Cairn India Limited Corporate Brouchure

Cairn India Limited

Delivering Growth
through Transformation

Content
Cairn India’s journey 03
Our Journey since IPO: Consistent delivery of growth 05
Our Heritage 05
Our Vision and Core Values 07
Discovering Energy for Growing Economies 08
Growing assets in the region 13
Developing the Rajasthan Discoveries 15
Rajasthan Upstream 18
Exploring to Discover 24
People Our Assets 27
Highest Priority Safe Operations 28
Competitive Advantage 31
Producing Hydrocarbons Responsibly 32

Rahul Dhir

Foreword Managing Director & CEO

The pursuit to harness energy, which plays an instrumental
role in economic growth, continues unabated.

As in the past, it is expected that the demand for energy will is encapsulated in the 3R’s – Respect, Relationships and
continue to outpace supply in future. This makes it critical for Responsibility. Working closely with our stakeholders and
all growing economies to secure energy supplies to meet the communities in our areas of operation, Cairn India has helped
growing needs of the people. in making a difference to their lives.

We, at Cairn India, believe that successful growth can only Cairn has in the last 15 years of its presence in India made
be based on the principles of sustainability, affordability, more than 40 discoveries, including Mangala, the biggest
inclusiveness and sensitivity to our environment. onshore oil discovery in India in the last two decades. By the
end of 2011, Cairn India will be contributing more than 20% of
Cairn India is listed on the Bombay and National Stock India’s domestic crude production.
Exchanges and has a market capitalisation of more than USD
14 billion. We are among the fastest growing Exploration and This brochure is a statement of our business philosophy and
Production companies in the world with a strong heritage of outlines the key drivers of our performance as a company
exploration success and a proven track record of fast track pioneering in the quest for energy and enriching lives.
development and low cost operations.

Our foundation is built on a relentless focus on execution, cost
consciousness and innovative application of technology. We
believe in working towards common objectives with a strong
ethos of teamwork. Rahul Dhir
Managing Director & CEO
Stakeholder and community relationships are an integral part
of our business. Cairn India’s approach to dealing with these

02

Three out of the seven landmark oil
discoveries made in India between
2000 and 2005 were by Cairn and
its Joint Venture partners

Delivering Growth through Transformation 03

Cairn India’s Journey
Cairn has been exploring for hydrocarbons The Mangala discovery in Rajasthan in production. We have a world class
in India for more than 15 years. Today, 2004 was the largest onshore discovery in resource base and are focused on the
it has a proven track record of making the country in the past two decades. delivery of the Rajasthan development as
exploration discoveries and fast tracking we continue successful production from
them to production. Three out of the seven The company operates the largest our existing assets.
landmark oil discoveries made in India producing oil field in the Indian private
between 2000 and 2005 were by Cairn and sector and has pioneered the use of
its Joint Venture (JV) partners. cutting-edge technology to extend


Our Journey Since IPO
Consistent Delivery of Growth

On 9 January 2007, Cairn India Limited was maintaining low operating costs in Ensuring the company is well
listed on the Bombay Stock Exchange and existing producing fields positioned to take advantage of growth
the National Stock Exchange of India. Cairn • Optimising recovery from the Ravva opportunities in the region
Energy PLC, the parent company holds and Cambay fields through • New acreage in Sri Lanka
a 62.25%* interest while Petronas has a deployment of state of the art • Complete portfolio evaluation
14.9%* interest in Cairn India Limited. This technology • Planning new exploration activities
provided Cairn India with a new platform • Developing the world class Mangala and programmes
for its next stage of growth by: field in Rajasthan, the largest
onshore hydrocarbon discovery in
Capitalising on the strong development India since 1985
and operational expertise
• Sustained production from and
* As at March 2011

Our Heritage
The story began in 1979, when Sir Bill 1996, an Australian-quoted company with this, along with the other discoveries in
Gammell, our chairman, founded Cairn interests in South Asia. Rajasthan, will form the core of the future
Energy. In 1988, the company was listed developments in India.
on the London Stock Exchange. Sir Bill Cairn Energy PLC, a FTSE 100 company, was
Gammell became its first Chief Executive one of the first UK companies to invest in the Today, South Asia is one of the most
and has held this position for more than Indian oil and gas sector. Ravva in eastern exciting investment destinations for the
two decades, overseeing the organisation’s India was the first offshore oil and gas field to hydrocarbon sector. Cairn India, along
transformation to one of the largest be developed, followed by the Lakshmi gas with its joint venture partners, has invested
independent exploration and production field in western India, which was discovered billions of dollars in a variety of projects
companies in Europe. As the Indian oil in 2000 and commenced production in 2002. and developments in this region.
and gas market deregulated in the early
1990s, Cairn’s focus turned to this region, In January 2004, Cairn added the Mangala
acquiring Command Petroleum Ltd in oil field in Rajasthan to its assets and


Our Vision and Core Values
Cairn India’s vision of pioneering to grow collectively in this part of the livelihoods whilst aiming to safeguard the
energy and enriching lives is built on the world. Respect for individuals within the environment.
foundation of our core values of pioneering organisation, a healthy diversity of cultures
spirit, teamwork, respect and ownership. and professional experience has helped For more than a decade Cairn has been
These are embodied in the way we Cairn to pursue its vision of being a pioneer undertaking pioneering activities in the
conduct our business and engage with in the field of energy. Cairn has also field of energy. Through the core values
our stakeholders. successfully demonstrated its commitment of pioneering spirit, teamwork, respect
towards the communities in which it and ownership we have built a significant
Over the years, innovative thinking and a operates through responsible actions hydrocarbon resource base in the country.
can do attitude within teams helped Cairn that has helped in creating sustainable

08

Discovering energy
for growing economies
A decade of achievement • Mangala Field Development Plan (FDP)
Exploration approved within 30 months of discovery
• More than 40 Hydrocarbon discoveries: Production
 Onshore • Operates the largest producing oil field in
 Offshore the Indian Private Sector
- Shallow • Combined field direct Opex of Ravva and CB/OS-2 is
- Deep approximately USD 2/barrel of oil equivalent (boe)
Development • Pioneered use of cutting-edge technologies to extend
• Fast-track development production life
• Lakshmi gas field discovery in May 2000 and first gas Sales
by October 2002 • Gas sales contract with public and private buyers
• Ravva, developed from a 3,700 barrels of oil per day • Oil sales to four major refineries across India
(bopd) field to a 35,000 bopd field in 26 months, then
plateau production of 50,000 bopd for nine years


Cairn is focused on creating
value for our stakeholders through
exploration and production. We
continue to maximise the potential
of Rajasthan and recovery from the
existing producing assets while
identifying new growth opportunities

10

Cairn India is committed to continuing investment
for growth and is focused on creating shareholder
value by developing its world class resource base
in Rajasthan, maximising recovery from the existing
resource base and seeking to continue Cairn’s track
record of exploration success

growing our assets
PrODuCIng ASSetS low-cost operating base by focusing on CB-X, a marginal gas field in the transition
oil field life-cycle planning, continuous zone of the CB/OS-2 block was in
ravva Field, Krishna-godavari Basin, monitoring of operational costs and production between June 2007 and
Andhra Pradesh the innovative application of operating August 2009. The Lakshmi and Gauri fields
The Ravva oil and gas field in the Krishna- technologies. Ravva completed 15 years commenced production of oil in addition to
Godavari Basin was developed in of continuous operations on 28 October its gas production in 2005.
partnership with ONGC, Videocon and 2009. Originally estimated to produce 101
Ravva Oil, under a production sharing million barrels of crude oil, Ravva has now Cairn is the operator of the CB/OS-2 block.
contract (PSC) that runs until 2019. produced more than 225 million barrels. The PSC was signed in 1998 with ONGC
Currently, eight unmanned offshore and Tata Petrodyne Limited as partners and
platforms are being operated. A 225- Cairn India is confident of the field’s runs until 2023.
acre onshore processing facility at considerable remaining reserve potential
Surasaniyanam processes natural gas and of further oil production from The natural gas and crude oil from these
and crude oil from the Ravva field. The this block. The Company and its JV fields is processed at an 82-acre onshore
Ravva onshore terminal operates to the partners have completed a 4D seismic processing facility at Suvali owned by the
internationally recognised environmental acquisition campaign, first in India, to JV partners. The plant is certified to ISO
standard – ISO 14001 – and has the identify bypassed oil zones and have now 14001 & OSHAS 18001 standards and has
capacity to handle 70,000 barrels of oil commenced infill drilling. the capacity to process 150 mmscfd of
per day (bopd), 95 million standard cubic natural gas and 10,000 bopd of crude oil.
feet per day (mmscfd) of natural gas and CB/OS-2, Cambay Basin, gujarat The application of advanced geophysical
110,000 barrels per day of injection water. In 2002, gas production commenced from tools has helped map thin oil sands which
The terminal also has the capacity to store the Lakshmi gas field, which is situated in are beyond normal seismic resolution
one million barrels of crude oil onshore. Block CB/OS-2 in the Cambay Basin of the capability. These techniques have
west coast of India in the Gulf of Khambat. transformed the CB/OS-2 block from a
The Ravva field is one of the most efficient The Gauri offshore gas field was discovered predominantly gas field to an oil
fields in the world and has maintained its in 2001 and came on-stream in 2004.


field through the discovery of an oil leg. DeVelOPment PrOJeCt further 300 mmboe or more of Enhanced
Tubing sand screens were used for the Oil Recovery (EOR) potential. The MBA
first time in the Cambay Basin as a sand rajasthan – Barmer Basin fields will contribute more than 20% of
control measure. The Cambay asset has Cairn has developed a good understanding domestic crude production when they
witnessed the use of several cutting- of this reservoir through extensive seismic reach the currently approved plateau rate
edge technologies which have increased and appraisal work. of 175,000 bopd.
throughput at a lower unit cost.
The Mangala field, which was discovered The Mangala Field commenced production
Cairn India signed a Term Sheet agreement in January 2004, is the largest onshore oil on 29 August 2009 after it was dedicated
to produce Gauri share of GBA (Gas discovery in India in more than 20 years. to the nation by the Honourable Prime
Balancing Agreement – for sharing of gas The Mangala, Bhagyam and Aishwariya Minister of India, Dr. Manmohan Singh at
from the shared reservoir formation) gas (MBA) fields have recoverable oil reserves the Mangala Processing Terminal in Barmer,
through the Hazira facilities in December and resources of nearly 1 billion barrels, Rajasthan. Cairn India has embarked on the
2009. The gas production and sales also which includes proven plus probable (2P) journey of transformational growth in oil
commenced in the same month. This is a gross reserves and resources of 694 million production levels with its Rajasthan fields
first arrangement of its kind in the country. barrels of oil equivalent (mmboe) with a commencing production.

12

It has been recognised that the significant
reserves and resources discovered in
Rajasthan are ideal candidates for the
application of advanced techniques to
optimise and increase recoverable volumes.
Utilisation and development of these
technologies is key element to realise the
full potential of the block


Developing the
rajasthan Discoveries
Cairn first came to Rajasthan in 1997 with Work on the development of the Bhagyam and three observation wells, has been
the belief that the key ingredients for field, the second largest field in Rajasthan, drilled, completed and hooked up to the
commercial success were present, but has commenced. Development drilling facilities. Water injection and production
it took perseverance and more than a has started with a total of 19 Bhagyam phase also commenced in December,
dozen wells to discover the Mangala field, development wells drilled to date. Crude 2010. This pilot will be used to refine the
followed by Aishwariya, Bhagyam and oil production from the Bhagyam field is EOR process and facilities with an aim to
other discoveries. To date, 25 discoveries expected to commence in H2 CY 2011 and roll out EOR on a field wide basis. The
have been made in the Rajasthan block. achieve approved plateau levels by year current assessment of the EOR resource
end 2011. The sub-surface well results so base is more than 300 million barrels
The Mangala, Bhagyam and Aishwariya far have been as per expectations. (mmbbls) of incremental recoverable oil
(MBA) fields in the northern area of the from the MBA fields alone.
Block are currently under development Assessment of production impact
with over 125 development wells already and design optimisation is currently Barmer Hill
drilled in Mangala. The Mangala field underway due to increased reserves in the A pilot hydraulic fracturing programme
was dedicated to the nation on 29 August Aishwariya field. Production is scheduled to test the potential of the Barmer Hill
2009. Since then, Mangala production to commence in H2 CY 2012 subject to JV Formation is in the final stages of planning
has ramped up to the currently approved and GoI approval. and its implementation is subject to
plateau rate of 125,000 bopd. GoI approval. The pilot programme will
Thus, the MBA fields together have allow evaluation of the appropriate cost
The focused effort on drilling high capacity the potential to generate peak plateau effective technology for a fully optimised
horizontal wells in Mangala and the production of more than 175,000 bopd. development of this resource base. A
reservoir performance supports higher declaration of commerciality for the Barmer
plateau levels. Surface and sub-surface Enhanced Oil Recovery Hill was submitted to the GoI in March,
facilities are ready to support production of As a demonstration of our commitment for 2010 and a FDP is under preparation.
150,000 bopd from Mangala, subject to JV early use of advanced recovery techniques Optimal recovery techniques utilising large
and Government of India (GoI) approval. to increase the oil recovery from the world fracture treatments and potential use of
In addition to Mangala, as per the currently class MBA fields in Rajasthan, the chemical multiple staged horizontal well fracs, will
approved FDPs Bhagyam and Aishwariya EOR pilot trials in the Mangala field started be demonstrated and refined during this
have the potential to produce 40,000 bopd in early 2010. The first phase of EOR pilot and subsequent pilots.
and 10,000 bopd respectively. consisting of four injectors, one producer


rajasthan upstream
The Rajasthan Field Development Area Mangala, Bhagyam and Aishwariya fields design of MPT to preserve water, a scarce
(FDA) consists of three contiguous areas: and has a nameplate capacity to process resource in the desert state of Rajasthan,
(i) Development Area 1 - Mangala, 205,000 bopd of crude with scope for by recycling and reusing water for boiler
Aishwariya, Raageshwari and further expansion. Trains One, Two feed, injection purposes and when used as
Saraswati (MARS) and Three are commissioned and the power fluid.
(ii) Development Area 2 - Bhagyam construction of Train Four is underway.
(iii) Development Area 3 - Kameshwari The gas from the Raageshwari field,
West. Processing crude oil from four trains located 90 kms away from MPT, is used
requires the MPT to have an extensive to heat the boilers and, more importantly,
Cairn India and its JV partner ONGC have water heating, circulating and recycling to heat the waxy crude along the
an area of 3,111 km2, under long term system, gas recovery systems, heat and approximately 670 kms Barmer to Bhogat
contract on the Rajasthan licence spread power systems and built-in fire and safety pipeline.
across the districts of Barmer and Jalore. systems. The infrastructure to and from
the MPT involves some 500 kms of intra- Developing the Barmer to
At peak production, the Mangala, and inter-field pipelines and 80 kms of Bhogat Pipeline
Bhagyam and Aishwariya fields together inter- field roads.
will produce 175,000 barrels of oil per day Cairn India took on the crude pipeline
(bopd) - which is estimated to account Steam is the main source of heat to extract project to overcome the following
for more than 20% of India’s crude oil and evacuate the Rajasthan crude. The challenges:
production. Subject to GoI approval and advantage of steam is that it is an efficient, • To reach maximum potential buyers
additional investments, the Rajasthan pollution-free and a renewable resource. • Resolve the flow assurance issues
resource base now provides a basis for All power requirements of the MPT are posed by the quality of the crude oil
a vision to produce 240,000 bopd or met by captive power plants, comprising • Minimum effect on the environment
37% more than the currently approved four 12 MW Steam Turbine Generators and minimum foot print
peak production, which could ultimately and three 2 MW Emergency Diesel • Build a technically sound and
translate to about 35% of India’s domestic Generators. operations friendly evacuation
crude oil production. system
The water to generate steam and flood
mangala Processing terminal (mPt) the oil reservoirs to help evacuate the The Mangala Development Pipeline
crude comes from a saline water aquifer Project (MDPP) starts at the MPT in
Spread over an area of 1.6 km2, the MPT at Thumbli, which is 22 kms away from Barmer and passes through the two states
is designed to process crude from the MPT. Due care was taken during the of Rajasthan and Gujarat, eight districts


Developing the world’s longest
continuously heated and insulated
pipeline demonstrates the technical
expertise being applied to secure
energy from the Rajasthan fields

and travels approximately 670 kms before it The pipeline crosses all major crude oil (ROU) under the Petroleum and
reaches the coastal location of Bhogat near carrier pipelines in the western part of Mineral Pipelines Act , 1962
Jamnagar on the western coast of India. India and offers the potential of blending • More than 750 crossings of various
the Rajasthan crude with the other crudes types starting from Railways, National
The MDPP Evacuation system is a 24” that are carried in the other pipelines. As and State highways, Rivers, Canals,
crude oil pipeline which uses a Skin Effect it terminates at the coastal location, the other roads and other pipelines etc
Heat Management System (SEHMS) to marine facilities are designed to load the
ensure that the crude oil remains above crude oil carriers to transport the crude oil The MPT to Salaya section (approx. 590
the Wax Appearance Temperature (WAT) to other coastal refineries as well. This way kms) is now operational along with the final
of 65 C, throughout the pipeline. It has
o
the pipeline accesses 75% of India’s delivery infrastructure to each buyer. The
an 8” gas line which feeds gas to all the refining capacity. pipeline system has demonstrated safe
Above Ground Installations (AGI) located and efficient operations and is transporting
at approximately 20 kms distance on the The pipeline project has a few first to its name: 125,000 bopd to various refiners.
pipeline. The AGIs produce the necessary • It is the world’s longest continuously
power to keep the pipeline heated to the heated and insulated pipeline using Construction work on the Salaya to Bhogat
required temperature. The pipeline has SEHMS technology section (approx. 80 kms) pipeline including
36 AGIs and an intermediate pumping • For the first time in India an insulation the Bhogat terminal and marine facility is in
station and terminal at Viramgam. The plant has been set up especially progress with completion targeted in
pipeline also extends up to Radhanpur, for this project by the line pipe H2 2012.
where a terminal has been constructed to manufacturer
facilitate the crude oil sales to Indian Oil • Engagement with more than 40,000
Corporation Limited through their land owners and land users while
pipeline network. obtaining required Right of User

18

exploring to Discover
At present, out of the 10 blocks where Over the last two years, a full re-evaluation SOutHeASt InDIA
Cairn India has exploration and appraisal of the Barmer Basin has been undertaken. Krishna godavari Basin
interests, nine blocks are in India and one All 170 exploration and appraisal wells The Company holds a strong position
in Sri Lanka. These blocks are located in were re-examined, new studies were in the Krishna Godavari basin with both
the Krishna-Godavari Basin, Palar-Pennar started and 2,733 km of 3D seismic data
2
existing production from the Ravva Field
Basin, Kerala Konkan Basin, Cambay was re-processed and re-interpreted. Cairn and prospective acreage in onshore and
Basin, Barmer Basin and the Mannar Basin India has also acquired over 2.2 km of offshore blocks. Our commitment to this
offshore Sri Lanka. cores to help gain a better understanding basin was further consolidated with the
of the geographical and reservoir award of the sought after KG-OSN-2009/3
The prospect and lead portfolio being models. As a result of these studies, the block in the NELP VIII for which a
developed and matured by Cairn India is Rajasthan prospect portfolio has increased Production Sharing Contract was signed on
diversified and comprises a balanced mix substantially to 250 mmboe recoverable 30 June 2010.
of risk and potential reward. risked mean prospective resources with
an upside potential, equivalent to a most ravva (Cairn India 22.5%, Operator)
nOrtHern InDIA likely in place resource of 2,500 mmboe. A major review of the block-wide
rajasthan Discovering and developing these resources additional potential is being undertaken.
Barmer Basin - rJ-On-90/1 will be an important step in realising the full A review of Contingent Resources was
(Cairn India 70%, Operator) production potential of Rajasthan. completed in early 2009, resulting in small
There remains a significant and as yet but significant additions to the resource
untested prospective resource potential to Technical evaluation work continues to base, although further drilling is required
pursue in the Barmer Basin of the assess existing and new plays in the basin to monetise these. A second study to
Rajasthan block. to generate further prospects in Rajasthan. assess the additional undiscovered


Cairn India is in an exciting period
of growth and is pursuing a range of
exploration and appraisal programmes
in its key Rajasthan acreage and other
exploration blocks throughout India and in
Sri Lanka. Cairn India pursues a strategy
of accessing and applying appropriate
leading-edge technologies to ensure
it builds competitive advantage in all
exploration projects

20

Cairn India holds exploration licences
for various geographic areas in eastern,
western, northern India and Sri Lanka.
These interests provide us opportunities
to develop our business in the long term

potential within the field both in untested as part of the future plan for commercial mOVIng BeyOnD: SrI lAnKA
deeper horizons and in adjacent structures development of this discovered oil and Sl 2007-01-001 (Cairn lanka
is ongoing and is expected to add new gas resource. The southern area appraisal 100% - a wholly owned subsidiary
exploration prospects. Further evaluation period was completed in December 2009 of Cairn India)
of the commerciality of these prospects is with the declaration of commerciality Cairn Lanka Private Limited, the wholly
underway prior to drilling. submitted to the Directorate General of owned subsidiary of Cairn India,
Hydrocarbons (DGH). commenced its 3D seismic survey in the
Kg-Onn-2003/1 (Cairn India 49%, Mannar Basin in Sri Lanka on 10 December
Operator) PAlAr-PennAr BASIn 2009 and the data is currently being
Two wells Nagayalanka-1z and Krishna-1 Pr-OSn-2004/1 (Cairn India 35%, processed. The acquisition programme,
were drilled during Q2 FY 2010-11. Oil Operator) which was launched by the Honourable
flow at the rate of 75 bopd and gas at the Following interpretation of 3,100 line km President of Sri Lanka, Mahinda Rajapaksa,
rate of 0.27 mmscfd were established in of offshore 2D seismic data, 800 km2 of 3D fulfilled the commitment of 1450 km2 of 3D
the Nagayalanka-1z well and a discovery seismic data a geotechnical study and pore seismic data acquisition. Exploration drilling
declared. Preparations are ongoing for pressure studies have been completed. is planned to commence in July 2011.
further exploration and appraisal drilling. The block is currently under Force Logistical preparations and detailed studies
Majeure. are currently ongoing ahead of the drilling
Kg-DWn-98/2 (Cairn India 10%, non- schedule.
Operator. OngC is the operator) KerAlA-KOnKAn BASIn
The northern area of this PSC is now in an KK-DWn-2004/1 (Cairn India 40%, The Mannar basin is an unexplored frontier
appraisal phase following completion of the OngC is the operator) petroleum province with both structural
exploration period. The first of three wells A 3,840 line km 2D seismic programme and stratigraphic plays.
to appraise existing discoveries in the block was completed in 2009 and following
was spudded in Q4 2009. Two further interpretation of the data, 300 km2 of 3D
wells will be drilled by the end of Q2 2010, acquisition was completed.

Delivering Growth through Transformations
21

Portfolio of Assets in India and Sri Lanka

24

Using innovative technologies is a way of life with
us. We are ready to face the energy challenges of
the future, our focus on technology helps us to stay
ahead in an environmentally responsible manner.
Cairn India has applied technology and gained
significant operational experience in the deserts of
Rajasthan, the highly populated plains of Bihar, the
shallow waters of Cambay and the deepwaters of the
Krishna Godavari and Kerala Konkan basins

Pioneering technology
For more than a decade, Cairn has been there have been 10 discoveries. Some exploration activities. The concept of
successfully discovering and bringing to of the important ones are Annapurna, under balance perforation using TCP guns
production new oilfields to increase its Padmavati and Kanakdurga, in depths was implemented for the first time in India
hydrocarbon resource base through the ranging from 400 m to 2800 m. during the first drilling campaign in Ravva
use of latest technologies. in the year 1996-98. This resulted in high
Ravva: At the Ravva field, Cairn and deliverability wells thereby minimising the
Cairn has established new benchmarks its JV partners have built a success story capital expenditure in the field.
with its ability to manage reservoirs and by putting new technologies into action
maximise recovery to increase the reserve through sub-surface work, cost effective At Ravva, new technology such as coiled
bases of the fields it operates. operations and the implementation of tubing catenary was implemented on
best reservoir management practices. location for the first time in South East
By introducing clean technologies, Three development drilling campaigns Asia as well as the Middle East. A Drag
streamlining maintenance and improving were carried out in the last decade to drill Reducing Agent (DRA) was also applied
recovery rates through innovative 32 development wells and the field has in the multiphase pipeline that resulted in
applications that are cost effective, Cairn produced at plateau rates of approximately enhancing and sustaining the plateau rate.
India has successfully maximised the oil and 50,000 bopd for the last nine years. Cairn Cairn also introduced Produced Water
gas output from mature and new fields. has completed the ambitious programme Re-Injection (PWRI) in an offshore field.
of 4D seismic to access the remaining
Cairn India pioneered India’s first hydrocarbons and infill drilling is to As part of its continued commitment to
deepwater discovery on the east coast. Of commence to identify bypassed oil zones. green technology, Cairn India has installed
the 14 wells drilled by the joint venture in The innovations at Ravva have set a solar plant for the remote management
Krishna-Godavari deepwater since 2001, a benchmark for future fields and of the well heads located offshore Ravva.


In addition, a 400 watts wind generator CB/OS-2 block has also witnessed hydrocarbon resources within the state
has also been installed to lower diesel cutting-edge technologies in the other well of Rajasthan with a sustained focus on
consumption on cloudy days. These services like: cost and the application of innovative
innovations have helped the ISO 14001 technology. The use of high density
accredited Ravva field to emerge as one of • The plastic plug technique was 3D seismic surveys has enhanced the
the top shallow water oil developments. successfully used for zone isolation in understanding of the reservoir and helped
one of the Gauri wells for the first time in precise identification of well locations
Cambay: In the western coast of in India, which proved to be a cheaper leading to reduced finding costs.
Gujarat, Cairn has been using advanced option than other methods for the
geophysical tools like spectral same purpose. The use of pad-based drilling coupled with
decomposition and Time Frequency • Successful well interventions in highly mobile drilling rigs has allowed a large
Continuous Wavelet Transformation deviated wells with more than 88 o
number of wells to be drilled in a short
to map the complexity of the thin play deviations at 1800 m depths with the time frame with a reduced environmental
reservoir, which is beyond seismic help of Slickline catapults and tractors. footprint and lower infrastructure and
resolution. This technique has helped • For the first time in India, through drilling costs.
transform CB/OS-2 to develop from a tubing and sand screens were
predominately gas producing block to an successfully installed in one of the The focused effort on drilling of high
oil producing block. wells in Lakshmi, thus enhancing its capacity horizontal wells in Mangala and
production. the reservoir performance from the field
Expandable Sand Screen (ESS) on supports higher plateau levels.
the sea bed was installed for the first rajasthan: Cairn India and its JV
time in the world, in the Gauri fields. partner ONGC, continue to develop the


People Our Assets
Its our people...with unlimited capabilities
At Cairn India, we believe that world class operations in India. The people that Cairn Cairn India is an equal opportunity
results can be delivered only by world class employs represent the foundation of this employer, where practices and policies
people, facilitated by a world class working multicultural organisation. Over the years, enable employees to build a strong and
environment. Cairn has employed some of the brightest sustainable career path.
minds in the industry and the skills of
The company unlocks the potential of its these people are critical to the success of a Cairn is committed to fostering an
employees by creating a high performance dynamic organisation. entrepreneurial environment for its
culture. employees. Over time it has built a depth
Our people development initiatives are of knowledge and strong sets of cultural
The HR policies and practices provide an aimed at building leaders who will take values. Around 80% of our employees are
enabling work environment that motivates the organisation forward in line with its professionally qualified and are led by an
every employee to rise to the challenge of vision and values. Cairn encourages a team experienced management team. Their
delivering extraordinary results. spirit that fosters a focused and motivated passions for the business, ability to adapt to
working environment, creating a climate new technology and commercial acumen
Cairn India has developed a strong pool where employees have an opportunity to have played a vital role in the success of
of skilled manpower over the years of its maximise their potential. our organisation.

28

As an organisation that focuses on
sustainable growth, Cairn India is fully aware
of its responsibilities during hydrocarbon
exploration and production. It is for this
reason that Health, Safety and Environmental
(HSE) policies receive our highest priority

Highest Priority: Safe Operations
Health, Safety and Environment are • UK Safety Case approach, which has • International HSE standards are
integral to Cairn India’s business been applied to the CB/OS-2 being applied in the construction of
management systems. The company is development the Rajasthan upstream project works
committed to accomplishing excellence in • UK Control of Major Accident and in the Rajasthan-Gujarat
HSE across all its operations, and to protect Hazards (COMAH) Regulations, pipeline project
our employees and contractors who come which are being applied to the • The DuPont ‘STOP’ system has
into contact with the physical and natural Rajasthan Development. All operating been introduced throughout Cairn
environments in which they work. Cairn sites are ISO 14001 certified India operations as a tool to improve
strives to minimise any impacts to the • The Rajasthan project successfully behavioural safety
environment arising out of its activities. completed forty million man hours • Cairn India has in place safety policies
Cairn India has adopted several without a lost time injury (LTI) for road transportation, aviation and
international standards, processes and • CB/OS-2 and Ravva sites Safety marine operations
procedures in its management system, Management Systems are OHSAS
some of which are: 18001 certified


Staff participation is critical for HSE to
function effectively. To ensure this, there
is a HSE Leadership Team in place. It
comprises Cairn India’s senior management,
which provides leadership on HSE matters,
reviews performance and identifies
opportunities for improvements

30

With a five fold increase in production
volumes forecast for the next decade, the
development work is in full swing


Competitive Advantage
low cost operating capability: Cairn management and achieving recovery • 4D seismic surveys in Ravva to tap
India has over the years demonstrated of crude over an extended plateau. In further potential of the field
that it is capable of operating its assets the Ravva field in the KG Basin, Cairn
on a very cost effective basis. The direct increased crude oil production from a level nurturing Skills: Over the years, Cairn
operating cost of its Ravva block is in the of 3,700 bopd in 1994 to 35,000 bopd in India has grown significantly to become
range of USD 2 per barrel, amongst one 26 months and ultimately to the plateau of a more than USD 14 billion company. In
of the lowest in the world. This allows 50,000 bopd in 1999. In 2009, the Ravva the process, it has strengthened its core
production to be profitable even at USD 9 - block completed 15 years of production capability with a blend of experienced
12 per barrel crude prices. and is still going strong. and young professionals from various
backgrounds. The employees have
Project execution: Cairn India has Success through technology: Cairn a passion for the business and in a
demonstrated world-class and skilled India has been a leader in the application fast-moving environment they adapt
project execution with the development of latest technologies to enhance the to changes, using their technical and
of Rajasthan upstream facilities and resource base and in finding solutions for commercial acumen, managing risk and
construction of the world’s longest overcoming different technical issues. uncertainty and making ‘brave’ decisions
insulated and heated pipeline. Cairn is in the pursuit of our vision. High corporate
commissioning India’s only heated Single • Executing the world’s longest governance standards, coupled with
Buoy Mooring (SBM) facility at Gujarat insulated and continuously heated professional management, distinguish
Coast for handling Rajasthan crude oil crude oil pipeline from Barmer in Cairn India from its peers.
and contributing more than 20% to India’s Rajasthan to Bhogat on the coast
domestic production. As the operator of of Gujarat. Partnership: Working with local
the Lakshmi field in the Cambay Basin, • Horizontal well drilling to produce communities, Central Government, State
Cairn commenced natural gas production from sheet sands - oil flow rate Governments and JV partners, Cairn India
in less than 30 months following discovery. >11,500 bopd achieved from the first has developed an in-depth understanding
The Rajasthan discovery to first oil was horizontal producer well – a record in of the regulatory environment and has laid
done in five years; another enviable the country the foundations for strong relationships.
achievement. • Application of Enhanced Oil Recovery We strive to create value for our
technology in Rajasthan, pioneered shareholders through strong corporate
nurturing resources: Cairn India has a in using the technique in the governance and business ethics.
proven track record of prudent reservoir initial phases of field life

32

Producing Hydrocarbons Responsibly
Corporate Social responsibility: making a difference
through social innovation

Our Vision, values and mission reSPeCt reSPOnSIBIlIty
Cairn India is committed to the
People are Cairn India’s key asset and the Cairn India is operating in many areas that
highest standards of Corporate Social
attitude of the Cairn team is critical to its face economic, social and environmental
Responsibility (CSR). We are committed
business culture. Cairn’s entrepreneurial challenges. It has the responsibility to
to creating value through leadership in
spirit is underpinned by a depth of understand these CSR challenges, identify
corporate social responsibility. It is our
knowledge and a strong set of cultural the potential impact of its activities and,
conviction that continuous business
core values, including integrity, social and through engaging with stakeholders, look
growth, sustainable communities and the
environmental responsibility, teamwork, for opportunities for mutual benefit.
creation of value for our stakeholders go
nurturing of individual creativity, risk
hand-in-hand.
management and developing alliances with
key partners.
Cairn India has made good progress in both
developing and implementing its approach
relAtIOnSHIPS
to managing the CSR challenges facing
the business. Specific attention has been Relationships are the key to developing
placed on the emerging CSR issues such any business and Cairn India’s success
as assessing and managing biodiversity in the region for more than a decade
risks, security, human rights and the would not have been possible without
potential impact of climate change on doing the consistent support of all stakeholders,
business. We have found that the use of a from Governments, regulators and JV
‘rights aware’ approach has helped us to partners to the people living near our sites.
address some of the more complex issues The level of support and understanding
that the Company faces and we are working on the ground is something we have
to raise awareness about this approach. worked hard to bring about in our business
Cairn India proactively engages with development activities and we are proud
communities and stakeholders to arrive of what we have achieved – and continue
at a collective vision and joint to achieve – wherever we are operational.
implementation plan.

Our goal is to make a positive social impact
in every area in which we operate. Our
vision encapsulates Corporate Social
Responsibility in the 3 R’s.

34

Cairn India received the TERI Corporate Award for
Social Responsibility 2008 and the Golden Peacock
Award for Corporate Social Responsibility 2011 in
recognition of its community engagement initiatives.
These awards recognise corporate leadership in
environmental management and good corporate
citizenship across the country.

Our Objectives its stakeholders and communities, we have Cairn in areas of operation
At Cairn we believe in sustainable set forward some objectives we would like to • Demonstrating leadership in corporate
development, which we interpret as achieve as a responsible corporate citizen. citizenship
growing our business in a socially and These are: These objectives are further segregated
environmentally responsible way while • Proactive management of stakeholder into strategic objective, external and
meeting the legitimate interests of our expectations to obtain and maintain a internal, primarily for the purpose of
stakeholders. We also believe in taking ‘Social License to Operate’ greater focus and maintaining a balance
an active role in empowering local • Partnering with the community for between the sub-goals of the various
communities to achieve their ambitions. socio-economic development stakeholders and Cairn.
To achieve the collective vision of Cairn, • Achieving a positive perception of

• Establish thought leadership through supporting pioneering initiatives
towards progressive social change
StrAtegIC

The strategic objectives are designed to
establish best practices in the field of CSR
• Explore new models for future business
and to charter a new path for others to
follow. Cairn India intends to:
• Enhance communication and have strategic partnerships for greater impact
and leverage

The external objectives are aimed towards • Positive engagement with stakeholders for enabling ease of business activities -
positive engagement with the external
externAl

a social license to operate – and risk mitigation and reputation management
stakeholders, to gain their support for the • Addressing expectations of key stakeholders through socio-economic
CSR activities and develop a vision based
development
on reasonable expectations and needs of
the external stakeholders. These external • Overall development of communities and improvement of social infrastructure
objectives are aimed towards: • Following compliance and standards

The internal objectives are directed towards
• Creating wider ownership, participation and spokespersons for CSR
InternAl

seeking active participation of internal
stakeholders, namely employees, investors • Reputation enhancement with internal stakeholders – attracting and
and supply chain members. The internal retaining best talent
objectives are aimed towards:


Infrastructure Economic STAKEHOLDERS
Development

SeCOnDAry
Four Panchayat tertIAry
thematic PrImAry District Administration Local NGOs
areas Land contributors Local Industries Regional NGOs
Local community Regulatory Authorities Media
Political Representatives
Education Health Academic Institutions

We believe that building lasting 1 • Effective communication of strategy
and performance
relationships needs transparency and • Good corporate governance and risk/
involvement of all stakeholders which leads opportunity management
• Climate change strategy
to mutual trust, social license to operate and • Award of exploration permits
fostering partnership with our communities, • Granting Operational Permits 6 • To be treated fairly and honestly
• Compliance monitoring • Long term relationships
joint venture partners, governments and • Opportunities for growth

regulators. Seeking win-win relationships • Commercial relationships
2 • Clear policies and principles
• Meetings
• Partnerships for progress
with all our stakeholders is one of our • Training and capacity building
• Partnerships for conservation of the
guiding principles and has always helped environment
• Community development projects
us to understand each other’s needs and to
work together for everyone’s growth. 2 3
NGOS B
ators
gul u si
ne
We regularly interact with district d Re s sp
An a
administration officials, as well as the
r tn
t
en

er s
rnm

communities and key influencers to plan 4
stitutions Gove

Emp

and implement innovative and acceptable
1

lo
yees In

development models which have proved to StAKeHOlDerS
be a torch bearer for other similar activities in
5
vesto
ic In

the area.
rs
8 adem

Co
c

nt
6
A

ra
Alliances - It is increasingly difficult for any ies to
rs
c
nit and
organisation to develop all the capabilities
u
o mm uppliers C s

needed to foster new innovations. We at 7

Cairn believe that requisite knowledge can
3 • Adherence to global standards 7 • Good neighbours
often only be developed in conjunction with • Employment opportunities
• Direct interaction for feedback and
• Community development and welfare
performance reporting
those possessing specific understanding
• Commercial relationship • Public consultations
of the desired objectives which includes • Grievance mitigation
4 • Competitive pay • Community investment
private sector companies, as well as non- • Challenging, high quality work
• Opportunity for development
profit research institutes, universities, and 8 • Preparing business leaders
• Continuing professional of tomorrow
government bodies. Cairn CSR forges development for all employees • Research
• Consultation on organisational • Partnership
different levels of partnership looking at
initiatives • Developing and teaching
the local needs and delivering high end Cairn India Case studies
programmes aimed at improving the social 5 • Responsible investment • Research on impact in the creation of
• Legal compliance sustainable social,
• Fair returns
milieu. The list below is a showcase of some environmental and economic value.
• Meetings with investment analysts • Partnership for implementation of the
of our partnerships and programmes taken • IFC audit and annual monitoring projects
up so far. report to IFC
• Participation in surveys for
Key interest and expectations
investment analysts
• Regular reporting Engagement

36

Partners Flagship programmes
International Finance Corporation Cairn-IFC Linkage Programme, which was for 3 years, is now being continued by Cairn
(IFC) independently. The programme has three components
i) Livelihoods promotion through the establishment of an Enterprise Centre,
ii) Child and Maternal Health Initiatives
iii) Dairy Development
HelpAge India Two Mobile health Vans are operational in Barmer District covering more than 60 villages.
Health awareness campaigns organised in six districts of Gujarat along the pipeline route.
room to read India trust Set up 40 libraries in Barmer District and 25 libraries in rural areas of Gujarat.
reuters Connecting more than 10,000 farmers through mobile based SMS service for providing
agri inputs and advisory.
multi Commodity exchange (mCx) Gramin Suvidha Kendra (GSK) an innovative partnership model with Department of Post,
Government of India leveraging rural Post offices to provide agri inputs to Farmers
across pipeline.

Cairn India Limited Corporate Brouchure

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