1 / 13

Cairn energy-

Cairn energy-. What would Cairn’s Strategy in India be?. Presented By-Pooja Rahul Sharma HL Centre for Professional Excellence, Ahmedabad. Objectives. To understand the importance of oil exploration in india. To understand the concept of market entry into India & the implication thereof.

nevina
Download Presentation

Cairn energy-

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Cairn energy- What would Cairn’s Strategy in India be? Presented By-Pooja Rahul Sharma HL Centre for Professional Excellence, Ahmedabad

  2. Objectives • To understand the importance of oil exploration in india. • To understand the concept of market entry into India & the implication thereof.

  3. What would cairn’s strategy in India be? 6% of proven oil reserves out of the total world reserves.

  4. The UK Independent e&p scenario • In the 1970s UK based Independent companies operated in the north sea. • Government took a “free for all” approach of letting any oil company develop north sea. • water became more competitive & difficult. • The strategy adopted by many UK companies was to first built base in UK before branching out. • Cairn’s strategy was reverse of it.

  5. Sir Bill Gammell The company was founded in 1981 by Sir Bill Gammell, the former international Rugby player, who remains its CEO. Company First got listed in LSE in 1989 In late 90’s Gammell had success with gas discoveries in South Asia. In 2006 Cairn discovered 500 million barrels of oil in Rajasthan.

  6. Bangladesh: cairn’s south asia gateway Bangladesh contained proven oil reserves of 5.4 million barrels & produced around 2900 barrel per day. Cairn spud the first well, Sangu 1. Cairn made corporate acquition with of the command Petroleum. Shell discovered new gas field near sangu. Cairn signed PSC for block 5 & 10 in southern Bangladesh. Where it was in joint venture with shell 50/50. In 2003 Cairn bought out half of the stake & increased drilling. In 2005 sangu field was assessed as 500 million dollors. • Cairn in Banladesh • Ravva oil field • Sangu 1

  7. The Indian exploration scenario Indian offshore oil reserves is located on western coast & its onshore reserves in northern region of the country. In 1991,opening onshore E&P blocks to private & foreign players. India’s 9th five year plan stated that it would run out of its oil reserves by 2012,despite 30% of its demand being met by domestic production. In 1997 GOI endorsed NELP. In 1999,Exploration blocks offered but the response was disappointing.

  8. The Indian exploration scenario In 2000,India proceed with the award of 25 oil blocks. The largest winner in the bidding round was India’s Reliance Industries(12 blocks). ONGC awarded with 8 blocks.

  9. Cairn in India The development of the Bangladesh market supported Cairn’s exploration in India. Cairn had spent £56 million & still not found Major strikes. In Jan 2006 the tide turned when cairn struck a big in Rajasthan up to 1 billion barrels. Cairn was the largest oil company operating on the Indian sub- continent; equivalent to 150 north sea exploration. Cairn’s development area in Rajasthan covered 1858km.

  10. Cairn in India E&P rights in Rajasthan shared b/w Cairn & ONGC 70:30 respectively. It maintained its offices in Delhi & Chennai. Also had project offices at its E&P sites

  11. Challenges • In Bangladesh • In India

  12. Cairn Energy • Stock Market • Institutional Investor • Loans • Recovery Rates • Growth • Critical scenario in India • Gap between Consumption & Production • Cairn’s future

More Related