analysts rajasthan site visit_feb09

Rajasthan Site Visit – February 2009

CAIRN INDIA LTDRajasthan Site Visit

February 2009

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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 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.

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Agenda

Rajasthan Project

Rick Bott, Chief Operating Officer

Santosh Chandra, Director Drilling and Petroleum Engineering

S V Nair, Director Projects

H P Bhalla, Director Midstream

T K Venkatesan, Project Manager

Conclusion

Rahul Dhir, Managing Director and Chief Executive Officer

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IntroductionRick Bott Chief Operating Officer

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Rajasthan Block RJ-ON-90/1

NEPAL

BANGLADESH

INDIA

Rajasthan

Jalore

Jaisalmer Jodhpur

Barmer

Mangala Processing

Terminal (MPT)

Districts Roads

Barmer

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Rajasthan - Barmer

HistoryFounded in the 13th century by Bahada Rao initially called Bahada-mer later shortened to Barmer

LocationSituated in the western part of Rajasthan and forms part of the Thar desertThe Thar desert covers 13,000 km2

Surrounded by Jaisalmer in the north, Jalore in the south, Jodhpur in the east and Pakistan in the west

ClimateArid desertExtreme temperatures;5 degrees centigrade in December / January46 degrees centigrade in June / July

EconomyMainly agriculture basedCraft cottage industries

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Rajasthan Development Overview

Rajasthan 25 discoveries

Integrated upstream and midstream development focused on MPT with local power and water supply

Six fields under development focused on Mangala, Bhagyam and Aishwariya (MBA)

>3,000 km2 acreage approved for development

Processing capacity 205,000 bopd

First Mangala production;Q3 2009 by truckingQ4 2009 by pipeline

Estimated MBA peak production 175,000 bopd

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Field Development Area – Size Comparisons

London

New Delhi

All maps to same scale

130km

65km

Total Acreage

3,111 km2

MARS Development

Area(Mangala,

Aishwariya, Raageshwari

and Saraswati)

Bhagyam Development

Area

Kameshwari WestDevelopment Area

New Delhi and London

combined area approx 3,134km2

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Rajasthan Development

Maximise Oil RecoveryPrimary and secondary oil recovery schemeTertiary recovery scheme (EOR) – plan and test

Optimise Crude MarketingMultiple access points to India’s refining infrastructureShip loading option

World Class Safety Standards10 million man hours Lost Time Injury (LTI) free

Minimal Environmental ImpactLow emissions - zero gas flaring Recycle and re-use; Produced water reinjectionConserve local fresh water supplies

Positive Local ImpactsMinimise footprintLocal development and employment

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Rajasthan Integrated Development Overview

Aishwariya

Bhagyam

Intra-fieldPipelines

and Crossings

Mangala

Raageshwari Gas Terminal (RGT) and Well Pads

Saline water for MPT and secondary recovery from reservoirThumbli water field facilities

Water System

Raageshwari Gas piped to MPTCombined with Mangala associated gas for power generation

MPT and Well Pads1 x 30,000 bopd processing train2 x 50,000 bopd processing trains1 x 75,000 bopd train, scope for further expansionFluid handling capacity 1 million bfpd

Export oil pipeline plus heating stations

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Rajasthan Development

Barmer

AishwariyaField

BhagyamField

Intra fieldpipelines

and crossings

RGT and Well Pads

Thumbli water field Well Pads and facilities

MPT and Well Pads

Export Oil PipelineGas and Condensate PipelineFlow

Wells and Well Pads>350 wells, >40 well pads

Mangala Processing Terminal Area: 1.6 km2 (approx 400 acres)

1 x 30,000 processing train2 x 50,000 bopd processing trains1 x 75,000 bopd train, with scope for expansionWater recycling and gas recovery systemsHeat and power systemsBuilt-in fire and safety systems

Infrastructure ~500 km of intra and inter field pipelines~80 km of inter field roads

Export Pipeline~600 km pipeline to Gujarat coastSkin Effect Heat Management Systems (SEHMS)Multiple oil delivery points

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Rajasthan Development - Comparisons

~500 km of intra and inter field pipelines: London to Newcastle ~455 kmDelhi to Lucknow ~497 km

~80 km of roads: London to Brighton ~85 kmDelhi to Panipat ~85 km

130 km length of the Rajasthan block: London to Southampton ~130 kmJaipur to Ranthambore National Park ~30 km

600 km length of the Export pipeline:Delhi to Jodhpur ~589 kmLondon to Edinburgh ~650 km

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Health and Safety

Achievements 10 million man hours LTI freeExcellent road safety recordFull compliance to HSE regulationsComprehensive HSE training programmesSystematic risk assessment and management of the facility designs

On-going ActivitiesSafety recognition programmePeriodic 3rd party HSE auditsPeriodic IFC audits for Environmental and CSR compliance

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Development Drilling Santosh Chandra Director Drilling and Petroleum Engineering

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Rajasthan Recovery System

HorizontalWell

WaterInjector

Saline Water Abstraction

Separator + Heat

Heat

Gas Recovery SystemFuel Gas

DistributionSystem

ExportPipeline

ExportOil Storage

VerticalWell

ThumbliSaline Aquifer

Barmer HillFatehgarh

Oil

Water TableFresh Water

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Drilling Rigs

Drilling Rigs2 highly mobile custom built rigsHook load 500,000 pounds 3,500m depth capacityFully automated controls and pipe handlingCompact rig layoutSave land, infrastructure and drilling costsMinimal environmental impact, no local dislocationBetter control and security

Highest onshore production rate wells in IndiaThe horizontal wells designed for 10,000 bopd and deviated wells up to 6,000 bopd

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Mangala Project and Well Pads

>100 oil producers>50 water injector wells5 source water wells18 well pads, 20 wells from a single pad>30 Raageshwari Deep gas wells

Export Oil Pipeline

MangalaDiscovery WellJanuary 2004

MangalaProcessingTerminal

Well Pads

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Development Wells

High technology, high production rate wells

Jet Pumps / Electrical Submersible Pumps for artificial lift

Hot water is power fluid for Jet Pumps and flow assurance

Heater String in production well

Twin chemical injection lines to inject chemicals down hole

Optimal metallurgy to prevent corrosion

Unitized well head systems

Mono bore completions in injectors

Electrical Submersible

Pump

Sand control and inflowControl screen devices

Heater string Downhole

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Mangala Processing TerminalS V Nair Director Projects

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Mangala Processing Terminal - Scope

Four oil processing trains

Heat source: SteamSteam generation – 5 x 115 Tons / Hr boilers with accessoriesAdvantage of steam - pollution free, efficient, renewable resource

Captive power plant to meet all power requirements4 x 12 MW steam turbine generators 3 x 2 MW emergency diesel generators

Water heating and circulation system, fire water systemTanks - 20, buildings – 16Internal and external roads – 55 kmConcrete - 98,000 m3

Steel - 23,600 metric tonnes

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Rajasthan - Mangala Processing Terminal

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2

3

Fluids from Well Pads

Produced Water

Export Oil Pipeline

Injection Water

Power WaterOil

Settling Tanks

Steam Boilers

Oil Export Tanks

Water Tanks

Steam Turbine

Generators

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Upstream: Processing Systems Overview

To Fuel Gas Distribution system / BoilersWell Pads

Heater

2nd stage separation

Associated Gas Recovery

Settling Tank

1st Stage Separation

Dehydrator

Export Oil Storage Tank

Export Oil Pump

To Export Pipeline

Produced Water TreatmentTo Injection & Power water systems

Fluids from wells

Make up water from Thumbli saline water

wells Injected

back into wells

Make up Gas from Raageshwari

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Upstream: Steam and Power System

4 Steam Turbine Generators

Desalination Package

Process Heaters

5 Boilers

INJECTION HEATERS

48 MW Power for

plant utilities

Make up gas from Raageshwari

To Injection & Power water systems

To Export Pipeline

Tank Heaters

Oil Processing System

Associated Gas

Recovered Water

Make up water

Thumbli saline water

wells

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Raageshwari Gas Terminal and Thumbli Water Field

Picture of Thumbli

Water Field

Raageshwari Gas Terminal –>30 mmscfd dry gas

Four Gas well pads with 35 wellsGas system, condensate system, produced water system, fire water systemPower generation – 3 x 1250 KVA gas engine generator4” condensate & 12” Gas pipelines from Raageshwari to MPT – 190 line km

Thumbli well field – five water wells(each 63,000 bbls/day capacity)

20” Water pipe line from Thumbli toMPT – 22 km

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Pipeline H P Bhalla Director Midstream

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Rajasthan to Gujarat Pipeline

Total Pipe Diameter 790 mm (32”)

Poly Urethane Foam Insulation

Heat Tube

High Density Polyethylene Wrap

~600 km with heating stations and storage terminals

Pipeline uses SEHMS

Plant set up to handle pipeline insulation

Maintain the crude oil temperature above 65ºC

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Pipeline Schematic

Buyer

MangalaProcessing

Terminal

Distribution to Refiners WankanerPigging Station

35 SEHMS

RaageshwariGas supply

Gas pipeline

Heated crude oil pipeline

SanchorePigging Station

Coastal Terminal storage and export

ViramgamIntermediate

Terminalstorage, pumping

and export

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Skin Effect Heat Management System

Power Source and Temperature MonitoringPower requirement – 40 W / mVoltage ~4,000 VNo current flow on outside skin of tubeSystem grounded with automatic earth fault tripRemote emergency shut-down capability

Heat Tube

Termination

RTD’s

Current flows through centre

conductor

Current returns through inside

skin of outer tube

RTD : Resistance Temperature Detector

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Pipeline Construction Work

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Rajasthan Local CommunityT K Venkatesan Project Manager

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Engaging With The Community

Strategic Intent:Proactive engagement with stakeholders

Demonstrate leadership in corporate citizenshipPartnering with communities through our principles of respect, relationship and responsibility

Areas of Focus:EducationInfrastructureHealth Economic Development

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Stakeholder Consultation and Engagement

Project SelectionDiscussions with communities, elected bodies, Non Governmental Organisation’s (NGO) / District Administration

Align with Government programmes at state and national levels

Implementation and MonitoringGovernment agencies, district administrationCommunity based organisations (Panchayat Samiti, NGO)International specialist organisations (International Finance Corporation (IFC), Sight Savers)Direct by Cairn India

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Enterprise Centre

Enterprise Centre (EC) set up at Industrial Training Institute,

Barmer in collaboration with Rajasthan Government and IFC

Basic skills programme underway

HSE and security induction to >11,000 workers

>70% of trainees linked to market and business

Worked with Cairn project-affected households

~30 EC field workers integrated with the local community and

land-loser households

25% of total project area to be covered under green belt

Implementation to involve local community

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SummaryRahul Dhir Chief Executive Officer

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Summary

RajasthanFocused on delivery and growthWorld class resource baseEnhanced oil recovery potentialPipeline route allows access to multiple buyersLarge volume on long term basisIncreased delivery, consistent cash flowFunding in place to deliver core project and pipeline

Maximise production from current producing assets

Increasing exploration potential

Strong economic contribution to the State of Rajasthan and Government of India

analysts rajasthan site visit_feb09

Documents

rajasthan site visitfebruary

rajasthan developmentwells

rajasthan block rj

midstream development

mars development area

bopd train

bopd processing trains

water supply