Nunavut Conference – Frontier Exploration
Cairn Energy PLC
October 2010
Discovering
hidden value through entrepreneurial exploration
Discovering hidden value through entrepreneurial exploration
Disclaimer
These materials contain forward-looking statements regarding Cairn, 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 undertakes no obligation to revise any such forward-looking statements to reflect any changes in
Cairn's expectations with regard thereto or any change in circumstances or events after the date hereof.
Nunavut Conference
October 2010
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CAIRN
Overview
■ Corporate
■
■
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London listed since 1988
FTSE 100 company with subsidiary
listed on Indian exchanges
Current market cap ~$10 billion
■ Early entry positions
■
■
South Asia:
Bangladesh, India and Nepal
Greenland
■ Focus on materiality
■
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Geological potential
Commercial terms
Operational and financial flexibility
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Risk Mapping
Political
Risk
Rajasthan
KG
Basin
Greenland
Basins
Commercial
Risk
Technical
Risk
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October 2010
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CAIRN
Exploration In South Asia
■ Major long term player
■ Successful exploration:
■ ~40 discoveries
Rajasthan
■ 3 of 7 landmark discoveries in India
since 2000
BANGLADESH
Cambay
Sangu
■ Drilling success ratio ~40%
INDIA
■ Large proprietary database
Ravva
Deepwater
■ Experienced team
SRI
LANKA
Landmark Discoveries
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October 2010
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RAJASTHAN
Overview
■
Total Rajasthan acreage 3,111 km2
■
Cairn India (70%) and ONGC (30%)
■
25 Discoveries with initial development
focused on three MBA fields
■
Multi billion $ project,
~$3 billion spent to date
■
Discovery to production 5 years
■
Project of national importance:
■ Currently approved peak plateau
production 175,000 bopd
■ More than 20% of India’s domestic
crude oil production
■ Significant benefits to the state of
Rajasthan
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October 2010
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RAJASTHAN
Delivery
Drilling
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Four rigs, more than 70 development wells drilled
Horizontal wells tested ~12,000 bopd
Wells confirm excellent reservoir quality
Ten well EOR programme underway
Development
■
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Mangala Processing Terminal (MPT)
Trains 1, 2 and 3 operational
Four Trains, capacity 205,000 bopd
Delivery
■
■
600km Pipeline complete and commissioned
Mangala production currently around
125,000 bopd
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RAJASTHAN
Mangala Processing Terminal
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RAJASTHAN
Vision For Growth
210,000 bopd
FDP Approved
Production
175,000 bopd
Target
Mangala
150,000 bopd
Mangala
125,000 bopd
Bhagyam
40,000 bopd
Aishwariya
10,000 bopd
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October 2010
Potential
Production
> 240,000
bopd
Bhagyam
40,000 bopd
Aishwariya
20,000 bopd
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GREENLAND
In Context
■ USGS places
Greenland in the top
ten “yet to find”
hydrocarbon
destinations of the
world
Baffin Bay
Bid Round
2010
North East
Bid Round
2012
Cairn Blocks
Cairn Prospecting Licence
Wells
■ Several offshore
basins only one of
which was drilled
prior to Cairn’s
activities
■ Cairn is planning a
multi-year
exploration campaign
5 wells in the 1970s,
1 well 2000
■ Further exploration
opportunities
through bid rounds
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October 2010
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GREENLAND
A multi-year programme with more exploration
opportunities created through future bidding rounds
Baffin Bay Bid Round 2010
Applied for 6 blocks
Sigguk
Three exploration wells planned 2010
Alpha-1S1 and T4-1 currently operating
T8-1 well complete
Cairn Blocks
Cairn Prospecting Licence
Wells
[Post this programme, all well commitments will be
fulfilled* to 31 Dec 2017]
Eqqua
2,500km 2D Infill Seismic 2010
All work obligations fulfilled* to 31 Dec 2011
Lady Franklin and Atammik
East Greenland Prospecting Licence
Processing of 2009 Seismic Complete
Interpretation ongoing
Southern Application Area 2010
Southern Blocks
7,500km 2D Infill Seismic 2010
3 Well Site Surveys
All work obligations fulfilled* to 31 Dec 2011
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* subject to final approval from
Greenlandic authorities
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GREENLAND
West Disko Operations
Stena Forth
6th Generation
DP Drillship
■ Understand and manage risks
■ Highly experienced operational team
■ Best contractors and best equipment
■ Two “state of the art” drilling rigs
■ Extensive support fleet including ice
management capability
■ Logistics are complex but manageable
■ Extensive redundancy and contingency
plans
Viking Ice Breaker
Drilling window
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Mobilisation
Drilling
Relief Well Capability
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GREENLAND
Stringent Regulations
■ Based on the Norwegian North Sea
regulations
■ Specifics include:
■ Fully testing of the blow out preventer
equipment, including mechanical testing by
independent authorities, prior to and during
operations
■ Drilling schedules designed to ensure that
only one rig will enter a hydrocarbonbearing section at any given time
■ Two rigs
■ Comprehensive oil spill response plan
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GREENLAND
Ice Management - Icebergs
Iceberg
Track
■ Threat Assessment by C-Core
■ Detection and Measurement
■ Marine / Satellite / HF Radar
■ Aerial & Vessel Reconnaissance
■ Physical Intervention
■ Towing, Water Cannon
Downtime Initiated
Drilling
Rig
Monitoring Zone 3
■ > 100km
■ Radar and Ariel monitoring
■ Dedication vessels
Reaction Zone 2
■ ‘T’ time
■ Commence well suspension
Alert Zone 1
■ Drill ship = 6 hrs
■ Semi – 24hrs
■ Ice management plan for drilling
■ To date 120 icebergs have been
tracked over a 12 week period.
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SUMMARY
INDIA
■ Cairn has acted as a catalyst and taken its position in India
from frontier to substantial business in 15 years
■ Major subsequent discoveries by new domestic players
emphasize the exploration potential is real
GREENLAND
■ Cairn has secured an early entry into what it and others
believe to be a world class frontier exploration country
Cairn retains the financial and operational flexibility
to continue to offer stakeholders
long term growth potential
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COMMERCIAL AND LEGAL CONTACTS
Paul Mayland
■ Director - Business Development
paul.mayland@cairnenergy.com
Tom Morris
■ Commercial Manager
tom.morris@cairnenergy.com
Duncan Holland
■ Deputy Head of Legal
duncan.holland@cairnenergy.com
Cairn Energy PLC
50 Lothian Road, Edinburgh, EH3 9BY
+44 (0)131 475 3000
www.cairnenergy.com
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