilling campaign is currently underway and site surveys are expected to be completed mid-2015.
Mumbai Offshore (Block MB-DWN-2009/1)
The processing of the recently acquired 2,128 line km of 2D broadband seismic has commenced during the quarter and we are evaluating options for acquisition of 3D seismic data.
Palar-Pennar (Block PR-OSN-2004/1)
Excusable delay was granted in August 2014 by MoPNG and further extension of Exploration Phase-1 is pending with the regulators. Planning for three well drilling programs is underway and reprocessing of the vintage 503km[2] Palar 3D seismic is planned for Q3 FY15.
Sri Lanka (Block SL 2007-01-001)
Commercialization of the gas discoveries made on the block continues to present challenges. Discussions are still in progress with the Sri Lankan Government regarding commercial terms while we continue to assess remaining exploration opportunities that could ultimately add to the discovered resource base.
South Africa (Block 1)
Interpretation of the newly acquired 3D seismic data continues and a robust prospect inventory is now identified. Candidate prospects for exploratory drilling are currently being high-graded and technically matured together with the JV partner, PetroSA. Focus continues to remain on the outboard portion of the block which is interpreted as oil prone. Environmental clearances and other planning activities are under process to enable exploration drilling by early 2016.
Operational Review
Q2 Q2 y-o-y Q1 q-o-q H1 H1 y-o-y
Average Daily
Production Units FY15 FY14 (%) FY15 (%) FY15 FY14 (%)
Total Gross
operated* Boepd 204,128 221,190 (8%) 226,597 (10%) 215,301 220,884 (3%)
Gross operated Boepd 194,508 213,299 (9%) 217,869 (11%) 206,125 212,873 (3%)
Oil Bopd 190,557 203,720 (6%) 209,846 (9%) 200,148 203,498 (2%)
Gas Mmscfd 24 57 (59%) 48 (51%) 36 56 (36%)
Working Interest Boepd 123,178 132,862 (7%) 137,907 (11%) 130,502 132,477 (1%)
* Includes internal gas consumption
Q2 Q2 y-o-y Q1 q-o-q H1 H1 y-o-y
Average Price
Realization Units FY15 FY14 (%) FY15 (%) FY15 FY14 (%)
Cairn India US$/boe 91.3 95.2 (4%) 97.0 (6%) 94.3 94.3 -
Oil US$/bbl 92.1 96.7 (5%) 98.2 (6%) 95.3 95.7(0.4%)
Gas US$/mscf 7.3 5.6 30% 5.6 22% 6.5 5.4 20%
Participating
Producing Assets Region Operator Interest
1 RJ-ON-90/1 North Western India Cairn India 70%
2 PKGM-1 (Ravva) Eastern India Cairn India 22.5%
3 CB/OS-2 Western India Cairn India 40%
Rajasthan (Block RJ-ON-90/1)
Q2 Q2 y-o-y Q1 q-o-q H1 H1 y-o-y
Average Daily
Production Units FY15 FY14 (%) FY15 (%) FY15 FY14 (%)
Total Gross
operated* Boepd 170,508 182,008 (6%) 190,879 (11%) 180,638 181,060 (0%)
Gross operated Boepd 163,262 175,478 (7%) 183,164 (11%) 173,158 174,503 (1%)
Oil Bopd 161,690 174,245 (7%) 181,894 (11%) 171,737 173,549 (1%)
Gas Mmscfd 9 7 28% 8 24% 9 6 49%
Gross DA 1 Boepd 134,539 151,893 (11%) 153,467 (12%) 143,951 151,749 (5%)
Gross DA 2 Boepd 28,723 23,585 22% 29,696 (3%) 29,207 22,754 28%
Gross DA 3 Boepd - - - - - - -
Working Interest Boepd 114,283 122,835 (7%) 128,215 (11%) 121,211 122,152 (1%)
* Includes internal gas consumption
Operations and Development
The Rajasthan Block produced ~14.9 mm barrels of oil equivalent in the quarter, achieving a cumulative total production of ~249 mmboe until the end of Q2 FY15, with normalized facility uptime at 98.3%.
We successfully completed the planned shutdown announced in Q1, ahead of schedule, for routine operational and statutory maintenance activity at Mangala Processing Terminal. Though the shutdown resulted in lower production at 163,262 boepd, it has helped improve plant reliability and strengthen operational safety. We are back to normal production levels after the shutdown and excluding the shutdown period, Q2 production was comparable to Q1. We utilized the opportunity presented by the shutdown to create tie-ins for future development projects.
During the quarter, an average of 160,560 bopd, amounting to ~14.8 mmbbls was sold to PSU and private refiners, across India. Gas sales during the quarter were ~9 mmscfd, amounting to total sales of ~0.9 Bscf. The average crude price realisation for the quarter was US$ 91.5/bbl, an implied 10.2% discount to Dated Brent, and was lower than last year same period due to softening of crude oil prices globally.
The overall operating expense in Rajasthan was higher at US$ 6.3/bbl on account of increased well and facility maintenance costs during the planned shutdown.
In the core MBA reservoirs, focus continues on creation of infrastructure projects and implementation of EOR processes. Commissioning of certain sections of surface facilities has commenced and pipeline connectivity is underway in the Mangala field polymer flood EOR project. Two high performance rigs continue drilling additional wells required for the project, as per schedule. All the major equipment is already erected in the central polymer facility and integration with the rest of the systems is ongoing. The project continues to remain on schedule for first injection of polymer in Q4 FY15. In Mangala field itself our ASP pilot has been very successful. Initial results are better than expectations with water cut and oil trends suggesting better mobilization of un-swept oil. We expect the pilot to be concluded by Q4 FY15.
In the Bhagyam field, the FDP for full field polymer flood EOR is currently being reviewed by our JV partner. We also received OC approval to increase volumes at Aishwariya field up to 30,000 boepd. Plans are being prepared to develop Aishwariya further through infill drilling programs, facility augmentation and eventual EOR. Work on a revised FDP for Aishwariya has already started.
Within the MPT and elsewhere, various infrastructure projects are proceeding as per plan. Grid power is now available as a backup option to increase reliability and facility uptime. We are in the process of upgrading our facilities to increase fluid handling capacities to help improve reservoir performance. The first phase of debottlenecking for handling 800,000 barrels liquid per day, was scheduled for completion in Q3FY15, but has been commissioned ahead of schedule, in Q2FY15. We plan on increasing the capacity to 1 million barrels per day in the next phase.
Salaya-Bhogat Pipeline commissioning is in final stages with the terminal readiness in Q3 FY15. Adding sea routes for crude evacuation would give us access to significant additional refining capacity in India.
With focus continuing on getting more satellite fields into production, we have five such fields contributing to production volumes at the end of the quarter. New fields, NI and Guda, have commenced production during the quarter as planned, contributing to volumes in DA 2 and DA 1 respectively. Initial well performance of NI field has shown a superior performance to what was envisaged earlier and additional wells are being planned to capture further upside potential. In H2 FY15, additional wells from NI and Guda, as well as new fields NE and Tukaram, are expected to be brought into production.
In Barmer Hill Formation we continued our focussed fraccing program across Mangala and Aishwariya Barmer Hill fields, leveraging the existing infrastructure to monetize the tight oil resources. In the North of the basin we are targeting ~2bn barrels of hydrocarbons in place spread across Mangala and Aishwariya Barmer Hill, DP-1 and Vijaya & Vandana fields. During this quarter, we have drilled and fracced 4 vertical wells which have been put under long term production testing. We successfully undertook a total of 20 frac jobs during the period and managed to execute some of the larger frac jobs in the country. We have also drilled 2 horizontal wells during the quarter with lateral lengths of 800-850m and have completed multi-stage fraccing of the first well. Initial production rates are in line with expectations and encouraging for tight oil development in the block.
Gas development continues to remain on track with work on execution planning ongoing. The capacity of the planned gas infrastructure considers the significant multi tcf gas resource base expected to be found in the block through the ongoing exploration program. In this quarter Front End Engineering Design has been completed. Tenders have also been floated in the market for buying and laying 30" gas pipeline, constructing the gas terminal and availing rig and frac services. Raageshwari Deep Gas field development plan to increase gas production from the RDG field to ~100 mmscfd by FY17 has been approved by JV partner and submitted to MC. We are on target to double gas production through existing gas pipeline by Q4 FY15.
Ravva (Block PKGM-1)
Q2 Q2 y-o-y Q1 q-o-q H1 H1 y-o-y
Average Daily
Production Units FY15 FY14 (%) FY15 (%) FY15 FY14 (%)
Total Gross
operated* Boepd 23,187 30,372 (24%) 25,161 (8%) 24,169 29,934 (19%)
Gross operated Boepd 20,596 29,151 (29%) 23,940 (14%) 22,259 28,704 (22%)
Oil Bopd 20,491 22,631 (9%) 19,548 5% 20,022 22,255 (10%)
Gas Mmscfd 1 39 (98%) 26 (98%) 13 39 (65%)
Working Interest Boepd 4,634 6,559 (29%) 5,386 (14%) 5,008 6,458 (22%)
* Includes internal gas consumption
Operations and Development
The Ravva block continues to be an excellent example of good reservoir management, having produced more than 264 mmbls of crude and over 332 billion cubic feet of gas since inception in 1994, far greater than the initial resource estimates at the time of the PSC award.
During the quarter, the block produced 20,491 bopd of crude supported by volumes from three new 4D infill wells, with a facility uptime of 99.6%. A fourth new well was completed and brought online at the end of the quarter. The 12 well infill drilling campaign, based on 4D seismic which commenced in March 2014, was delayed during the quarter as a result of unfavourable weather, preventing rig movement between platforms.
Since 4th July 2014, gas sales have been suspended at the block on account of one of the customers undertaking a major unplanned maintenance activity within their Andhra Pradesh pipeline network. Hence, overall production at Ravva was lower at 20,596 boepd despite sequentially positive oil contribution. However, as the infill drilling campaign resumes activity, production is expected to improve and help enhance the overall field recovery.
During the quarter, ~2.0 mmbbls of crude and 58 million scf of gas were sold, averaging 21,360 bopd of crude oil and ~0.6 mmscfd of gas, respectively.
Cambay (Block CB/OS-2)
Q2 Q2 y-o-y Q1 q-o-q H1 H1 y-o-y
Average Daily
Production Units FY15 FY14 (%) FY15 (%) FY15 FY14 (%)
Total Gross
operated* Boepd 10,433 8,810 18% 10,557 (1%) 10,494 9,890 6%
Gross operated Boepd 10,651 8,671 23% 10,765 (1%) 10,708 9,666 11%
Oil Bopd 8,376 6,844 22% 8,404 (0.3%) 8,390 7,694 9%
Gas Mmscfd 14 11 25% 14 (4%) 14 12 18%
Working Interest Boepd 4,260 3,468 23% 4,306 (1%) 4,283 3,866 11%
* Includes internal gas consumption
Operations and Development
Since inception in 2002, the Cambay block has produced ~20 mmbbls of crude and over 221 billion cubic feet of gas.
During the quarter, the block produced 10,651 boepd, an increase of 23% yoy with a plant uptime of 99.8%. Production was higher on account of successful well intervention measures undertaken in the last quarter of the previous FY. We are planning to construct a crude oil storage tank with a capacity of ~10,000 barrels as a part of storage capacity enhancement at Suvali onshore terminal. During the quarter, ~0.6 mmbbls of crude and ~1.3 billion scf of gas were sold averaging 6,771 bopd of crude oil and ~14 mmscfd of gas, respectively. A total of ~0.6 mmbbls of crude oil was evacuated through sea route.
Corporate and Regulatory Developments
Following the Annual General Meeting held in July 2014, the Company paid a final dividend of INR 6.5 per equity share to shareholders, taking the FY 2013-14 total dividend to INR12.5 per share culminating in the payout ratio of 22.46% including dividend distribution tax.
Further to this, the Board of Directors declared an interim cash dividend of INR 5 per equity share INR 10 face value on 17 September 2014. The dividend was paid out to shareholders on 26 September 2014, resulting in an outflow of INR 1,097 crore which includes the dividend distribution tax of INR 159 crore.
The Board in its meeting held on 21st October, 2014 has appointed Mr. Mayank Ashar as the Managing Director and Chief Executive Officer of the Company with effect from 17th November, 2014, subject to approval of shareholders and other regulatory approvals, as applicable. Details have been released in the separate communication earlier in the day.
On the regulatory front, in a recent announcement dated 18th October, 2014, the Government has introduced numerous policy measures which will improvise PSC administration and execution issues under the same. This is expected to help in monetization of some of the pending discoveries. The Government also approved the new domestic gas pricing policy which provides for a revised formula with an option of bi-annual and annual price revision.
In August MoPNG revealed the proposed new contractual framework for the Indian Upstream Oil & Gas sector which included an outline of the revenue sharing regime for which we provided the requisite inputs.
During August, Cairn India was awarded two prestigious awards; the Golden Peacock Award for Business Excellence 2014 and the Business World Award for India's Fastest Growing Company in the middleweight category. Both awards demonstrate the achievements and success of Cairn India as we continue to build and strengthen our business.
Talent and Technology Development
During FY15, we are focused on strengthening our technical capabilities within tight oil development, EOR operations, production optimization and civil engineering. Besides acquiring talent in HSE, Projects, and other functional areas, we also plan to complete the hiring of graduate trainees, from leading international and Indian institutions, keeping gender diversity as a priority. We remain committed to attract and retain global talent to meet our business requirements and ensure continued success.
Health, Safety, Environment and Sustainability
We are ranked in the Top 10 oil and gas companies in the world in safety performance as per Oil & Gas producers (OGP) report 2014. We remain committed to meet the highest international standards of HSE.
In Q2 FY15, we continued to maintain excellent safety across our asset operations and project construction activities with no major incidents even during the planned shutdown at the Rajasthan block. LTI frequency (Lost Time Incidents per million man hours) for Q2 FY15 stands at 0.42, driven by incidents related to drilling and petroleum engineering activities due to insufficient controls by contractors. We have extended the Know Your Hazard campaign, a program to recognize hazards at work, to these activities to prevent recurrence of such incidents.
During the quarter, our pipeline operations have received the Oil India Safety Directorate (OISD) award for "Best Near Miss Reporting Organization" for the year 2012-13.
Corporate Social Responsibility
In Q2 FY 2015, we strengthened our existing programs across asset and governance mechanism. The major highlights include completion of construction of Cairn Center of Excellence (CCoE). The first batch is expected to commence from November 2014. State-of-the art equipment has been sourced for the centre and marketing and student recruitment activity has been initiated. New courses are being introduced in partnership with our service providers to provide on the job training to the local youth in order to create employment opportunities in Barmer.
Cross section appreciation was given to our safe drinking water project through various third party endorsements including media. Through the awareness and distribution, program reach of the 34 installed RO plant increased manifold to 50,000 individuals.
We intend to scale-up the sanitation program to set up toilets in the entire Baytu block and cover ~20,000 units in conjunction with the Zila Parishad in a span of 18 months.
The quarter saw the launch of two new pilots, one on a solar mini grid to benefit over 800 people and another on hygiene. A sanitary napkin production unit in Barmer has been instituted. Considering that urinary tract infection is the largest health hazard for women, this initiative would help to overcome it.
In order to strengthen governance mechanism, we have completed a study to measure improvement in quality of life of our entire operational area, comprising 200 villages in Barmer. This study is planned to be repeated every 2 years. The study highlights positive perception about Cairn (81% households have favourable perception) and very high satisfaction from our key CSR programs.
Contact
Media Relations
Neerja Sharma, Director - Assurance, Communication and Company Secretary
+91-124-4593169; +91-9717098035; [email protected]; [email protected]
Investor Relations
Nidhi Aggarwal, Head - Investor Relations
+91-124-4593490; +91-9810197755; [email protected]
Cairn India Limited Fact Sheet
On 9 January, 2007, Cairn India Limited was listed on the Bombay Stock Exchange and the National Stock Exchange of India. Cairn India is now a subsidiary of Sesa Sterlite Limited; part of the Vedanta Group, a globally diversified natural resources group.
Cairn India is headquartered in Gurgaon in the National Capital Region. The Company has operational offices in India including Andhra Pradesh, Gujarat, Rajasthan, Tamil Nadu and International offices in Colombo and Houston.
Cairn India is one of the largest independent oil and gas exploration and production companies in India. Together with its JV partners, Cairn India accounted for ~28% of India's domestic crude oil production in FY14. Average gross operated production was 206,125 boepd in H1 FY15. The Company sells its oil and gas to major PSU and private buyers in India.
The Company has a world-class resource base, with interest in seven blocks in India, one in Sri Lanka and one in South Africa. Cairn India's resource base is located in four strategically focused areas, namely one block in Rajasthan, two on the west coast of India, five on the east coast of India (including one in Sri Lanka) and one in South Africa.
The blocks are located in the Barmer Basin, Krishna-Godavari Basin, the Palar-Pennar Basin, the Cambay Basin, the Mumbai Offshore Basin, the Mannar Basin and Orange Basin.
Cairn India's focus on India has resulted in a significant number of oil and gas discoveries. Cairn India made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. To date, 36 discoveries have been made in the Rajasthan block RJ-ON-90/1 and the exploration and appraisal drilling campaign is targeting over 3 billion barrels of gross hydrocarbons in place resources.
In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a PSC signed on 15 May, 1995 comprising of three development areas. DA 1 (1,859 km[2]) includes discoveries namely Mangala, Aishwariya, Raageshwari and Saraswati, DA 2 (430 km[2]), includes the Bhagyam and Shakti fields and DA 3 (822 km[2]) comprising of the Kaameshwari West Development Area, is shared between Cairn India and ONGC, with Cairn India holding 70% and ONGC having exercised their back in right for 30%.
The total resource base supports a long term vision to produce 300,000 boepd, subject to exploration success, further development investments and regulatory approvals.
In Andhra Pradesh and Gujarat, Cairn India on behalf of its JV partners operates two processing plants, 11 platforms and more than 200 km of sub-sea pipelines with a production of over 32,000 boepd as of H1 FY 15.
Block SL-2007-01-001 was awarded to Cairn Lanka in the bid round held in 2008. This offshore block is located in the Gulf of Mannar. The water depths range from 400 to 1,900 meters. The signing of the Petroleum Resources Agreement (PRA) to explore oil and natural gas in the Mannar Basin was undertaken in July 2008 in Colombo.
The farm-in agreement was signed with PetroSA on 16 August, 2012 in the 'Block-I' located in Orange basin, South Africa. The block covers an area of 19,898 sq km. The assignment of 60% interest and operatorship has been granted by the South African regulatory authorities.
India's gross imports of crude oil stood at 3.8* million bopd in 2013. India's domestic crude oil production for FY2013-14 was approximately 0.76** million bopd of which Cairn India operated assets (Ravva, CB/OS-2 and the RJ-ON-90/1) contributed ~28%.
For further information on Cairn India Limited, kindly visit http://www.cairnindia.com
*BP Statistical Review of World Energy 2014
**MoPNG March 2014 production statistics
Corporate Glossary
Cairn India Limited
and/or its subsidiaries
Cairn India as appropriate
Company Cairn India Limited
Refers to Cairn Lanka
(Pvt) Ltd, a wholly
owned subsidiary of
Cairn Lanka Cairn India
PAT adjusted for DD&A,
impact of forex
fluctuation, MAT credit
Cash EPS and deferred tax
Cash Flow from
Operations includes PAT
(excluding other income
and exceptional item)
prior to non-cash
expenses and exploration
CFFO costs.
Central Processing
CPT Terminal
CY Calendar Year
Declaration of
DoC Commerciality
Exploration and
E&P Production
Earnings before
Interest, Taxes,
Depreciation and
Amortisation includes
forex gain/loss earned
EBITDA as part of operations
EPS Earnings Per Share
FY Financial Year
GBA Gas Balancing Agreement
GoI Government of India
GoSL Government of Sri Lanka
The Company and its
Group subsidiaries
JV Joint Venture
MC Management Committee
Ministry of Petroleum
MoPNG and Natural Gas
New Exploration
NELP Licensing Policy
Oil and Natural Gas
ONGC Corporation Limited
OC Operating Committee
Petroleum Resources
PRA Agreement
Petroleum Planning &
PPAC Analysis Cell
qoq Quarter on Quarter
SL Sri Lanka
Vedanta Resources plc
Vedanta and/or its subsidiaries
Group from time to time
yoy Year on Year
Technical Glossary
2P Proven plus probable
Proven plus probable and
3P possible
Two dimensional/three
2D/3D/4D dimensional/ time lapse
Barrel(s) of oil
Boe equivalent
Barrels of oil
Boepd equivalent per day
Bopd Barrels of oil per day
Billion standard cubic
Bscf feet of gas
Trillion standard cubic
Tcf feet of gas
EOR Enhanced Oil Recovery
FDP Field Development Plan
MDT Modular Dynamic Tester
million barrels of oil
Mmboe equivalent
million standard cubic
Mmscfd feet of gas per day
Mmt million metric tonne
Petroleum Resources
PRDS Development Secretariat
PSU Public Sector Utilities
Production Sharing
PSC Contract
Field Glossary
Lower permeability
Barmer Hill reservoir which overlies
Formation the Fatehgarh
Secondary reservoirs in
the Guda field and is
the reservoir rock
encountered in the
Dharvi recent Kaameshwari West
Dungar discoveries
Name given to the
primary reservoir rock
of the Northern
Rajasthan fields of
Mangala, Aishwariya and
Fatehgarh Bhagyam
Located in the Gulf of
Mannar, situated on the
NE shallow continental
Mannar Basin shelf of Sri Lanka
Mangala, Bhagyam,
Aishwariya, Raageshwari,
MBARS Saraswati
Youngest reservoirs
encountered in the
basin. The Thumbli is
the primary reservoir
for the Raageshwari
Thumbli field
Disclaimer
This material contains forward-looking statements regarding Cairn India and its affiliates, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All 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 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. Unless otherwise stated the reserves and resource numbers within this document represent the views of Cairn India and do not represent the views of any other party, including the Government of India, the Directorate General of Hydrocarbons or any of Cairn India's joint venture partner.
About Sesa Sterlite Limited
Sesa Sterlite Limited ("Sesa Sterlite") is one of the world's largest diversified natural resources companies. Our business primarily involves exploring, extracting and processing minerals and oil & gas. We produce oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and have a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Sesa Sterlite has a strong position in emerging markets with over 80% of its revenues from India, China, East Asia, Africa and the Middle East.
Sustainability is at the core of Sesa Sterlite's strategy, with a strong focus on health, safety and environment and on enhancing the lives of local communities.
Sesa Sterlite is a subsidiary of Vedanta Resources plc, a London-listed company. Sesa Sterlite is listed on the Bombay Stock Exchange and the National Stock Exchange in India and has ADRs listed on the New York Stock Exchange.
Disclaimer
This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behavior of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Sesa Sterlite Limited
(Formerly known as Sesa Goa Limited)
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400 099
Registered Office:
Sesa Ghor, 20 EDC Complex,
Patto, Panaji (Goa) - 403 001
CIN: L13209GA1965PLC000044
Communications
Roma Balwani
President - Group Communications, Sustainability & CSR
Tel: +91-22-6646-1000
[email protected]
Investor Relations
Ashwin Bajaj
Director - Investor Relations
Sheetal Khanduja
Assoc. General Manager - Investor Relations
Tel: +91-22-6646-1531
[email protected]
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