Cairn India Limited Company Profile

Company Overview:

Cairn India Limited  is an oil and gas exploration and production company in India. The company is primarily engaged in the business of surveying, prospecting, drilling, exploring, acquiring, developing, producing, maintaining, refining, storing, trading, supplying, transporting, marketing, distributing, importing, exporting and generally dealing in minerals, oils, petroleum, gas and related by-products. It has a portfolio of eight blocks of which seven blocks are in India - one in Rajasthan with multiple assets, two on the west coast and four on the east coast - and one in block in South Africa. Oil and gas is currently being produced from Rajasthan, Ravva in Andhra Pradesh and Cambay in Gujarat.

In FY2016, Cairn India produced approximately 203,703 barrels of oil equivalent per day (boepd).

Cairn India operates in a single business segment: Exploration, Development, and Production of Oil and Gas.

The Exploration, Development and Production of Oil and Gas business operates in a single business segment based on the nature of the products, the risks and returns, the organization structure and the internal financial reporting systems. In FY2016, the Exploration, Development and Production of Oil and Gas segment reported revenues of INR10,634 million, which accounted for 100% of the company's total revenue.

Cairn India operates the Rajasthan block with a 70% participating interest and its joint venture (JV) partner Oil and Natural Gas Corporation (ONGC) has the remaining 30% participating interest. A total of 151 (85 new wells and 66 polymer injectors) wells came into production and yielded 38 discoveries in Block RJ-ON-90/1, covering an area of 3,111 square kilometers (km). During FY2016, the Rajasthan block produced a total of 62 million barrels of oil equivalent (mmboe), at an average of 169,609 boepd of crude oil and gas. The cumulative production of Rajasthan at 31 March 2016 was at approximately 343 mmboe. The cumulative production of Rajasthan at the end of FY2016 was approximately 343 mmboe. During FY2016, the company sold approximately 168,852 barrels of oil per day (bopd) of crude oil from Rajasthan to the public sector as well as private refiners across India. In addition, the company sold approximately 14 million standard cubic feet per day (mmscfd) of gas in FY2016. The Rajasthan block consists of three contiguous development areas: Mangala, Aishwariya, Raageshwari, and Saraswati (MARS) fields; Bhagyam and Shakti fields; and Kaameshwari West fields.

Mangala enhanced oil recovery (EOR) contributed an average of 14,000 barrels of oil equivalent per day (boepd) during FY2016. Cairn India also operates the Mangala Processing Terminal (MPT), which is spread over an area of 1.6 square km and is designed to process crude of the Rajasthan block. The company is working to install additional injection pumps, injection filters, steam and utility systems, which will support the increased processing demand resulting from higher production. Moreover, the water injection capacity has been upgraded to 700,000 barrels per day.

Moreover, the company also operates the Mangala Development Pipeline (MDP), which originates from the MPT in the Mangala field and passes through two states (Rajasthan and Gujarat), eight districts, and travels up to 670 km before it reaches its end at the coastal location of Bhogat near Jamnagar on the western coast line of India. About 154 km of the pipeline is in Rajasthan and the rest in Gujarat.

Bhagyam is the second largest field in Rajasthan, with an approved production plateau of 40,000 bopd. Aishwariya, the third largest discovery in Rajasthan, is the fifth oil producing field from the block. Raageshwari Deep Gas (RDG) is primarily engaged in gas development in the field in Rajasthan. During FY2016, average gas production from RDG was 27 mmscfd. The Raageshwari oil field and Saraswati field continue to cumulatively contribute over 500 bopd towards the total production from the block.

Cairn India's operations in the Ravva area in the shallow offshore area of Krishna Godavari Basin. Cairn India operates eight unmanned offshore platforms and a 225 acre onshore facility at Surasaniyanam processing the natural gas and crude oil. The operations in Ravva region are developed in partnership with ONGC, Videocon, and Ravva Oil. Ravva project has the capacity to handle 70,000 bopd, 95 million standard cubic feet per day (mmscfd) of natural gas, and 110,000 barrels per day of injection water, along with the terminal's storage capacity to one mmbbls of crude oil. During FY2016, Ravva project sold approximately 7.8 mmbbls of crude oil and 6.6 billion standard cubic feet (bcf) of gas.

The company operates the Cambay offshore basin in block CB/OS-2, with a capacity to process 150 mmscfd of natural gas and 10,000 bopd of crude oil. It also includes four crude oil tanks with a total storage capacity of 37,700 bbls as well as two 4.8 megawatts (MW) captive power generation plants. During FY2016, the block produced 10,249 boepd of oil. Also, around 3.2 mmbbls of crude oil and 3.1 bcf of gas were sold.

Cairn Lanka is a wholly-owned subsidiary of Cairn India and holds a 100% participating interest in the Mannar block. Cairn South Africa Proprietary Limited, subsidiary of Cairn India, holds a 60% participating interest in Orange basin in block I.

Geographically, the company generates all its revenues only from its operation in India.

Scope of the Report

• About the Company - Historical Details, Current Ownership Structure and basic overview of Cairn India Limited in terms of revenue, net income, and operating income.
• Financials - Details about Cairn India Limited listing status, annual financial reports (for the past 5 years), key financial highlights and region wise and category wise breakdown of their net revenue.
• Products / Services - Listing of the company’s entire portfolio along with description of individual products / services providing a clear picture of their target audience.
• Company SWOT Analysis - Outlines Cairn India Limited’s strengths, weaknesses, and opportunities and threats facing the company.
• Recent Developments - Showcases Cairn India Limited’s recent developments including mergers, acquisitions, partnerships, collaborations, new product launches, investment and divestment plans.
• Strategic Evaluation - Provides an overview of Cairn India Limited’s corporate goals and strategic initiatives and evaluates their outcomes along with outlining any persisting legal issues and outlook of our in-house analyst panel on the particular company.
• Technology Landscape - Details how the company allocates its IT budget across the core areas of its business, CIO/CTO Profile, Key IT Initiatives and Deals undertaken buy the company at present along with outlook.

Key Questions Answered

• What domain does Cairn India Limited operate and what are key points about it?
• What is the product / service portfolio of Cairn India Limited?
• How has Cairn India Limited performed financially from the 2013?
• How does Cairn India Limited rank among its peers in terms of revenue and market share?
• What are Cairn India Limited strengths and weaknesses and what opportunities and threats does it face?
• What are Cairn India Limited’s main growth strategies and how successful has the company been at implementing them?
• What is the in-house technical capability of Cairn India Limited? Where does it procure / outsource it?

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