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© 2013 Cairn India Limited




             S V Nair, Chairman – Technical Advisory Board

                       South & South-East Asia New Challenges, New Opportunities
                                  CERA Week - March 2013. Houston
CERA Week March 2013                                                                                                    2



  Disclaimer

  This material contains forward-looking statements regarding Cairn India and its affiliates, 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. Unless otherwise stated the reserves and resource numbers within this document represent the views
  of Cairn India and do not represent the views of any other party, including the Government of India, the Directorate
  General of Hydrocarbons or any of Cairn India’s joint venture partner.
CERA Week March 2013                                                                                                                       3



  Energy Demand to Increase with Growing GDP
   GDP growth projected to increase:                                 Real GDP Growth Rates (%)
                                                                                                                            Projection
                                              15
          Despite          near     term     11
           slowdown, GDP growth projected      7
           to rebound to > 6%                  3
                                              -1
          Emerging market economies will
                                              -5
           continue to lead Global growth




                                                                                2006
                                                       2003

                                                               2004

                                                                       2005



                                                                                       2007

                                                                                               2008

                                                                                                      2009

                                                                                                              2010

                                                                                                                     2011

                                                                                                                            2012

                                                                                                                                   2013

                                                                                                                                          2014
                                                              World             Advanced economies                    India           China
                                                                            Source: IMF World Economic Outlook Update, Jan 2013
   Energy demand to grow:
                                                              India Energy Consumption by Fuel (in Mmtoe)
         Total primary energy consumption    600                                                        534
          to almost double from 559 mmtoe
                                              400
          to 1010 mmtoe over this decade                      296                                               293

                                              200                     162
         Gas      demand       to    grow                                    55 30
                                                                                                                       99
                                                                                                                             54
                                                                                          7                                        13
          proportionately, assuming gas            0
          share in India’s energy mix stays                                 2011                                      2020
          at 10%                                              Coal            Oil             Gas            Hydro           Nuclear
                                                                                Source: 2011 data from BP Statistical Review 2012
                                                                              2020 forecast @ 6.7% growth p.a.(CAGR 2002-2011)
CERA Week March 2013                                                                                                   4


India – Growing Demand Center With High Import
Dependence
                             10.0

                              9.0            Liquids Production
                              8.0            Liquids Consumption

                              7.0
   Million barrels per day




                              6.0                                                                     Import Bill
                                                                                                      to reach
                              5.0                                                                     $400
                                                                                                      Billion
                              4.0

                              3.0                                         Import Bill
                                                                          for 2011 at
                              2.0                                         $120
                                                                          billion
                              1.0

                              0.0
                                      2006       2007      2008    2009   2015          2020   2025   2030      2035


                                    Historically, India has imported more than 70% of its oil demand and
                                                             this is forecast to grow
       Source: International Energy Outlook 2011
CERA Week March 2013                                                                                  5



 India – Opportunity for Exploration
                                                    Producing

                                                    Emerging     Status of exploration of Indian
                                                                sedimentary basins, FY 2011-12*
                                                    Immature

                                                    Frontier




                                                                     Moderately to
                                                                                         Poorly
                                                                          Well
                                                                                      Explored, 22%
                                                                     Explored, 22%


                                                                 Unexplored, 1
                                                                     2%

                                                                                      Exploration
                                                                                     Initiated, 44%




                                                                 More than 75% of Indian
                                                                Sedimentary Basins not well
                                                                        explored

   * Source : Directorate General of Hydrocarbons
CERA Week March 2013                                                           6


 India – The Gas Story

  Natural Gas is clean, cheap and plenty

  Currently it represents only 10% of Indian fuel mix – US it is about 25%

  Demand is constrained by supply and inadequate infrastructure

  LNG imports to play a key role in meeting widening supply deficit

  Potential for domestic supply through conventional and unconventional
   sources

  Opportunity for developing infrastructure including pipelines, LNG import
   and regasification and City Gas Markets
CERA Week March 2013                               7


 India Pipeline Network , LNG & City Gas Markets
CERA Week March 2013                                                                                        8



  India : Potential Shale Gas Basins
                                                                    India Shale gas potential
              Satpura Basin                                          Geological      conditions      indicate
                       Rewa Basin
                                                                      potential in several Indian basins
                                     Damodar             Assam       Shale gas policy being finalised, a
                                      Basin              Basin
                                                                      shale gas round expected in 2013
                                        ONGC
                                        Shale gas
                                        pilot
                                                                    Infrastructure Challenges
                                                                     Central Indian basins lack gas
                                                                      infrastructure and are not near major
                                               Son Mahanadi Basin     markets
                                                Chattisgarh Basin
                                                                     Other potential basins need more
  Cambay                                        Pranhita Godavari
   Basin                                             Basin            infrastructure
                                Krishna Godavari Basin
                                                                     Service sector support available will
                                                                      need to significantly enhanced
                                    Cauvery Basin
                                                                     Water and environment management
                                                                      challenges

             Gas Pipelines
CERA Week March 2013                                                                                                9


 Cairn India – Historic Overview

                                                                                                  Well poised for
                                                                                                  further Growth
                                                                             International
                                                                                 Foray
                                                             Execution
                                                             Success


                                    Exploration
                                     Success                                    Sri Lanka
                                                                               deepwater
                                                                               discoveries
                                                               World class
        Early                                                                 S Africa entry
                                                               Rajasthan
      Beginnings
                                                              development
                                 Rajasthan & CB/OS-
                                    2 discoveries

       Ravva Re-                                      Cairn India            Vedanta
      development                                     IPO (2007)             Acquisition

                          1999                            2007                                 2012
    Market Cap
      (US$)
                        0.5bn*                             6.0bn                               12bn

  *Market Cap of Cairn Energy PLC end 1999
CERA Week March 2013                                                                                                                    10


 Rajasthan – Frontier Basin to World-Class Asset
Resource                                                        Future Development & Prospective
                     Under Development                                                                          Total
                                                                Resource
Potential
(mm boe)           Gross                             2,168                     2,010 EXPLORATION3,100
                                 MBARS                         BH + 19 Disc.                                    7,278
                   In Place
                   Gross EUR              1,044 (~48%)          165 (~8%)              530                      1,739
                                                                                             (~17%)


Expected
Gross                         'The 300kbopd will represent ~35%
                                of India's current domestic crude              300**
Production
                                            production
(kbopd)

                                                  200 - 215
                                    ~175
   Note-
   Gross EUR Includes EOR
   potential of 238 mmbbls;
   balance 70mmbbls booked as
   reserves
   MBARS –
   Mangala, Bhagyam, Aishwariy
   a, Raageshwari, Saraswati
   Company upgraded the
   numbers as on 31 March 2012
   *By end FY 2013-14
   * *Subject to approvals
                                      Apr-12     FY 2013-14*                                    Block Map with 25 discoveries to date
CERA Week March 2013                                                           11


 Social License to Operate - The Bishnoi Community

 Bishnoi Community - known as the first
  environment conservationists in the world

 Reverence for nature and all forms of life is
  what makes them a true ‘BISHNOI’

 While countries are trying hard to educate
  the masses on environmental protection and
  eco conservation, this small community has
  surpassed other economies by virtue of it
  simple approach to life

 Social,    demographic,     and     economic
  organization, must be considered against the
  background of change brought about
  especially by modern technology and inputs
  in addition to the continuous socio-economic
  change

             Success of future developments will depend on how we manage the
                                     local environment
CERA Week March 2013                                                          12


 Integrating local communities

 Driving growth of local society
    Establishing     learning    centre   -
      Enterprise Center
    Creating pools of skilled manpower


 Partnering with communities through our
  principles of respect, relationship and
  responsibility

 Promoting    education    and    social           Areas of Focus

  awareness through long-term sustainable
  programs                                     Education
                                                             Infrastructure
                                                             Development

 Aspiring    leadership    in    corporate
  citizenship                                   Economic
                                               Development
                                                               Health

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Cairn India Chairman Discusses Growing Indian Energy Demand and Exploration Potential

  • 1. © 2013 Cairn India Limited S V Nair, Chairman – Technical Advisory Board South & South-East Asia New Challenges, New Opportunities CERA Week - March 2013. Houston
  • 2. CERA Week March 2013 2 Disclaimer This material contains forward-looking statements regarding Cairn India and its affiliates, 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. Unless otherwise stated the reserves and resource numbers within this document represent the views of Cairn India and do not represent the views of any other party, including the Government of India, the Directorate General of Hydrocarbons or any of Cairn India’s joint venture partner.
  • 3. CERA Week March 2013 3 Energy Demand to Increase with Growing GDP  GDP growth projected to increase: Real GDP Growth Rates (%) Projection 15  Despite near term 11 slowdown, GDP growth projected 7 to rebound to > 6% 3 -1  Emerging market economies will -5 continue to lead Global growth 2006 2003 2004 2005 2007 2008 2009 2010 2011 2012 2013 2014 World Advanced economies India China Source: IMF World Economic Outlook Update, Jan 2013  Energy demand to grow: India Energy Consumption by Fuel (in Mmtoe)  Total primary energy consumption 600 534 to almost double from 559 mmtoe 400 to 1010 mmtoe over this decade 296 293 200 162  Gas demand to grow 55 30 99 54 7 13 proportionately, assuming gas 0 share in India’s energy mix stays 2011 2020 at 10% Coal Oil Gas Hydro Nuclear Source: 2011 data from BP Statistical Review 2012 2020 forecast @ 6.7% growth p.a.(CAGR 2002-2011)
  • 4. CERA Week March 2013 4 India – Growing Demand Center With High Import Dependence 10.0 9.0 Liquids Production 8.0 Liquids Consumption 7.0 Million barrels per day 6.0 Import Bill to reach 5.0 $400 Billion 4.0 3.0 Import Bill for 2011 at 2.0 $120 billion 1.0 0.0 2006 2007 2008 2009 2015 2020 2025 2030 2035 Historically, India has imported more than 70% of its oil demand and this is forecast to grow Source: International Energy Outlook 2011
  • 5. CERA Week March 2013 5 India – Opportunity for Exploration Producing Emerging Status of exploration of Indian sedimentary basins, FY 2011-12* Immature Frontier Moderately to Poorly Well Explored, 22% Explored, 22% Unexplored, 1 2% Exploration Initiated, 44% More than 75% of Indian Sedimentary Basins not well explored * Source : Directorate General of Hydrocarbons
  • 6. CERA Week March 2013 6 India – The Gas Story  Natural Gas is clean, cheap and plenty  Currently it represents only 10% of Indian fuel mix – US it is about 25%  Demand is constrained by supply and inadequate infrastructure  LNG imports to play a key role in meeting widening supply deficit  Potential for domestic supply through conventional and unconventional sources  Opportunity for developing infrastructure including pipelines, LNG import and regasification and City Gas Markets
  • 7. CERA Week March 2013 7 India Pipeline Network , LNG & City Gas Markets
  • 8. CERA Week March 2013 8 India : Potential Shale Gas Basins India Shale gas potential Satpura Basin  Geological conditions indicate Rewa Basin potential in several Indian basins Damodar Assam  Shale gas policy being finalised, a Basin Basin shale gas round expected in 2013 ONGC Shale gas pilot Infrastructure Challenges  Central Indian basins lack gas infrastructure and are not near major Son Mahanadi Basin markets Chattisgarh Basin  Other potential basins need more Cambay Pranhita Godavari Basin Basin infrastructure Krishna Godavari Basin  Service sector support available will need to significantly enhanced Cauvery Basin  Water and environment management challenges Gas Pipelines
  • 9. CERA Week March 2013 9 Cairn India – Historic Overview Well poised for further Growth International Foray Execution Success Exploration Success Sri Lanka deepwater discoveries World class Early S Africa entry Rajasthan Beginnings development Rajasthan & CB/OS- 2 discoveries Ravva Re- Cairn India Vedanta development IPO (2007) Acquisition 1999 2007 2012 Market Cap (US$) 0.5bn* 6.0bn 12bn *Market Cap of Cairn Energy PLC end 1999
  • 10. CERA Week March 2013 10 Rajasthan – Frontier Basin to World-Class Asset Resource Future Development & Prospective Under Development Total Resource Potential (mm boe) Gross 2,168 2,010 EXPLORATION3,100 MBARS BH + 19 Disc. 7,278 In Place Gross EUR 1,044 (~48%) 165 (~8%) 530 1,739 (~17%) Expected Gross 'The 300kbopd will represent ~35% of India's current domestic crude 300** Production production (kbopd) 200 - 215 ~175 Note- Gross EUR Includes EOR potential of 238 mmbbls; balance 70mmbbls booked as reserves MBARS – Mangala, Bhagyam, Aishwariy a, Raageshwari, Saraswati Company upgraded the numbers as on 31 March 2012 *By end FY 2013-14 * *Subject to approvals Apr-12 FY 2013-14* Block Map with 25 discoveries to date
  • 11. CERA Week March 2013 11 Social License to Operate - The Bishnoi Community  Bishnoi Community - known as the first environment conservationists in the world  Reverence for nature and all forms of life is what makes them a true ‘BISHNOI’  While countries are trying hard to educate the masses on environmental protection and eco conservation, this small community has surpassed other economies by virtue of it simple approach to life  Social, demographic, and economic organization, must be considered against the background of change brought about especially by modern technology and inputs in addition to the continuous socio-economic change Success of future developments will depend on how we manage the local environment
  • 12. CERA Week March 2013 12 Integrating local communities  Driving growth of local society  Establishing learning centre - Enterprise Center  Creating pools of skilled manpower  Partnering with communities through our principles of respect, relationship and responsibility  Promoting education and social Areas of Focus awareness through long-term sustainable programs Education Infrastructure Development  Aspiring leadership in corporate citizenship Economic Development Health