Oil India Limited · NSE:OIL
Oil India — Investor Presentation (June 2021)
43 slides from Oil India's investor presentation, June 2021
Slide 1: Oil India Limited Investors & Analyst's Presentation June 2021
Oil India Limited Investors & Analyst’s Presentation June'2021
Slide 2: Disclaimer
This presentation is prepared by Oil India Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation or
Slide 3: Company Overview
Company Overview Strategic Strengths Assets Overview Operating & Financial Performance Growth Strategy
Slide 4: Company Overview
Company Overview Strategic Strengths Assets Overview Operating & Financial Performance Growth Strategy
Slide 5: Company at a glance
Rich Heritage 6 decades of presence in oil & gas sector Strong Parentage Became a Public Sector Undertaking in 1981; GOI Owns 56.66% with Govt. of India Awarded ‘Navratna’ status in 2010 Presence across Oil & Gas Value Chain ; Integrated infrastructure & Integrated Table of& fully In-house e
Slide 6: Functional Directors
Functional Directors Sushil Chandra Mishra, Chairman & MD Experience in diverse fields of Strategic Planning, E&P > 37 yrs experience Projects, Corporate affairs & business development Biswajit Roy, Director (HR&BD) Experience in diverse functions including Mktg., > 38 yrs experience Operations,
Slide 7: Govt. Nominee and Independent Directors
Govt. Nominee Directors Amar Nath IAS 1994 Addl. Sec. (Expl), MoP&NG Experience at senior positions in various Govt. Depts. Asheesh Joshi IAS 2006 Director (Expl-I), MoP&NG Experience at senior positions in various Govt. Depts Independent Directors Dr. Tangor Tapak M.B.B.S from Sarojini Nai
Slide 8: Shareholding and listing details
Corporate Bodies , 10.14 DII (Incl. LIC), Listed on BSE / NSE 18.80 Others, 6.17 GOI, 56.66 Number of shares 108.44 crore FII, 8.22 Dividend 2020-21 Key shareholders % Shareholding Interim Rs.3.50/ Share, Final Rs.1.50/Share Government of India 56.66 Life Insurance Corporation 9.75 Share price (52 W
Slide 9: Company milestones
Formed as a Raised First time IPO – Raised Intl. Credit Rating: Acquisitions in Acquisition in TYNGD Awarded 4 GAs JV offshore FCB Participation Rs.2,777 crore, Moody's : ‘Baa2’ Rovuma Block in and JSC Vankorneft in under CGD with Burmah of US$ 550 mn, In NELP Listed in Stock Exch. Fitch : BBB(-) Mo
Slide 10: Rankings and Ratings
Rankings #206 Ratings ‘Baa3(-)’ ‘BBB(-)’ ‘AAA’
Slide 11: FY21 key achievements
Secondary Tank Farm at Madhuban and Gas Compressor Station at Makum, two major infrastructure projects in the north east, dedicated to the Nation by Hon’ble Prime Minister of India, Shri Narendra Modi. NRL becomes subsidiary of OIL with acquisition of additional 54.163% equity Successfully arranged
Slide 12: Strategic Strengths
Company Overview Strategic Strengths Assets Overview Operating & Financial Performance Growth Strategy
Slide 13: Presence across the value chain
Non Conventional Exploration Production Transportation Downstream Energy Domestic: Crude oil Crude Oil Refining and marketing Wind Energy 64 E&P blocks 48 installations 1,157 km pipeline; 69.63% equity stake Capacity 174 MW International: 1,670 km pipelines Over 6 MMT capacity in NRL
Slide 14: In-House Expertise
Vertically Integrated E&P Operations Infrastructure to Support E&P Activities One 2D (in house), One 3D 8 Logging Units Seismic crew (In house) (6 in-house, 2 CH) Drilling Seismic API Wireline 22 Work-over Rigs (12 in 19 Drilling Rigs (2D and 3D) Logging house, 10 CH) (11 in house, 8 CH) In-House Ex
Slide 15: Deployment of IOR/EOR techniques
Deployment of wide array of IOR/ EOR to achieve maximum recovery of oil reserves ESPs to improve artificial lifting from wells Collaborations with Institutions of repute (university of Houston / Heriot Watt University/ IITs etc. Gravel Pack completion Horizontal Drilling Use of advanced techniques t
Slide 16: Numaligarh Refinery expansion plans
Expansion Plans • Capacity expansion from 3 to 9 MMTPA • Integrated with an 6MMTPA 1,600 km (Approx) crude pipeline from Paradeep(Orissa) to Numaligarh (Assam) • Numaligarh Refineries Limited (NRL) – OIL Interest 69.63% with 3MMT Other Projects Refining capacity in the north- • Diesel Hydro-treater
Slide 17: Assets Overview
Company Overview Strategic Strengths Assets Overview Operating & Financial Performance Growth Strategy
Slide 18: Domestic blocks
Blocks Operated Non-Operated Total Area (SQKM) PML (Nom) 25 0 25 4,804 PEL (Nom) 3 0 3 332 Pre-NELP JV 0 2 2 121 NELP 4 2 6 9,210 DSF 2 1 3 158 OALP 25 0 25 48,796 Total 59 5 64 63,421 Operated : 57,982 sqkm, Non Operated : 5,439 sq km 18
Slide 19: Domestic acreage map
Kherem 40% AAP-ON-94/1 44.1% Kharsang 40% AA-ONHP-2018/2 AA-ONHP-2018/3 Nominated PML / PEL AA-ONHP-2018/5 AA-ONHP-2019/2 AA-ONN-2010/3 40% AA-ONHP-2019/1 RJ-ONHP-2017/9 RJ-ONHP-2017/8 MN-ONHP-2018/1 Nominated PML MN-ONHP-2018/2 AA-ONHP-2017/10 RJ-ONHP-2018/2 MN-ONHP-2018/3
Slide 20: International assets
US Colorado 20% 38 Libya 25% 6,629 Niobrara Shale Area 95/96 Nigeria 17.5% 1,295 OML 142 Russia License 61 50% 4,991 Venezuela 203 TAAS 10% 1,382 3.5% Project Carabobo 180 JSC Vankor 8% 1,869 Gabon Total No of Countries: 8 50% 3,761 Total No of Projects: 11 Shakti Total Area: 44,296 km2 Bangladesh 7
Slide 21: Taas Yuryakh, Russia
Taas Yuryakh, Russia Jointly acquired 29.9% with IOCL and BPRL in Oct 2016 - Acquisition Cost: US$1.173 bn (OIL’s share: 33.5%, US$392.92mn) Block Area 1,382 sq. km (2 license blocks of 611 sq. km and 771 sq. km) Located in Eastern Siberia, Onshore Russia 2P reserves of 808 mmbbl of oil and
Slide 22: Vankorneft, Russia
Vankorneft, Russia Jointly acquired 23.9% with IOCL and BPRL in Oct 2016 - Acquisition Cost: US$1.79 bn (OIL’s share: 33.5%, US$598mn) Block Area 1,869 sq. km (2 license blocks of 1,632 sq. km and 237 sq. km) Located in Western Siberia, Onshore Russia 2P reserves of 1,323 mmbbl of oil and 2.
Slide 23: Area 1 Rovuma, Mozambique
Area 1 Rovuma, Mozambique OIL & OVL acquired 10% stake in Offshore Mozambique Area 1 in Jan 2014 - Acquisition Cost: US$2,519 mn (US$ 1,007 mn by OIL), total investment till date US$ 1,252 mn Block Area 9,653 sq. km Located in the Rovuma tertiary deltaic basin extending from coastal part Str
Slide 24: Operating & Financial Performance
Company Overview Strategic Strengths Assets Overview Operating & Financial Performance Growth Strategy
Slide 25: Crude Oil and Natural Gas Production
Crude Oil Production (MMT) Natural Gas Production (MMSCM) 3.39 3.32 2,905 2,865 2,801 3.13 2.96 2,641 FY18 FY 19 FY 20 FY21 FY18 FY19 FY20 FY21 25
Slide 26: Reserves 1P, 2P, 3P
1P (MMBOE) 2P (MMBOE) 3P (MMBOE) 626 982 1246 543 845 1083 137 767 163 1084 83 310 522 684 210 100 245 400 Domestic Overseas Total Domestic Overseas Total Domestic Oversas Total Natural gas reserve under sale contract : 1P- 131 MMBOE, 2P-359 MMBOE, 3P-457 MMBOE Domestic Reserves by Type (2P) Oversea
Slide 27: Finding & Development and Production Costs
Finding & Development Cost (USD / bbl) Crude Oil Producing Cost (USD/BOE) 35.6 33.0 27.0 30.0 8.0 22.6 20.1 17.7 14.3 6.7 6.9 6.4 12.3 13.0 12.9 12.7 FY 18 FY 19 FY 20 FY 21 (P) Raising Cost Levies 4.7 4.4 4.2 4.1 Natural Gas Production Cost (USD/ MMBTU) 1.62 1.54 1.63 1.59 0.22 0.25 0.27 0.25 1.40
Slide 28: Revenue, EBITDA, PAT and EPS
Revenue (Rs. Crore) EBITDA (Rs. Crore) & EBITDA Margin (%) 15,170 13,649 6,919 12,141 10,561 5,395 4,111 3,208 44% 46% 30% 30% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA EBITDA Margin PAT (Rs. Crore) Earning Per Share (Rs.) 2,668 2,590 2,584 23.32 22.88 23.83 1,742 16.06 FY18 FY19 FY20 FY21 PAT
Slide 29: Net Worth, Book Value and Dividend
Net Worth (Rs. Crore) Book Value per Share (Rs.) 246 256 24,500 242 225 22,968 23,128 22,745 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Dividend (Rs Crore) Dividend Payout Ratio (% of PAT) GOI Others 44% 44% 44% 1173 1154 1149 397 498 31% 428 542.2 776 726 751 235 307 FY 18 FY 19 FY 20 FY 21 FY18 FY19
Slide 30: Total Debt, Debt/Equity, Net Debt/EBITDA
Total Debt (Rs. Crore) Total Debt / Equity (%) 11,624 11,418 50.6% 46.6% 39.6% 38.4% 9,004 8,885 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Net Debt/ EBITDA (x) 3.2 1.2 1.3 0.8 FY18 FY19 FY20 FY21 30
Slide 31: Central and State Exchequer contribution
Central Exchequer 1,879 1,532 1,576 (Rs.crore) 1,143 1,211 1,123 980 523 349 FY 19 FY 20 FY 21 Corporate Tax Cess Dividend & Others State Exchequer 1,956 (Rs.crore) 1,783 1,084 956 1,106 590 FY 19 FY 20 FY 21 Royalty VAT & Others 31
Slide 32: Price realizations: crude oil and natural gas
Crude Oil (US$/ bbl) Natural Gas (US$/ MMBTU) 68.5 3.69 60.8 3.36 55.7 3.23 3.06 45.8 44.0 40.7 2.39 37.4 1.79 1.79 29.5 FY 18 FY 19 FY 20 FY21 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Apr-21 Price Realized Net Realization after Levies Govt. notified Gas Price 32
Slide 33: Crude Price Movement
20 30 40 50 60 70 80 90 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Brent Sep-18 Crude Price Movement (US$/ bbl) Nov-18 Jan-19 Mar-19 OIL Basket May-19 Jul-19 Sep-19 Nov-19 Jan-20 Indian Basket Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21
Slide 34: Growth Strategy
Company Overview Strategic Strengths Assets Overview Operating & Financial Performance Growth Strategy
Slide 35: Capex plan 2020-21 and 2021-22
2020-21 : Rs.4,655 crore 2021-22 (BE Plan) : Rs.4,108 crore 18% 11% 14% 31% 14% 12% 24% 24% 19% 33% * Additional Strategic Investment: Rs.8677 crore in NRL 2018-19 464 855 805 664 393 3181 2019-20 397 946 1192 1121 592 4247 Survey Exploratory Drilling Development Drilling Capital Equipment Overseas
Slide 36: Ningru PML
Ningru PML: • Part of Assam & Assam-Arakan basin. • PML awarded in 2018 • Resources mobilised to resume drilling and workover activities. • PML includes Kumchai oil field with an estimated Oil-in-place (OIP) reserve of ~ 64 MMBBL and Gas-in-place (GIP) is of ~ 5888 MMSCM under BE Category. • Current
Slide 37: Extended Reach Drilling and recent discoveries
..) 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 meters by FY 2023-24 Expected produc
Slide 38: Vision and aspiration
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. 15 MMTOE production transla
Slide 39: Strategic priorities
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 energy value chain Restructure organisati
Slide 40: Government policy support for domestic production
Maximizing domestic oil & gas production is a strategic priority for the Government, with an aim to reduce import dependence by 10% by 2022. “Hydrocarbon Vision 2030 for Northeast India” gives strategic importance to the development of Northeast India which is the main operating area for OIL.
Slide 41: Policy initiatives for upstream sector
Unconventional Exploration Policy for PSUs National Data Repository to facilitate Open Acreage Offer National Seismic Program - OIL mandated for 2D Acquisition, Processing & Interpretation in North East India. Action areas under the NE Vision for upstream sector: Policy framework for streaml
Slide 42: 2nd Largest Public Sector E&P Company with strong credit metrics
2nd Largest Public Sector E&P Company …With Strong Credit Metrics Steady and sustained growth financial health Sound Strong operating track record 6 decades of E&P expertise Spreading wings: NE – Pan India – Global Large prospective E&P acreage Pioneer in Pipeline Transportation Acquisition
Slide 43: Thank you
Thank you