CAIRN INDIA LTD Rajasthan Site Visit

Transcription

1 CAIRN INDIA LTD Rajasthan Site Visit February 2009

2 2 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.

3 3 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

4 Introduction Rick Bott Chief Operating Officer 4

5 5 Rajasthan Block RJ-ON-90/1 Jaisalmer Jodhpur Mangala Processing Terminal (MPT) Rajasthan NEPAL Barmer Barmer INDIA BANGLADESH Jalore Districts Roads

6 6 Rajasthan - Barmer History Founded in the 13th century by Bahada Rao initially called Bahada-mer later shortened to Barmer Location Climate Situated in the western part of Rajasthan and forms part of the Thar desert The Thar desert covers 13,000 km 2 Surrounded by Jaisalmer in the north, Jalore in the south, Jodhpur in the east and Pakistan in the west Arid desert Extreme temperatures; 5 degrees centigrade in December / January 46 degrees centigrade in June / July Economy Mainly agriculture based Craft cottage industries

7 7 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 km 2 acreage approved for development Processing capacity 205,000 bopd First Mangala production; Q by trucking Q by pipeline Estimated MBA peak production 175,000 bopd

8 8 Field Development Area Size Comparisons New Delhi Bhagyam Development Area Total Acreage 3,111 km 2 Kameshwari West Development Area 130km New Delhi and London combined area approx 3,134km 2 London 65km MARS Development Area (Mangala, Aishwariya, Raageshwari and Saraswati) All maps to same scale

9 9 Rajasthan Development Maximise Oil Recovery Primary and secondary oil recovery scheme Tertiary recovery scheme (EOR) plan and test Optimise Crude Marketing Multiple access points to India s refining infrastructure Ship loading option World Class Safety Standards 10 million man hours Lost Time Injury (LTI) free Minimal Environmental Impact Low emissions - zero gas flaring Recycle and re-use; Produced water reinjection Conserve local fresh water supplies Positive Local Impacts Minimise footprint Local development and employment

10 10 Rajasthan Integrated Development Overview Bhagyam Intra-field Pipelines and Crossings Mangala Aishwariya MPT and Well Pads 1 x 30,000 bopd processing train 2 x 50,000 bopd processing trains 1 x 75,000 bopd train, scope for further expansion Fluid handling capacity 1 million bfpd Raageshwari Gas Terminal (RGT) and Well Pads Raageshwari Gas piped to MPT Combined with Mangala associated gas for power generation Water System Saline water for MPT and secondary recovery from reservoir Thumbli water field facilities Export oil pipeline plus heating stations

11 11 Rajasthan Development Wells and Well Pads >350 wells, >40 well pads Mangala Processing Terminal Area: 1.6 km 2 (approx 400 acres) 1 x 30,000 processing train 2 x 50,000 bopd processing trains 1 x 75,000 bopd train, with scope for expansion Water recycling and gas recovery systems Heat and power systems Built-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 coast Skin Effect Heat Management Systems (SEHMS) Multiple oil delivery points Bhagyam Field Intra field pipelines and crossings Barmer Aishwariya Field RGT and Well Pads Export Oil Pipeline Gas and Condensate Pipeline Flow MPT and Well Pads Thumbli water field Well Pads and facilities

12 12 Rajasthan Development - Comparisons ~500 km of intra and inter field pipelines: London to Newcastle ~455 km Delhi to Lucknow ~497 km ~80 km of roads: London to Brighton ~85 km Delhi to Panipat ~85 km 130 km length of the Rajasthan block: London to Southampton ~130 km Jaipur to Ranthambore National Park ~30 km 600 km length of the Export pipeline: Delhi to Jodhpur ~589 km London to Edinburgh ~650 km

13 13 Health and Safety Achievements 10 million man hours LTI free Excellent road safety record Full compliance to HSE regulations Comprehensive HSE training programmes Systematic risk assessment and management of the facility designs On-going Activities Safety recognition programme Periodic 3rd party HSE audits Periodic IFC audits for Environmental and CSR compliance

14 Development Drilling Santosh Chandra Director Drilling and Petroleum Engineering 14

15 Fatehgarh Rajasthan Site Visit February Rajasthan Recovery System Fuel Gas Distribution System Gas Recovery System Export Oil Storage Separator + Heat Export Pipeline Fresh Water Vertical Well Water Table Horizontal Well Water Injector Heat Saline Water Abstraction Thumbli Saline Aquifer Oil Barmer Hill

16 16 Drilling Rigs Drilling Rigs 2 highly mobile custom built rigs Hook load 500,000 pounds 3,500m depth capacity Fully automated controls and pipe handling Compact rig layout Save land, infrastructure and drilling costs Minimal environmental impact, no local dislocation Better control and security Highest onshore production rate wells in India The horizontal wells designed for 10,000 bopd and deviated wells up to 6,000 bopd

17 17 Mangala Project and Well Pads >100 oil producers >50 water injector wells 5 source water wells 18 well pads, 20 wells from a single pad >30 Raageshwari Deep gas wells Mangala Discovery Well January 2004 Mangala Processing Terminal Well Pads Export Oil Pipeline

18 18 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 Downhole Electrical Submersible Pump 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 Sand control and inflow Control screen devices

19 Mangala Processing Terminal S V Nair Director Projects 19

20 20 Mangala Processing Terminal - Scope Four oil processing trains Heat source: Steam Steam generation 5 x 115 Tons / Hr boilers with accessories Advantage of steam - pollution free, efficient, renewable resource Captive power plant to meet all power requirements 4 x 12 MW steam turbine generators 3 x 2 MW emergency diesel generators Water heating and circulation system, fire water system Tanks - 20, buildings 16 Internal and external roads 55 km Concrete - 98,000 m 3 Steel - 23,600 metric tonnes

21 21 Rajasthan - Mangala Processing Terminal Steam Turbine Generators 1 Steam Boilers 3 2 Oil Export Tanks Water Tanks Power Water Injection Water Produced Water Oil Settling Tanks Fluids from Well Pads Export Oil Pipeline

22 22 Upstream: Processing Systems Overview Well Pads To Fuel Gas Distribution system / Boilers Make up Gas from Raageshwari Associated Gas Recovery 1 st Stage Separation 2 nd stage separation Settling Tank Dehydrator Fluids from wells Heater To Injection & Power water systems Produced Water Treatment Injected back into wells Make up water from Thumbli saline water wells To Export Pipeline Export Oil Pump Export Oil Storage Tank

23 23 Upstream: Steam and Power System Oil Processing System Process Heaters To Export Pipeline Tank Heaters Make up gas from Raageshwari 48 MW Power for plant utilities 4 Steam Turbine Generators 5 Boilers Associated Gas Recovered Water Desalination Package To Injection & Power water systems INJECTION HEATERS Make up water Thumbli saline water wells

24 24 Raageshwari Gas Terminal and Thumbli Water Field Raageshwari Gas Terminal >30 mmscfd dry gas Four Gas well pads with 35 wells Gas system, condensate system, produced water system, fire water system Power generation 3 x 1250 KVA gas engine generator 4 condensate & 12 Gas pipelines from Raageshwari to MPT 190 line km Picture of Thumbli Water Field Thumbli well field five water wells (each 63,000 bbls/day capacity) 20 Water pipe line from Thumbli to MPT 22 km

25 Pipeline H P Bhalla Director Midstream 25

26 26 Rajasthan to Gujarat Pipeline ~600 km with heating stations and storage terminals Total Pipe Diameter 790 mm (32 ) Pipeline uses SEHMS Plant set up to handle pipeline insulation High Density Polyethylene Wrap Maintain the crude oil temperature above 65ºC Heat Tube Poly Urethane Foam Insulation

27 27 Pipeline Schematic Mangala Processing Terminal 35 SEHMS Sanchore Pigging Station Gas pipeline Heated crude oil pipeline Raageshwari Gas supply Viramgam Intermediate Terminal storage, pumping and export Buyer Coastal Terminal storage and export Distribution to Refiners Wankaner Pigging Station

28 28 Skin Effect Heat Management System Power Source and Temperature Monitoring Power requirement 40 W / m Voltage ~4,000 V No current flow on outside skin of tube System grounded with automatic earth fault trip Remote emergency shut-down capability Termination RTD s Current flows through centre conductor Current returns through inside skin of outer tube Heat Tube RTD : Resistance Temperature Detector

29 29 Pipeline Construction Work

30 30 Pipeline Construction Work

31 31 Pipeline Construction Work

32 32 Pipeline Construction Work

33 Rajasthan Local Community T K Venkatesan Project Manager 33

34 34 Engaging With The Community Strategic Intent: Proactive engagement with stakeholders Demonstrate leadership in corporate citizenship Partnering with communities through our principles of respect, relationship and responsibility Areas of Focus: Education Infrastructure Health Economic Development

35 35 Stakeholder Consultation and Engagement Project Selection Discussions with communities, elected bodies, Non Governmental Organisation s (NGO) / District Administration Align with Government programmes at state and national levels Implementation and Monitoring Government agencies, district administration Community based organisations (Panchayat Samiti, NGO) International specialist organisations (International Finance Corporation (IFC), Sight Savers) Direct by Cairn India

36 36 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

37 Summary Rahul Dhir Chief Executive Officer 37

38 38 Summary Rajasthan Focused on delivery and growth World class resource base Enhanced oil recovery potential Pipeline route allows access to multiple buyers Large volume on long term basis Increased delivery, consistent cash flow Funding 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