MUMBAI, July 23, 2014 /PRNewswire/ --
- The following release was issued today by Sesa Sterlite
Limited's subsidiary Cairn India Limited.
(Logo:
http://photos.prnewswire.com/prnh/20140117/663814 )
Cairn India Limited (CIL), one of the fastest growing energy
companies in the world, today announces its quarterly financial
results for the period ending 30th June, 2014.
Source: 2013 Platts Top 250 Global Energy Rankings
Mr. Sudhir Mathur, Interim
CEO, Cairn India said:
"In line with our vision to contribute to the nation's energy
security, we are confident of not only achieving the stated
exploration target of 3bn barrels of hydrocarbons
in-place, ahead of schedule, but also of adding another 3 bn barrel
to our un-risked prospect inventory.
With multi-Tcf potential, we expect gas to be a significant
contributor in our product mix. Before end of financial year 2015,
we anticipate doubling of gas production from Rajasthan.
Our two main projects of enhanced oil recovery and
debottlenecking Mangala Processing Terminal are as per
schedule."
Q1 FY 15 Highlights
Financial:
- Revenue of Rs 4,483 crore (US$ 750
mn), up 10% YoY
- EBITDA of Rs 3,120 crore (US$ 522
mn), up 3% YoY
- Profit After Tax (Excl exceptional items) of Rs 2,720
crore (US$ 455 mn), Cash EPS
of Rs 18.17
- Generated Cash Flow From Operations of Rs 2,834 crore
(US$ 474 mn)
- High Gross capex Rs 2,464 crore (US$ 412 mn) led by development activity in
RJ
- Gross contribution of Rs 6,267 crore (>US$ 1 bn) to the exchequer
Production:
- Average daily gross operated production of 217,869 boepd
(226,597 boepd including internally consumed gas) during the
quarter
- Rajasthan production at 183,164 boepd, in line with FY15
guidance
- Ravva production at 23,940 boepd, 4D infill wells contributing
successfully
- Cambay production at 10,765 boepd, sustaining well
Rajasthan Exploration:
- Established 1.2bn boe of hydrocarbons in-place, since
resumption of exploration in Rajasthan. An additional ~0.6bn
boe has been discovered and is either currently undergoing testing
or is awaiting testing
- Extended a significant existing gas play, with multi-TCF
potential, in and around the Raageshwari Deep gas (RDG) field
- We anticipate establishing an additional ~1.2bn boe
hydrocarbons in-place during FY15/16, to achieve the stated
in-place target of 3bn boe, significantly ahead of schedule and
taking total Rajasthan discovered hydrocarbons in place to
approximately 7 billion boe
- An additional un-risked prospect inventory potential of 3
billion boe identified, to be drilled up in future exploration
campaigns, beginning FY16
- A significant shift from exploration to appraisal drilling is
underway in the current financial year, to accelerate 2C-2P
conversion and monetization
- All 7 new exploration and appraisal wells drilled in Q1 FY15
encountered hydrocarbons, opening up important new discoveries and
adding significant potential resources
Rajasthan Gas Development:
- Acquiring equipment to double RDG production volumes by Q4
FY15
- Significant progress made towards technical alignment with JV
on the RDG Field Development Plan
- Front End Engineering and tendering for construction of new
pipeline and facilities underway for the gas development
considering the large gas potential
Rajasthan Oil Development:
- MBA EOR project witnesses unprecedented development activity
- On track for first polymer injection at Mangala by Q4 FY15, to
enhance oil recovery rates
- Construction of surface facilities including the central
polymer facility has commenced, major equipment at site
- Drilling by two high performance rigs has begun for EOR
wells
- Initial assessment of ASP pilot for EOR successful, suggest
good oil bank formation
- Barmer Hill and Satellite fields - Undertook the largest tight
oil development activity to date
- Dedicated horizontal wells drilling campaign for tight oil
initiated successfully
- Adopt tight oil drilling technologies in Northern BH, pumped
~250,000 lbs of proppant
- Production commenced from Mangala and Aishwariya BH fields;
initial production rates encouraging
- Three satellite fields including Raag S-1 contribute to
production; NI and Guda to start production in Q2 FY15
Corporate and Regulatory Developments
The Equity Share Buyback programme of the Company closed on
22nd July, 2014. During the Buyback period, the
Company bought back 36,703,839 shares for a total consideration of
approximately INR 1,225 crore from
the open market through stock exchanges. As a result, equity share
capital of the company stands reduced to 1,874,196,581 equity
shares.
On the Regulatory front, Environment Clearance from RJ block to
augment production to 300kboepd was received during the
quarter.
In conjunction with these financial results Cairn India is
hosting an Investor Conference Call today. Details for the live
audio webcast and dial in numbers for the call are available at the
Cairn India website (http://www.cairnindia.co).
Financial Review
Rs Crore Q1 FY 15 Q1 FY 14 y-o-y (%) Q4 FY 14 q-o-q (%)
Revenue 4,483 4,063 10% 5,049 (11%)
EBITDA 3,120 3,029 3% 3,654 (15%)
Margin (%) 70% 75% 72%
PAT 1,093 3,127 (65%) 3,035 (64%)
Margin (%) 24% 77% 60%
EPS (Rs) - Diluted 5.76 16.36 (65%) 15.85 (64%)
Cash EPS (R) 18.17 13.52 34% 17.75 2%
US$ million Q1 FY 15 Q1 FY 14 y-o-y (%) Q4 FY 14 q-o-q (%)
Revenue 750 728 3% 817 (8%)
EBITDA 522 543 (4%) 592 (12%)
Margin (%) 70% 75% 72%
PAT 183 561 (67%) 491 (63%)
Margin (%) 24% 77% 60%
EPS (US$) - Diluted 0.10 0.29 (67%) 0.26 (63%)
Cash EPS (US$) 0.30 0.24 25% 0.29 6%
Revenue reported for Q1 FY15, post profit sharing with the
Government of India and the
royalty expense in the Rajasthan block, was INR 4,483 crore up 10% YoY on account of higher
volumes and realizations despite higher profit petroleum
tranche in Rajasthan. During the quarter, total profit petroleum
was INR 1,778 crore (US$297 million) including INR 1,533 crore (US$ 256
million) for Rajasthan block. For the quarter, royalty for
the RJ block was INR 1,069 crore
(US$ 179 million).
Earnings before Interest, Tax, Depreciation and Amortisation was
INR 3,120 crore for the quarter, up
3% YoY. Profit after Tax in Q1 FY15 was INR 1,093 crore, down by 65% YoY primarily due to
change in method of depreciation from Straight line method (SLM) to
Unit of production (UOP). Accordingly, diluted EPS was lower at INR
5.76 though the cash earnings per share was much higher at INR
18.17. Rupee depreciation led to Forex gain of INR 99 crore in the quarter.
Cash and Cash equivalents as at June 30,
2014 were ~INR 13,561 crore in
rupee funds and ~US$ 922 million in
dollar funds.
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
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
Cairn India's Area
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)
- Since the re-commencement of exploration in the Rajasthan block
in March 2013, we have established
1.2bn boe of hydrocarbons in-place to date relative to our 3 year
drill-out target of 3 bn boe. An additional ~0.6bn boe has been
discovered and is either undergoing testing or awaiting
testing.
- Through FY15/16, as a result of our current drilling
activities, we anticipate establishing an additional 1.2 bn boe
hydrocarbons in-place achieving target volumes significantly ahead
of plan.
- These new discoveries and prospect volumes will take the total
Rajasthan discovered hydrocarbons in-place to over 7 billion boe.
An additional un-risked prospect inventory of approximately 3
billion boe has been identified for drill-out commencing FY16.
- Ongoing 3D seismic acquisition programs are now underway in
Rajasthan. We anticipate that these programs will identify
additional prospects that will continue to replenish the prospect
inventory.
- Exploration drilling in the proximity of the RDG field
indicates the presence of a larger, multi-TCF gas resource base
that comprises the Raageshwari Deep, the Guda Deep and the Guda
South structures. We are currently testing an important offset well
to the RDG field and have an additional 6 well program of
exploration-appraisal drilling and testing over the remainder of
the financial year.
- During this period, we plan a dramatic shift to appraisal, in
preference to exploration drilling, aimed at accelerating 2C-2P
resources-reserves conversion and monetization.
- Very high drilling success rates continue to be the norm in
Rajasthan. These results continue to confirm the potential of the
Barmer Basin characterized by a low-risk exploration environment
unparalleled anywhere else in India.
- To date, as a result of the 2013-16 exploration and appraisal
campaign, we have announced six new discoveries, currently either
undergoing appraisal or appraisal planning. An additional two
discoveries, namely SL-1 and NL-2, are undergoing flow
testing.
During Q1 FY15, we have drilled three successful exploration and
four successful appraisal wells.
- Exploration well SL-1 has successfully drilled a new Dharvi
Dungar prospect and flowed at an initial vertical rate of 120bopd
from the Dharvi Dungar formation.
- Exploration well NL-2 successfully drilled a Barmer Hill
porcellenite play, flowing at an initial vertical rate of 100-150
bopd. We anticipate that fractured, horizontal wells within
both the Barmer Hill and Dharvi Dungar Formations, together with
artificial lift, will act to significantly increase well
productivities and recoveries.
- These two discoveries, together with Kaam W-8, have
successfully flowed hydrocarbons to surface.
- Well DP West-1 successfully appraised a fault block adjacent to
the DP-1 well drilled earlier in the campaign. Together with the NL
discovery, we anticipate significant volume additions in this
complex whose value can be optimized through rapid tie-back to the
Mangala facilities.
- Exploration well GSV-2 was a successful drill-out of a Fategarh
and fractured volcanics play which we anticipate to appraise in the
FY16 drilling campaign.
- Appraisal well Raag Deep SW-1 was the first of an exciting
5-well appraisal program planned for up-side realization of the
existing Raag Deep Gas Field. Additional appraisal wells will
follow as part of the current drilling campaign.
- Appraisal well Mangala East -2
comprised a successful down-dip evaluation of the existing Barmer
Hill field at Mangala and is currently undergoing detailed
evaluation.
- Well Guda S-8 was the second of an 8 well program designed to
test the flanks of the existing Guda Dharvi Dungar field,
significantly boosting existing 2C resources. The well encountered
oil pay within the Dharvi Dungar section and is currently awaiting
testing. Guda-7, the first well in this campaign, flowed oil from
the Dharvi Dungar Formation and established an oil down to deeper
than previously encountered in the Guda Field.
The fifth rig dedicated to exploration and appraisal commenced
drilling in this quarter. With the addition of higher capacity rigs
in our drilling program, we have been able to drill two high impact
prospects to test potential gas accumulation in the deeper section.
The initial results obtained are encouraging and testing is
ongoing.
The 3D seismic data acquisition programme for ~1,900 square
kilometres that is currently underway will further help in
identifying new exploration leads and augmenting the prospective
resource base. As at 30th June, 2014, we have acquired
411 square kilometres of 3D seismic data.
Ravva (Block PKGM-1)
In November 2013, we commenced
drilling of the 'High Temperature, High Pressure' (HTHP) deep
exploration prospect LO110 in Ravva. The objective of the well was
to test the hydrocarbon potential within Late Oligocene sands
underlying the existing Ravva field. The well is currently awaiting
logging.
KG Onshore (Block KG-ONN-2003/1)
The Declaration of Commerciality for the Nagayalanka discovery
is currently under Management Committee review. The evaluation of
the results of the Nagayalanka appraisal wells and extended well
test is in progress with the objective of optimizing the field
development plan. Nagayalanka-NW-1 encountered over 230m of
sand in the Jurassic Golapali Formation and an 80m synrift section.
Fracking and flow testing of the reservoir sections have been
completed and the well has been temporarily suspended pending
further analysis.
KG Offshore
(Block KG-OSN-2009/3)
934 km[2] of full fold 3D
seismic data has been acquired to date. Planning has begun for an
additional 3D seismic programme in the remaining area, with
acquisition expected to begin by end of Q3 FY 15. Exploration is
focused upon building a high quality prospect inventory across
multiple play types.
Mumbai Offshore (Block MB-DWN-2009/1)
2128 line km of 2D broadband seismic has been acquired. The
processing contract has been awarded and is expected to begin
shortly. Planning for acquisition of additional 500 square
kilometres of 3D seismic data is underway.
Palar-Pennar (Block PR-OSN-2004/1)
The application for the shift of the restricted boundary has
been accepted by government authorities, paving the way for
resumption of exploration activity.
Sri Lanka (Block SL
2007-01-001)
In 2013, Cairn concluded appraisal and commercial studies to
determine the next steps for the gas discoveries made on the block.
We continue discussions with the Sri Lankan Government
regarding commercial terms necessary to monetize the discovered gas
resources on the block.
South Africa (Block 1)
Initial interpretations of the 3D volumes over South Africa
Block 1 indicate that the acreage contains exciting plays similar
to those in offset blocks along the West African margin. A deep
water oil and a shallow water gas play comprise two promising play
fairways that we will work up through ongoing interpretation.
Based on the preliminary assessment of the seismic data, a
working petroleum system with multiple oil and gas plays is likely.
The on-going seismic processing and technical evaluation is
expected to identify drillable prospects during the remainder of
2014.
Operational Review
Q1 Q1 y-o-y Q4 q-o-q
Average Daily
Production Units FY 15 FY 14 (%) FY 14 (%)
Total Gross
operated* Boepd 226,597 220,088 3% 232,884 (3%)
Gross operated Boepd 217,869 212,442 3% 224,429 (3%)
Oil Bopd 209,846 203,273 3% 215,493 (3%)
Gas Mmscfd 48 55 (12%) 54 (10%)
Working Interest Boepd 137,907 132,087 4% 142,796 (3%)
* Includes internal gas consumption
Q1 Q1 y-o-y Q4 q-o-q
Average Price
Realization Units FY 15 FY 14 (%) FY 14 (%)
Cairn India US$/boe 97.0 93.3 4% 94.4 3%
Oil US$/bbl 98.2 94.6 4% 95.7 3%
Gas US$/mscf 5.6 4.9 15% 6.1 (8%)
Participating
Producing Assets Region Operator Interest
1 RJ-ON-90/1 North Western India Cairn India 70%
2 PKGM-1 (Ravva) Eastern India Cairn India 22.5%
3 CB/OS-2 Western India Cairn India 40%
Rajasthan (Block RJ-ON-90/1)
Q1 Q1 y-o-y Q4 q-o-q
Average Daily
Production Units FY 15 FY 14 (%) FY 14 (%)
Total Gross
operated* Boepd 190,879 180,101 6% 198,446 (4%)
Gross operated Boepd 183,164 173,517 6% 190,881 (4%)
Oil Bopd 181,894 172,845 5% 189,304 (4%)
Gas Mmscfd 8 4 89% 9 (19%)
Gross DA 1 Boepd 153,467 151,602 1% 162,245 (5%)
Gross DA 2 Boepd 29,696 21,914 36% 28,636 4%
Gross DA 3 Boepd - - - - -
Working Interest Boepd 128,215 121,462 6% 133,616 (4%)
* Includes internal gas consumption
Operations and Development
The Rajasthan Block produced ~16.7 mm barrels of oil equivalent
in the quarter, achieving a cumulative total production of ~233
mmboe until the end of Q1 FY15. 34 new wells were brought on
production during the quarter contributing to the Block's gross
average production of 183,164 boepd. Sequential quarterly
production was impacted by an unplanned outage at MPT in
May 2014, resulting in reduced
facility uptime of ~96%. The overall operating expense in Rajasthan
continued at a low of US$ 4.2/bbl for
Q1 FY15.
Lowering of drilling cycle time and significant improvements in
rig movement times are examples of our focus on operational
excellence. In line with our adoption of high HSE standards, we are
planning to shutdown the processing terminal for around 10 days for
routine operational and statutory maintenance activity in August,
2014. This could impact the daily gross average production rate for
Q2 FY15. However, we would be utilizing this opportunity to tie-in
new facility enhancements related to the development projects.
An average of 182,715 bopd, amounting to ~16.6 mmbbls for the Q1
FY14-15 was sold to PSU and private refiners, across India. Gas sales during the quarter were ~8
mmscfd, amounting to total sales of ~0.7 Bscf. The average
crude price realisation for the quarter was US$ 97.5/bbl, an implied ~11.1% discount to Dated
Brent.
We continue to focus on executing the major development projects
in our Rajasthan Block and the related initiatives for the required
facilities' enhancement.
- Gas development
- Plan to double gas production from RDG through existing
pipeline by Q4 FY15 by installing additional compressors
- Achieved significant progress towards technical alignment with
JV on the Field Development Plan for the currently producing RDG
field
- The RDG field is estimated to contain around 1-3 Tcf of
hydrocarbons In-place
- 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
- The front end engineering and the tendering process for the new
facilities, supply of long lead items and pipeline are underway and
we hope to award the major contracts in Q4 FY15.
- Enhanced oil recovery (EOR) Project including drilling campaign
and facilities upgrade
- Mangala field EOR project
- All the major equipment required for the project has been
ordered, critical equipment has reached site and installation is
underway.
- Construction of major surface facilities including the central
processing facility, extended pipelines and well pad modifications
has commenced.
- Two high performance rigs have started drilling at the site, in
line with the plan for ~100 additional wells required for the
project.
- On track to meet the target date for injecting first polymer in
Q4 FY15.
- Initial assessment of Alkaline Surfactant Polymer pilot at
Mangala has also been successful.
- Water cut and Oil trends suggest formation of good oil
bank.
- Performance continues to be monitored and results are being
further evaluated.
- Detailed work on Polymer flood EOR is progressing for Bhagyam
and Aishwariya fields
- Barmer Hill and Satellite field development
- We successfully undertook one of the largest fracking ever for
tight oil development
- During Q1 FY15, 3 wells including a Horizontal well were
drilled and 2 re-entered.
- All the 6 hydraulic fracking jobs undertaken during the quarter
were successful with performance improving successively.
- The last job pumped total proppant of over 250,000 lbs, with
proppant concentration reaching 9.7 ppa
- Production commenced from Mangala and Aishwariya BH fields;
initial production rates encouraging in line with expectations
- We are also working with leading global service providers to
improve the technical 'know-how' and scale up our vertical and
horizontal wells drilling.
- Satellite Fields
- Besides Raageshwari and Saraswati satellite fields, Raag-S-1
well, the 26th discovery in Rajasthan also contributed
to volumes, producing over 5,400 bbls till end of June 2014.
- NI field in DA 2 and Guda in Southern part of DA1 is targeted
for production in Q2FY15.
- Salaya-Bhogat Pipeline
- Bhogat terminal, marine facilities and the pipeline are under
pre-commissioning and gas has been introduced into the Bhogat
terminal.
- This would be beneficial by adding sea route for crude
evacuation giving significant access to India's refining capacity.
Ravva (Block PKGM-1)
Q1 Q1 y-o-y Q4 q-o-q
Average Daily
Production Units FY 15 FY 14 (%) FY 14 (%)
Total Gross
operated* Boepd 25,161 29,490 (15%) 25,303 (1%)
Gross operated Boepd 23,940 28,253 (15%) 24,225 (1%)
Oil Bopd 19,548 21,875 (11%) 18,846 4%
Gas Mmscfd 26 38 (31%) 32 (18%)
Working Interest Boepd 5,386 6,357 (15%) 5,451 (1%)
* Includes internal gas consumption
Operations and Development
Ravva block has been an excellent example of good reservoir
management. Since inception in 1994, the Ravva block has produced
more than 263 mmbbls of crude and over 332 billion cubic feet of
gas, more than 2.5 times the initial resource estimates at the time
the PSC was awarded.
During the quarter, the block produced 23,940 boepd supported by
volumes from 3 new 4D infill wells, with a plant uptime of 99.7%.
Due to the need for temporarily shut in wells as a precaution
during rig movement, production of oil and gas is slightly muted in
Q1 FY15 on year on year basis.
The campaign, based on the 4D seismic survey, commenced in
March-14 using a mat supported jackup rig. The infill drilling
campaign and prudent reservoir management are expected to sustain
production levels and enhance overall recovery factor.
During the quarter, ~1.7 mmbbls of crude and ~2.4 billion scf of
gas were sold, averaging 18,960 bopd of crude oil and ~26 mmscfd of
gas, respectively.
Cambay (Block CB/OS-2)
Q1 Q1 y-o-y Q4 q-o-q
Average Daily
Production Units FY 15 FY 14 (%) FY 14 (%)
Total Gross
operated* Boepd 10,557 10,497 1% 9,136 16%
Gross operated Boepd 10,765 10,672 1% 9,323 15%
Oil Bopd 8,404 8,554 (2%) 7,342 14%
Gas Mmscfd 14 13 11% 12 19%
Working Interest Boepd 4,306 4,269 1% 3,729 15%
* Includes internal gas consumption
Operations and Development
Since inception in 2002, the Cambay block has produced ~20
mmbbls of crude and over 220 billion cubic feet of gas.
During the quarter, the block produced 10,765 boepd, with a
plant uptime of 99.7%. Production was higher on account of
successful well intervention techniques undertaken in the previous
quarter. In the same period, ~1.1 mmbbls of crude oil was evacuated
through sea route. With this route, there has been an improvement
in realisations as wells as a reduction in distance covered to
transport crude oil by road, thus reducing the safety and
environment risk involved.
During the quarter, ~0.9 mmbbls of crude and ~1.3 billion scf of
gas were sold averaging 9,406 bopd of crude oil and ~14 mmscfd of
gas, respectively.
Talent and Technology Development
During the quarter, the technical leadership team has been
further strengthened with Director Exploration, Director Subsurface
and Head for Integrated Engineering coming on-board to assist in
the focused execution of programs. We continue our focus on
investing in leaders for tomorrow with a new intake of 72 graduate
& management trainees who have joined recently from established
institutes like ISM, IIMs & IITs. The young talent helps us
address the growing concern of the big crew change and build
pipeline for future technical leadership roles.
Our focus is to continue to build on key specialist roles across
verticals and to look at employer branding in a big way which will
enable us to reach out to the best global talent.
Health, Safety, Environment and Sustainability
We are committed to meet the highest international standards of
HSE and are in the top quartile HSE performance versus our peers as
per OGP report 2013. All our operating assets maintain an excellent
safety culture in an endeavour to record LTI-free work
performance.
LTI frequency (Lost Time Incidents per million man hours) for Q1
FY15 stands at 0.60, higher than 0.16 in FY14, driven by 9
incidents. Primary reason for increase in LTIFR is insufficient
control by Contractors with respect to Safety of their employees,
especially on public roads. With an objective to prevent the
recurrence of such incidents, Know Your Hazard, a program to
recognize hazards at work place, has been successfully launched.
Communication on driving related Zero Tolerance Behaviour is being
reinforced across the contractors and workforce. We also undertook
several HSE awareness initiatives like Environment Week celebration
across all the sites engaging our employees, contract personnel and
local communities.
Corporate Social Responsibility
The board approved the Corporate Social Responsibility policy as
per the section 135 of the New Companies Act. In Q1 FY15, we
continued to increase the reach of our local content and CSR
programs. The major highlights include activities around potable
water; education and vocational training, sanitation and
healthcare; and enhancing farm productivity:
- 19 new ATM based RO plants were installed over the last quarter
bringing the total to 34, enabling provision of safe drinking water
access to 40,000 villagers.
- 120 youth were trained and linked to employment through various
vocational skills training at the Cairn Enterprise Center, Barmer.
Two new Satellite Skill Training Centres were established in
Guda and Baytu to increase our reach and a new center has been
started with the initial batch of 30 in Viramgam.
- We continue to adopt more Government schools, 37 so far, where
we are improving infrastructure, providing teachers and improving
quality of education.
- Rural sanitation program under Nirmal Bharat Abhiyan has scaled
to 3 Gram Panchayats and our 19 health vans continue to reach over
3 lac population across the entire Barmer District and over 130
villages.
- In livelihood enhancement for farmers the multi crop farming
model has shown significant success and will be further scaled up
to cater to over 500 additional farmers in this season.
Going forward the plan is to scale up our existing programs to
reach each and every household in our operational area.
Outlook
With our ongoing net capital investments program of $3Bn through end of FY17, we remain committed to
the creation of long term shareholder value.
Based on our recent exploration successes, we are confident that
we will establish ~3bn boe hydrocarbons in-place, significantly
ahead of schedule. With renewed focus on appraisal and development,
we aim to accelerate 2C-2P resources-reserves conversion. This
strategy will contribute to the advancement of reserves booking in
order to achieve our stated 2P RRR target of 150% over a three year
period.
We have identified significant gas potential in the block and
plans are underway to advance commercialisation of discovered gas
volumes. Considering the significant potential of the Rajasthan
asset, we continue to focus on other major development projects to
enhance recovery and achieve a 3 year production CAGR of 7-10% from
known discoveries with flat production in FY15.
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 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 London.
Cairn India is one of the
largest independent oil and gas exploration and production
companies in India. Together with
its JV partners, Cairn India accounts for around one fourth of
India's domestic crude oil
production. Average gross operated production was 217,869 boepd in
Q1 FY 15. The Company sells its oil to major refineries in
India and its gas to both PSU and
private buyers.
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,
thirty three 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 oil 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 34,000 boepd
as of Q1 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 meter. The signing of the
Petroleum Resources Agreement (PRA) to explore oil and natural gas
in the Mannar Basin was held 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 Cairn India Limited and/or its subsidiaries as appropriate
Company Cairn India Limited
Cairn Lanka Refers to Cairn Lanka (Pvt) Ltd, a wholly owned subsidiary of Cairn India
Cash EPS PAT adjusted for DD&A, impact of forex fluctuation, MAT credit and
deferred tax
CFFO Cash Flow from Operations includes PAT (excluding other income and
exceptional item) prior to non-cash expenses and exploration costs.
CPT Central Processing Terminal
CY Calendar Year
DoC Declaration of Commerciality
E&P Exploration and Production
EBITDA Earnings before Interest, Taxes, Depreciation and Amortisation includes
forex gain/loss earned as part of operations
EPS Earnings Per Share
FY Financial Year
GBA Gas Balancing Agreement
GoI Government of India
GoSL Government of Sri Lanka
Group The Company and its subsidiaries
JV Joint Venture
MC Management Committee
MoPNG Ministry of Petroleum and Natural Gas
NELP New Exploration Licensing Policy
ONGC Oil and Natural Gas Corporation Limited
OC Operating Committee
PRA Petroleum Resources Agreement
PPAC Petroleum Planning & Analysis Cell
qoq Quarter on Quarter
SL Sri Lanka
Vedanta Group Vedanta Resources plc and/or its subsidiaries from time to time
yoy Year on Year
Technical Glossary
2P Proven plus probable
3P Proven plus probable and possible
2D/3D/4D Two dimensional/three dimensional/ time lapse
Boe Barrel(s) of oil equivalent
Boepd Barrels of oil equivalent per day
Bopd Barrels of oil per day
Bscf Billion standard cubic feet of gas
Tscf Trillion standard cubic feet of gas
EOR Enhanced Oil Recovery
FDP Field Development Plan
MDT Modular Dynamic Tester
Mmboe million barrels of oil equivalent
Mmscfd million standard cubic feet of gas per day
Mmt million metric tonne
PRDS Petroleum Resources Development Secretariat
PSU Public Sector Utilities
PSC Production Sharing Contract
Field Glossary
Barmer Hill Lower permeability reservoir which overlies the Fatehgarh
Formation
Dharvi Dungar Secondary reservoirs in the Guda field and is the reservoir rock
encountered in the recent Kaameshwari West discoveries
Fatehgarh Name given to the primary reservoir rock of the Northern Rajasthan
fields of Mangala, Aishwariya and Bhagyam
Mannar Basin Located in the Gulf of Mannar, situated on the NE shallow continental
shelf of Sri Lanka
MBARS Mangala, Bhagyam, Aishwariya, Raageshwari, Saraswati
Thumbli Youngest reservoirs encountered in the basin. The Thumbli is the primary
reservoir for the Raageshwari 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.
For further details, please contact:
Media Relations: Neerja
Sharma, Director, Assurance, Communications and Company
Secretary, +91-124-4593169, +91-9717098035,
cilmedia@cairnindia.com, spokesperson@cairnindia.com
Investor Relations: Nidhi
Aggarwal, Head - Investor Relations, +91-124-4593490,
+91-9810197755, cilir@cairnindia.com
For Further information, please contact
Communications:
Roma Balwani
Executive Vice President - Group Communications & CSR
Tel: +91-22-6646-1330
gc@vedanta.co.in
Investor Relations:
Ashwin Bajaj
Senior Vice President - Investor Relations
Sheetal Khanduja
Associate General Manager - Investor Relations
Hitesh Dhaddha
Manager - Investor Relations
Tel: +91-22-6646-1531
Sesasterlite.ir@vedanta.co.in
Sesa Sterlite Limited
(Formerly known as Sesa Goa Limited)
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400
099
http://www.sesasterlite.com
Registered Office:
Sesa Ghor, 20 EDC Complex,
Patto, Panaji (Goa) - 403 001
CIN: L13209GA1965PLC000044
SOURCE Sesa Sterlite Limited