Download - Cairn India Limited Corporate Brouchure
Cairn India Limited
Delivering Growth through Transformation
Cairn India’s journey 03
Our Journey since IPO: Consistent delivery of growth 05
Our Heritage 05
Our Vision and Core Values 07
Discovering Energy for Growing Economies 08
Growing assets in the region 13
Developing the Rajasthan Discoveries 15
Rajasthan Upstream 18
Exploring to Discover 24
People Our Assets 27 Highest Priority Safe Operations 28
Competitive Advantage 31
Producing Hydrocarbons Responsibly 32
Content
As in the past, it is expected that the demand for energy will
continue to outpace supply in future. This makes it critical for
all growing economies to secure energy supplies to meet the
growing needs of the people.
We, at Cairn India, believe that successful growth can only
be based on the principles of sustainability, affordability,
inclusiveness and sensitivity to our environment.
Cairn India is listed on the Bombay and National Stock
Exchanges and has a market capitalisation of more than USD
14 billion. We are among the fastest growing Exploration and
Production companies in the world with a strong heritage of
exploration success and a proven track record of fast track
development and low cost operations.
Our foundation is built on a relentless focus on execution, cost
consciousness and innovative application of technology. We
believe in working towards common objectives with a strong
ethos of teamwork.
Stakeholder and community relationships are an integral part
of our business. Cairn India’s approach to dealing with these
is encapsulated in the 3R’s – Respect, Relationships and
Responsibility. Working closely with our stakeholders and
communities in our areas of operation, Cairn India has helped
in making a difference to their lives.
Cairn has in the last 15 years of its presence in India made
more than 40 discoveries, including Mangala, the biggest
onshore oil discovery in India in the last two decades. By the
end of 2011, Cairn India will be contributing more than 20% of
India’s domestic crude production.
This brochure is a statement of our business philosophy and
outlines the key drivers of our performance as a company
pioneering in the quest for energy and enriching lives.
Rahul Dhir
Managing Director & CEO
The pursuit to harness energy, which plays an instrumental role in economic growth, continues unabated.
ForewordRahul DhirManaging Director & CEO
Three out of the seven landmark oil discoveries made in India between 2000 and 2005 were by Cairn and its Joint Venture partners
02
Cairn has been exploring for hydrocarbons
in India for more than 15 years. Today,
it has a proven track record of making
exploration discoveries and fast tracking
them to production. Three out of the seven
landmark oil discoveries made in India
between 2000 and 2005 were by Cairn and
its Joint Venture (JV) partners.
The Mangala discovery in Rajasthan in
2004 was the largest onshore discovery in
the country in the past two decades.
The company operates the largest
producing oil field in the Indian private
sector and has pioneered the use of
cutting-edge technology to extend
production. We have a world class
resource base and are focused on the
delivery of the Rajasthan development as
we continue successful production from
our existing assets.
Cairn India’s Journey
Delivering Growth through Transformation 03
04
The story began in 1979, when Sir Bill
Gammell, our chairman, founded Cairn
Energy. In 1988, the company was listed
on the London Stock Exchange. Sir Bill
Gammell became its first Chief Executive
and has held this position for more than
two decades, overseeing the organisation’s
transformation to one of the largest
independent exploration and production
companies in Europe. As the Indian oil
and gas market deregulated in the early
1990s, Cairn’s focus turned to this region,
acquiring Command Petroleum Ltd in
1996, an Australian-quoted company with
interests in South Asia.
Cairn Energy PLC, a FTSE 100 company, was
one of the first UK companies to invest in the
Indian oil and gas sector. Ravva in eastern
India was the first offshore oil and gas field to
be developed, followed by the Lakshmi gas
field in western India, which was discovered
in 2000 and commenced production in 2002.
In January 2004, Cairn added the Mangala
oil field in Rajasthan to its assets and
this, along with the other discoveries in
Rajasthan, will form the core of the future
developments in India.
Today, South Asia is one of the most
exciting investment destinations for the
hydrocarbon sector. Cairn India, along
with its joint venture partners, has invested
billions of dollars in a variety of projects
and developments in this region.
Our Heritage
On 9 January 2007, Cairn India Limited was
listed on the Bombay Stock Exchange and
the National Stock Exchange of India. Cairn
Energy PLC, the parent company holds
a 62.25%* interest while Petronas has a
14.9%* interest in Cairn India Limited. This
provided Cairn India with a new platform
for its next stage of growth by:
Capitalising on the strong development
and operational expertise
• Sustained production from and
maintaining low operating costs in
existing producing fields
• Optimising recovery from the Ravva
and Cambay fields through
deployment of state of the art
technology
• Developing the world class Mangala
field in Rajasthan, the largest
onshore hydrocarbon discovery in
India since 1985
Ensuring the company is well
positioned to take advantage of growth
opportunities in the region
• New acreage in Sri Lanka
• Complete portfolio evaluation
• Planning new exploration activities
and programmes
Consistent Delivery of Growth
Our Journey Since IPO
* As at March 2011
Delivering Growth through Transformation 05
06
Cairn India’s vision of pioneering
energy and enriching lives is built on the
foundation of our core values of pioneering
spirit, teamwork, respect and ownership.
These are embodied in the way we
conduct our business and engage with
our stakeholders.
Over the years, innovative thinking and a
can do attitude within teams helped Cairn
to grow collectively in this part of the
world. Respect for individuals within the
organisation, a healthy diversity of cultures
and professional experience has helped
Cairn to pursue its vision of being a pioneer
in the field of energy. Cairn has also
successfully demonstrated its commitment
towards the communities in which it
operates through responsible actions
that has helped in creating sustainable
livelihoods whilst aiming to safeguard the
environment.
For more than a decade Cairn has been
undertaking pioneering activities in the
field of energy. Through the core values
of pioneering spirit, teamwork, respect
and ownership we have built a significant
hydrocarbon resource base in the country.
Our Vision and Core Values
Delivering Growth through Transformation 07
Discovering energy for growing economies A decade of achievement
Exploration
• More than 40 Hydrocarbon discoveries:
Onshore
Offshore
- Shallow
- Deep
Development
• Fast-track development
• Lakshmi gas field discovery in May 2000 and first gas
by October 2002
• Ravva, developed from a 3,700 barrels of oil per day
(bopd) field to a 35,000 bopd field in 26 months, then
plateau production of 50,000 bopd for nine years
• Mangala Field Development Plan (FDP)
approved within 30 months of discovery
Production
• Operates the largest producing oil field in
the Indian Private Sector
• Combined field direct Opex of Ravva and CB/OS-2 is
approximately USD 2/barrel of oil equivalent (boe)
• Pioneered use of cutting-edge technologies to extend
production life
Sales
• Gas sales contract with public and private buyers
• Oil sales to four major refineries across India
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Cairn is focused on creating value for our stakeholders through
exploration and production. We continue to maximise the potential of Rajasthan and recovery from the
existing producing assets while identifying new growth opportunities
Delivering Growth through Transformation 09
PrODuCIng ASSetS
ravva Field, Krishna-godavari Basin,
Andhra Pradesh
The Ravva oil and gas field in the Krishna-
Godavari Basin was developed in
partnership with ONGC, Videocon and
Ravva Oil, under a production sharing
contract (PSC) that runs until 2019.
Currently, eight unmanned offshore
platforms are being operated. A 225-
acre onshore processing facility at
Surasaniyanam processes natural gas
and crude oil from the Ravva field. The
Ravva onshore terminal operates to the
internationally recognised environmental
standard – ISO 14001 – and has the
capacity to handle 70,000 barrels of oil
per day (bopd), 95 million standard cubic
feet per day (mmscfd) of natural gas and
110,000 barrels per day of injection water.
The terminal also has the capacity to store
one million barrels of crude oil onshore.
The Ravva field is one of the most efficient
fields in the world and has maintained its
low-cost operating base by focusing on
oil field life-cycle planning, continuous
monitoring of operational costs and
the innovative application of operating
technologies. Ravva completed 15 years
of continuous operations on 28 October
2009. Originally estimated to produce 101
million barrels of crude oil, Ravva has now
produced more than 225 million barrels.
Cairn India is confident of the field’s
considerable remaining reserve potential
and of further oil production from
this block. The Company and its JV
partners have completed a 4D seismic
acquisition campaign, first in India, to
identify bypassed oil zones and have now
commenced infill drilling.
CB/OS-2, Cambay Basin, gujarat
In 2002, gas production commenced from
the Lakshmi gas field, which is situated in
Block CB/OS-2 in the Cambay Basin of the
west coast of India in the Gulf of Khambat.
The Gauri offshore gas field was discovered
in 2001 and came on-stream in 2004.
CB-X, a marginal gas field in the transition
zone of the CB/OS-2 block was in
production between June 2007 and
August 2009. The Lakshmi and Gauri fields
commenced production of oil in addition to
its gas production in 2005.
Cairn is the operator of the CB/OS-2 block.
The PSC was signed in 1998 with ONGC
and Tata Petrodyne Limited as partners and
runs until 2023.
The natural gas and crude oil from these
fields is processed at an 82-acre onshore
processing facility at Suvali owned by the
JV partners. The plant is certified to ISO
14001 & OSHAS 18001 standards and has
the capacity to process 150 mmscfd of
natural gas and 10,000 bopd of crude oil.
The application of advanced geophysical
tools has helped map thin oil sands which
are beyond normal seismic resolution
capability. These techniques have
transformed the CB/OS-2 block from a
predominantly gas field to an oil
growing our assets
Cairn India is committed to continuing investment for growth and is focused on creating shareholder value by developing its world class resource base in Rajasthan, maximising recovery from the existing resource base and seeking to continue Cairn’s track record of exploration success
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field through the discovery of an oil leg.
Tubing sand screens were used for the
first time in the Cambay Basin as a sand
control measure. The Cambay asset has
witnessed the use of several cutting-
edge technologies which have increased
throughput at a lower unit cost.
Cairn India signed a Term Sheet agreement
to produce Gauri share of GBA (Gas
Balancing Agreement – for sharing of gas
from the shared reservoir formation) gas
through the Hazira facilities in December
2009. The gas production and sales also
commenced in the same month. This is a
first arrangement of its kind in the country.
DeVelOPment PrOJeCt
rajasthan – Barmer Basin
Cairn has developed a good understanding
of this reservoir through extensive seismic
and appraisal work.
The Mangala field, which was discovered
in January 2004, is the largest onshore oil
discovery in India in more than 20 years.
The Mangala, Bhagyam and Aishwariya
(MBA) fields have recoverable oil reserves
and resources of nearly 1 billion barrels,
which includes proven plus probable (2P)
gross reserves and resources of 694 million
barrels of oil equivalent (mmboe) with a
further 300 mmboe or more of Enhanced
Oil Recovery (EOR) potential. The MBA
fields will contribute more than 20% of
domestic crude production when they
reach the currently approved plateau rate
of 175,000 bopd.
The Mangala Field commenced production
on 29 August 2009 after it was dedicated
to the nation by the Honourable Prime
Minister of India, Dr. Manmohan Singh at
the Mangala Processing Terminal in Barmer,
Rajasthan. Cairn India has embarked on the
journey of transformational growth in oil
production levels with its Rajasthan fields
commencing production.
Delivering Growth through Transformation 11
It has been recognised that the significant reserves and resources discovered in Rajasthan are ideal candidates for the application of advanced techniques to optimise and increase recoverable volumes. Utilisation and development of these technologies is key element to realise the full potential of the block
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Cairn first came to Rajasthan in 1997 with
the belief that the key ingredients for
commercial success were present, but
it took perseverance and more than a
dozen wells to discover the Mangala field,
followed by Aishwariya, Bhagyam and
other discoveries. To date, 25 discoveries
have been made in the Rajasthan block.
The Mangala, Bhagyam and Aishwariya
(MBA) fields in the northern area of the
Block are currently under development
with over 125 development wells already
drilled in Mangala. The Mangala field
was dedicated to the nation on 29 August
2009. Since then, Mangala production
has ramped up to the currently approved
plateau rate of 125,000 bopd.
The focused effort on drilling high capacity
horizontal wells in Mangala and the
reservoir performance supports higher
plateau levels. Surface and sub-surface
facilities are ready to support production of
150,000 bopd from Mangala, subject to JV
and Government of India (GoI) approval.
In addition to Mangala, as per the currently
approved FDPs Bhagyam and Aishwariya
have the potential to produce 40,000 bopd
and 10,000 bopd respectively.
Work on the development of the Bhagyam
field, the second largest field in Rajasthan,
has commenced. Development drilling
has started with a total of 19 Bhagyam
development wells drilled to date. Crude
oil production from the Bhagyam field is
expected to commence in H2 CY 2011 and
achieve approved plateau levels by year
end 2011. The sub-surface well results so
far have been as per expectations.
Assessment of production impact
and design optimisation is currently
underway due to increased reserves in the
Aishwariya field. Production is scheduled
to commence in H2 CY 2012 subject to JV
and GoI approval.
Thus, the MBA fields together have
the potential to generate peak plateau
production of more than 175,000 bopd.
Enhanced Oil Recovery
As a demonstration of our commitment for
early use of advanced recovery techniques
to increase the oil recovery from the world
class MBA fields in Rajasthan, the chemical
EOR pilot trials in the Mangala field started
in early 2010. The first phase of EOR pilot
consisting of four injectors, one producer
and three observation wells, has been
drilled, completed and hooked up to the
facilities. Water injection and production
phase also commenced in December,
2010. This pilot will be used to refine the
EOR process and facilities with an aim to
roll out EOR on a field wide basis. The
current assessment of the EOR resource
base is more than 300 million barrels
(mmbbls) of incremental recoverable oil
from the MBA fields alone.
Barmer Hill
A pilot hydraulic fracturing programme
to test the potential of the Barmer Hill
Formation is in the final stages of planning
and its implementation is subject to
GoI approval. The pilot programme will
allow evaluation of the appropriate cost
effective technology for a fully optimised
development of this resource base. A
declaration of commerciality for the Barmer
Hill was submitted to the GoI in March,
2010 and a FDP is under preparation.
Optimal recovery techniques utilising large
fracture treatments and potential use of
multiple staged horizontal well fracs, will
be demonstrated and refined during this
and subsequent pilots.
Developing the rajasthan Discoveries
Delivering Growth through Transformation 13
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The Rajasthan Field Development Area
(FDA) consists of three contiguous areas:
(i) Development Area 1 - Mangala,
Aishwariya, Raageshwari and
Saraswati (MARS)
(ii) Development Area 2 - Bhagyam
(iii) Development Area 3 - Kameshwari
West.
Cairn India and its JV partner ONGC have
an area of 3,111 km2, under long term
contract on the Rajasthan licence spread
across the districts of Barmer and Jalore.
At peak production, the Mangala,
Bhagyam and Aishwariya fields together
will produce 175,000 barrels of oil per day
(bopd) - which is estimated to account
for more than 20% of India’s crude oil
production. Subject to GoI approval and
additional investments, the Rajasthan
resource base now provides a basis for
a vision to produce 240,000 bopd or
37% more than the currently approved
peak production, which could ultimately
translate to about 35% of India’s domestic
crude oil production.
mangala Processing terminal (mPt)
Spread over an area of 1.6 km2, the MPT
is designed to process crude from the
Mangala, Bhagyam and Aishwariya fields
and has a nameplate capacity to process
205,000 bopd of crude with scope for
further expansion. Trains One, Two
and Three are commissioned and the
construction of Train Four is underway.
Processing crude oil from four trains
requires the MPT to have an extensive
water heating, circulating and recycling
system, gas recovery systems, heat and
power systems and built-in fire and safety
systems. The infrastructure to and from
the MPT involves some 500 kms of intra-
and inter-field pipelines and 80 kms of
inter- field roads.
Steam is the main source of heat to extract
and evacuate the Rajasthan crude. The
advantage of steam is that it is an efficient,
pollution-free and a renewable resource.
All power requirements of the MPT are
met by captive power plants, comprising
four 12 MW Steam Turbine Generators
and three 2 MW Emergency Diesel
Generators.
The water to generate steam and flood
the oil reservoirs to help evacuate the
crude comes from a saline water aquifer
at Thumbli, which is 22 kms away from
MPT. Due care was taken during the
design of MPT to preserve water, a scarce
resource in the desert state of Rajasthan,
by recycling and reusing water for boiler
feed, injection purposes and when used as
power fluid.
The gas from the Raageshwari field,
located 90 kms away from MPT, is used
to heat the boilers and, more importantly,
to heat the waxy crude along the
approximately 670 kms Barmer to Bhogat
pipeline.
Developing the Barmer to
Bhogat Pipeline
Cairn India took on the crude pipeline
project to overcome the following
challenges:
• To reach maximum potential buyers
• Resolve the flow assurance issues
posed by the quality of the crude oil
• Minimum effect on the environment
and minimum foot print
• Build a technically sound and
operations friendly evacuation
system
The Mangala Development Pipeline
Project (MDPP) starts at the MPT in
Barmer and passes through the two states
of Rajasthan and Gujarat, eight districts
rajasthan upstream
Delivering Growth through Transformation 15
16
and travels approximately 670 kms before it
reaches the coastal location of Bhogat near
Jamnagar on the western coast of India.
The MDPP Evacuation system is a 24”
crude oil pipeline which uses a Skin Effect
Heat Management System (SEHMS) to
ensure that the crude oil remains above
the Wax Appearance Temperature (WAT)
of 65oC, throughout the pipeline. It has
an 8” gas line which feeds gas to all the
Above Ground Installations (AGI) located
at approximately 20 kms distance on the
pipeline. The AGIs produce the necessary
power to keep the pipeline heated to the
required temperature. The pipeline has
36 AGIs and an intermediate pumping
station and terminal at Viramgam. The
pipeline also extends up to Radhanpur,
where a terminal has been constructed to
facilitate the crude oil sales to Indian Oil
Corporation Limited through their
pipeline network.
The pipeline crosses all major crude oil
carrier pipelines in the western part of
India and offers the potential of blending
the Rajasthan crude with the other crudes
that are carried in the other pipelines. As
it terminates at the coastal location, the
marine facilities are designed to load the
crude oil carriers to transport the crude oil
to other coastal refineries as well. This way
the pipeline accesses 75% of India’s
refining capacity.
The pipeline project has a few first to its name:
• It is the world’s longest continuously
heated and insulated pipeline using
SEHMS technology
• For the first time in India an insulation
plant has been set up especially
for this project by the line pipe
manufacturer
• Engagement with more than 40,000
land owners and land users while
obtaining required Right of User
(ROU) under the Petroleum and
Mineral Pipelines Act , 1962
• More than 750 crossings of various
types starting from Railways, National
and State highways, Rivers, Canals,
other roads and other pipelines etc
The MPT to Salaya section (approx. 590
kms) is now operational along with the final
delivery infrastructure to each buyer. The
pipeline system has demonstrated safe
and efficient operations and is transporting
125,000 bopd to various refiners.
Construction work on the Salaya to Bhogat
section (approx. 80 kms) pipeline including
the Bhogat terminal and marine facility is in
progress with completion targeted in
H2 2012.
Developing the world’s longest continuously heated and insulated
pipeline demonstrates the technical expertise being applied to secure energy from the Rajasthan fields
Delivering Growth through Transformation 17
At present, out of the 10 blocks where
Cairn India has exploration and appraisal
interests, nine blocks are in India and one
in Sri Lanka. These blocks are located in
the Krishna-Godavari Basin, Palar-Pennar
Basin, Kerala Konkan Basin, Cambay
Basin, Barmer Basin and the Mannar Basin
offshore Sri Lanka.
The prospect and lead portfolio being
developed and matured by Cairn India is
diversified and comprises a balanced mix
of risk and potential reward.
nOrtHern InDIA
rajasthan
Barmer Basin - rJ-On-90/1
(Cairn India 70%, Operator)
There remains a significant and as yet
untested prospective resource potential to
pursue in the Barmer Basin of the
Rajasthan block.
Over the last two years, a full re-evaluation
of the Barmer Basin has been undertaken.
All 170 exploration and appraisal wells
were re-examined, new studies were
started and 2,733 km2 of 3D seismic data
was re-processed and re-interpreted. Cairn
India has also acquired over 2.2 km of
cores to help gain a better understanding
of the geographical and reservoir
models. As a result of these studies, the
Rajasthan prospect portfolio has increased
substantially to 250 mmboe recoverable
risked mean prospective resources with
an upside potential, equivalent to a most
likely in place resource of 2,500 mmboe.
Discovering and developing these resources
will be an important step in realising the full
production potential of Rajasthan.
Technical evaluation work continues to
assess existing and new plays in the basin
to generate further prospects in Rajasthan.
SOutHeASt InDIA
Krishna godavari Basin
The Company holds a strong position
in the Krishna Godavari basin with both
existing production from the Ravva Field
and prospective acreage in onshore and
offshore blocks. Our commitment to this
basin was further consolidated with the
award of the sought after KG-OSN-2009/3
block in the NELP VIII for which a
Production Sharing Contract was signed on
30 June 2010.
ravva (Cairn India 22.5%, Operator)
A major review of the block-wide
additional potential is being undertaken.
A review of Contingent Resources was
completed in early 2009, resulting in small
but significant additions to the resource
base, although further drilling is required
to monetise these. A second study to
assess the additional undiscovered
exploring to Discover
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Cairn India is in an exciting period of growth and is pursuing a range of
exploration and appraisal programmes in its key Rajasthan acreage and other
exploration blocks throughout India and in Sri Lanka. Cairn India pursues a strategy
of accessing and applying appropriate leading-edge technologies to ensure it builds competitive advantage in all
exploration projects
Delivering Growth through Transformation 19
Cairn India holds exploration licences for various geographic areas in eastern, western, northern India and Sri Lanka. These interests provide us opportunities to develop our business in the long term
potential within the field both in untested
deeper horizons and in adjacent structures
is ongoing and is expected to add new
exploration prospects. Further evaluation
of the commerciality of these prospects is
underway prior to drilling.
Kg-Onn-2003/1 (Cairn India 49%,
Operator)
Two wells Nagayalanka-1z and Krishna-1
were drilled during Q2 FY 2010-11. Oil
flow at the rate of 75 bopd and gas at the
rate of 0.27 mmscfd were established in
the Nagayalanka-1z well and a discovery
declared. Preparations are ongoing for
further exploration and appraisal drilling.
Kg-DWn-98/2 (Cairn India 10%, non-
Operator. OngC is the operator)
The northern area of this PSC is now in an
appraisal phase following completion of the
exploration period. The first of three wells
to appraise existing discoveries in the block
was spudded in Q4 2009. Two further
wells will be drilled by the end of Q2 2010,
as part of the future plan for commercial
development of this discovered oil and
gas resource. The southern area appraisal
period was completed in December 2009
with the declaration of commerciality
submitted to the Directorate General of
Hydrocarbons (DGH).
PAlAr-PennAr BASIn
Pr-OSn-2004/1 (Cairn India 35%,
Operator)
Following interpretation of 3,100 line km
of offshore 2D seismic data, 800 km2 of 3D
seismic data a geotechnical study and pore
pressure studies have been completed.
The block is currently under Force
Majeure.
KerAlA-KOnKAn BASIn
KK-DWn-2004/1 (Cairn India 40%,
OngC is the operator)
A 3,840 line km 2D seismic programme
was completed in 2009 and following
interpretation of the data, 300 km2 of 3D
acquisition was completed.
mOVIng BeyOnD: SrI lAnKA
Sl 2007-01-001 (Cairn lanka
100% - a wholly owned subsidiary
of Cairn India)
Cairn Lanka Private Limited, the wholly
owned subsidiary of Cairn India,
commenced its 3D seismic survey in the
Mannar Basin in Sri Lanka on 10 December
2009 and the data is currently being
processed. The acquisition programme,
which was launched by the Honourable
President of Sri Lanka, Mahinda Rajapaksa,
fulfilled the commitment of 1450 km2 of 3D
seismic data acquisition. Exploration drilling
is planned to commence in July 2011.
Logistical preparations and detailed studies
are currently ongoing ahead of the drilling
schedule.
The Mannar basin is an unexplored frontier
petroleum province with both structural
and stratigraphic plays.
20
Delivering Growth through Transformations21
Portfolio of Assets in India and Sri Lanka
Rajasthan Block Map
For more than a decade, Cairn has been
successfully discovering and bringing to
production new oilfields to increase its
hydrocarbon resource base through the
use of latest technologies.
Cairn has established new benchmarks
with its ability to manage reservoirs and
maximise recovery to increase the reserve
bases of the fields it operates.
By introducing clean technologies,
streamlining maintenance and improving
recovery rates through innovative
applications that are cost effective, Cairn
India has successfully maximised the oil and
gas output from mature and new fields.
Cairn India pioneered India’s first
deepwater discovery on the east coast. Of
the 14 wells drilled by the joint venture in
Krishna-Godavari deepwater since 2001,
there have been 10 discoveries. Some
of the important ones are Annapurna,
Padmavati and Kanakdurga, in depths
ranging from 400 m to 2800 m.
Ravva: At the Ravva field, Cairn and
its JV partners have built a success story
by putting new technologies into action
through sub-surface work, cost effective
operations and the implementation of
best reservoir management practices.
Three development drilling campaigns
were carried out in the last decade to drill
32 development wells and the field has
produced at plateau rates of approximately
50,000 bopd for the last nine years. Cairn
has completed the ambitious programme
of 4D seismic to access the remaining
hydrocarbons and infill drilling is to
commence to identify bypassed oil zones.
The innovations at Ravva have set
a benchmark for future fields and
exploration activities. The concept of
under balance perforation using TCP guns
was implemented for the first time in India
during the first drilling campaign in Ravva
in the year 1996-98. This resulted in high
deliverability wells thereby minimising the
capital expenditure in the field.
At Ravva, new technology such as coiled
tubing catenary was implemented on
location for the first time in South East
Asia as well as the Middle East. A Drag
Reducing Agent (DRA) was also applied
in the multiphase pipeline that resulted in
enhancing and sustaining the plateau rate.
Cairn also introduced Produced Water
Re-Injection (PWRI) in an offshore field.
As part of its continued commitment to
green technology, Cairn India has installed
a solar plant for the remote management
of the well heads located offshore Ravva.
Pioneering technology
Using innovative technologies is a way of life with us. We are ready to face the energy challenges of the future, our focus on technology helps us to stay ahead in an environmentally responsible manner. Cairn India has applied technology and gained significant operational experience in the deserts of Rajasthan, the highly populated plains of Bihar, the shallow waters of Cambay and the deepwaters of the Krishna Godavari and Kerala Konkan basins
24
In addition, a 400 watts wind generator
has also been installed to lower diesel
consumption on cloudy days. These
innovations have helped the ISO 14001
accredited Ravva field to emerge as one of
the top shallow water oil developments.
Cambay: In the western coast of
Gujarat, Cairn has been using advanced
geophysical tools like spectral
decomposition and Time Frequency
Continuous Wavelet Transformation
to map the complexity of the thin play
reservoir, which is beyond seismic
resolution. This technique has helped
transform CB/OS-2 to develop from a
predominately gas producing block to an
oil producing block.
Expandable Sand Screen (ESS) on
the sea bed was installed for the first
time in the world, in the Gauri fields.
CB/OS-2 block has also witnessed
cutting-edge technologies in the other well
services like:
• The plastic plug technique was
successfully used for zone isolation in
one of the Gauri wells for the first time
in India, which proved to be a cheaper
option than other methods for the
same purpose.
• Successful well interventions in highly
deviated wells with more than 88o
deviations at 1800 m depths with the
help of Slickline catapults and tractors.
• For the first time in India, through
tubing and sand screens were
successfully installed in one of the
wells in Lakshmi, thus enhancing its
production.
rajasthan: Cairn India and its JV
partner ONGC, continue to develop the
hydrocarbon resources within the state
of Rajasthan with a sustained focus on
cost and the application of innovative
technology. The use of high density
3D seismic surveys has enhanced the
understanding of the reservoir and helped
in precise identification of well locations
leading to reduced finding costs.
The use of pad-based drilling coupled with
mobile drilling rigs has allowed a large
number of wells to be drilled in a short
time frame with a reduced environmental
footprint and lower infrastructure and
drilling costs.
The focused effort on drilling of high
capacity horizontal wells in Mangala and
the reservoir performance from the field
supports higher plateau levels.
Delivering Growth through Transformation 25
26
At Cairn India, we believe that world class
results can be delivered only by world class
people, facilitated by a world class working
environment.
The company unlocks the potential of its
employees by creating a high performance
culture.
The HR policies and practices provide an
enabling work environment that motivates
every employee to rise to the challenge of
delivering extraordinary results.
Cairn India has developed a strong pool
of skilled manpower over the years of its
operations in India. The people that Cairn
employs represent the foundation of this
multicultural organisation. Over the years,
Cairn has employed some of the brightest
minds in the industry and the skills of
these people are critical to the success of a
dynamic organisation.
Our people development initiatives are
aimed at building leaders who will take
the organisation forward in line with its
vision and values. Cairn encourages a team
spirit that fosters a focused and motivated
working environment, creating a climate
where employees have an opportunity to
maximise their potential.
Cairn India is an equal opportunity
employer, where practices and policies
enable employees to build a strong and
sustainable career path.
Cairn is committed to fostering an
entrepreneurial environment for its
employees. Over time it has built a depth
of knowledge and strong sets of cultural
values. Around 80% of our employees are
professionally qualified and are led by an
experienced management team. Their
passions for the business, ability to adapt to
new technology and commercial acumen
have played a vital role in the success of
our organisation.
People Our AssetsIts our people...with unlimited capabilities
Delivering Growth through Transformation 27
Health, Safety and Environment are
integral to Cairn India’s business
management systems. The company is
committed to accomplishing excellence in
HSE across all its operations, and to protect
our employees and contractors who come
into contact with the physical and natural
environments in which they work. Cairn
strives to minimise any impacts to the
environment arising out of its activities.
Cairn India has adopted several
international standards, processes and
procedures in its management system,
some of which are:
• UK Safety Case approach, which has
been applied to the CB/OS-2
development
• UK Control of Major Accident
Hazards (COMAH) Regulations,
which are being applied to the
Rajasthan Development. All operating
sites are ISO 14001 certified
• The Rajasthan project successfully
completed forty million man hours
without a lost time injury (LTI)
• CB/OS-2 and Ravva sites Safety
Management Systems are OHSAS
18001 certified
• International HSE standards are
being applied in the construction of
the Rajasthan upstream project works
and in the Rajasthan-Gujarat
pipeline project
• The DuPont ‘STOP’ system has
been introduced throughout Cairn
India operations as a tool to improve
behavioural safety
• Cairn India has in place safety policies
for road transportation, aviation and
marine operations
Highest Priority: Safe Operations
As an organisation that focuses on sustainable growth, Cairn India is fully aware of its responsibilities during hydrocarbon exploration and production. It is for this reason that Health, Safety and Environmental (HSE) policies receive our highest priority
28
Staff participation is critical for HSE to function effectively. To ensure this, there
is a HSE Leadership Team in place. It comprises Cairn India’s senior management,
which provides leadership on HSE matters, reviews performance and identifies
opportunities for improvements
29Delivering Growth through Transformation
With a five fold increase in production volumes forecast for the next decade, the development work is in full swing
30
low cost operating capability: Cairn
India has over the years demonstrated
that it is capable of operating its assets
on a very cost effective basis. The direct
operating cost of its Ravva block is in the
range of USD 2 per barrel, amongst one
of the lowest in the world. This allows
production to be profitable even at USD 9 -
12 per barrel crude prices.
Project execution: Cairn India has
demonstrated world-class and skilled
project execution with the development
of Rajasthan upstream facilities and
construction of the world’s longest
insulated and heated pipeline. Cairn is
commissioning India’s only heated Single
Buoy Mooring (SBM) facility at Gujarat
Coast for handling Rajasthan crude oil
and contributing more than 20% to India’s
domestic production. As the operator of
the Lakshmi field in the Cambay Basin,
Cairn commenced natural gas production
in less than 30 months following discovery.
The Rajasthan discovery to first oil was
done in five years; another enviable
achievement.
nurturing resources: Cairn India has a
proven track record of prudent reservoir
management and achieving recovery
of crude over an extended plateau. In
the Ravva field in the KG Basin, Cairn
increased crude oil production from a level
of 3,700 bopd in 1994 to 35,000 bopd in
26 months and ultimately to the plateau of
50,000 bopd in 1999. In 2009, the Ravva
block completed 15 years of production
and is still going strong.
Success through technology: Cairn
India has been a leader in the application
of latest technologies to enhance the
resource base and in finding solutions for
overcoming different technical issues.
• Executing the world’s longest
insulated and continuously heated
crude oil pipeline from Barmer in
Rajasthan to Bhogat on the coast
of Gujarat.
• Horizontal well drilling to produce
from sheet sands - oil flow rate
>11,500 bopd achieved from the first
horizontal producer well – a record in
the country
• Application of Enhanced Oil Recovery
technology in Rajasthan, pioneered
in using the technique in the
initial phases of field life
• 4D seismic surveys in Ravva to tap
further potential of the field
nurturing Skills: Over the years, Cairn
India has grown significantly to become
a more than USD 14 billion company. In
the process, it has strengthened its core
capability with a blend of experienced
and young professionals from various
backgrounds. The employees have
a passion for the business and in a
fast-moving environment they adapt
to changes, using their technical and
commercial acumen, managing risk and
uncertainty and making ‘brave’ decisions
in the pursuit of our vision. High corporate
governance standards, coupled with
professional management, distinguish
Cairn India from its peers.
Partnership: Working with local
communities, Central Government, State
Governments and JV partners, Cairn India
has developed an in-depth understanding
of the regulatory environment and has laid
the foundations for strong relationships.
We strive to create value for our
shareholders through strong corporate
governance and business ethics.
Competitive Advantage
Delivering Growth through Transformation 31
Our Vision, values and missionCairn India is committed to the
highest standards of Corporate Social
Responsibility (CSR). We are committed
to creating value through leadership in
corporate social responsibility. It is our
conviction that continuous business
growth, sustainable communities and the
creation of value for our stakeholders go
hand-in-hand.
Cairn India has made good progress in both
developing and implementing its approach
to managing the CSR challenges facing
the business. Specific attention has been
placed on the emerging CSR issues such
as assessing and managing biodiversity
risks, security, human rights and the
potential impact of climate change on doing
business. We have found that the use of a
‘rights aware’ approach has helped us to
address some of the more complex issues
that the Company faces and we are working
to raise awareness about this approach.
Cairn India proactively engages with
communities and stakeholders to arrive
at a collective vision and joint
implementation plan.
Our goal is to make a positive social impact
in every area in which we operate. Our
vision encapsulates Corporate Social
Responsibility in the 3 R’s.
Producing Hydrocarbons Responsibly
People are Cairn India’s key asset and the
attitude of the Cairn team is critical to its
business culture. Cairn’s entrepreneurial
spirit is underpinned by a depth of
knowledge and a strong set of cultural
core values, including integrity, social and
environmental responsibility, teamwork,
nurturing of individual creativity, risk
management and developing alliances with
key partners.
Relationships are the key to developing
any business and Cairn India’s success
in the region for more than a decade
would not have been possible without
the consistent support of all stakeholders,
from Governments, regulators and JV
partners to the people living near our sites.
The level of support and understanding
on the ground is something we have
worked hard to bring about in our business
development activities and we are proud
of what we have achieved – and continue
to achieve – wherever we are operational.
reSPeCt
relAtIOnSHIPS
reSPOnSIBIlIty
Corporate Social responsibility: making a difference through social innovation
Cairn India is operating in many areas that
face economic, social and environmental
challenges. It has the responsibility to
understand these CSR challenges, identify
the potential impact of its activities and,
through engaging with stakeholders, look
for opportunities for mutual benefit.
32
Delivering Growth through Transformation 33
• Positive engagement with stakeholders for enabling ease of business activities -
a social license to operate – and risk mitigation and reputation management
• Addressing expectations of key stakeholders through socio-economic
development
• Overall development of communities and improvement of social infrastructure
• Following compliance and standards
• Creating wider ownership, participation and spokespersons for CSR
• Reputation enhancement with internal stakeholders – attracting and
retaining best talent
• Establish thought leadership through supporting pioneering initiatives towards progressive social change
• Explore new models for future business
• Enhance communication and have strategic partnerships for greater impact and leverage
The strategic objectives are designed to establish best practices in the field of CSR and to charter a new path for others to follow. Cairn India intends to:
The external objectives are aimed towards positive engagement with the external stakeholders, to gain their support for the CSR activities and develop a vision based on reasonable expectations and needs of the external stakeholders. These external objectives are aimed towards:
The internal objectives are directed towards seeking active participation of internal stakeholders, namely employees, investors and supply chain members. The internal objectives are aimed towards:
Our ObjectivesAt Cairn we believe in sustainable
development, which we interpret as
growing our business in a socially and
environmentally responsible way while
meeting the legitimate interests of our
stakeholders. We also believe in taking
an active role in empowering local
communities to achieve their ambitions.
To achieve the collective vision of Cairn,
its stakeholders and communities, we have
set forward some objectives we would like to
achieve as a responsible corporate citizen.
These are:
• Proactive management of stakeholder
expectations to obtain and maintain a
‘Social License to Operate’
• Partnering with the community for
socio-economic development
• Achieving a positive perception of
Cairn in areas of operation
• Demonstrating leadership in corporate
citizenship
These objectives are further segregated
into strategic objective, external and
internal, primarily for the purpose of
greater focus and maintaining a balance
between the sub-goals of the various
stakeholders and Cairn.
Cairn India received the TERI Corporate Award for Social Responsibility 2008 and the Golden Peacock Award for Corporate Social Responsibility 2011 in recognition of its community engagement initiatives. These awards recognise corporate leadership in environmental management and good corporate citizenship across the country.
Str
Ate
gIC
exte
rn
Al
Inte
rn
Al
34
Fourthematic
areas
Education Health
Infrastructure Economic Development
PrImAryLand contributorsLocal community
SeCOnDAryPanchayat
District AdministrationLocal Industries
Regulatory AuthoritiesPolitical Representatives
Academic Institutions
tertIAryLocal NGOs
Regional NGOsMedia
STAKEHOLDERS
We believe that building lasting
relationships needs transparency and
involvement of all stakeholders which leads
to mutual trust, social license to operate and
fostering partnership with our communities,
joint venture partners, governments and
regulators. Seeking win-win relationships
with all our stakeholders is one of our
guiding principles and has always helped
us to understand each other’s needs and to
work together for everyone’s growth.
We regularly interact with district
administration officials, as well as the
communities and key influencers to plan
and implement innovative and acceptable
development models which have proved to
be a torch bearer for other similar activities in
the area.
Alliances - It is increasingly difficult for any
organisation to develop all the capabilities
needed to foster new innovations. We at
Cairn believe that requisite knowledge can
often only be developed in conjunction with
those possessing specific understanding
of the desired objectives which includes
private sector companies, as well as non-
profit research institutes, universities, and
government bodies. Cairn CSR forges
different levels of partnership looking at
the local needs and delivering high end
programmes aimed at improving the social
milieu. The list below is a showcase of some
of our partnerships and programmes taken
up so far.
Delivering Growth through Transformation 35
Gov
ernm
ent A
nd Regulators NGOS Business partners Employees Investors Contractors and suppliers Communitie
s
Aca
dem
ic In
stitu
tions
• Effective communication of strategy and performance• Good corporate governance and risk/
opportunity management• Climate change strategy
• Award of exploration permits• Granting Operational Permits• Compliance monitoring
• Clear policies and principles • Partnerships for progress
• Partnerships for conservation of the environment
• Community development projects
1
2 3 4 5 6 7
8
• Responsible investment • Legal compliance • Fair returns
• Meetings with investment analysts • IFC audit and annual monitoring
report to IFC • Participation in surveys for
investment analysts • Regular reporting
• To be treated fairly and honestly • Long term relationships • Opportunities for growth
• Commercial relationships • Meetings • Training and capacity building
StAKeHOlDerS
1
2
5
• Preparingbusinessleaders of tomorrow• Research• Partnership
• Developingandteaching Cairn India Case studies• Research on impact in the creation of
sustainable social, environmental and economic value.
• Partnership for implementation of the projects
Key interest and expectations
Engagement
8
• Good neighbours • Employment opportunities• Community development and welfare
• Public consultations • Grievance mitigation• Community investment
7
6
• Adherence to global standards
• Direct interaction for feedback and performance reporting
• Commercial relationship
• Competitive pay • Challenging, high quality work • Opportunity for development
• Continuing professional development for all employees
• Consultation on organisational initiatives
3
4
Partners
International Finance Corporation
(IFC)
HelpAge India
room to read India trust
reuters
multi Commodity exchange (mCx)
Flagship programmes
Cairn-IFC Linkage Programme, which was for 3 years, is now being continued by Cairn
independently. The programme has three components
i) Livelihoods promotion through the establishment of an Enterprise Centre,
ii) Child and Maternal Health Initiatives
iii) Dairy Development
Two Mobile health Vans are operational in Barmer District covering more than 60 villages.
Health awareness campaigns organised in six districts of Gujarat along the pipeline route.
Set up 40 libraries in Barmer District and 25 libraries in rural areas of Gujarat.
Connecting more than 10,000 farmers through mobile based SMS service for providing
agri inputs and advisory.
Gramin Suvidha Kendra (GSK) an innovative partnership model with Department of Post,
Government of India leveraging rural Post offices to provide agri inputs to Farmers
across pipeline.
36