Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — Investor Presentation (November 2020)
32 slides from Hindustan Oil Exploration's investor presentation, November 2020
Slide 1: Investor Presentation | November 2020
INVESTOR PRESENTATION | November 2020
Slide 2: HOEC in a Snapshot
HOEC in a Snapshot First private company in India to enter HOEC has 10 blocks with discoveries Gross production stood at 7,869 boepd the field of oil and gas exploration producing or ready to be developed and Net Production stood at and 1 exploratory block in its portfolio 3,163 boepd for FY20 P+P P
Slide 3: Board of Directors
Board of Directors Vivek Rae - Non Executive Independent Director/ Chairman Mr Rae, a former secretary, Ministry of Petroleum & Natural Gas, Government of India, served in the Indian Administrative Services for 36 years. Subsequent to his retirement, Mr. Rae served as a whole-time member of the 7th
Slide 4: Geographical Presence
Geographical Presence Asjol Legend Onshore Oil Offshore Oil Onshore Offshore Onshore Well Well Gas Gas Exploration Kherem North Balol Dirok Cambay Umatara Kharsang Palej Assam Arakan Greater Dirok INDIA PY-1 Mumbai High Cauvery PY-3 B-80 4
Slide 5: Competitive Advantages
Competitive Advantages Uniquely placed with a strong organization and a quality asset portfolio. HOEC will take advantage of its position to deliver superior returns and value to all stakeholders, through a 5-pronged strategy Focus on Low cost operating Light Asset Model Growing responsibly Growth s
Slide 6: Clear strategy to lower costs and maximize value
Clear strategy to lower costs and maximize value Relationship building Lean team with Effective planning with service expertise across to reach providers for OnG E&P value production quickly innovative chain at lower cost contracting models Increasing Enhancing Free Cash Execution Flows Maximizing S
Slide 7: Our Partners
Our Partners We are the private partner of choice for PSU Adbhoot companies Estates Private Limited 7
Slide 8: Business Overview
Il ( r mt " 2A MENSA BUSINESS OVERVIEW
Slide 9: B-80: Positioned for Final leg of Project Execution – 50% PI
B-80: Positioned for Final leg of Project Execution – 50% PI 8,000 boepd (Barrel of oil equivalent per day) Expected Total Production (Phase I) 13% to 30% Maharashtra Share of Oil to increase in production mix New Lead • New lead in Deccan Trap formation of B-80 Development – Top Priority a 6m inter
Slide 10: B-80: Project Update
B-80: Project Update Positioned for Final leg of Project Execution by Q4 FY21 Project Update ✓ MOPU will be mobilised from Sharjah to site by Completed early Dec 2020 ✓ Contract for flexible pipeline awarded and is to • MOPU ready to sail-out. be mobilised from USA. Umblicals ready and to • Drilling
Slide 11: Dirok: Priority in Assam
Dirok: Priority in Assam 839 boepd Oil India is the sole buyer for the gas produced in this field 39.8 mmscfd Condensate > 15% Gas Production Assam Gas Production (in Q2FY21) Production (in Q2FY21) Concentrated in India’s North-East Premier Basin • Dirok gas field is located in Block AAP-ON-94/1 in
Slide 12: PY-1: Enhancing Production and Offtake Arrangements
PY-1: Enhancing Production and Offtake Arrangements USD 3.65 55 mmscfd 56 km Realised Price per Processing Sub sea MMBTU Capacity pipeline Cauvery • Only offshore platform in Cauvery Basin with 8 slots and four wells drilled • Unique, predominantly gas-bearing reservoir and the only offshore fractur
Slide 13: Kharsang: Phase I Development Plan
Kharsang: Phase I Development Plan ~600 bopd 30% 18 Number of Current Oil Production Direct + Indirect PI Wells to be drilled Field Overview • The Kharsang oil field is located in the state of Arunachal Pradesh and 60 kms away from Dirok. • Post drilling of 18 wells, production expected to increase
Slide 14: Cambay: Developments
Cambay: Developments 87 bopd 0.38 mmscfd Asjol, North Total Oil Production Total Gas Production Balol and Palej Cambay Cambay (Q2FY21) (Q2FY21) Marginal fields at Cambay Developments • Asjol - Revised Field Development Plan approved and Production Sharing Contract (PSC) Gujarat extended up to 2030 •
Slide 15: Other Blocks
Other Blocks • Block awarded under DSF - 2016 HOEC PI JV Partners • Tested - Oil 402 bopd • Field Plan- 2 wells to be completed in 3 years from date of receiving Kherem PML • Development- Application for Forest Clearance and PML is in 40% process • Block awarded under DSF - 2019 Umatara • Located at
Slide 16: Production Sharing Model
Production Sharing Model Aggregate Aggregate Investment value of Net value of *Aggregate value to be taken from the year when production/investments Multiple Cash Income Investments first incurred Net Cash Income Investments Cost Petroleum Contractors exploration cost + Profit Petroleum + + Contract
Slide 17: Investment Multiple under PSC
Investment Multiple under PSC Block AAP-ON-94/1 PY-1* PY-3* North Balol Kharsang* CB-ON-7 Asjol* Gas 10% 10% 10% 10% - - - Royalty Oil/Cond 20% - 10% - 20% 20% 20% Cess Oil/Cond 20% 20% 20% 0% 20% 20% 20% Cost Recovery 80% 100% 100% 80% 100% 60% 100% Limit Investment Multiple (Govt. Share Percentage
Slide 18: Revenue Sharing Model
Revenue Sharing Model 90% 100% Bidding process based on the Revenue Sharing Model involves 2 parameters – % of Govt. share of revenue 90% 80% Lower Revenue Point (LRP) and Higher Revenue Point (HRP). The revenue share 70% for intermediate points will be calculated by linear interpolation. The bidder
Slide 19: Strategic Overview
Tet J | iN STRATEGIC OVERVIEW
Slide 20: Focused Growth Strategy
Focused Growth Strategy Cost-effective delivery Near Field Exploration Opportunistic of Development to widen existing Portfolio Projects “Footprint” Growth Make Portfolio work to deliver Discover resources near existing Leverage “Opening Up” of Sector in value even in low price infrastructure for fa
Slide 21: Industry Overview
INDUSTRY OVERVIEW 21
Slide 22: Industry Snapshot
Industry Snapshot Domestic Natural Gas (MMSCM) Robust Demand Policy Support • India is the third largest energy • Government has enacted various Gross natural gas production Natural gas consumption LNG imports consumer and fourth largest policies such as OALP, DSF and 63,932 Production enhancement 5
Slide 23: Milestones in the Oil and Gas Industry
Milestones in the Oil and Gas Industry State Monopoly - Discovered Small Field Bid Round II Acreages awarded Liberalization of E&P Sector with - Policy permitting exploration & exploitation to NOCs on 9 NELP rounds. 254 exploratory Discovered Small of unconventional hydrocarbons Nomination Basis blo
Slide 24: Price Trends for Crude Oil and Natural Gas
Price Trends for Crude Oil and Natural Gas Average Brent Crude Oil Price ($/barrel) Domestic Natural Gas Prices (US$/MMBtu) 6 120 111.26 111.63 108.56 5.05 5 4.66 98.97 100 3.82 3.69 83.57 4 80 71.34 3.36 3.23 64.3 3.06 2.89 3.06 61.74 54.13 3 2.5 2.48 60 52.32 2.39 43.64 42.96 1.79 40 2 20 1 0 0 So
Slide 25: Financial Overview
<~ H==EL FINANCIAL OVERVIEW
Slide 26: Standalone Statement of Profit or Loss
Standalone Statement of Profit or Loss PARTICULARS (INR Cr) Q2-FY21 Q1-FY21 FY20 FY19 INCOME Revenue from operations 30.16 21.72 179.84 236.89 Other income 3.09 5.38 21.58 10.06 Total revenue 33.25 27.10 201.42 246.95 EXPENSES Expenses from producing oil and gas blocks 5.83 5.59 26.00 28.23 Royalty,
Slide 27: Standalone Statement of Assets & Liabilities
Standalone Statement of Assets & Liabilities PARTICULARS (INR Cr) H1-FY21 FY20 FY19 PARTICULARS (INR Cr) H1-FY21 FY20 FY19 EQUITY AND LIABILITIES ASSETS Equity 688.25 665.08 522.34 Non-Current Asset 585.69 584.44 463.61 (a) Equity share capital 132.26 132.26 130.51 (a) Property, Plant and Equipment
Slide 28: Consolidated Statement of Profit or Loss
Consolidated Statement of Profit or Loss PARTICULARS (INR Cr) Q2-FY21 Q1-FY21 FY20 FY19 INCOME Revenue from operations 33.18 24.04 202.05 265.14 Other income 2.67 5.10 21.76 11.19 Total revenue 35.85 29.14 223.81 276.33 EXPENSES Expenses from producing oil and gas blocks 7.45 7.19 35.34 37.21 Royalt
Slide 29: Consolidated Statement of Assets & Liabilities
Consolidated Statement of Assets & Liabilities PARTICULARS (INR Cr) H1-FY21 FY20 FY19 PARTICULARS (INR Cr) H1-FY21 FY20 FY19 EQUITY AND LIABILITIES ASSETS Equity 703.61 679.71 540.24 Non-Current Asset 781.80 769.13 489.00 (a) Equity share capital 132.26 132.26 130.51 (a) Property, Plant and Equipmen
Slide 30: Capital Market Data
Capital Market Data S&P Oil and Gas Index HOEC Price Data (30th September, 2020) 20% CMP (INR) 72.45 0% -20% 52 Week H/L (INR) 109.4/30.55 -40% Avg. Net Turnover (INR Mn) 28.60 -60% Market Cap (INR Mn) 9,581.0 -80% Equity Shares Outstanding (Mn) 132.24 Shareholding Pattern (30th September, 2020) FPI
Slide 31: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 32: Thank You
THANK YOU 32
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