ENP Newswire -
Release date- 24042014 -
Annual FY 14 Highlights
Record revenue of INR
EBITDA of INR
Profit After Tax of INR
Generated Cash Flow From Operations of INR
Record Gross capex INR
Achieved Reserve Replacement Ratio of 100%
Gross contribution of INR
Drilled out 50% of gross risked prospective resources in the fiscal year as planned
Opened up 5 new play types and added oil in place resources of over 1 billion boe
Of the 17 wells drilled to date, 14 wells have found hydrocarbons
Established 6 discoveries (2 in the quarter and 1 in
29th Discovery, Guda-South-7 well flowed oil at an initial rate of 92 bopd from two zones in the DDCS formation
1 discovery in the Barmer Hill formation- the company's 30th, NR-3-2100 well, flowed oil at an initial rate of 62 bopd
1 discovery was also established in
Extended flow test on Nagayalanka-1z-ST well completed with maximum flow rate of 850 bopd and further evaluation is in progress
High level of seismic activity across the portfolio especially in
Completed 2,378 square km of 3D seismic data acquisition, 42% of the plan
Completed 3,000 line km of 2D seismic data acquisition, 31% of the plan
Production and Development:
Achieved 6% yoy growth in average daily gross operated production
Highest ever crude oil production of 76 mmbbls (11 MMT) for the year, contributing to 30% domestic crude oil production
Achieved the targeted production rate of 200,000 boepd in the prolific
Raag-S-1 well, 26th discovery in
Platts 2013 Global rankings, based on data from MoPNG,
We have also significantly added to our resource base by delivering a rapid exploration and appraisal drilling program with a success ratio of 50%, establishing 6 discoveries and adding over 1 billion barrels of oil and gas in-place.
Going forward, we continue to remain focused on executing multiple projects especially in
Corporate and Regulatory Developments
In line with our strategy to consistently reward the shareholders of the company, the Cairn India Board recommended a final dividend of INR 6.50 per Equity share, entailing an outflow of approximately INR
On the backdrop of strong cash flows generated through our operational excellence and world class asset base, we have also opened the Equity Share Buyback programme as a shareholder reward mechanism, at a price not exceeding INR 335 per share. Till
We received a show cause notice from the
During the year, we continued to engage effectively with all Government stakeholders for an informed policy discourse. FY 14 saw increased engagement between
Industry is looking forward to PSC extension policy, fiscal model for the next round of NELP auctions and shale gas policy for Pre-NELP and NELP blocks.
Revenue reported for Q4 FY14, post profit sharing with the Government of
The operating expense during Q4 FY14 was higher at INR
Profit After Tax in Q4 FY14 was INR
Revenue reported for FY 14, post profit sharing with the GoI and the royalty expense in the
This increase has been partly offset by higher profit sharing with GoI in DA1 consequent to tranche change. During the year, profit petroleum for
FY 14 Earnings before Interest, Tax, Depreciation and Amortisation was INR
Employee benefit expense for the year was higher at INR
Profit After Tax for the year was INR
Cash and Cash equivalents as at period end were INR
Operational Activity across the Portfolio
During the year, we made significant achievements in our exploration activities paving the way for exploration led future growth opportunities.
Since resumption of exploration in
During Q4 FY14, we have tested three exploration wells, leading to two new discoveries in the block. The Guda-South-7 well flowed oil at an initial rate of 92 bopd from two zones in the
With the addition of higher capacity rigs in our drilling program, we have been able to drill two high impact prospects to test potential gas accumulation in the deeper section. The initial results obtained are encouraging and testing is underway.
The two year 3D seismic data acquisition programme for 1,900 square kilometres that is currently underway will further help in identifying new exploration leads and augmenting the prospective resource base. As at
Ravva (Block PKGM-1)
Results from the adoption of established technologies such as 4D seismic at Ravva Block were encouraging, delivering tremendous value in terms of interpretation of internal reservoir structure and the identification of depleted and un-swept zones leading to further development activity.
KG Onshore (Block KG-ONN-2003/1)
The Declaration of Commerciality for the Nagayalanka discovery is currently under Management Committee review. The Field Development Plan (FDP) is being prepared and is expected to be submitted in FY 15.
The extended flow test on Nagayalanka-1z-ST appraisal well was completed in
Work is progressing on rebuilding the Exploration portfolio including several additional exploration prospects within the block. Planning for 315 square km of 3D seismic data acquisition is underway and is expected to begin in Q4 FY 15.
KG Offshore (Block KG-OSN-2009/3)
With the conditional clearance received from the Government last quarter, the exploration activity has resumed in the block in
Mumbai Offshore (Block MB-DWN-2009/1)
With the conditional clearance received from the Government last quarter, the exploration activity has resumed. The tender for acquisition of 2,000 line-km of 2D seismic programme has been awarded and the same is expected to begin in the near term. Planning for acquisition of additional 500 square kilometres of 3D seismic data is underway.
Palar-Pennar (Block PR-OSN-2004/1)
The application for the shift of the restricted boundary has been accepted by government authorities paving the way for further exploration activity.
Sri Lanka (Block SL 2007-01-001)
In 2013, we concluded appraisal and commercial studies to determine the next steps for the gas discoveries made on the block. We continue discussions with the Sri Lankan Government regarding commercial terms necessary to monetize the discovered gas resources on the block, urging the policy makers to take a holistic view to maximize benefits from the maiden natural gas discoveries in the
We also participated in Sri Lanka's offshore bidding round for M-5 block, south of our current block in the
Following farm-in and assignment of participating interest in the block in early 2013, we acquired 1,981 square kilometres of 3D seismic data in FY 14. Initial processing of the data is now complete and advanced processing is ongoing. Additionally, acquisition of 3,000 line kilometres of 2D seismic data was concluded in early March, 2014. Processing of the new 2D seismic data is now under way. Both the surveys were completed without incident and on time.
Based on the preliminary assessment of the seismic data, a working petroleum system with multiple oil and gas plays have been identified in a structural setting similar to the KG basin in
Cairn successfully achieved its target FY13-14 exit rate of production from
A total of 129 new wells were brought on production during the year, with 45 wells added in Q4 FY 14. This has led to the Block achieving gross average production of 181,530 boepd for FY 14, up 7% YoY.
We continue to focus on operational excellence with high standards of HSE practices, lowering of drilling cycle times, reduction of non-productive time and significant improvements in rig movement times. The overall uptime of the facilities in
In FY 14, Development Area (DA) 1, comprising the Mangala, Aishwariya, Saraswati and Raageshwari oil & gas fields, produced a gross average 156,662 boepd, up 6% YoY with the Mangala field being the largest contributor and Aishwariya field adding to the volume growth. During the year, DA 2, comprising Bhagyam field, produced a gross average of 24,867 boepd, up 15% YoY as a result of the infill drilling program. As on date, DA 3 does not have any oil and gas producing fields.
Our ongoing capex program is focused on exploration and development activities across all the assets with 87% of the capex planned to be invested in the RJ Block in next three years. In
As part of this program, plans for redevelopment of
We are embarking on the implementation of three major development projects in our Rajasthan Block.
Enhanced oil recovery (EOR) Project including drilling campaign and facilities upgrade
We are now targeting first polymer injection in the Mangala field EOR project, within this fiscal and have awarded all contracts for the execution.
Polymer flood EOR plan is in place for Bhagyam field
We commenced the Alkaline Surfactant Polymer pilot at Mangala and plan to extend polymer flood EOR to Aishwariya field
Barmer Hill development
The Barmer hill formation which is spread across the block has the potential to become a new major oil play in
Barmer Hill North consisting of oil prone porcellanite rocks
Barmer Hill South consisting of muddy porcellanites
Exploration results confirm the potential of Barmer Hill across the RJ block, with better than expected results in Vijaya & Vandana.
Aishwariya Barmer Hill (
Over the next 3 months, drilling and hydro fracturing horizontal and vertical wells will be carried out to optimize the application of hydro-fracturing technology.
We are putting together execution plans to scale up the tight reservoir development of the BH in the northern area of the block replicating the North American development model; permeability of the BH reservoir has been proved to be better than shale by an order of magnitude.
FDPs for the two fields, NI and NE, in DA 2 are awaiting approval from regulators.
Raag-S-1, the 26th discovery in DA 1, was brought on test production within a year of discovery under Integrated Block Development Policy (IDP).
Initial results from 2 high impact prospects drilled during the current exploration campaign are encouraging
We have plans to upgrade the existing
Infrastructure is also being created to capture significant NGLs potential in the block
With increased scale and size of operations, we have embarked on major initiatives for facilities enhancement.
Fluid handling capacity at
We have made significant progress on up-grading the fluid (oil, gas, water) handling capacity at the MPT to meet the anticipated additional requirements.
This is associated with the increasing water cuts as the fields mature and more water is injected for pressure support and sweep efficiency.
This project will augment the water injection facilities by quality and quantity.
100% of the pipeline has now been laid and final testing and commissioning is underway.
Work at the Bhogat terminal is in the final pre-commissioning stage.
Once fully commissioned, we would benefit by adding sea route for evacuation of RJ crude oil.
An average of 179,947 bopd (up from 169,201 bopd last year), amounting to 66 mmbbls for the year was sold to PSU and private refiners, across
The average crude price realisation for the year was
Ravva (Block PKGM-1)
Since inception in 1994, the Ravva block has produced more than 261 mmbbls of crude and over 330 billion cubic feet of gas, more than double the initial resource estimates at the time the PSC was awarded. During the year, the block produced 27,386 boepd, with a plant uptime of 99.8%. The asset recorded 3.81 million LTI free man-hours as at end of FY 14. Routine production operations were un-interrupted last year in spite of increased cyclonic conditions in the Bay of Bengal and local disturbances due to Andhra Pradesh State bifurcation.
During the year, 7.5 mmbbls of crude and 13.3 billion scf of gas was sold, averaging 20,466 bopd of crude oil and 36 mmscfd of gas, respectively.
Cambay (Block CB/OS-2)
Since inception in 2002, the Cambay block has produced about 19 MMbbls of crude and over 218 billion cubic feet of gas. During the year, the block produced 9,735 boepd, with a plant uptime of 98.6%. The infill drilling campaign carried out in FY 13 continues to help sustain production levels. The asset recorded 1.1 million LTI free man-hours as at end of FY 14.
The sequential production was lower in the quarter on account of planned shut-down for maintenance.
The block provides an example of optimal asset utilization, with its infrastructure being used for the tolling and processing
For the first time, crude oil from the block was evacuated through a sea route (Hazira Port) with substantial HSE and operational benefits. In Q4, the first cargo was loaded, with 211,000 bbls of crude transported to a west coast refinery. This was a milestone event in the history of the asset.
During the year, 2.7 mmbbls of crude and 4.4 billion scf of gas were sold averaging 7,385 bopd of crude oil and 12 mmscfd of gas, respectively.
In line with the growth opportunities expected in the future, during the year, our net talent base increased by over 300 to 1,852. The anticipated resource requirement across critical and niche areas in technology functions has been bridged. We have acquired key leadership technical talent for Drilling, Petroleum Engineering, Subsurface and Exploration. Of our total employee base, over 16% of professionals have global technical experience of Oil and Gas sector and 7% are specialists in onshore and offshore exploration activities.
In order to further improve ourselves for best in class practices adopted across sectors, we have hired talent from diverse sectors other than oil and gas. Younger brigade forms a good percentage of our current talent pool reflecting vibrancy and offering scope for innovation. 55 of the new hires are women reflecting Cairn as a committed equal opportunity employer.
Health, Safety, Environment and Sustainability
We are committed to meet the highest international standards of HSE and continue to demonstrate top quartile HSE performance versus our peers.
All our operating assets remain focused to maintain an excellent safety culture, recording a continuous LTI-free work performance. LTI frequency rate (Lost Time Incidents per million man hours) for FY 14 stands at 0.16 which is at the top quartile as per OGP rankings for 2013.
During the quarter, we undertook several HSE awareness initiatives like National Safety Week, Road Safety Week, Know Your Hazard campaign across all the sites engaging our employees, contract personnel and local communities.
Corporate Social Responsibility
We continue to scale up our existing CSR programs thereby strengthening our partnership with the state governments and local communities. Some of the major initiatives till FY 14 include:
Installation of RO plants including 'Any Time Water' based service making safe drinking water available to over 30,000 community members.
Encouraging results from farm based program with production of new types of vegetables in the desert with market linkage.
Installation of 3,600 solar street lights along the Salaya-Bhogat pipeline, benefiting 70,000+ individuals.
19 preventive Mobile Healthcare Vans running in 9 districts of
Initiation of specialized training programs at our
Plans to impart advanced vocational training in Jodhpur at
In addition, we continue to conduct workshops with entrepreneurs and vendors from the local community to imbibe a culture of safety and quality with the objective of promoting local content. Three local vendors were recognized in our '3rd Annual
Going forward the plan is to scale up our existing programs to reach each and every household in our operational area to influence their prosperity.
Further exploration activity across the portfolio provides additional value upside and momentum while technology adoption supports low cost operations and development.
Cairn India Limited Fact Sheet
The Company has a world-class resource base, with interest in seven blocks in
The blocks are located in the
The total resource base supports a long term vision to produce 300,000 boepd, subject to exploration success, further development investments and regulatory approvals.
Block SL-2007-01-001 was awarded to Cairn Lanka in the bid round held in 2008. This offshore block is located in the Gulf of Mannar. The water depths range from 400 to 1,900 meter. The signing of the Petroleum Resources Agreement (PRA) to explore oil and natural gas in the
The farm-in agreement was signed with PetroSA on
For further information on
Tel: +91 124 459 3490, +91 98101 97755
Tel: +91 124 459 3138, +91 99104 86055
In conjunction with these financial results
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