#1ऑयल इंडिया लिमिटेड Oil India Limited Strictly Private & Confidential Oil India Limited Investor Presentation August 2015#2Table of Contents 1 1. Company Background 2. Asset and Reserve Overview 3. Strategic Strengths 4. Operating and Financial Highlights 5. Growth Strategy ऑयल इंडिया लिमिटेड Oil India Limited#3ऑयल इंडिया लिमिटेड Oil India Limited Company background#4Oil India Ltd.: An Introduction Rich Heritage Strong Parentage with Government of India (Gol) Integrated and fully serviced Oil & Gas (O&G) Player Dominant India and Expanding Global Presence Strong Reserve Base Experienced Management Team Consistent Growth and Robust Balance Sheet Over 5 decades of experience in oil & gas sector Credited with creation, operation and maintenance of a fully-automated crude oil pipeline ◆ Gol ownership of 67.64% Awarded 'Navratna' status in 2010 Second¹ largest national oil and gas company in India Presence across Oil & Gas Value Chain Integrated infrastructure and In-house expertise Domestic: 55 blocks; 86,194 sq. km International: 13 blocks; 74,721 sq. km Total 2P2 reserves of over 121 mmtoe Consistent reserve replacement ratio of well over 100% Senior management team with strong in-house technical expertise in Company's core business Q1 FY16 Revenue: Rs.3,160 crore, PAT: Rs.775 crore FY15 Revenue: Rs. 11,020 crore, PAT: Rs.2,510 crore Oil India is a leading Oil & Gas 'Navratna' Company engaged in Exploration, Development, Production and Transportation of Crude Oil and Natural Gas Note: 1.Based on total proved plus probable oil and natural gas reserves and production 2.Proved plus probable reserves 2 ऑयल इंडिया लिमिटेड Oil India Limited#5Our vision Fastest Growing Energy Company with Highest Profitability 3 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 Learning Organization, Nurturing Initiatives, Innovations and Aspirations with Best Practices Responsible Corporate Citizen Deeply Committed to Socio-economic Development in its Areas of Operations "The Fastest Growing Energy Company With a Global Presence Providing Value to Stakeholders" ऑयल इंडिया लिमिटेड Oil India Limited#6Key Highlights Acquisition of 50% stake in producing property in License 61 Block in Russia 4 Acquisition of 50% Pl in Blocks SS04 and SS09 in Bangladesh Acquisition of 60% PI in Block YEB & M-4 in Myanmar Discovery of Gas in Kakinada Project Commissioned additional Wind Energy project for 54 MW in Gujarat & MP Commissioned 5 MW Solar power project in Rajasthan ऑयल इंडिया लिमिटेड Oil India Limited#7от 5 Key Highlights (Contd....) Reaffirmation of International Credit Ratings: 'Baa2' by Moody's and 'BBB-' by Fitch Maiden Foreign Currency Bond Issue of US$ 1 billion Highest ever Capex of Rs.3,773 crore in FY 15, 104% of the Planned Capex Implementation of New Natural Gas Pricing Guidelines with linkage to international prices Sharp reduction in subsidy burden as a result of regulatory developments ऑयल इंडिया लिमिटेड Oil India Limited#8Shareholding Structure 6 ऑयल इंडिया लिमिटेड Oil India Limited Listed on BSE / NSE DII 8.0% Number of shares 601.14 mn FII 9.6% Others 14.8% GOI 67.6% Dividend FY15 Rs.20/Share Share price (52 Week High/Low) Rs.669/ Rs.420 Key shareholders Indian Oil Corporation Bharat Petroleum Corporation Hindustan Petroleum Corporation % Shareholding 4.45% 2.23% 2.23% HSBC Bank (Mauritius) Ltd. 1.99% HDFC Standard Life Insurance Co. Ltd. 1.01% Market Cap¹ Rs.26,670 crore Life insurance Corporation of India 0.93% HDFC Trustee Co. Ltd. - Top 200 Fund 0.90% HDFC Trustee Co. Ltd.- HDFC Equity Fund 0.88% ICICI Prudential Life Insurance Co. Ltd. 0.76% 1. As on 24.08.2015 ऑयल इंडिया लिमिटेड Oil India Limited#9Oil India: Milestones and Track Record 7 Formed as a JV with Burmah Oil Company Participates first time in NELP IPO-Raised Rs.2777 crore. Listed in Stock Exchanges Awarded Navratna Status MOODY'S Fitch Ratings 'Baa2' Credit Rating by Moody's and BBB-by Fitch Acquisition in Rovuma Offshore Block in Mozambique and License 61 Block in Russia 1959 1981 1999 2009 2010 2012 2013 2014 GLORIOUS Became wholly owned Government of India enterprise Completes fifty years "Company of the Year Award" by Indian Chamber of Commerce 10% OFS by Gol (Rs.3,145 crore) Over 50 Years of Experience in Oil & Gas Sector Raised offshore FCB of US$ 1 billion ऑयल इंडिया लिमिटेड Oil India Limited#108 Strong Parentage and Experienced Management Team Strong Parentage of Govt. of India 2nd Largest Public Sector E&P company Became a Public Sector Undertaking in 1981 Govt. owns 67.64% and Central Public Sector Enterprises (IOCL, BPCL & HPCL) own 8.9% 2 Government nominees on the Board Awarded 'Navratna' Status in 2010 ◆ Status accords complete autonomy in Company's operations except; ◆ M&A or equity investment in a single JV / Wholly owned subsidiary Domestic: Up to Rs.1,000 crore or 15% of net worth International: Up to Rs.3,000 crore or 25% of net worth Best In-Class Management Team UP Singh Chairman & MD IAS, Additional Secretary in MoP&NG R S Borah Director (Finance) Over 30 years of O&G Industry experience Sudhakar Mahapatra Director (Expl. & Dev.) Over 33 years of O&G Industry experience Biswajit Roy Director (HR & BD) Over 32 years of O&G Industry experience P K Sharma Director (Operations) Over 33 years of O&G Industry experience Appointed Chairman & Managing Director in July, 2015 During his rich and varied experience as an IAS officer, he has held various administrative positions in both the State & Central Govt. ◆ Prior to joining MoP&NG, he was Joint Secretary, Ministry of Steel. Appointed Director (Finance) in October, 2013 Experience in diverse fields of financial management, audit and strategic planning Appointed Director (E&D) in August, 2014 Experience in diverse fields of exploration management under PSC/JV regimes, E&P business development process Appointed Director (HR & BD) in May, 2015 Experience in diverse functions including Marketing, Operations, Business Development, Human Resources, Appointed Director (Operations) in June, 2015 ◆ Experience in the E&P industry in India and abroad Awards PLATTS MCGRAW HILL FINANCIAL Platts Top 250 Global Energy Company Rankings' 2014 GLOBAL 2000. Forbes 00.201 Forbes Global 2000 1,638th Rank 2013 BUREAUCRACY Today BT Star Best PSU 2013 ICC Indian Chamber of Commerce Company of the Year 2012 NDTV NDTV Business Leadership award in Oil & Gas Sector 2012 Golden Peacock Award Corporate Governance 2012 ऑयल इंडिया लिमिटेड Oil India Limited#11Integrated and Diversified Oil & Gas Player Exploration O Domestic: 56 E&P blocks (including 1 CBM block) O International: Presence in US, Russia, Venezuela, Mozambique, Gabon, Libya, Bangladesh, Nigeria, Yemen and Myanmar O Discoveries: 29 Small to Medium1 size discoveries during last four years Production Crude oil ◆41 installations 1,602km pipelines Natural gas ◆29 installations 730km pipelines Advanced Recovery techniques to maximize production Transportation • Crude Oil 1,157 km pipeline; Over 44 mmbbls capacity Multi-product 660 km pipeline; 1.70 MMT capacity Overseas pipeline ◆ 10% stake in 741 km pipeline (Sudan) Natural Gas ◆ 23% stake in 192km DNPL2 in North-east Downstream Refining and marketing petroleum products 26% equity stake in NRL³ ◆5% equity stake in IOCL4 Gas cracker project 10% equity stake in BCPL 5 Non Conventional Energy Wind Energy Capacity: 121.6 MW Solar Power Capacity: 5.23 MW Shale Oil/Gas 20% stake in Niobrara Liquid Shale asset, USA Upstream Oil & Gas Note: 1. Small to Medium size discoveries: Estimated proved plus probable reserves size of less than 30mn barrels of oil and oil equivalent gas. 2. DNPL - Duliajan-Numaligarh Pipeline Limited. 3. NRL - Numaligarh Refinery Limited. 4. IOCL Indian Oil Corporation Limited 5. BCPL - Brahmaputra Cracker and Polymer Limited 9 Downstream Fully serviced E&P Company and diversifying into non-conventional energy ऑयल इंडिया लिमिटेड Oil India Limited#12Large and Diversified Reserve Base Crude Oil (MMT) Large Reserve Base with attractive Oil & Gas Mix 83 115 Reserve Replacement Ratio (2P reserves) Natural Gas (BCM) 10 31 24 24 44 1.64 66 1.39 1.29 1P 2P 3P FY2013 FY2014 FY2015 Significant reserve base of over 121 MMTOE Track record of Reserve Replacement Ratio >1.0x ऑयल इंडिया लिमिटेड Oil India Limited#13Downstream 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 • Vertical integration strategy aimed at achieving: - Diversification of revenue sources Improving profitability by extending operations into higher-margin segments of the product value chain Refining and Marketing 26% equity stake in Numaligarh Refinery Limited (NRL). The other equity holders in NRL are BPCL and the Government of Assam Gas cracker Project 10% equity stake in Brahmaputra cracker and Polymer Limited (Assam) O Process natural gas, naphtha or any other petroleum product Distribute and market petrochemical products in India and abroad Renewable Energy/LNG projects • Commissioned Wind Energy Project in Rajasthan, Gujarat and MP. O LNG: MOU with Kakinada Seaports 11 NUMALIGARH REFINERY NRL LIMITED Bharat Petroleum KSP ऑयल इंडिया लिमिटेड Oil India Limited#14ऑयल इंडिया लिमिटेड Oil India Limited Asset and reserve overview#15Domestic Asset Overview Blocks No Area (sq. km.) NELP - Operator 12 18,463 NELP Non-Operator 15 61,296 PML Nomination 21 4,995 PEL Nomination 5 1,239 JV / PSC 2 201 Total 55 86,194 NELP PML/PEL - Nomination JV Oil India as Operator + Joint Operator RJ-ONN-2004/2 60% RJ-ONN-2005/2 75% RAJASTHAN GK-OSN-2010/1 30% MB-OSN-2010/2 50% ASSAM +AP AA-ONN-2010/2 40% AA-ONN-2009/4 50% AA-ONN-2004/2 100% AA-ONN-2005/1 30% AA-ONN-2002/3 30% Kharsang 40% AA-ONN-2009/3 50% AAP-ON-94/1 16% AA-ONN-2004/1 85% WB-ONN-2005/4 25% AA-ONN-2010/2 40% MN-OSN-2000/2 20% AA-ONN-2001/3 15% KG-DWN-2009/1 15% MZ-ONN-2004/1 85% KG-ONN-2004/1 90% AA-ONN-2002/4 10% KG-DWN-2004/5 10% + KG-OSN-2009/4 30% AN-DWN-2005/1 10% Strong Presence in Prospective East Coast KG-DWN-2004/6 10% AN-DWN-2009/3 40% AN-DWN-2009/1 30% + CY-OSN-2009/2 50% AN-DWN-200918 30% AN-DWN-2009/2 40% Significant India Presence in Regions with Demonstrated Commercial Production or Known Accumulation of Hydrocarbons PML - Petroleum Mining Lease, PEL - Petroleum Exploration License, PSC - Production Sharing Contract 12 ऑयल इंडिया लिमिटेड Oil India Limited#16Major Domestic Projects Mizoram Block awarded in NELP-VI round ◆ Block lies in north-east India flanked by Bangladesh in the West and Myanmar in South & East ◆ OIL: 85% (Operator), Shiv-vani: 15% Area: 3,213 SQKM Status Update Seismic Acquisition, Processing & interpretation of: 2D (API): 1,352 GLKM ◆3D (API): 613 SQKM Drilling of 1st well (Aibawk-1) is in progress ◆ Drilled to the depth of 4153 meters ◆ Production testing in progress Of India Umited 13 NO SMOKING NAKED LIGH PHOTOGRAP ऑयल इंडिया लिमिटेड Oil India Limited#17Major Domestic Projects (Contd...) KG Basin ◆ Block awarded in NELP-VI round ◆ Block lies at north-eastern end of the onshore part of Krishna-Godavari Basin. ◆ OIL: 90% (Operator), GGR : 10% Area: 541 SQKM Status Update Seismic Acquisition, Processing & interpretation of: ◆ 2D (API): 300.16 GLKM ◆3D (API): 407.37 SQKM Drilling & testing of 1st well completed ◆ Hydrocarbon discovery made ◆ Final logging in 2nd well in progress Loc. 15 Loc.13 Dangeru-1 RIVER GODAVARI Loc. 9/9A Loc.7 Corangi Wild Life Sanctuary A RIL & GSRC Complex Yanam, Puducherry Loc.12 0 ARA Jap sa. KM BST-1 Loc.20 MAUPARE KANDIKUPPA RF L RATKALUNA F Masonitipps BAY OF BENGAL LEGEND OL INDIA LIMITED KO BASIN PROJECT MAP SHOWING Non-HPHT Drilled well HPHT location 14 ऑयल इंडिया लिमिटेड Oil India Limited#18Major Domestic Projects (Contd...) ◆ Block awarded in NELP-VIII round ◆ Block lies at Gulf of Mannar Water Depth: 401 meters Cauvery Basin 9°00' | 79°30' ◆ OIL: 50% (Operator), ONGC : 50% 09° GM-F-1 00' Area: 1621 SQKM Status Update Seismic Acquisition, Processing & interpretation of: 2D (API): 511 GLKM M-1-1A B CY-OSN-2009/2 R-GM-F-1 D E G2 NAUTICAL MILE FROM COAST 3D (API): 1621 SQKM ◆ Pre-drilling activities in progress ◆ Expected to spud the well by Q4 FY16 15 09° 00' ऑयल इंडिया लिमिटेड Oil India Limited#19International Asset Overview 16 US Colorado Julesburg Basin 20% 60 sq.km Nigeria OML 205 17.5% (Suntera) 1,295sq.km Venezuela Carabobo 1 North Carabobo 1 Central 3.5% 203sq.km 180sq.km Gabon Shakti 50% 3,761sq.km Mozambique 4% Rovuma Area-1 (Anadarko) 9,653sq.km Total No of Blocks: 13 Total Area: 74,721 sq.km Operator Non-Operator Libya Area 95/96 Ghadames Basin 25% (Sonatrach) 6,629sq.km Russia License 61 50% 4,991sq. km Sudan Pipeline 10% 741 km Bangladesh SS-04 SS-09 45% (OVL) 7,269sq.km 7,026sq.km Myanmar M-04 60% 10,421sq.km 21,380sq.km YEB Yemen Block 82 12.75% 1,853sq.km (Medco) Area (Sq. km) OIL's Participating Interest (%) Strong International Footprint with Balanced Presence in Exploration Acreages & Producing Properties arta sfear frifunes Oil India Limited#20Major Overseas Projects Project Carabobo, Venezuela Equity access to crude oil on long term basis ◆ Significantly low subsurface risk ◆ Two blocks in Orinoco Heavy Oil Belt Block Area 383 Sq. Km 2 30 billion barrels of Oil in place from Project Carabobo ◆ Production started from Dec 2012 Current Status ◆31 wells under production ◆ Current production - 18000 bopd ◆ Production expected to reach 90000 bopd. by end of 2017 ◆ Revenue from the Project US$ 199 Million till 31.03.2015 (OIL share US$ 7 Mn) Consortium Partners 17 PDVSA Repsol OVL INDOIL 71% 11% 11% 7% (OIL 50% & IOCL 50%) Partner in major discovered heavy oil field with huge resource potential ऑयल इंडिया लिमिटेड Oil India Limited#21Major Overseas Projects (Contd...) Area 1 Rovuma, Mozambique OIL jointly with OVL acquired 10% stake in Offshore Mozambique Area 1 in January 2014 ◆ Acquisition Cost: USD 2519 million, (US$ 1007 million by OIL) ◆ Area: 9653 SQ KM. Location: Rovuma tertiary deltaic basin extending from coastal part ◆ Water depths over major gas fields are in the range of 800-1600 meters • 45-75 tcf recoverable resources in Area 1 ◆ Resource size supports 50 MMTPA of LNG Strategically located to supply LNG to buyers from Asia and Middle. Key Highlights Financial Close expected Q3 2016 ◆ First LNG expected Q1 2020 More than 2/3rd of the volume of Initial Development Phase already committed Consortium Partners Anadarko Mitsui ENH 26.5% 20% 15% BPRL 10% BREML (OIL 40% & OVL 60%) OVL 10% 10% PTTEP 8.5% 18 Discovered asset with high reserve base in a world class gas basin with significant future upside potential ऑयल इंडिया लिमिटेड Oil India Limited#22Major Overseas Projects (Contd...) License 61, Tomsk Region, Russia Acquired 50% PI at US$35 mn. w.e.f. 1st Jan 2014 Also funding Development Capex of US$ 45 mn and production bonus of US$ 5 mn ◆ Contains seven known oil fields having 2P reserve of 117.1 Mn bbl The License has over 25 prospects and leads Project Profile ◆ Near Term Production : 5,000 BOPD Expected peak production: 22,600 BOPD ◆ Projected Pay back period: 7 years Processing facilities of 15,000 BOPD in place Pipeline agreements for crude evacuation in place Location • Western Siberia Area 4,991 SQ. KMS Current Status ◆ Three rigs currently deployed ◆ Seismic API of 1000 LKM is under progress ◆ Current production > 2300 BOPD Consortium Partners PetroNeft Resources OIL 50% 50% Low cost entry into one of the most hydrocarbon prolific region of Western Siberia Average acquisition cost ~ US$ 2 per bbl of 2P reserve 19 ऑयल इंडिया लिमिटेड Oil India Limited#23Major Overseas Projects (Contd...) Myanmar Block YEB and Block M-4 Awarded in 2013 offshore licensing round by Republic of Union of Myanmar ◆ Production Sharing Contracts signed in December 2014 ◆ Shallow Offshore - Maximum WD: 600 ft ◆ Familiar geology Inherent benefits attached to exploration assets High risk high reward Current Status EIA/ SIA studies in progress prior to entry into assessment phase Area M4 (10,421 Sq. Km), YEB (21,380 Sq. Km) Resource Base M4 Gas • YEB : Oil Consortium Partners OIL 60% Mercator Ltd. 25% Oilmax Energy Pvt. Ltd. Oil star 10% 5% 20 20 Exploring neighbours: a strategic move arta sfear frifunes Oil India Limited#24Major Overseas Projects (Contd...) Bangladesh: Block SS-04 and SS-09 Blocks awarded in the Bangladesh offshore bidding round 2012 ◆ Production Sharing contract signed in Feb 2014 ◆ Shallow water block (WD: 0-200 m) Inherent benefits attached to the exploration assets Current Status ◆ Environmental Impact Assessment study Blocks completed. Report awaited. 2D seismic acquisition to commence Q3, FY 16 Area SS-04 (7269 Sq. Km), SS-09 (7026 Sq. Km) Reserve/Resource Block SS-04 : 1710 bcf ⚫ Block SS-09 : 3795 bcf Consortium Partners OVL OIL BAPEX 21 45% 45% 10% ऑयल इंडिया लिमिटेड Oil India Limited#25ऑयल इंडिया लिमिटेड Oil India Limited Strategic strengths#26Solid Infrastructure Base with Strong In-House Capabilities Vertically Integrated E&P Operations with Solid Infrastructure Vertical Integration 222 22 Recovery Techniques (IOR/EOR) Drilling & Oil Field Services Seismic (2D,3D) Oil & Gas Assets Reservoir Management E&P Value Chain Exploration Discovery & Appraisal Development & Production Transportation Seismic API (2D and 3D) Drilling Wireline Logging IOR/EOR In-House Expertise Field/Reservoir Management Production Field Development Infrastructure to Support E&P Activities One 2D and two 3D Seismic crew 10 Logging Units Production and Storage Facilities 70 Production Installations 19 Work-over Rigs 19 Drilling Rigs 5,000 km O&G Pipelines In-house Expertise and Integration across Oil & Gas Infrastructure ~150k KL Crude Storage ऑयल इंडिया लिमिटेड Oil India Limited#27Attractive Cost Structure OIL has the Advantage of Low Finding and Development Costs ◆ OIL's integrated oil and gas infrastructure enables the company to manage costs efficiently by optimizing manpower costs, using in-house services, adapting cost-saving technology, effectively using geological data and expertise Finding & Development Cost (USD/BOE) Crude Oil Production Cost (USD/bbl) 23 4.0 5.9 20.5 18.37 17.37 5.2 5.3 FY 13 3.0 FY 14 Finding Cost F&D cost 8.11 8.75 9.59 FY 13 FY 14 FY 15 3.7 Raising Cost Levies Natural Gas Production Cost (USD/ MMBTU) 0.4 0.4 0.5 2.5 2.3 2.3 FY 15 FY 13 FY 14 FY 15 Raising Cost Levies ऑयल इंडिया लिमिटेड Oil India Limited#28Growth Focus on Key International Projects Rovuma Basin, Offshore, Mozambique Recoverable resources of 45-75 tcf First production and revenue is expected in FY2019 Project 1, Carabobo, Onshore, Venezuela • 31 wells are on production with current average total production of 16,000 bopd Participating Interest (4%) Anadarko (26.5%) Mitsui USA (20%) Participating Interest steashell later (16%) ENH (15%) (10%) (8.5%) Bharat Petroleum PTTEP onGC VIDESH Area 95/96, Onshore, Libya ◆ Drilling of five wells completed ◆ Hydrocarbon discoveries in all wells ओएनजीसी विदेश (3.5%) PDVSA (71%) (11%) onac VIDESH इंडियन ऑपल (11%) (3.5%) IndianOil REPE Carrizo Shale Asset, USA • 113 wells on production with average daily production of ~500 bopd (OIL's share) سوناطراك Participating Interest Participating (25%) 二 (50%) (इंडियनऑयल) (25%) Interest IndianOil sonatrach Block Shakthi, Onshore Gabon OIL's first overseas discovery as a operator (50%) (इंडियनऑयल) Two Appraisal wells drilled. Close grid 2D Seismic Data being acquired Participating (50%) Interest IndianOil (20%) इंडियनऑयल (10%) CARRIZO (60%) 海默 (10%) HAIMO IndianOil License 61,Onshore, Russia • Current average production ~2200 bopd Participating Interest (50%) PN PetroNeft (50%) Petra Git per pe Production from international assets is expected to support growth in production going forward Note: tcftrillion cubic feet, boepd - barrel oil equivalent per day 24 ऑयल इंडिया लिमिटेड Oil India Limited#29ऑयल इंडिया लिमिटेड Oil India Limited Operating and Financial Highlights#30Crude Oil and Natural Gas Production Crude Oil Production (mn. bbl) 26.4 24.9 24.5 25 25 6.0 6.0 Natural Gas Production (mm scm) 2,722 2,639 2,626 677 642 FY 13 FY14 FY15 Q1 FY15 Q1 FY16 FY 13 FY14 FY15 Q1 FY15 Q1 FY16 ऑयल इंडिया लिमिटेड Oil India Limited#31Financial highlights Revenue (Rs. crore) 11,478 11,215 11,020 26 2,932 3,160 EBITDA (Rs. crore) 6,123 5,656 5,052 1,537 1,551 FY13 FY14 FY15 Q1 FY15 Q1 FY16 FY13 FY14 FY15 Q1 FY15 Q1 FY16 Net Profit (Rs. crore) 3,589 2,981 FY13 2,510 852 775 60 60 Earnings Per Share (Rs.) 50 42 22 14 13 FY13 FY14 FY15 Q1 FY15 FY14 FY15 Q1 FY15 Q1 FY16 Q1 FY16 ऑयल इंडिया लिमिटेड Oil India Limited#3227 Financial highlights 50% Dividend Payout (% of PAT) FY13 300 43% 48% 320 FY14 FY15 FY13 Dividend Percentage 2,328 215 200 Book Value (Rs./ Share) 344 358 FY14 Operating Cash Flow (Rs. Crore) 2,646 FY13 FY14 FY15 FY13 FY14 FY15 2,048 FY15 ऑयल इंडिया लिमिटेड Oil India Limited#33Strong Liquidity with Low Leveraging Total Debt (Rs. Crore) Strong Cash Balance (Rs. Crore) 28 1058 FY13 19212 FY13 9783 FY14 Net Worth (Rs. Crore) 20708 12133 8341 FY15 FY13 21498 5.5% 11744 FY14 Debt Equity Ratio 47.2% 8917 FY15 38.8% FY14 FY15 FY13 FY14 FY15 ऑयल इंडिया लिमिटेड Oil India Limited#34Government Policy and Outlook on Subsidy Outlook on Subsidy ◆ Petrol Prices De-regulated in June 2010 ◆ Diesel Prices De-regulated in October 2014 ◆ Direct Benefit Transfer Scheme for LPG (DBTL) fully implemented effective 1st April 2015. Subsidy on Domestic LPG to be borne by Govt. ◆ Subsidy for PDS Kerosene in excess of Rs.12/ litre only will be shared by OIL/ ONGC Sharing of Subsidy by Upstream Companies Rs. Crore FY13 FY14 FY15 Q1 FY15 Q1 FY16 ONGC 49,421 56,384 36,300 13,200 1,133 OIL 7,892 8,737 5,523 1,847 167 GAIL 2,687 1,900 1,000 500 Total 60,000 67,021 42,822 15,547 1,300 29 29 110 54 FY13 106 Crude Price Realisation (US$/bbl 108 47 33 29 84 62 57 52 47 38 33 29 FY 14 FY 15 Q1 FY15 Q1 FY16 Gross Realized Price Realized Price after Subsidy/Discount Realized Price after levies ऑयल इंडिया लिमिटेड Oil India Limited#35Contribution to Exchequer Central Government 30 50 1,711 (Rs.crore) 1,552 1,612 1,333 1,603 1,218 854 1,531 1,200 FY 13 FY 14 FY 15 Corporate Tax Cess Dividend & Others (Rs.crore) 1,333 FY 13 517 State Government 1,276 509 FY 14 Royalty VAT & Others 1,280 FY 15 542 ऑयल इंडिया लिमिटेड Oil India Limited#36ऑयल इंडिया लिमिटेड Oil India Limited Growth Strategy#37Robust Strategy in Place Balanced growth of assets ◆ Grow assets by acquiring exploration acreages, discovered blocks and producing properties domestically and internationally 31 Improve rate of recovery Implement a number of IOR and EOR techniques to develop maturing fields and to improve the recovery of crude oil reserves Accelerate exploration and development • Invest in exploration and appraisal activities Monetize natural gas resources Vertical Integration ◆ Focus on early commercialization of natural gas resources through new market opportunities ◆ Diversify selectively into downstream sectors such as refining, petrochemicals, city gas distribution, etc. Diversify into non-conventional energy Installed and developed wind energy, solar power and shale oil² ऑयल इंडिया लिमिटेड Oil India Limited#38Enhanced production from IOR/EOR initiatives Improvement in Production (mn. bbl) Investment in IOR/EOR (Rs. Crore) 32 32 8.04 7.01 8.54 FY13 FY14 FY15 650 965 FY13 FY14 911 FY15 2 OIL has made investments of Rs.3,700 crore in IOR/EOR initiatives during last five years ऑयल इंडिया लिमिटेड Oil India Limited#39Significant Investment Lined Up Annual Plan 2015-16: Rs.3,917 crore Exploratory & Development Drilling (No. of Wells) 33 Overseas 28% Capital Equipment 18% Survey 9% Development 20% Exploration 25% 15 24 24 32 38 FY 15 ■Exploratory Drilling FY 16 (Plan) Development Drilling Plan Expenditure (Capex) (Rs. Crore) 2012-13 477 737 381 806 489 2890 2013-14 511 440 846 620 521 2938 2014-15 391 753 706 921 1002 3773 ■Survey Exploratory Drilling Development Drilling Capital Equipment Overseas Projects Capex in 2013-14 doesn't include investment of Rs.6413 crore in Mozambique acquisition ऑयल इंडिया लिमिटेड Oil India Limited#40Perspective Plan 2030 ◆ M/s McKinsey & Company engaged for a comprehensive study of organization structure, talent strategy and business processes to deliver the envisaged growth. ◆ Objectives of the study: ◆ To create Perspective Plan 2030 and revisit strategy with objective to accelerate growth with specific intermediate milestones ◆ To have a comprehensive re-look and define ideal organization structure and size. • To define workflows for key areas and best operating practices to deliver improved performance • To craft a robust talent acquisition and management process along with the methodology to meet these growth aspirations ◆ To define the key cultural elements that would be needed for meeting aspirations and the blueprint to maintain and evolve the existing culture 34 ऑयल इंडिया लिमिटेड Oil India Limited#41Production Guidance for FY'16 Crude oil Natural gas 2015-16 (Target) 3.63 MMT 3,010 mmscm 35 ऑयल इंडिया लिमिटेड Oil India Limited#42Conclusion 36 Steady and sustained Growth Sound Financial Health Strong operating track record More than 5 decades of E&P expertise Spreading wings: NE - Pan India - Global Large prospective E&P acreage Pioneer in Pipeline transportation Entry into Offshore/ Deep Water Blocks Entry into discovered and producing assets. Acquisition thrust continues Diversifying into new areas. Core Focus remains in E&P ऑयल इंडिया लिमिटेड Oil India Limited#43Thank You ऑयल इंडिया लिमिटेड Oil India Limited