Oil India Limited · NSE:OIL
Oil India — Investor Presentation (January 2019)
37 slides from Oil India's investor presentation, January 2019
Slide 1: Oil India Limited Investor Presentation – January 2019
Oil India Limited Investor Presentation – January, 2019 1
Slide 2: Table of Contents
TABLE OF • Company Overview CONTENTS • Strategic Strengths • Assets Overview • Operating & Financial Performance • Growth Strategy 2
Slide 3: Company Overview
Company Overview 3
Slide 4: Oil India Ltd.: An Introduction
Oil India Ltd.: An Introduction § 6 decades of presence in oil & gas sector Rich Heritage § Owns and operates a fully-automated cross country crude oil pipeline § Became a Public Sector Undertaking in 1981 Strong Parentage with § GoI ownership of 63.20% Govt. of India § Awarded ‘Navratna’ status in
Slide 5: Experienced Management Team
Experienced Management Team Functional Directors Government Nominee Directors Utpal Bora l Experience in diverse fields S. Sudhir l IFS 1993 Chairman & MD of exploration management Jt. Sec. (IC), l Former Consul General of > 33 yrs experience of onshore and offshore fields MoP&NG India in Sydney Ama
Slide 6: Shareholding Pattern
Shareholding Pattern Corporate Bodies (Incl. OMCs), 11.23 Listed on BSE & NSE DII (Incl. LIC), GOI, 63.20 16.77 Number of shares Others, 4.28 113.49 crore FII, 4.52 Dividend FY18 Key shareholders % Shareholding Interim Rs.14/ Share, Final Rs.1/ Share Government of India 63.20 Life Insurance Corporat
Slide 7: Oil India: Milestones and Track Record
Oil India: Milestones and Track Record Formed as a JV First time IPO – Raised Intl. Credit Rating: Acquisitions in Acquisition in Awarded 4 GAs with Burmah Oil Participation Rs.2,777 crore. Moody's : ‘Baa2’ Rovuma Block in TYNGD and JSC under CGD Company In NELP Listed in Stock Exch. Fitch : BBB(-)
Slide 8: Key Performance Highlights
Key Performance Highlights Awarded 9 blocks under first bidding round of OALP Increase in PAT by 72% to Rs.2,668 crore in FY 18 from Rs.1,549 crore in FY 17 Increase in crude oil production by 3.57% to 3.394 MMT in FY 18 Hydrocarbon discovery in KG basin, 1st HPHT well discovery Commissioning of win
Slide 9: Strategic Strengths
Strategic Strengths 9
Slide 10: Integrated and Diversified Oil & Gas Player
Integrated and Diversified Oil & Gas Player Non Conventional Exploration Production Transportation Downstream Energy §Domestic: 44 §Crude oil §Crude Oil §Refining and §Wind Energy active E&P blocks § 48 installations § 1,157 km marketing § Capacity 174 § 1,670 km pipeline; Over 6 § 26% equity stake
Slide 11: In-House Capabilities
In-House Capabilities Vertically Integrated E&P Operations Infrastructure to Support E&P Activities One 2D (in house), Three 3D Seismic crew (one in 10 Logging Units house , 2 CH) Drilling Seismic API Wireline 24 Work-over Rigs (12 18 Drilling Rigs (2D and 3D) Logging in house, 12 CH) (11 in house,
Slide 12: Technology Induction
Technology Induction Deployment of wide array of IOR/ EOR to achieve maximum recovery of oil reserves Hydro-frac operations to produce tight sands Radial drilling technology to improve productivity ESPs to improve artificial lifting from wells Gravel pack completion for efficient production of uncon
Slide 13: Assets Overview
Assets Overview 13
Slide 14: Domestic Assets
Domestic Assets Non Area Blocks Operated Total Operated (SQKM) PML (Nom) 22 0 22 4826 Kherem 40% PEL (Nom) 3 0 3 332 AAP-ON-94/1 44.1% Kharsang 40% Pre-NELPJV 0 2 2 121 NELP 5 2 7 9445 DSF 0 1 1 16 MPA Nominated PML / PEL OALP 9 0 9 7907 Total 39 5 44 22647 AA-ONN-2010/3 40% þ RP Nominated PML AA-ON
Slide 15: International Assets
International Assets Libya US Area 95/96 25% 6,629sq.km Colorado 20% 60 sq.km Ghadames Basin Julesburg Basin Russia License 61 50% 4,991sq. km TAAS 10% 1,382sq. km Nigeria JSC Vankor 8% 1,869sq.km 17.5% 1,295sq.km OML 142 Venezuela Israel 203sq.km 25% 357 sq.km Carabobo 1 North 3.5% Block 32 180sq.k
Slide 16: Major Overseas Projects
Major Overseas Projects Project Carabobo, Venezuela Area 1 Rovuma, Mozambique § Two blocks in Orinoco Heavy Oil Belt § OIL & OVL acquired 10% stake in Jan. 2014 § ~ 30 billion barrels of Oil in place § Acquisition Cost for OIL - US$ § Production started from Dec 2012 1,007 mn. § Cumulative Productio
Slide 17: Major Overseas Projects (Contd...)
Major Overseas Projects (Contd...) Vankorneft, Russia Taas Yuryakh, Russia § Acquired 23.9% stake in Oct 2016 § Acquired 29.9% stake in Oct 2016 jointly with IOCL & BPRL jointly with IOCL & BPRL § Acquisition Cost: US$ 2.02 Billion § Acquisition Cost: US$ 1.121 Billion § OIL’s share 33.5% § OIL’s sh
Slide 18: Operating and Financial Performance
Operating and Financial Performance 18
Slide 19: Operating Performance
Operating Performance Crude Oil Production (MMT) Natural Gas Production (MMSCM) 3.39 2,937 2,905 3.25 3.28 2,838 1.70 1,430 FY16 FY17 FY18 H1 FY 19 FY16 FY17 FY18 H1 FY19 19
Slide 20: Large and Diversified Reserve Base
Large and Diversified Reserve Base Balance Domestic Recoverable Reserves Domestic Reserves Split by Type (2P) Natural Gas (MMTOE) Crude Oil (MMT) Crude, 165 Gas, 58% 42% 128 80 105 79 27 1P 2P 3P Consistent Reserve Replacement Ratio >1 Total Reserves Split by Geography (2P) 1.38 Overseas, 1.34 19% 1
Slide 21: Competitive Cost Structure
Competitive Cost Structure Finding & Development Cost (USD/BOE) Crude Crude OilOilProduction Production Cost (USD / bbl) Cost (USD / bbl) 29.91 26.55 26.73 8.4 17.66 16.59 15.55 6.4 6.1 12.25 5.8 9.96 11.18 FY 16 FY 17 FY 18 4.4 Raising Cost Levies 4.1 Natural Gas Production Cost (USD/ MMBTU) 1.5 1.
Slide 22: Track Record of Strong Financial Performance
Track Record of Strong Financial Performance Revenue (Rs. Crore) EBITDA (Rs. Crore) & EBITDA Margin (%) 5,395 12,141 4,982 11,159 11,191 4,785 7,549 3,298 45% 43% 44% 44% FY16 FY17 FY18 H1 FY19 FY16 FY17 FY18 H1 FY19 EBITDA EBITDA Margin PAT (Rs. Crore) & PAT Margin (%) Earning Per Share (Rs.) 2,668
Slide 23: Strong Balance Sheet and Dividend Payment
Strong Balance Sheet and Dividend Payment Net Worth (Rs. Crore) Book Value per Share (Rs.) 256 23,565 23,202 246 244 22,802 22,745 220 FY16 FY17 FY18 H1 FY19 FY16 FY17 FY18 H1 FY19 Dividend (Rs Crore) Dividend Payout Ratio (% of PAT) GOI Others 72% 1121 1173 962 374 397 42% 44% 311 651 747 776 FY 16
Slide 24: Low Leverage
Low Leverage Total Debt (Rs. Crore) Total Debt / Equity (%) 10,030 44.7% 40.0% 38.6% 39.6% 9,133 8,948 9,004 FY16 FY17 FY18 H1 FY19 FY16 FY17 FY18 H1 FY19 Net Debt/ EBITDA (x) 1.2 0.5 FY17 FY18 24
Slide 25: Contribution to Exchequer
Contribution to Exchequer Central Exchequer (Rs.crore) 1,411 1,439 1,340 1,229 1,224 1,114 719 681 475 FY 16 FY 17 FY 18 Corporate Tax Cess Dividend & Others State Exchequer (Rs.crore) 2,448 1,268 1,482 593 564 626 FY 16 FY 17 FY 18 Royalty VAT & Others Royalty for 2016-17 includes payment of Rs 115
Slide 26: Realized Price for Crude Oil & Natural Gas
Realized Price for Crude Oil & Natural Gas Crude Oil (US$/ bbl) Natural Gas (US$/ MMBTU) 72.8 5.05 55.7 4.66 47.4 48.6 45.3 3.82 3.36 37.4 3.06 3.06 2.89 27.9 28.8 2.50 2.48 FY 16 FY 17 FY 18 H1 FY 19 Nov-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Price Realized Net Realization after
Slide 27: Growth Strategy
Growth Strategy 27
Slide 28: Capex Plans
Capex Plans 2017-18 (Actual) : Rs.3,400 crore 2018-19 (Plan) : Rs.4,300 crore 12% 33% 8% 23% 9% 20% 20% 26% 20% 29% 2015-16 391 753 706 921 1002 3622 2016-17 375 1623 915 1273 151 4337 Survey Exploratory Drilling Development Drilling Capital Equipment Overseas Projects 28
Slide 29: Production Guidance for FY'19
Production Guidance for FY’19 2018-19 (Target) Crude oil 3.661 MMT Natural gas 3,020 MMSCM 29
Slide 30: Short Term Growth Perspective
Short Term Growth Perspective Ningru PML: • Part of Assam & Assam-Arakan basin. • PML awarded in 2018 • Resources mobilised to resume drilling activities. • PML includes Kumchai oil field with an estimated Oil-in-place (OIP) reserve of ~ 94 mn. bbl and Gas-in-place (GIP) is of ~ 4055 MMSCM. • Curren
Slide 31: Short Term Growth Perspective (contd..)
Short Term Growth Perspective (contd..) Extended Reach Drilling (ERD) § ERD planned in Baghjan field to produce oil & gas from the reservoirs below Dibru - Saikhowa National Park (DSNP) § MoP&NG approval for ERD obtained § Plan to drill seven ERD wells to extract oil from depth of about 3900-4000 me
Slide 32: Long Term Growth Strategy
Long Term Growth Strategy OIL has aspiration to be an international E&P player with operations at scale in at least two geographical clusters outside India, significantly higher production, reserves and cash flows while being known globally for its capabilities to extract value from mature assets. 1
Slide 33: Strategies to Achieve 2030 Aspirations
Strategies to Achieve 2030 Aspirations Reimagine Main Producing Area development to maximise potential Step up exploration and development activities in select Indian basins Build international presence at scale in one or two geographic clusters Pursue selective, profitable diversification in the en
Slide 34: Positive Policy Environment
Positive Policy Environment § Maximising domestic Oil & Gas production a strategic priority for Govt. § Aim to reduce import dependence by 10% by 2022. § Hydrocarbon Exploration Licencing Policy implemented in place of NELP § 1st round of OALP bidding completed. OIL awarded 9 blocks. § National Data
Slide 35: Positive Policy Environment
Positive Policy Environment § Monetisation of marginal fields: § DSF 1st round completed in 2018, 2nd bidding round launched § Unconventional Exploration Policy for PSUs § Recent Policy announcements: § Sharing of royalty & Cess on Pre-NELP blocks by all participants § Additional Extension of Explor
Slide 36: Conclusion
Conclusion 2nd Largest Public Sector E&P Company …With Strong Credit Metrics lSteady and sustained growth lSound financial health lStrong operating track record l6 decades of E&P expertise lSpreading wings: NE – Pan India – Global lLarge prospective E&P acreage lPioneer in Pipeline Transportation lA
Slide 37: Thank You
Thank You 37