1 / 46

Demonstrating Value From Frontier Exploration

Demonstrating Value From Frontier Exploration. Petrotech 2009 Plenary Session, January 2009 Dr Mike Watts. DISCLAIMER.

dalton
Télécharger la présentation

Demonstrating Value From Frontier Exploration

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Demonstrating Value From Frontier Exploration Petrotech 2009 Plenary Session, January 2009Dr Mike Watts

  2. DISCLAIMER These materials contain forward-looking statements regarding Cairn, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward-looking statements are based on our management's assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are, by their nature, subject to significant risks and uncertainties and actual results, performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from expectations include, but are not limited to, regulatory changes, future levels of industry product supply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and use of technology, acts of competitors and other changes to business conditions. Cairn undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn's expectations with regard thereto or any change in circumstances or events after the date hereof. 09S0001AE00

  3. Talk Outline • Introduction to Cairn philosophy and Cairn Group • India • Focus on Rajasthan – development and growth potential • Greenland • Positioning for potential future growth 09S0001AE00

  4. 2009 - SURVIVAL OF THE FITTEST ? • Oil price falling below $40/bbl - continued volatility expected • Capital markets (debt and equity) closed for most businesses • Companies struggling for funds may not survive • Companies funded for growth will still attract investment Cairn growth strategy based on: A Vision, Focus and Edge philosophy 09S0001AE00

  5. VISION “La Clairvoyance” Rene Magritte 09S0001AE00

  6. CAIRN WORLD Greenland PapuaNew Guinea Head Office Edinburgh South AsiaIndia Bangladesh, Nepal, Sri Lanka Mediterranean Albania, Tunisia Applications: Spain & Italy 5 09S0001AE00

  7. GROUP STRUCTURE Cairn Energy PLC Listed on London Stock Exchange (1988) • IPO of CIL raised $1.98 billion (2007) • Placing of 4% of CIL raised ~$625 million (2008) • DYAS invested $90 million for 10% (2007) 65% 90% Other Shareholders DYAS 10% 35% Cairn India (CIL) Listed on Bombay & National Stock Exchanges (2007) Capricorn Unlisted subsidiary Aims to: • Maximise recovery from currentproduction base • Execute Rajasthan development • Maximise Potential in Rajasthan Aims to: • Discover hidden value through entrepreneurial exploration 6 09S0001AE00

  8. GREENLAND GROUP KEY ASSETS Rajasthan INDIA SRI LANKA • Gross operated Q3 2008 production 65,566 boepd, • Ravva, Lakshmi, Gauri • Rajasthan Resource base >1 billion boe • First Oil H2 2009 • Planned plateau production ≥ 175,000 bopd • Significant free cash flow from 2011 • Bangladesh (Sangu) gross Q3 2008 operated production; 8,455 boepd • Transformational exploration potential in Greenland • Medium/low risk exploration potential leading to possible early developments - Mediterranean 7 09S0001AE00

  9. CAIRN AS AN INVESTMENT CATALYST INDIA UNDER EXPLORED AT POINT OF CAIRN ENTRY Wood MacKenzie GREENLAND AT THE POINT OF CAIRN ENTRY 8 09S0001AE00

  10. INDIA

  11. RAJASTHAN OVERVIEW Rajasthan 25 discoveries 3.7 billion boe in place Integrated upstream and midstream development with local power and water supply 6 fields currently under development or development planning First oil 2009 Estimated peak production ≥ 175,000 bopd 10 09S0001AE00

  12. RAJASTHAN WORLD CLASS RESERVES & RESOURCE BASE MBA – Mangala, Bhagyam & Aishwariya fields More than 20 discoveries In place volumes - STOIIP Total Fields > 3.7 billion boe MBA Fields (Mangala, Bhagyam & Aishwariya) Other Fields > 2 billion boeunder development > 1.7 billion boesmall field andtight reservoir potential Work on reserves, resources and potential productionongoing Reserves and Resources over 1 billion boe Gross2P reserves(to 2041) 685 mmbbls Chemical EOR resource potential> 300 mmbbls Barmer Hill potential ~400 mmbbls Others > 1.3 billion bbls 11 09S0001AE00

  13. RAJASTHAN INTEGRATED DEVELOPMENT OVERVIEW Mangala Process Terminal (MPT) & Well pads Mangala Bhagyam • 2 x 50,000 bopd processing trains • 3rd 75,000 bopd train, scope for further expansion • Fluid handling capacity 1 million bfpd Aishwariya Intra-field Pipelines and Crossings Water System • Extraction of saline water and pipeline to MPT for heating and injection into the reservoir for secondary recover • Thumbli water field well pads and facilities Raageshwari Gas Terminal (RGT) & Well Pads Raageshwari • Raageshwari Gas piped to MPT • Combined with Mangala associated gas for power generation Export Oil Pipeline 12 09S0001AE00

  14. MANGALA FIELD AND PROCESSING TERMINAL 150M Mangala Discovery Well January 2004 Mangala Processing Terminal (MPT) Export Oil Pipeline 13 09S0001AE00

  15. MANGALA PROCESSING TERMINAL Area equivalent to 200 football pitches or 27 Eden Gardens cricket grounds Power Water Injection Water Produced Water Export Oil Pipeline Fluids from Well Pads 14 09S0001AE00

  16. MPT COMPARISON WITH EDEN GARDENS CRICKET GROUND Eden Gardens Cricket Ground, Kolkata Mangala Processing Terminal Area (MPT) Export Oil Pipeline 15 09S0001AE00

  17. MPT CONSTRUCTION PROGRESS Pipe Rack Oil Storage Tanks Puja Ceremony Water Storage Tanks 16 09S0001AE00

  18. CAIRN PLC BOARD IN BLUE 17 09S0001AE00

  19. CONTRACTORS IN ORANGE 18 09S0001AE00

  20. RAJASTHAN GAS SYSTEM Mangala Processing Terminal Raageshwari Gas Field 90 km pipeline SteamTurbines Boilers Power MangalaAssociated Gas Boiler Area Steam turbine 19 09S0001AE00

  21. RAJASTHAN WATER SYSTEM 20 km Mangala Field Fatehgarh Vertical Development Well Saline Water Injector Saline Water Extraction Horizontal Well Heat Water Table Fresh Water Lens Thumbli Saline Aquifer Oil Barmer Hill Fatehgarh 20 09S0001AE00

  22. 600km RAJASTHAN TO GUJARAT COAST PIELINE Pipeline Route Rajasthan Existing Pipelines Refinery Total Pipe Diameter 705 mm (29.2”) Mangala High Density Polyethylene Wrap Heat Tube Viramgam Poly Urethane Foam Insulation Salaya Koyali Gujarat Tankers to Coastal Refineries 21 09S0001AE00

  23. PIPELINE CONSTRUCTION WORK – TRENCH PREPARATION 22 09S0001AE00

  24. PIPELINE CONSTRUCTION WORK – LOWERING PIPELINE 23 09S0001AE00

  25. PIPELINE CONSTRUCTION WORK – PIPELINE LAID 24 09S0001AE00

  26. RAJASTHAN - OTHER FIELDS ADDITIONAL GROWTH Mangala Bhagyam Aishwariya Raageshwari East -1Z Raageshwari Raageshwari East well December 2008 Tested 40° API Oil at 500 bopd Export Oil Pipeline 25 09S0001AE00

  27. RAJASTHAN SCHEMATIC WORLD CLASS PRODUCTION POTENTIAL AdditionalSmall Fields potential production Additional production potential fromMBA EOR CurrentFDP case Potential production rates to be determined Plateau Enhancement * * Subject to Government Approval FDP Production Level 175,000bopd 100,000bopd MBA Water flood Actual ramp up profile under CIL review Oil Rate 10 Years 26 09S0001AE00

  28. GREENLAND

  29. WHY GREENLAND FOR CAIRN Key emergent Arctic province World class resource potential Favourable access to Atlantic basin markets Vastly underexplored 6 wells in Western Greenland in an area three times the size of the North Sea Indications of working petroleum systems Fiscal terms ~47% State take at $75/bbl Low permit risk Supportive and pragmatic regulator Popular local support for industry Political Risk GREENLAND Commercial Risk Technical Risk 28 09S0001AE00

  30. ARCTIC GEOLOGICAL BASINS The Arctic comprises 19 Geological basins containing >400 oil and gas fields The discovered Arctic resources are > 240 Billion boe or about 10% of the world’s known discovered hydrocarbon resources Most basins are still only lightly or moderately explored Basins after Wood Mackenzie 09S0001AE00

  31. USGSCircum-Arctic Resource Appraisal:Estimates of Undiscovered Oil and Gas North of the Arctic Circle - July 2008 “The extensive Arctic continental shelves may constitute the geographically largest prospective area for petroleum on Earth” The Arctic could contain as much as 13% of the world’s ‘yet to find’or undiscovered oil and 30% of its undiscovered gas 30 09S0001AE00

  32. ARCTIC “Great Game”? Potential Polar Shipping Lanes TOKYO Tokyo to London via Suez Canal 20,800 km 30 yr average Tokyo to London via Polar route 12,800 km Northeast Passage NEW YORK Northwest Passage Arctic Circle NASA/Goddard Space Flight Center Scientific Visualization Studio The Blue Marble data is courtesy of Reto Stockli (NASA/GSFC). LONDON 31 09S0001AE00

  33. GREENLAND POTENTIAL USGS (July 2008) risked mean estimate for Greenland potential is ~50 billion boe Greenland is aworld top 10country for‘yet to find’hydrocarbonsUSGS 1996 Greenland offers Cairn the mostaccessible entry into the lowArctic and sub-Arctic basins Saudi Arabia Russia Iran Brazil Iraq Greenland Nigeria Kazakhstan Venezuela Mexico Norway 32 09S0001AE00

  34. GREENLAND HYDROCARBON POTENTIAL Gas Potential 10.2 TCF Gas Potential 52 TCF Gas Potential 86.2 TCF Oil Potential 7.3 Billion bbls Oil Potential 1.35 Billion bbls Oil Potential 8.9 Billion bbls NGL Potential 8.1 Billion bbls NGL Potential 1.1 Billion bbls NGL Potential 0.3 Billion bbls USGS Risked Mean Resource Estimates (July 2008) Natural Oil Seeps Satellite Slicks Gas Discoveries 33 Oil Discoveries 09S0001AE00

  35. WEST AND SOUTH GREENLAND EXPLORATION AND FUTURE BID ROUNDS Blocks 5 & 7 Husky Nunaoil NW Greenland(Baffin Bay) 2010 Licence Round NE Greenland 2012 Licence Round Sigguk & Eqqua Cairn/Capricorn 87.5% Nunaoil 12.5% Block 4 Exxon Chevron Dong Nunaoil Saqqamiut & Kingittoq Block 6 Cairn/Capricorn 92% Nunaoil 8% Exxon Husky Nunaoil Block 8 P.A. Resources Atammik & Lady Franklin Cairn/Capricorn 40% EnCana 47.5% Nunaoil 12.5% Cape Farewell 1 & 2 Cairn/Capricorn 92% Nunaoil 8% 34 09S0001AE00

  36. BLOCK SIGNING CEREMONIES Qaqortoq, January 2008 Nuuk, November 2008 Qaqortoq early January and Nuuk late November 2008 35 09S0001AE00

  37. GREENLAND DISKO AREA NATURAL SEEPS AND SATELLITE SLICKS First natural oil seeps in Greenland recognised in 1992 (Disko/Nuussuaq area) By 1997, 100 natural oil seep locations had been found with five distinct oil types identified “Remote sensing records numerous oil slicks in the offshore” “Slicks seem to be concentrated in specific areas rather than being randomly distributed” 1 Nuussuaq Cairn 4 3 Disko Island Exxon,Chevron, Dong, Nunaoil Cairn 5 6 Exxon, Husky, Nunaoil Husky, Nunaoil 7 8 Husky, Nunaoil P.A.Resources Christiansen et al 1996 Bojeson-Koefoed et al 2007 Bojeson-Koefoed et al GEUS 2008 Natural Oil Seeps Satellite Slicks 36 09S0001AE00

  38. GREENLAND FIELDWORK 37 09S0001AE00

  39. GREENLAND FIELDWORK PUJOORTOQ ‘BURNT CLIFF’ Cliff section of 700m thick deepwater black marine Cretaceous shales with high organic carbon content Slope failure introduces oxygen which has an exothermic reaction with iron sulphide generating heat Red oxidised shales indicate location of maximum heat and burning Landslides in 1933 and 1958 38 09S0001AE00

  40. GREENLAND FIELDWORK CRETACEOUS AND TERTIARY SEDIMENTS 39 09S0001AE00

  41. GREENLAND FIELDWORK Marrat-1 well drilled for mineral exploration in 1994 confirmed a 90m oil impregnated volcanic section OIL SEEPS AND STAINING IN VOLCANICS 40 09S0001AE00

  42. GREENLAND - COMMUNITY MEETINGS Cairn in Qaqortoq, Jan 2008 Industry Community Visit, Mar 2008 41 09S0001AE00

  43. GREENLAND SEISMIC ACQUISITION Acquisition commenced July 2008 First Boat operational in the region in 2008 Acquisition completed end October 2008 Project on time and within budget Total seismic acquired 10,191 km 2008 2D Seismic programme 10,191 km 42 09S0001AE00

  44. LADY FRANKLIN AND ATAMMIK BLOCKS CSEM SURVEY Atammik Lady Franklin Nuuk Summer 2008 work programme1,600 km Controlled Source Electromagnetic Survey (CSEM) Atammik Lady Franklin WesternGeco 43 09S0001AE00

  45. WEST AND SOUTHERN GREENLAND Potential Development Scenarios OilFPSO / FPU OilFPSO / FPU OilFPSO / FPU Nuuk Quebec & Ontario market 1.3 Tcf / year Rabaska Proposed LNG Terminal Gas LNG options to US or Europe St Johns St Johns Trans-Shipment Terminal 44 09S0001AE00

  46. SUMMARY Vision India • Cairn has taken its position in India from frontier to substantial business in 15 years and with it’s main partner ONGC, has acted as a catalyst for the industry • Subsequent major discoveries by domestic players confirm the hydrocarbon potential Greenland • Cairn has secured an early entry position into what it and others believe to bea world class frontier exploration country Focus • Cairn retains a focus on materiality with the financial and operational flexibility to offer shareholders long term growth potential Edge Operational Control and Our People 45 09S0001AE00

More Related