Oil India Limited · NSE:OIL
Oil India — Investor Presentation (May 2010)
24 slides from Oil India's investor presentation, May 2010
Slide 1: Oil India Limited Investor Presentation May 2010
Oil India Investor Presentation – FY2010 OIL INDIA LIMITED Investor Presentation May, 2010 Oil India Investor Presentation – FY2010 Disclaimer This presentation contains certain forward looking statements concerning OIL India’s future business prospects and business profitability, which are subject
Slide 2: Sector outlook, company overview, strategy, financial performance
Oil India Investor Presentation – FY2010 H1 FY2009 Sector outlook and opportunities OIL India – An overview Business structure, performance and strategy Financial performance Oil India Investor Presentation – FY2010 H1 FY2009 Sector outlook and opportunities OIL India – An overview Business structur
Slide 3: Global Oil and Gas trends; Domestic Industry environment
Oil India Investor Presentation – FY2010 Global Oil and Gas trends Brent oil price futures/forwards and forecasts LTM oil price and equity market performance (US$/bbl) (Rebased to Brent) 160 85 140 75 120 +115% 65 100 +76% 80 55 60 45 +32% 40 35 20 0 25 2003 2004 2005 2006 2007 2008 2009 2010 2011 2
Slide 4: India: Energy scenario; OIL at a glance
Oil India Investor Presentation – FY2010 India: Energy scenario Primary Energy Consumption (MTOE) Crude Oil Consumption (MTOE) UK 212 Canada 102 South Korea 240 S. Korea 103 France 258 Germany 118 Germany 311 Canada 330 Russia 130 India 433 3.8% of total India 135 3.4% of total Japan 508 Japan 222 R
Slide 5: Rich heritage of building a company
Oil India Investor Presentation – FY2010 H1 FY2009 Sector outlook and opportunities OIL India – An overview Business structure, performance and strategy Financial performance Oil India Investor Presentation – FY2010 Rich heritage of building a company • Independent India’s first commercial oil disco
Slide 6: Select highlights for FY2010
Oil India Investor Presentation – FY2010 Select highlights for FY2010 • OIL’s shares listed in Mumbai Stock Exchange on 30.09.2009. • Achieved the highest daily rate of crude oil production of 3.61 MTPA (> 26 mmbbls) • Achieved the highest daily rate of natural gas production of 6.67 MMSCMD in North
Slide 7: NAVRATNA Status to OIL; Shareholding pattern
Oil India Investor Presentation – FY2010 NAVRATNA Status to OIL • NAVRATNA status awarded to OIL in April’ 2010. • The Board of NAVRATNA companies enjoy enhanced autonomy and DOP in following areas: – Capital expenditure without any monetary ceiling – Equity investment in joint ventures / subsidiari
Slide 8: OIL share price
OILSharePrice(Rs.) OILSharePrice(Rs.) OILSharePrice(Rs). OILSharePrice(Rs.) 1020.00 1060.00 1100.00 1140.00 1180.00 1220.00 1260.00 1300.00 1000.00 1050.00 1100.00 1150.00 1200.00 1250.00 1300.00 1020.00 1060.00 1100.00 1140.00 1180.00 1220.00 1260.00 1300.00 1000.00 1050.00 1100.00 1150.00 1200.00
Slide 9: Key lines of business
Oil India Investor Presentation – FY2010 H1 FY2009 Sector outlook and opportunities OIL India – An overview Business structure, performance and strategy Financial performance Oil India Investor Presentation – FY2010 Key lines of business Exploration Production Transportation Downstream • Domestic: 2
Slide 10: Exploration Blocks: National Presence
Oil India Investor Presentation – FY2010 Exploration Blocks : National Presence AA-ONN 30% AA-ONN 90% 60% RJ-ONN AA-ONN 50% ASSAM +AP AA-ONN 85% 60% RJ-ONN AA-ONN 50% AAP-ON 16% 75% RJ-ONN AA-ONN 20% AA-ONN 15% AA-ONN 85% AA-ONN 10% MN-OSN 20% MZ-ONN 75% 15% GK-OSJ-3 WB-ONN 25% Strong KG-DWN 10% pre
Slide 11: Overseas Exploration and Development Blocks
Oil India Investor Presentation – FY2010 Overseas Exploration and Development Blocks 50 LIBYA EGYPT* 7,087 Area 86 Block 3 8,287 25 50 2,710 Area 102/4 Block 4 2,600 (GSPC) 25 6,629 (Sonatrach) Area 95/96 Sonatrach) 17.5 NIGERIA IRAN 20 2,094 3,500 (Suntera) Suntera) OPL 205 Farsi Offshore (OVL) GAB
Slide 12: E&P Infrastructure in India
Oil India Investor Presentation – FY2010 E&P Infrastructure in India State-of-art exploration facilities 3 (2D-2, 3D-1) Seismic Crew 11 Drilling Rigs 14 W/over Rigs 6 Logging trucks 1 Mud logging Unit 23 Oil India Investor Presentation – FY2010 E&P Infrastructure in India Globally comparable Product
Slide 13: Crude Oil and Natural Gas Reserves
Oil India Investor Presentation – FY2010 Crude Oil and Natural Gas Reserves Crude Oil Reserves (mmboe) Natural Gas Reserves (mmboe) Overall Reserves (mmboe) 1,800 1,800 1,800 1,511 1,542 1,500 1,471 1,500 1,500 1,200 1,200 1,200 1,039 1,000 999 974 933 900 900 900 829 588 575 600 540 600 543 600 529
Slide 14: Crude Oil and Natural Gas Production and Sales
Oil India Investor Presentation – FY2010 Crude Oil and Natural Gas Production Crude Oil Production (mmbbl) Natural Gas Production (mmscm) 30 2500 2415 2341 25.70 2269 24.95 2265 25 22.17 22.38 20 2000 15 10 1500 5 0 1000 2006-07 2007-08 2008-09 2009-10 2006-07 2007-08 2008-09 2009-10 • Crude oil pro
Slide 15: Low Finding and Development costs; Lifting costs
Oil India Investor Presentation – FY2010 Low Finding and Development costs Finding Costs (US$/bbl) F&D Costs (US$/bbl) FY2010 2.82 FY2010 4.22 FY2009 2.99 FY2009 4.11 FY2008 1.83 FY2008 2.99 FY2007 1.81 FY2007 2.53 0 1 2 3 4 0 1 2 3 4 5 Note: (1) BOE: Barrels of Oil Equivalent 29 Oil India Investor
Slide 16: Healthy reserve replacement ratio; Realized Price
Oil India Investor Presentation – FY2010 Healthy reserve replacement ratio Crude Oil and Natural Gas (O+OEG) FY2010 165 FY2009 169 FY2008 204 FY2007 204 FY2006 159 FY2005 176 0 50 100 150 200 250 Adequate reserve replenishment 31 Oil India Investor Presentation – FY2010 Realized Price Realized Price
Slide 17: Impact of discount; Sharing of Subsidy
Oil India Investor Presentation – FY2010 Impact of discount Particulars FY 2009-10 FY 2008-09 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL US $ / BBL Pre - Discount 57.49 67.39 73.89 75.70 68.53 121.54 114.16 54.27 44.64 81.69 Less: Discount 1.84 10.45 15.11 22.38 12.32 40.48 47.65 16.79 3.06 26.13 Post Disc
Slide 18: Sharing of Subsidy by Upstream Companies
Oil India Investor Presentation – FY2010 Sharing of Subsidy by Upstream Companies SHARING OF SUBSIDY BY OIL INDIA LTD. VIS-A-VIS OTHER UPSTREAM COMPANIES 30000 28226 25000 22001 20000 RS. IN CRORES 17025 15000 11959 11554 10000 5000 4104 3023 1994 2307 1488 1401 1694 1549 1326 706 1137 978 1064 0 20
Slide 19: Upside from 2011; Strategic Initiatives
Oil India Investor Presentation – FY2010 Upside from 2011 • Price for Natural Gas increased to US$ 4.2/ MMBTU • Consequentially additional gross revenue generation of US$ 110 mn (annualised) 37 Oil India Investor Presentation – FY2010 Strategic Initiatives Increase in Exploratory and Development Dri
Slide 20: Business strategy
Oil India Investor Presentation – FY2010 Business strategy 1 Geographic Diversification of Upstream Assets • Achieve balanced growth of portfolio through acquisition of new assets • Pursue selective bidding strategy in future rounds of NELP in India 5 2 Application of Advanced Recovery Increase Rese
Slide 21: Revenue and profitability; Networth and Book Value
Oil India Investor Presentation – FY2010 Revenue and profitability Revenue and profitability analysis (USD mn) 1,800 1,677 1,666 1,600 1,401 1,400 1,239 1,200 1,000 800 600 550 460 367 400 317 200 0 FY2007 FY2008 FY2009 FY2010 Revenue PAT 41 Oil India Investor Presentation – FY2010 Networth and Book
Slide 22: Cash Flow and EBITDA Margin
Oil India Investor Presentation – FY2010 Cash Flow and EBITDA Margin Cash Flow (USD mn) EBITDA (USD mn) and EBITDA MARGIN (%) 500 1000 49% 50% 450 450 900 391 400 48% 800 344 350 700 46% 300 275 600 250 44% 500 44% 923 200 400 42% 734 150 42% 300 586 100 200 40% 50 100 0 0 38% FY2007 FY2008 FY2009 F
Slide 23: Investment Plans; Thank You
Oil India Investor Presentation – FY2010 Investment Plans 2010-11 2011-12 Total Exploration & appraisal activities 15278 19120 34398 Development Activities 5527 9888 15415 INR Million Capital Equipments & Facilities 2693 3423 6116 Total INR Million 23498 32431 55929 Overseas Projects 1903 3878 5781
Slide 24: Venezuela - Project Carabobo
Oil India Investor Presentation – FY2010 Venezuela - Project Carabobo • Contains two Blocks – North and Central • OIL’s PI – 3.5% [PdVSA-60%, REPSOL, PETRONAS, OVL – 11% each, IOC-3.5%] • Contract Period – 25 Years, Possible Extension – 15 Years • Estd Oil In Place – 27.3 billion barrels • Recoverab