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Upstream E&P Capabilities in India December 2009

Upstream E&P Capabilities in India December 2009. Presentation overview. 2. Attractive industry environment. Historical background. Total domestic energy consumption 1. Energy sources (%). Discovery. Establishing Phase. Regulation. De-regulation. (mmtoe). CAGR 4.36%. 1889. 1950s.

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Upstream E&P Capabilities in India December 2009

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  1. Upstream E&P Capabilities in India December 2009

  2. Presentation overview 2

  3. Attractive industry environment Historical background Total domestic energy consumption1 Energy sources (%) Discovery Establishing Phase Regulation De-regulation (mmtoe) CAGR 4.36% 1889 1950s 1970s 1990s • Initial discoveries of crude oil in Digboi, Assam • 1955 - Oil and Natural Gas Directorate • 1958 - Indian Refineries Ltd. and Indian Oil Company Ltd. which were merged in 1964 to form the Indian Oil Corporation • Nationalization of companies such as IBP, Esso, Caltex and Burmah-Shell • Only state-owned enterprises were allowed to participate • 1997 - NELP implemented • 162 blocks awarded in 7 rounds of NELP so far • 21 foreign companies and 75 Indian companies have bid so far Note: As of 31st December 2008 (BP Statistical Review of World Energy, 2009) Industry features Daily domestic prod. & consumption (2008)1 Leased Acreages1 • India's total hydrocarbon resources are estimated at 205.9 billion1 barrels of oil and oil equivalent gas • Oil India & ONGC account for ~86.52% of domestic crude oil production, and 75.37% of natural gas production2 • Crude Oil pipeline network of over 10,000 kms and capacity 1.5mn bpd3 and the gas pipeline network of over 10,000 kms Crude Oil (mmbbls) Natural gas (bcm) Petroleum Mining License Petroleum Exploration License TotalConsumption 1,052 41.4 26% 73% Note: As of 31st December 2008 (BP Statistical Review of World Energy, 2009) Note: As of 1st April 2008 (DGH) Note: As of 1st April 2008 (DGH) As of 31st March 2008 (DGH) bpd : Barrels per day 3

  4. Meeting the Energy Demand • Accelerated exploration (NELP) • Intensification of IOR/ EOR technique in fields • Fast track from discovery to commercial production. • Equity oil from overseas. • Conservation and Alternative /Non-conventional / Renewable source of energy IOR- Improved Oil Recovery EOR – Enhanced Oil Recovery 4

  5. NELP- Positive Results • Voluminous E&P data generated • New geological thinking • Growing Competition • Hydrocarbon Discoveries established • Increasing production • More Investment in E&P and Infrastructure 5

  6. Capabilities… • India’s rich human resource capabilities in the entire hydrocarbon value chain. • Technology in Upstream Hydrocarbon Sector: • Integrated Exploration • Seismic API • Drilling • HT/HP • Horizontal Drilling • Deeper Horizons • Production and Reservoir Management (IOR / EOR) • R&D • HSE • Training 6

  7. Oil India Limited (OIL) An integrated E&P Company 7

  8. OIL - Prime Business Explore Produce Oil & Gas LPG Transport Downstream NRL - 26% Gas Cracker - 10% Crude Oil Pipeline Product Pipeline 8

  9. OIL - An Integrated Oil Company Wireline Logging Seismic API (2D&3D) Drilling Field Development In-House Expertise Outsource expertise & services as and when required (to supplement) Production Field / Reservoir Management Transportation IOR/EOR OIL is a fully self-serviced E&P company 9

  10. OIL’s – National Acreage RJ-ONN-2004/2 PI- 75% RJ-ONN-2002/1 PI-60% AA-ONN-2003/3 PI-85% AA-ONN-2004/2 PI-90% ASSAM + AP (PEL + ML) RJ-ONN-2004/3 PI- 60% AA-ONN-2009/4 PI-50% AA-ONN-2004/1 PI-85% RJ-ONN-2000/1 PI-60% AAP-ON-94/1 JVC BLOCK AA-ONN-2005/1 PI-30% RJ-ONN-2005/2 PI-60% AA-ONN-2009/3 PI-50% AA-ONN-2002/3 PI-20% RAJASTHAN (ML) AA-ONN-2002/4 PI-10% WB-ONN-2005/4 PI-25% GK-OSJ-3 JVC BLOCK AA-ONN-2001/3 PI-15% MZ-ONN-2004/1 PI-75% MN-OSN-2000/2 PI-20% KG-ONN-2004/1 PI-90% MN-DWN-2002/1 PI-20% KG-DWN-2002/1 PI-20% KG-OSN-2009/4 PI-30% KG-DWN-2004/6 PI-10% NELP I NELP III NELP V NELP VII NELP II NELP IV NELP VI NELP VIII (Provisionally awarded) KG-DWN-2004/5 PI-10% AN-DWN-2009/1 PI-30% KG-DWN-98/4 PI-15% AN-DWN-2009/3 PI-40% KG-DWN-2009/1 PI-15% CY-OSN-2009/2 PI-50% AN-DWN-2009/18 PI-30% CY-DWN-2001/1 PI- 20% AN-DWN-2009/2 PI-40% AN-DWN-2005/1 PI-10% Nomination ML(19) 4,811 km2 / PEL(16) 5,368 km2 Joint Operator: (1) 3,995 km2 JVC Blocks: (2) 6,030 km2 Operator: (13) 20,932 km2 10 Non Operator: (18) 97,907 km2

  11. OIL’s - Overseas Exploration Venture IRAN Farsi Offshore 3,500 20 (OVL) Operator Area (Sq. Km) OIL’s Participating Interest (%) * Government approval is awaited EGYPT* Block 3 Block 4 8,287 2,600 25 (GSPC) 50 50 25 (Sonatrach) 7,087 2,710 6,629 LIBYA Area 86 Area 102/4 Area 95/96 17.5 (Suntera) 2,094 NIGERIA OPL 205 TIMOR LESTE* Block K 2,384 12.5 (Reliance) 45 3,761 GABON Shakti 1,857 364 15 (Medco) YEMEN Block 82 Block 83 Total 17 Blocks Area – 41,273 sq.km. OIL also holds a 10% equity stake in 741 km crude oil pipeline in Sudan 11

  12. Strengths of OIL - Seismic-A Tool for Exploration API Acquisition Processing Interpretation 12

  13. Competitive Edge of OIL - Going Deep TD-5610m • Reaching Deeper Horizon • Producing Commercial Oil from below 5500m 13

  14. Strengths of OIL - IOR/EOR Processes Production Enhancement Optimizing artifical lift Increasing well stimulation Reactivating idle wells Changing completion strategy Debottlenecking facilities Infill/Step-out drilling Recompletion Workover Infill drilling Step-out driling Deepening Secondary recovery Water flooding Gas flooding (immiscible) Enhance Oil Recovery Gas flooding – CO2 Condensate flooding Microbial (MEOR) Surfactant/chemical Polymer Thermal 14

  15. Competitive Edge of OIL - EOR/IOR • Avg. Recovery of Major Reservoirs > 40% • Recovery of Selected Reservoirs ~ 50% • Improved Recovery (Nahorkatiya) • Around 130 reservoirs • 70% of STOOIP subjected to IOR • Crestal gas injection, peripheral water injection, water flooding, polymer flooding simultaneous gas & water injection, MEOR 15

  16. Crude Oil Production 12% Growth

  17. Strengths of OIL - R&D Efforts • Well equipped R&D and Chemical laboratories capable of testing and services in • Geochemical Exploration • Source Rock Evaluation, Fluid type Characterization Etc. • Oil and Gas Production • Formation Water Clarification, Re-injection, Well Stimulation Etc. • Oil field Chemicals • Drilling and Work-over Fluid Chemical Etc. • Pipeline Transportation • Treatment Optimization Etc. • Enhanced Oil Recovery • Microbial Flooding Etc. • Pollution Control • Drilling Site Effluent, Water Pollution, Etc. • Alternate Sources of Energy • Coal Liquefaction

  18. Strengths of OIL - Trunk Pipeline- Since 1962 • Pioneer in the field of Crude Oil Transportation in South East Asia • During its operation for nearly five decades, OIL’s Pipeline System has achieved new milestones and broken many records only for its efficient management • Automated Pipeline System to Deliver Crude Oil to 4 Refineries • Length of Trunk Pipeline - 1157 KMs • Product Pipeline - 660 KMs • Length of Branch line - 56.48 KMs • No. of Pump Station - 10 • No. of Terminal Station - 1 18

  19. Strengths of OIL - Health Safety & Environment • Well-defined Corporate Safety Policy in place • with various elements on Health, Safety and Environment. • An excellent safety standard with relatively low Accident Frequency Rate • Comparable to International standards. • Gradually raising its standards further and preparing to meet the all challenges in • Health, Safety and Environment • Ecology and Environment • Occupational Health “OIL is a responsible Corporate Citizen deeply committed to socio-economic development in its areas of operation” 19

  20. Strengths of OIL - Quality Services ISO - 14001 OHSAS - 18001 ISO - 9001 • Pipeline Services • LPG Plant • Power Station • OIL Hospital • Chemical Laboratory • Pipeline Services • LPG Plant • Production Set-up • Power Station • Pipeline Services • LPG Plant • Production Set-up • Power Station ISRS – Level 6/7 ISO 17025 • Production Set-up • Drilling Rig • R&D Lab 20

  21. Strengths of OIL - A Corporate Citizen-Vision • Well-defined Corporate Social Responsibility Policy with various elements on Health Care & Family Welfare, Educational Development and Socio – Economic Development in place with a vision • “OIL is a responsible Corporate Citizen deeply committed to socio-economic development in its areas of operation” Oil IndiaLimited 6 October 2014 21

  22. Strong financial and operating track record 22

  23. Key Strengths 1 Large E&P player in India with a focused international exploration acreage 2 Over five decades of E&P experience and expertise 3 Strong financial and operating track record 4 Experienced management with a proven track record 5 Diversifying across the Oil and Gas value chain 23

  24. Thank You

  25. Competitive Edge of OIL - Efficiency • Attractive Reserve Replacement – R/R (%) • 217 • Low Finding & Development Cost • OIL – US$ 4.11 / BOE • Low Lifting Cost • OIL – US$ 6.80/ BOE 25

  26. India – Hydrocarbon Scenario • India is one of the largest oil and gas consumers of the world (consumption around 2.7 million barrels per day). • India is set to become the world’s third largest oil importer from present after the US and China before 2025 - International Energy Agency (IEA). • Only 30% of the crude oil demand comes from the domestic production. 26

  27. Presentation overview aaaaaaaa 27

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