Vedanta Limited · NSE:VEDL
Vedanta — Investor Day (August 2019)
43 slides from Vedanta's investor day presentation, Aug 8, 2019
Slide 1: Investor Day: Cairn Oil & Gas
Investor day: Cairn Cair Oil Oil&&Gas Gas August, 2019 Investor Day Cairn Oil & Gas August, 2019
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 3: Agenda
Agenda Vision Technology & Innovation Producing Blocks: Onshore & Offshore Exploration Blocks: OALP & PSC Organization Design & People Sustainability 3
Slide 4: HSEQ: An Integral Part of Business
HSEQ: An Integral Part of Business Building a culture of Zero Harm, Zero Waste and Zero Discharge Safety accountability: Building confidence amongst workforce to “Stop Unsafe work” and “Refuse to work, if unsafe", strengthened with consequence management policy. HSEQ assurance: Increased Visible Fel
Slide 5: Vision: Oil & Gas Business Contribute over 50% of India's Oil Production
Vision: Oil & Gas Business Q1 FY20 H1 FY20 Exit H2 FY20 Exit Existing Assets Full Potential 1,000 Gross Volume in kboepd 600 400 OALP Blocks 260-270 PSC Blocks 200 180 400 200 2 Years 3-5 Years Capex $ 4-6 bn $ 7-10 bn R&R 3 bn boe 2.0 – 5.5 bn boe Contribute over 50% of India’s Oil Production Note:
Slide 6: 2019 Key Messages
2019 Key Messages Vision Produce 50% of India’s domestic crude oil Portfolio Blocks in proven petroleum basins across India (Onshore & Offshore) to accelerate Reserve & Resource accretion: o PSC Blocks : Increase from 1.2 bn boe to 3.0 bn boe through EOR and Exploration o OALP: Discover 2.0 - 5.5 bn
Slide 7: Cairn strongly positioned for the future of India
Cairn strongly positioned for the future of India Oil to remain key energy fuel India to lead Global consumption growth Primary energy consumption by fuel (Billion Toe) • All scenarios Import and domestic oil production in India (mbpd) • India’s crude oil 20 demand is Scenarios by 2040 suggest Oil t
Slide 8: Foot Print: India's Largest Private O&G Player
Foot Print: India’s Largest Private O&G Player PSC Blocks OALP & DSF Blocks 13x Acreage increase from 5,000 sq. km. to 65,000 sq. km. spread across basins in India 8
Slide 9: PSC Blocks: Production Ramp up plan
PSC Blocks: Production Ramp up plan 400+ 40 Exploration 340-350 20 60 Offshore 55 260-270 45 100 135 Rajasthan Development 180 75 31 17 175 165 Rajasthan Operations 132 145 Q1 FY20 Exit H2 FY20e Exit FY21e Exit FY22e Significant increase in production from the Current Producing Blocks 9
Slide 10: PSC Blocks: Production Ramp up plan FY20
PSC Blocks: Production Ramp up plan FY20 Impact Initiatives Rajasthan Operations 260-270 Rajasthan Development 14 k o Ravva Infill Drilling Offshore 45 Offshore o Well intervention to sustain base production 200 180 30 k o MBA Polymer, Infill wells & ASP 32 75 31 Rajasthan 15 k o Aishwariya Barmer H
Slide 11: Technology & Digitalization
Technology & Digitalization 11 11
Slide 12: Technology Applications
Technology Applications Access to the best in class technology & global geo-scientists Digitalisation and technology integration is the key driver for all our projects 12
Slide 13: Enhanced Oil Recovery Projects
Enhanced Oil Recovery Projects An exemplar of our commitment towards cutting edge technology and innovation EOR Polymer: Improved sweep efficiency o EOR Polymer Successfully Implemented in Mangala M>1 o Replicating the success in Bhagyam & Aishwariya Fields o World’s largest Centralised M<1 Polymer
Slide 14: Early Monetization Technologies
Early Monetization Technologies Embracing newer technologies to reduce time from exploration to production in OALP blocks Satellite Based EM Technology Airborne FTG Survey Cable less Seismic Survey First FTG survey in East African Rift in Q2 2009 26 out of 27 discovery wells mapped with FTG • Allows
Slide 15: Digitalization
Digitalization Key enabler in Cairn’s Growth Journey Pipeline Intrusion Detection System (PIDS) Digital Oil Field Real time Production monitoring system & To detect Interference, illegal tapping & decision making unauthorized excavation along buried pipelines Integrated Chemical Collaborative 3D Tec
Slide 16: Producing Blocks: Onshore (Rajasthan)
Producing Blocks: Onshore (Rajasthan) 16 16
Slide 17: Rajasthan: World Class Basin with Multiple Play Types
Rajasthan: World Class Basin with Multiple Play Types ▪ Spread over 3,111 square km in Barmer, Rajasthan ~40 km Bhagyam (B) ▪ 7 Hydrocarbon bearing Reservoir Systems Core Mangala (M) fields Aishwariya (A) ▪ 38 discoveries till date across Reservoir Systems DA-2 ▪ Liquid Handling capacity of >1.1bn b
Slide 18: Rajasthan: Best in Class Infrastructure
Rajasthan: Best in Class Infrastructure Leveraging the world class processing facilities for growth projects 18
Slide 19: Mangala Processing Terminal
Mangala Processing Terminal World class Oil processing facility Area: 1.6 sq. Kms (400 acres) Steam Boilers: 805 TPH Crude Oil Sales to: IOCL, BPCL, MRPL, RIL, Nayara ▪ 7 boilers each of capacity 115 TPH Three processing trains: >1 MMbbls liquid per day ▪ HP steam for power generation Oil Storage Ca
Slide 20: MBA Fields: Capex $1.4 billion
MBA Fields: Capex $ 1.4 billion, Reserve > 250 mmbbls Adds incremental production of over 125 kbopd at peak Mangala, Bhagyam & Aishwariya (MBA) fields: Project Snapshot - India’s largest onshore discoveries • MBA Infill & Polymer Gross Capex EUR Peak Production Partner Activity ($ Million) (mmbbls)
Slide 21: Tight Gas: Raageshwari Deep Gas (RDG)
Tight Gas: Raageshwari Deep Gas (RDG) Multi fold increase in Gas production, to contribute over 50 kboepd at peak Total HIIP : 309 mmboe Capex Investment of $ 630 million towards: - Early production faculties (90 mmscfd) Produced Till Date : 11 mmboe* - New Gas Terminal (90 mmscfd) - Wells Reserves
Slide 22: Tight Gas: RDG Terminal on track for completion
Tight Gas: RDG Terminal on track for completion Multi fold increase in Gas production, to contribute over 50 kboepd at peak Completion by Q4 FY20 Sub-station building Control Room Building Gas Terminal Feed booster compressor Condensate storage tank Cable Laying- Compressors 22
Slide 23: Tight Oil: Aishwariya Barmer Hill (ABH)
Tight Oil: Aishwariya Barmer Hill (ABH) First step in unlocking the full potential of the Barmer Hill in the Rajasthan block Project Snapshot Aishwariya Barmer Hill Gross Capex EUR Peak Production Partner Activity ($ Million) (mmboe) (kboepd) Schlumberger 39 Wells & Facilities 170 32 20 Till FY19 FY
Slide 24: Satellite Fields Development
Satellite Fields Development Unlocking value from smaller discoveries by leveraging existing infrastructure Project Snapshot Gross Capex EUR Peak Production Partner Activity ($ Million) (mmboe) (kboepd) Integrated Halliburton Development of 164 18 10 10 Satellite fields Project Scope: Sub Surface: D
Slide 25: Producing Blocks: Offshore (Ravva & Cambay)
Producing Blocks: Offshore (Ravva & Cambay) 25 25
Slide 26: Ravva & Cambay Blocks
Ravva & Cambay Blocks Ravva - Multifold increase in production; Cambay - Gas field converted into Oil Field Production Journey: Ravva Production Journey: Cambay HIIP (Kboepd) (Kboepd) 35 978 mmboe 80.0 70.0 30 OIL&GA RATE(BOEPD) 60.0 25 OIL&GA RATE(BOEPD) 50.0 Production Till date 20 40.0 15 430 mmb
Slide 27: Exploration: OALP & PSC Blocks
Exploration: OALP & PSC Blocks 27 27
Slide 28: OALP: Resource opportunity of 5.5 bnboe
OALP: Resource opportunity of 5.5 bnboe o ~60,000 sq.km. acreage; 51 mostly proven oil and gas Well Diversified 40 Onshore basins, both conventional & 11 Offshore unconventional play o ~$ 800 M Capex for 5.5 exploration; Additional capex Resources (bnboe) for development / production Upside Scenario
Slide 29: Revenue Sharing Model enables early monetization
Revenue Sharing Model enables early monetization Features of OALP Levers for Early Monetization ❑ Biddable Revenue Sharing Model ❑ Block Priotisation: ❑ Single, uniform license for all types of hydrocarbon o Near Field Exploration resources including conventional & unconventional o Low Cost Frontier
Slide 30: Integrated Operating Model in place
Integrated Operating Model in place Empowered organizational Project Management structure Committee (PMC) Operating Approach Partnership & Assurance and Re-assurance Collaboration (Gated Process) FY20 FY21 FY22 Timeline Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Indicative Schedule Approval & Clearances Seismic
Slide 31: PSC Blocks: Exploration & Appraisal to augment resource base
PSC Blocks: Exploration & Appraisal to augment resource base Work Investment Resources Program Partner Status ($ Million) (mmboe) (Wells) Rajasthan Drilling from 60 300-600 7-18 Schlumberger Q2 FY20 Exploration Rajasthan Schlumberger Drilling from 75 200 14 / Halliburton Q2 FY20 Tight oil Appraisal
Slide 32: Organization Design & People
Organization Design & People 32 32
Slide 33: Organization Structure geared up for rapid Growth
Organization Structure geared up for rapid Growth PSC Blocks OALP Blocks Growth Organization Operating Organization Growth Organization Exploration Development Production Exploration RESERVES & RESOURCES DEVELOPMENT SBUs PRODUCTION SBUs NEW VENTURES Increase Resource Base Add to Reserve Base & Produ
Slide 34: Management Team Profile
Management Team Profile Ajay Dixit 39 years, Vivek Rathi 24 years 20 years Siemens Thermo Fischer Scientific, HUL, Amex, Oscar Quintero Chevron, Shell, Hess Corp., Chief Executive Officer Electrical Engineer, Delhi College Chief Financial Officer GE Capital, Johnson & Johnson Occidental, Permian Res
Slide 35: Management Team Profile
Management Team Profile Muthir Kharusi 24 years Rohit Tandon 19 years, Cairn Pankaj Jain 24 years President, RJ Oil Shell, Petroleum Devt. Oman President, Tight Oil Tight Gas Exec Mgmt.,Cornell. MS Heriot Watt. GSPL President, Offshore & MBA (Finance), ICFAI Business Production B. Tech, Glamorgan Un
Slide 36: Global Experts
Global Experts Fiona Macaulay Coro Energy, Echo Energy, John Hughes Rockhopper Exploration PLC, Mill John Dolson DSP Geosciences & Associates, Member – Exploration House Enterprises, Swiftdale Ltd, Sr. Advisor – Geology LLC, Delonex Energy Sr. Advisor - SLR, ConocoPhillips, ADNOC, Advisory Board Qua
Slide 37: Sustainability
SiFE Sustainability Svedonta >
Slide 38: Inclusive & Sustainable growth
Inclusive & Sustainable growth Commitment to empower local communities Key Partnerships with Community Developing Rural 4000 Nand Ghars Nand Ghar livelihood across India Clean Water 333 RO plants Jeevan Amrit Initiative under PPP ~68% of the total population (~25 lacs) touched through ~1.6 MN Lives
Slide 39: Socio Economic Impact
THE SOCIO-ECONOMIC IMPACT 2014-2018: 8,600+ locals employed 2017-18: 47% of 7,400 workers are locals e 110 crores paid for permanent land (1,200 Ha) 6 crores paid annually for temp land (400 Ha) Hotels in 1998; f f Id a) ATOULTONG iisenas been witnessed in vehicle sales since 2006 Rs. 3,000 Rs. 250
Slide 40: Contribution to Exchequer
Contribution to Exchequer Contributing to Nation Building 01 02 03 ROYALTY CESS & NCCD PROFIT PETROLEUM $ 6 Billion $ 6 Billion $ 14 Billion 04 05 SALES TAX & VAT CORPORATE TAX & DDT $ 2 Billion $ 1 Billion Total Contribution $ 29 Billion Delivering long-term value to Government, Local Communities a
Slide 41: Recognition and Awards
Recognition and Awards Ravva offshore and onshore facility secured “first” place in Manufacturing – Process category and a 5-star rating award for Excellence in EHS practices in CH-SR- EHS Excellence Award 2017 Cairn named among “Community Project of “Dream Companies the Year” at Asia CSR to Work Fo
Slide 42: Valuation Driver: Peer Comparison
Valuation Driver: Peer Comparison Production (kboepd) 1P Reserves (mmboe) 1,000 900 800 700 600 1,927 500 1,234 1,281 400 1,049 300 1,929 1,522 1,192 915 200 844 586 100 280 139 167 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 Enterprise Value ($ Billion) Source: Bloomberg (Data Fo
Slide 43: Thank You
Sire Svedanta > PRODUCTION Thank You