Analysts Rajasthan Site Visit_feb09

Rajasthan Site Visit – February 2009

CAIRN INDIA LTD Rajasthan Site Visit February 2009

Rajasthan Site Visit – February 2009

Disclaimer

These materials contain forward-looking statements regarding Cairn India, 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 India undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn India’s expectations with regard thereto or any change in circumstances or events after the date hereof.

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Rajasthan Site Visit – February 2009

Agenda Rajasthan Project ¾ Rick Bott, Chief Operating Officer ¾ Santosh Chandra, Director Drilling and Petroleum Engineering ¾ S V Nair, Director Projects ¾ H P Bhalla, Director Midstream ¾ T K Venkatesan, Project Manager

Conclusion ¾ Rahul Dhir, Managing Director and Chief Executive Officer

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Rajasthan Site Visit – February 2009

Introduction Rick Bott Chief Operating Officer

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Rajasthan Site Visit – February 2009

Rajasthan Block RJ-ON-90/1

Jaisalmer

Jodhpur

Mangala Processing Terminal (MPT)

NEPAL

Rajasthan

Barmer

INDIA BANGLADESH

Barmer

Jalore

Districts 09S0003AE00

Roads

Rajasthan Site Visit – February 2009

Rajasthan - Barmer History ¾ Founded in the 13th century by Bahada Rao initially called Bahada-mer later shortened to Barmer

Location ¾ Situated in the western part of Rajasthan and forms part of the Thar desert ¾ The Thar desert covers 13,000 km2 ¾ Surrounded by Jaisalmer in the north, Jalore in the south, Jodhpur in the east and Pakistan in the west

Climate ¾ Arid desert ¾ Extreme temperatures; 5 degrees centigrade in December / January 46 degrees centigrade in June / July

Economy ¾ Mainly agriculture based ¾ Craft cottage industries 09S0003AE00

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Rajasthan Site Visit – February 2009

Rajasthan Development Overview ¾ Rajasthan 25 discoveries ¾ Integrated upstream and midstream development focused on MPT with local power and water supply ¾ Six fields under development focused on Mangala, Bhagyam and Aishwariya (MBA) ¾ >3,000 km2 acreage approved for development ¾ Processing capacity 205,000 bopd ¾ First Mangala production; ¾ Q3 2009 by trucking ¾ Q4 2009 by pipeline ¾ Estimated MBA peak production 175,000 bopd

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Rajasthan Site Visit – February 2009

Field Development Area – Size Comparisons New Delhi

Total Acreage

Bhagyam Development Area

3,111 km2

Kameshwari West Development Area

New Delhi and London combined area approx 3,134km2

130km

65km

MARS Development Area (Mangala, Aishwariya, Raageshwari and Saraswati)

All maps to same scale 09S0003AE00

London

Rajasthan Site Visit – February 2009

Rajasthan Development Maximise Oil Recovery ¾ Primary and secondary oil recovery scheme ¾ Tertiary recovery scheme (EOR) – plan and test

Optimise Crude Marketing ¾ Multiple access points to India’s refining infrastructure ¾ Ship loading option

World Class Safety Standards ¾ 10 million man hours Lost Time Injury (LTI) free

Minimal Environmental Impact ¾ Low emissions - zero gas flaring ¾ Recycle and re-use; Produced water reinjection ¾ Conserve local fresh water supplies

Positive Local Impacts ¾ Minimise footprint ¾ Local development and employment 09S0003AE00

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Rajasthan Site Visit – February 2009

Rajasthan Integrated Development Overview MPT and Well Pads Mangala Bhagyam Aishwariya Intra-field Pipelines and Crossings

¾ 1 x 30,000 bopd processing train ¾ 2 x 50,000 bopd processing trains ¾ 1 x 75,000 bopd train, scope for further expansion ¾ Fluid handling capacity 1 million bfpd

Water System ¾ Saline water for MPT and secondary recovery from reservoir ¾ Thumbli water field facilities

Raageshwari Gas Terminal (RGT) and Well Pads ¾ Raageshwari Gas piped to MPT ¾ Combined with Mangala associated gas for power generation

Export oil pipeline plus heating stations 09S0003AE00

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Rajasthan Site Visit – February 2009

Rajasthan Development Wells and Well Pads ¾ >350 wells, >40 well pads

MPT and Well Pads Bhagyam Field

Mangala Processing Terminal ¾ ¾ ¾ ¾ ¾ ¾ ¾

Aishwariya Field

km2 (approx 400 acres)

Area: 1.6 1 x 30,000 processing train 2 x 50,000 bopd processing trains 1 x 75,000 bopd train, with scope for expansion Water recycling and gas recovery systems Heat and power systems Built-in fire and safety systems

Intra field pipelines and crossings

Thumbli water field Well Pads and facilities

Barmer

Infrastructure ¾ ~500 km of intra and inter field pipelines ¾ ~80 km of inter field roads

Export Pipeline ¾ ~600 km pipeline to Gujarat coast ¾ Skin Effect Heat Management Systems (SEHMS) ¾ Multiple oil delivery points 09S0003AE00

RGT and Well Pads

Export Oil Pipeline Gas and Condensate Pipeline Flow

Rajasthan Site Visit – February 2009

Rajasthan Development - Comparisons ~500 km of intra and inter field pipelines: ¾ London to Newcastle ~455 km ¾ Delhi to Lucknow ~497 km ~80 km of roads: ¾ London to Brighton ~85 km ¾ Delhi to Panipat ~85 km 130 km length of the Rajasthan block: ¾ London to Southampton ~130 km ¾ Jaipur to Ranthambore National Park ~30 km 600 km length of the Export pipeline: ¾ Delhi to Jodhpur ~589 km ¾ London to Edinburgh ~650 km

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Rajasthan Site Visit – February 2009

Health and Safety Achievements ¾ ¾ ¾ ¾ ¾

10 million man hours LTI free Excellent road safety record Full compliance to HSE regulations Comprehensive HSE training programmes Systematic risk assessment and management of the facility designs

On-going Activities ¾ Safety recognition programme ¾ Periodic 3rd party HSE audits ¾ Periodic IFC audits for Environmental and CSR compliance

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Rajasthan Site Visit – February 2009

Development Drilling Santosh Chandra Director Drilling and Petroleum Engineering

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Rajasthan Site Visit – February 2009

Rajasthan Recovery System Fuel Gas Distribution System

Gas Recovery System Export Oil Storage Separator + Heat

Export Pipeline

Water Injector Vertical Well Fresh Water

Horizontal Well

Heat

Water Table

T Sali humbli ne A quif er

Oil Bar me rH ill F at eh g arh 09S0003AE00

Saline Water Abstraction

Rajasthan Site Visit – February 2009

Drilling Rigs Drilling Rigs ¾ 2 highly mobile custom built rigs ¾ Hook load 500,000 pounds 3,500m depth capacity ¾ Fully automated controls and pipe handling ¾ Compact rig layout ¾ Save land, infrastructure and drilling costs ¾ Minimal environmental impact, no local dislocation ¾ Better control and security

Highest onshore production rate wells in India ¾ The horizontal wells designed for 10,000 bopd and deviated wells up to 6,000 bopd

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Rajasthan Site Visit – February 2009

Mangala Project and Well Pads ¾ ¾ ¾ ¾ ¾

>100 oil producers >50 water injector wells 5 source water wells 18 well pads, 20 wells from a single pad >30 Raageshwari Deep gas wells

Mangala Discovery Well January 2004

Mangala Processing Terminal

Well Pads

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Export Oil Pipeline

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Rajasthan Site Visit – February 2009

Development Wells ¾ High technology, high production rate wells ¾ Jet Pumps / Electrical Submersible Pumps for artificial lift ¾ Hot water is power fluid for Jet Pumps and flow assurance

Heater string Downhole

Electrical Submersible Pump

¾ Heater String in production well ¾ Twin chemical injection lines to inject chemicals down hole ¾ Optimal metallurgy to prevent corrosion ¾ Unitized well head systems ¾ Mono bore completions in injectors 09S0003AE00

Sand control and inflow Control screen devices

Rajasthan Site Visit – February 2009

Mangala Processing Terminal S V Nair Director Projects

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Rajasthan Site Visit – February 2009

Mangala Processing Terminal - Scope ¾ Four oil processing trains ¾ Heat source: Steam ¾ Steam generation – 5 x 115 Tons / Hr boilers with accessories ¾ Advantage of steam - pollution free, efficient, renewable resource

¾ Captive power plant to meet all power requirements ¾ 4 x 12 MW steam turbine generators ¾ 3 x 2 MW emergency diesel generators

¾ Water heating and circulation system, fire water system ¾ Tanks - 20, buildings – 16 ¾ Internal and external roads – 55 km ¾ Concrete - 98,000 m3 ¾ Steel - 23,600 metric tonnes

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Rajasthan Site Visit – February 2009

Rajasthan - Mangala Processing Terminal Steam Turbine Generators

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Steam Boilers 2

Oil Export Tanks

Water Tanks

Power Water Injection Water Produced Water Export Oil Pipeline Fluids from Well Pads 09S0003AE00

Oil Settling Tanks

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Rajasthan Site Visit – February 2009

Upstream: Processing Systems Overview To Fuel Gas Distribution system / Boilers

Make up Gas from Raageshwari

Well Pads

Associated Gas Recovery

2nd stage separation

1st Stage Separation

Settling Tank Dehydrator

Fluids from wells

Heater

To Injection & Power water systems

Injected back into wells

Make up water from Thumbli saline water wells

Produced Water Treatment

Export Oil Pump

To Export Pipeline 09S0003AE00

Export Oil Storage Tank

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Rajasthan Site Visit – February 2009

Upstream: Steam and Power System Process Heaters

Oil Processing System

To Export Pipeline

Tank Heaters

Make up gas from Raageshwari Associated Gas

48 MW Power for plant utilities

4 Steam Turbine Generators

5 Boilers

Desalination Package Recovered Water

To Injection & Power water systems

INJECTION HEATERS Make up water

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Thumbli saline water wells

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Rajasthan Site Visit – February 2009

Raageshwari Gas Terminal and Thumbli Water Field ¾ Raageshwari Gas Terminal – >30 mmscfd dry gas ¾ Four Gas well pads with 35 wells ¾ Gas system, condensate system, produced water system, fire water system ¾ Power generation – 3 x 1250 KVA gas engine generator ¾ 4” condensate & 12” Gas pipelines from Raageshwari to MPT – 190 line km

¾ Thumbli well field – five water wells (each 63,000 bbls/day capacity) ¾ 20” Water pipe line from Thumbli to MPT – 22 km

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Picture of Thumbli Water Field

Rajasthan Site Visit – February 2009

Pipeline H P Bhalla Director Midstream

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Rajasthan Site Visit – February 2009

Rajasthan to Gujarat Pipeline ¾ ~600 km with heating stations and storage terminals

Total Pipe Diameter 790 mm (32”)

¾ Pipeline uses SEHMS High Density Polyethylene Wrap

¾ Plant set up to handle pipeline insulation Heat Tube

¾ Maintain the crude oil temperature above 65ºC

Poly Urethane Foam Insulation

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Rajasthan Site Visit – February 2009

Pipeline Schematic 35 SEHMS

Sanchore Pigging Station

Mangala Processing Terminal

Heated crude oil pipeline

Gas pipeline

Raageshwari Gas supply Viramgam Intermediate Terminal storage, pumping and export

Coastal Terminal storage and export

Distribution to Refiners

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Wankaner Pigging Station

Buyer

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Rajasthan Site Visit – February 2009

Skin Effect Heat Management System Power Source and Temperature Monitoring ¾ ¾ ¾ ¾ ¾

Power requirement – 40 W / m Voltage ~4,000 V No current flow on outside skin of tube System grounded with automatic earth fault trip Remote emergency shut-down capability

Termination

RTD’s

Current flows through centre conductor 09S0003AE00

Current returns through inside skin of outer tube

Heat Tube RTD : Resistance Temperature Detector

Rajasthan Site Visit – February 2009

Pipeline Construction Work

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Rajasthan Site Visit – February 2009

Pipeline Construction Work

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Rajasthan Site Visit – February 2009

Pipeline Construction Work

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Rajasthan Site Visit – February 2009

Pipeline Construction Work

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Rajasthan Site Visit – February 2009

Rajasthan Local Community T K Venkatesan Project Manager

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Rajasthan Site Visit – February 2009

Engaging With The Community Strategic Intent: ¾ Proactive engagement with stakeholders ¾ Demonstrate leadership in corporate citizenship ¾ Partnering with communities through our principles of respect, relationship and responsibility

Areas of Focus: ¾ ¾ ¾ ¾

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Education Infrastructure Health Economic Development

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Rajasthan Site Visit – February 2009

Stakeholder Consultation and Engagement Project Selection ¾ Discussions with communities, elected bodies, Non Governmental Organisation’s (NGO) / District Administration ¾ Align with Government programmes at state and national levels

Implementation and Monitoring ¾ Government agencies, district administration ¾ Community based organisations (Panchayat Samiti, NGO) ¾ International specialist organisations (International Finance Corporation (IFC), Sight Savers) ¾ Direct by Cairn India

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Rajasthan Site Visit – February 2009

Enterprise Centre ¾ Enterprise Centre (EC) set up at Industrial Training Institute, Barmer in collaboration with Rajasthan Government and IFC ¾ Basic skills programme underway ¾ HSE and security induction to >11,000 workers ¾ >70% of trainees linked to market and business ¾ Worked with Cairn project-affected households ¾ ~30 EC field workers integrated with the local community and land-loser households ¾ 25% of total project area to be covered under green belt ¾ Implementation to involve local community 09S0003AE00

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Rajasthan Site Visit – February 2009

Summary Rahul Dhir Chief Executive Officer

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Rajasthan Site Visit – February 2009

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Summary ¾ Rajasthan ¾ ¾ ¾ ¾ ¾ ¾ ¾

Focused on delivery and growth World class resource base Enhanced oil recovery potential Pipeline route allows access to multiple buyers Large volume on long term basis Increased delivery, consistent cash flow Funding in place to deliver core project and pipeline

¾ Maximise production from current producing assets ¾ Increasing exploration potential ¾ Strong economic contribution to the State of Rajasthan and Government of India 09S0003AE00