Oil India Limited · NSE:OIL
Oil India — Investor Presentation (August 2015)
43 slides from Oil India's investor presentation, August 2015
Slide 1: Oil India Limited Investor Presentation
Oil India Limited Investor Presentation Strictly Private & Confidential August 2015
Slide 2: Table of Contents
Table of Contents 1. Company Background 2. Asset and Reserve Overview 3. Strategic Strengths 4. Operating and Financial Highlights 5. Growth Strategy 1
Slide 3: Company background
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Slide 4: Oil India Ltd.: An Introduction
Oil India Ltd.: An Introduction S Over 5 decades of experience in oil & gas sector Rich Heritage S Credited with creation, operation and maintenance of a fully-automated crude oil pipeline S GoI ownership of 67.64% Strong Parentage with S Awarded ‘Navratna’ status in 2010 Government of India (GoI) S
Slide 5: Our vision
Our vision Fastest Growing Energy Company with Highest Profitability Delight Customers with Quality Products and Services at Competitive Prices Team, Committed to Honesty, Integrity, Transparency and Mutual Trust creating Employee Pride Fully Committed to Safety, Health and Environment Learning Orga
Slide 6: Key Highlights
Key Highlights Acquisition of 50% stake in producing property in License 61 Block in Russia Acquisition of 50% PI in Blocks SS04 and SS09 in Bangladesh Acquisition of 60% PI in Block YEB & M-4 in Myanmar Discovery of Gas in Kakinada Project Commissioned additional Wind Energy project for 54 MW in Gu
Slide 7: Key Highlights (Contd….)
Key Highlights (Contd….) Reaffirmation of International Credit Ratings : ‘Baa2’ by Moody's and ‘BBB-’ by Fitch Maiden Foreign Currency Bond Issue of US$ 1 billion Highest ever Capex of Rs.3,773 crore in FY 15, 104% of the Planned Capex Implementation of New Natural Gas Pricing Guidelines with linkag
Slide 8: Shareholding Structure
Shareholding Structure Others 14.8% GOI DII 67.6% 8.0% Listed on BSE / NSE FII Number of shares 9.6% 601.14 mn Key shareholders % Shareholding Dividend FY15 Rs.20 /Share Indian Oil Corporation 4.45% Bharat Petroleum Corporation 2.23% Share price (52 Week High / Low) Hindustan Petroleum Corporation 2
Slide 9: Oil India: Milestones and Track Record
Oil India: Milestones and Track Record IPO –Raised Acquisition in Rovuma ‘Baa2’ Credit Rating by Formed as a JV with Participates first time in Rs.2777 crore. Awarded Navratna Offshore Block in Moody's and BBB-by Burmah Oil Company NELP Listed in Stock Status Mozambique and License 61 Fitch Exchange
Slide 10: Strong Parentage and Experienced Management Team
Strong Parentage and Experienced Management Team Strong Parentage of Govt. of India Best In-Class Management Team S Appointed Chairman & Managing Director in 2nd Largest Public Sector E&P company U P Singh July, 2015 Chairman & MD S During his rich and varied experience as an IAS S Became a Public S
Slide 11: Integrated and Diversified Oil & Gas Player
Integrated and Diversified Oil & Gas Player Non Conventional Exploration Production Transportation Downstream Energy S Domestic: 56 E&P blocks S Crude oil S Crude Oil S Refining and marketing S Wind Energy (including 1 CBM block) S 41 installations S 1,157 km pipeline; Over petroleum products S Capa
Slide 12: Large and Diversified Reserve Base
Large and Diversified Reserve Base Large Reserve Base with Reserve Replacement Ratio attractive Oil & Gas Mix (2P reserves) Crude Oil (MMT) 115 83 31 1.64 Natural Gas 66 (BCM) 1.39 1.29 44 24 1P 2P 3P FY2013 FY2014 FY2015 Significant reserve base of over 121 MMTOE Track record of Reserve Replacement
Slide 13: Downstream Operations
Downstream Operations OIL intends to continue an active strategy of vertical integration into downstream sectors such as refining, processing, distribution and retailing, cracking and fractionation of gas Vertical integration strategy aimed at achieving: – Diversification of revenue sources – Improv
Slide 14: Asset and reserve overview
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Slide 15: Domestic Asset Overview
Domestic Asset Overview Blocks No Area (sq. km.) NELP – Operator 12 18,463 NELP – Non-Operator 15 61,296 PML – Nomination 21 4,995 ASSAM +AP PEL – Nomination 5 1,239 AA-ONN-2010/2 40% ASSAM +AP JV / PSC 2 201 Total 55 86,194 AA-ONN-2009/4 50% AA-ONN-2004/2 100% AA-ONN-2005/1 30% RJ-ONN-2004/2 60% AA
Slide 16: Major Domestic Projects: Mizoram
Major Domestic Projects Mizoram S Block awarded in NELP-VI round S Block lies in north-east India flanked by Bangladesh in the West and Myanmar in South & East S OIL : 85% (Operator), Shiv-vani : 15% S Area: 3,213 SQKM Status Update S Seismic Acquisition, Processing & interpretation of: S 2D (API):
Slide 17: Major Domestic Projects: KG Basin
Major Domestic Projects (Contd…) KG Basin S Block awarded in NELP-VI round S Block lies at north-eastern end of the onshore part of Krishna-Godavari Basin. S OIL : 90% (Operator), GGR : 10% Loc.13 S Area: 541 SQKM Loc. 15 Dangeru-1 RIL & GSPC Status Update Loc.16 Complex Yanam, Puducherry Loc.7 S Se
Slide 18: Major Domestic Projects: Cauvery Basin
Major Domestic Projects (Contd…) Cauvery Basin 79º00’ 79º30’ S Block awarded in NELP-VIII round S Block lies at Gulf of Mannar S Water Depth: 401 meters M-1-1A S OIL : 50% (Operator), ONGC : 50% A B 09º 09º S Area: 1621 SQKM 00’ GM-F-1 00’ CY-OSN-2009/2 Status Update R-GM-F-1 S Seismic Acquisition,
Slide 19: International Asset Overview
International Asset Overview US Libya 25% Colorado 20% 60 sq.km Area 95/96 6,629sq.km (Sonatrach) Julesburg Basin Ghadames Basin Russia 50% 4,991sq. km License 61 Nigeria 17.5% 1,295sq.km Sudan OML 205 (Suntera) 10% 741 km Pipeline Venezuela 203sq.km Bangladesh Carabobo 1 North 3.5% 45% 7,269sq.km 1
Slide 20: Major Overseas Projects: Carabobo, Venezuela
Major Overseas Projects Project Carabobo, Venezuela S Equity access to crude oil on long term basis Current Status S 31 wells under production S Significantly low subsurface risk S Current production ~ 18000 bopd S Two blocks in Orinoco Heavy Oil Belt S Production expected to reach 90000 bopd S Bloc
Slide 21: Major Overseas Projects: Area 1 Rovuma, Mozambique
Major Overseas Projects (Contd...) Area 1 Rovuma, Mozambique S OIL jointly with OVL acquired 10% stake in Key Highlights Offshore Mozambique Area 1 in January 2014 S Financial Close expected Q3 2016 S Acquisition Cost: USD 2519 million, (US$ 1007 million by OIL) S First LNG expected Q1 2020 S Area :
Slide 22: Major Overseas Projects: License 61, Russia
Major Overseas Projects (Contd...) License 61, Tomsk Region, Russia S Acquired 50% PI at US$35 mn. w.e.f. 1st Jan 2014 Location S Western Siberia S Also funding Development Capex of US$ 45 mn and production bonus of US$ 5 mn Area S Contains seven known oil fields having 2P reserve S 4,991 SQ. KMS of
Slide 23: Major Overseas Projects: Myanmar Blocks YEB and M-4
Major Overseas Projects (Contd...) Myanmar : Block YEB and Block M-4 S Awarded in 2013 offshore licensing round by Area Republic of Union of Myanmar S M4 (10,421 Sq. Km), S Production Sharing Contracts signed in S YEB (21,380 Sq. Km) December 2014 Resource Base S Shallow Offshore - Maximum WD: 600 f
Slide 24: Major Overseas Projects: Bangladesh SS-04 and SS-09
Major Overseas Projects (Contd...) Bangladesh : Block SS-04 and SS-09 S Blocks awarded in the Bangladesh offshore Area bidding round 2012 S SS-04 (7269 Sq. Km), S Production Sharing contract signed in Feb 2014 S SS-09 (7026 Sq. Km) S Shallow water block (WD: 0-200 m) Reserve / Resource S Inherent be
Slide 25: Strategic strengths
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Slide 26: Solid Infrastructure Base with Strong In-House Capabilities
Solid Infrastructure Base with Strong In-House Capabilities Vertically Integrated E&P Operations with Solid Infrastructure Recovery Techniques (IOR/EOR) Drilling & Oil Reservoir Seismic API Drilling Field Services Management (2D and 3D) Wireline Integration Logging Vertical Seismic (2D,3D) In-House
Slide 27: Attractive Cost Structure
Attractive Cost Structure OIL has the Advantage of Low Finding and Development Costs S OIL's integrated oil and gas infrastructure enables the company to manage costs efficiently by optimizing manpower costs, using in-house services, adapting cost-saving technology, effectively using geological data
Slide 28: Growth Focus on Key International Projects
Growth Focus on Key International Projects Rovuma Basin, Offshore, Mozambique Project 1, Carabobo, Onshore, Venezuela S Recoverable resources of 45-75 tcf S 31 wells are on production with current average total S First production and revenue is expected in FY2019 production of 16,000 bopd Participat
Slide 29: Operating and Financial Highlights
Operating and Financial Highlights
Slide 30: Crude Oil and Natural Gas Production
Crude Oil and Natural Gas Production Crude Oil Production (mn. bbl) Natural Gas Production (mm scm) 2,722 2,639 2,626 26.4 24.9 24.5 677 642 6.0 6.0 FY 13 FY14 FY15 Q1 FY15 Q1 FY16 FY 13 FY14 FY15 Q1 FY15 Q1 FY16 25
Slide 31: Financial highlights
Financial highlights Revenue (Rs. crore) EBITDA (Rs. crore) 6,123 5,656 11,478 11,215 11,020 5,052 1,537 1,551 2,932 3,160 FY13 FY14 FY15 Q1 FY15 Q1 FY16 FY13 FY14 FY15 Q1 FY15 Q1 FY16 Net Profit (Rs. crore) Earnings Per Share (Rs.) 3,589 60 2,981 50 2,510 42 852 14 13 775 (in Rs.) FY13 FY14 FY15 Q1
Slide 32: Financial highlights
Financial highlights Dividend Payout (% of PAT) Book Value (Rs./ Share) 50% 48% 358 344 43% 320 FY13 FY14 FY15 FY13 FY14 FY15 Dividend Percentage Operating Cash Flow (Rs. Crore) 300 2,646 2,328 215 2,048 200 FY13 FY14 FY15 FY13 FY14 FY15 27
Slide 33: Strong Liquidity with Low Leveraging
Strong Liquidity with Low Leveraging Total Debt (Rs. Crore) Strong Cash Balance (Rs. Crore) 9783 12133 11744 8341 8917 1058 FY13 FY14 FY15 FY13 FY14 FY15 Net Worth (Rs. Crore) Debt Equity Ratio 47.2% 21498 38.8% 20708 19212 5.5% FY13 FY14 FY15 FY13 FY14 FY15 28
Slide 34: Government Policy and Outlook on Subsidy
Government Policy and Outlook on Subsidy Outlook on Subsidy Sharing of Subsidy by Upstream Companies Rs. Crore S Petrol Prices De-regulated in June 2010 (INRin Crores) FY13 FY14 FY15 Q1 FY15 Q1 FY16 S Diesel Prices De-regulated in October 2014 ONGC 49,421 56,384 36,300 13,200 1,133 S Direct Benefit
Slide 35: Contribution to Exchequer
Contribution to Exchequer Central Government 1,711 (Rs.crore) 1,552 1,612 1,603 1,531 1,333 1,218 1,200 854 FY 13 FY 14 FY 15 Corporate Tax Cess Dividend & Others State Government (Rs.crore) 1,333 1,276 1,280 517 509 542 FY 13 FY 14 FY 15 Royalty VAT & Others 30
Slide 36: Growth Strategy
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Slide 37: Robust Strategy in Place
Robust Strategy in Place S Grow assets by acquiring exploration acreages, discovered blocks and Balanced growth of assets producing properties domestically and internationally S Implement a number of IOR and EOR techniques to develop maturing Improve rate of recovery fields and to improve the recove
Slide 38: Enhanced production from IOR/EOR initiatives
Enhanced production from IOR/EOR initiatives Improvement in Production (mn. bbl) Investment in IOR/EOR (Rs. Crore) 8.54 8.04 965 7.01 911 650 FY13 FY14 FY15 FY13 FY14 FY15 OIL has made investments of ~ Rs.3,700 crore in IOR/EOR initiatives during last five years 32
Slide 39: Significant Investment Lined Up
Significant Investment Lined Up Annual Plan 2015-16: Rs.3,917 crore Exploratory & Development Drilling (No. of Wells) Survey 9% Overseas 28% 38 32 24 Exploration 25% 15 Capital Equipment 18% FY 15 FY 16 (Plan) Development Exploratory Drilling Development Drilling 20% Plan Expenditure (Capex) (Rs. Cr
Slide 40: Perspective Plan 2030
Perspective Plan 2030 S M/s McKinsey & Company engaged for a comprehensive study of organization structure, talent strategy and business processes to deliver the envisaged growth. S Objectives of the study: S To create Perspective Plan 2030 and revisit strategy with objective to accelerate growth wi
Slide 41: Production Guidance for FY'16
Production Guidance for FY’16 2015-16 (Target) Crude oil 3.63 MMT Natural gas 3,010 mmscm 35
Slide 42: Conclusion
Conclusion Steady and sustained Growth Sound Financial Health Strong operating track record More than 5 decades of E&P expertise Spreading wings: NE - Pan India - Global Large prospective E&P acreage Pioneer in Pipeline transportation Entry into Offshore/ Deep Water Blocks Entry into discovered and
Slide 43: Thank You
e Thank You Oil India Limited