Oil India Limited · NSE:OIL
Oil India — Investor Presentation (September 2013)
40 slides from Oil India's investor presentation, September 2013
Slide 1: Investors' and Analysts' Meet 2013
Presentation Investors’ and Analysts’ Meet 2013
Slide 2: Oil India: Brief Overview
Oil India: Brief Overview Rich Heritage Independent India’s first commercial oil discoveries, with the first one being made in 1953 Integrated Presence across Oil & Gas Value Chain O&G Player World Class Infrastructure to support growth Large Acreage Domestic acreage: 88,927 sq. km over 62 b
Slide 3: Shareholding Structure
Shareholding Structure Others Bodies Corp 3.0% 12.1% DII 6.9% Listed on BSE / NSE Number of shares: 601.12 mn FII 9.6% GoI 68.4% Key shareholders % holding Dividend FY13 Dividend/Share: Rs.30 Indian Oil Corporation 4.45% Bharat Petroleum Corporation 2.23% Hindustan Petroleum Corporation 2.23% Share
Slide 4: Evolution and Key Milestones
Evolution and Key Milestones OIL enters the field of installation, LPG plant set- Entered into a MoU "Company of the year" among all Navratna commissioning and maintenance up using Turbo with IOCL for and Miniratna companies at the PSE of Crude oil pipelines Expander pursuing overseas Excellence Awa
Slide 5: Presence Across Value Chain
Presence Across Value Chain Exploration Production Transportation Downstream Domestic: 62 E&P 50 years of experience Crude Oil Refining & Marketing blocks Advanced recovery – 1,157 km pipeline Petroleum Products techniques to maximize ~6MMT capacity International: US, – 26% equity stake in productio
Slide 6: Sizeable Exploration Acreage
Sizeable Exploration Acreage Summary of Acreages Operator Vs. Non Operator Acreage Total Acreage: 1,22,584 KM2 Domestic Acreage: 88,927 KM2 Operator 31% Overseas Acreage: 33,657 KM2 Non Operator 69% 1,894 316 5,095 20,213 Geographically Balanced Acreage 33,657 Overseas 61,296 27% NELP (NO) Overseas
Slide 7: Awards and Accolades
Awards and Accolades OIL was awarded the prestigious BUSINESS LEADERSHIP AWARD in OIL & GAS SECTOR by NDTV Profit on 7th January 2012. E&P Company of the Year Award at the Petrofed Oil & Gas Industry awards for the year 2010-11 First Prize for Oil Industry Safety Award in Oil & Gas Assets (Onshore)
Slide 8: Strong Government Linkage
Strong Government Linkage Government Owned Enterprise and continued government support evidenced by “Navratna” status awarded to the company making it more autonomous. 2nd Largest Public Sector E&P company Contributed over Rs.6,725 crores to the exchequer in the FY 2012–13 Management Independence Co
Slide 9: 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 Lea
Slide 10: Indian domestic environment
Indian domestic environment
Slide 11: Domestic Industry Environment
Domestic Industry Environment Steady Growth in Domestic Energy Consumption Driven by India’s Economic Growth Story Energy Sources (mmtoe) (%) Energy Sources—India 563 512 535 484 447 Nuclear & 420 367 390 Hydro Renew ables 345 5% 3% Natural Gas 9% Coal 53% Crude Oil 2004 2005 2006 2007 2008 2009 201
Slide 12: Robust Domestic Fundamentals
Robust Domestic Fundamentals India Remains a India – A Fraction India – Strong Domestic Net Importer of of Global Significantly Demand Crude (1) Reserves (2) Under-explored (3) India - the 4th largest Among largest net 0.65% of World’s Only 22% of India Energy consumer in importers of oil Oil reserv
Slide 13: Presence across value chain
Presence across value chain
Slide 14: Fully Self-serviced E&P Company
Fully Self-serviced E&P Company Drilling Seismic API Wireline (2D and 3D) Logging In-House Expertise Field Transportation Development IOR/EOR Production Field/Reservoir Management
Slide 15: Excellent Oil and Gas Infrastructure
Excellent Oil and Gas Infrastructure Infrastructure to Support E&P Activities Production and Storage Facilities Two 2D and Six 72 Production One 3D Seismic Logging Trucks Installations crew 11 Drillings 5,000km O&G ~150k KL 14 W/over Rigs Rigs Pipelines Crude Storage In-house Expertise and Integrati
Slide 16: Vertical Integration
Vertically Integrated Domestic Operations OIL is the second largest national oil and gas company in India as measured by total proved plus probable oil and natural gas reserves and production. Downstream Transportation Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) Techniques Vertical I
Slide 17: Domestic Asset Overview
Domestic Asset Overview Significant India Presence in Regions with Proven Commercial Production or Known Accumulation of Hydrocarbons Blocks Op N/Op Total AA-ONN-2003/3 85% AA-ONN-2010/2 40% NELP 15 15 30 Pre-NELPJV - 2 2 AA-ONN-2005/1 30% ASSAM +AP ASSAM +AP PEL (Nom) 8 - 8 AA-ONN-2009/4 50%
Slide 18: International Asset Overview
International Asset Overview LIBYA US 50% Area 86 7,087sq.km 250 sqkm Colorado 50% 20% Area 102/4 2,710sq.km Julesburg Basin 25% (Sonatrach) Area 95/96 6,629sq.km EGYPT Block 3 6,725sq.km 25% Block 4 2,600sq.km (GSPC) SUDAN 741.km 10% Pipeline NIGERIA 17.5% (Summit) 1,295sq.km OPL 205 VENEZUELA 203s
Slide 19: Significant Reserve Base
Significant Reserve Base 1P Reserves represent: 10 Years current production of Crude Oil 11 Years current production of Natural Gas 10 Years current production of O+OEG Total Reserves Proved and Developed Reserves – Split by Type (mmboe) Total Proved and Developed Reserves 71.44 MMKL 1313 Natural Ga
Slide 20: Operating Performance
Operating Performance
Slide 21: Crude Oil and Natural Gas Production
Crude Oil and Natural Gas Production Crude Oil Production Natural Gas Production (in mm bbl) (in mm scm)
Slide 22: Attractive Cost Structure
Attractive Cost Structure Finding & Development Cost (USD/BOE) Crude Oil Production Cost (USD / bbl) 5.5 5.5 5.2 17.1 17.3 20.5 4.0 3.8 3.8 7.62 8.23 8.11 FY 11 FY 12 FY 13 Natural Gas Production Cost (USD/ MMBTU) 0.4 0.4 0.4 2.7 2.4 2.5 FY 11 Fy 12 FY 13 FY 11 FY 12 FY 13 Finding Cost F&D cost Rais
Slide 23: Strategy
Strategy
Slide 24: Strategic Plan 2020
Strategic Plan 2020 Growth Maintain & Enhance Reserves & Production from Current Fields Accelerated Exploration Initiatives Inorganic Growth (India and Overseas) 2012 Vertical Integration Along the Oil & Gas Value Chain 2020 Selectively Diversify in Alternative Energy Diversify into Unco
Slide 25: 1. Enhance production from current fields using IOR/EOR
1. Enhance production from current fields using IOR/EOR Improvement in Production Improvement in crude oil reserve (in mm bbl) (in mm bbl) 5.19 20.21 4.26 4.47 3.46 12.72 2.62 11.04 8.10 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 OIL has made investments in excess of Rs.2425 crore in IOR/EOR initi
Slide 26: 2. Accelerated exploration initiatives
2. Accelerated exploration initiatives Sustained rise in Capex Rs/crore 2890 2050 1743 1632 1557 1210 FY08 FY09 FY10 FY 11 FY 12 FY 13
Slide 27: Accelerated exploration initiatives (Contd…)
Accelerated exploration initiatives (Contd…) Significant Investments Planned Accelerated Drilling Activities 2013–14: Rs.3,581 crore Exploratory Drilling 32 No. of wells 21 15 16 FY11 FY12 FY13 FY14 (Planned) XII 5year Plan: Rs.19,003 crore Development Drilling Investments Overseas 1% Survey 12% 38
Slide 28: 3a. Overseas acquisitions – Focus and Available Resources
3a. Overseas acquisitions – Focus and Available Resources Focus for Overseas acquisitions Available Resources Dedicated Multifunctional Team Balanced overseas portfolio pursuing M&A opportunities Acquire producing/development/ Utilising Expertise of M&A discovered blocks Advisers to identify and pur
Slide 29: 3b. International Acquisition Strategy
3b. International Acquisition Strategy International Strategy International Partnerships and Alliances Prepared by International consultants and adopted by Board Implement its acquisition strategy utilizing joint ventures with other leading players in the industry Seek to acquire exploration acreage
Slide 30: 4. Vertical integration: Downstream Operations
4. Vertical integration: 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 This vertical integration strategy is aimed at to achieve following ob
Slide 31: Major Projects - Overseas
Major Projects - Overseas Project Carabobo, Block Shakthi, Area 95/96, Carrizo , Venezuela Gabon Libya USA Two blocks (383 sq. Area: 3,761.65 Km² Located in Ghadames Acquired 20% PI in km) in Orinoco heavy basin in Southwestern producing NIOBRARA oil belt in Venezuela. Less explored, geo- Libya Liqu
Slide 32: Major Projects – Overseas (Contd…)
Major Projects – Overseas (Contd…) Mozambique – Offshore Rovuma Basin 2.6 million acres offshore Area-1 block off the coast of Mozambique Contains two confirmed discoveries – Prosperidade field and Golfino/Atum complex. One of the world’s largest and most prospective gas deposits In-place gas resour
Slide 33: Major Projects - Domestic
Major Projects - Domestic Mizoram Gulf of Mannar KG Basin MZ-ONN-2004/1 (NELP-VI) CY-OSN-2009/2 (NELP-VIII) KG-ONN-2004/1 (NELP-VI) Area: 3,213 Sq. Km Area: 1,621 Sq. Km Area: 549 Sq. Km Pre-drilling in progress, Processing of acquired Pre-drilling in progress, 5 locations released for data complete
Slide 34: Financial Performance
Financial Performance
Slide 35: Growing Revenue and Profit
Growing Revenue and Profit Revenue EBITDA (Rs.crore) (Rs.crore) 6111 6123 9863 9948 8321 4805 7906 4380 2098 1166 FY10 FY11 FY12 FY 13 Q1 FY14 FY10 FY11 FY12 FY 13 Q1 FY14 Net Profit Dividend Payout Ratio (Rs.crore) (As a % of Profit) 50% 3447 3589 2888 2611 31% 33% 30% 31% 609 FY10 FY11 FY12 FY 13
Slide 36: Strong Financials
Strong Financials Earnings Per Share Book Value Per Share ( Rs.) ( Rs.) 57 60 295 320 46 48 260 40 229 174 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 Net Worth Total Debt/Total Capitalisation (Rs.crore) 19212 6.1% 17721 5.2% 15602 13745 9331 0.1% FY09 FY10 FY11 FY12 FY13 FY11 FY12 FY13
Slide 37: Sharing of Subsidy
Sharing of Subsidy Rs. crore % Sharing 2010–11 2011-12 2012-13 Q1 13-14 2010–11 2011-12 2012-13 Q1 13-14 ONGC 24893 44,465 49,421 12,622 ONGC 82% 81% 81% 83% OIL 3293 7,352 7892 1,982 OIL 11% 13% 14% 13% GAIL 2111 3,183 2687 700 GAIL 7% 6% 5% 5% Total 30297 55,000 60,000 15,304 Total 100% 100% 100%
Slide 38: Natural Gas Pricing
Natural Gas Pricing Natural Gas Price at USD 4.2/mmbtu for 10000 Cal (inclusive of royalty) approved in May,2010. OIL’s current estimated cost of natural Gas production is around USD 3.06/mmbtu. Cost of exploration and Development in NELP block is much higher. To make Natural Gas production attracti
Slide 39: Conclusion
Conclusion More than 5 decades of E&P expertise Strong operating track record Steady and sustained Growth Sound Financial Health Large prospective E&P acreage Pioneer in Pipeline transportation Entry into Offshore/ Deep Water Blocks Entry into discovered assets in Venezuela, Mozambique Acquisition t
Slide 40: Thank You
Thank You