TIDMVED
RNS Number : 1292W
Vedanta Resources PLC
22 April 2016
Vedanta Resources plc
16 Berkeley Street
London W1J 8DZ
Tel: +44 (0) 20 7499 5900
Fax: +44 (0) 20 7491 8440
www.vedantaresources.com
22 April 2016
Vedanta Resources plc
Cairn India announces Q4 and FY2016 Results
Vedanta Resources plc's subsidiary Cairn India Limited today
announced results for the fourth quarter ended 31 March 2016.
Cairn India Limited
Annual Financial Results for the period ended 31(st) March,
2016
Mangala EOR performance reaffirms potential in the Rajasthan
block
Operational Highlights
-----------------------
-- Polymer injection in Mangala continues in-line with guidance;
average production from EOR at 32 kboepd in Q4 with polymer
injection at 400 kblpd
-- RDG average gas production at 27 mmscfd for FY16, surpasses
our guidance of 25 mmscfd. Successful hydro- frac campaign
resulting in higher well productivity
-- Successful execution of 20 well infill program in Aishwariya
-- Rajasthan (RJ) water flood operating cost improved further,
reduced by 11% YoY to US$ 5.2/boe
-- Exploration campaign in Rajasthan yielded positive results, added 300 million boe to HIIP
Financial Highlights
---------------------
-- In-line with our commitment, free cash flow of 2,485 crore
(US$ 379 mn) generated at low oil prices. It resulted in strong
Cash and Cash Equivalents position of 19,521 crore (US$ 2.9 bn)
-- Revenue of 8,626 crore (US$ 1,317 mn); 41% lower YoY,
primarily due to decline in crude prices
-- EBITDA of 3,505 crore (US$ 535 mn); 60% lower YoY
-- Net profit excluding exceptional items of 2,145 crore (US$
328 mn); lower EBITDA and higher DD&A
Corporate and Regulatory Developments
--------------------------------------
-- Cairn India Board recommended a final dividend of 3 per
Equity share, entailing an outflow of approximately 677 crore
including dividend distribution tax. This is subject to approval of
shareholders at the ensuing Annual General Meeting (AGM) of the
Company scheduled to be held on 21(st) July, 2016. The Book closure
dates for the purpose of ensuing AGM and dividend payment will be
from 12(th) July, 2016 to 21(st) July, 2016. This payout amounts to
around 31.6% of our annual consolidated normalized net profit which
is in line with our stated dividend policy.
-- The impairment of 11,674 crore largely reflects the lower
crude price, prevailing discount of RJ crude as well as adverse
long term impact of revised Cess. All the company's projects
including Bhagyam and Aishwariya EOR, Aishwariya Barmer Hill as
well as the RDG project remain viable at the price assumptions
taken for impairment.
-- We are committed to the Cairn - Vedanta Limited merger and
continue to work towards its completion. The merger would generate
value for the shareholders and de-risks Cairn India by providing
access to a portfolio of diversified assets in a volatile market
and deliver significant near term growth.
-- The PSC extension and crude export writs are sub judice in the Hon'ble High Court of Delhi.
-- The year saw series of reforms to attract investments and
simplify governance of the sector. Ad-valorem Cess rate announced
in the Union Budget, Gas price, Hydrocarbon Exploration Licensing
Policy (HELP) and PSC extension for small, medium sized and
discovered fields are policy announcements in the right direction.
These policy reforms will provide greater clarity to the industry
for planning their investments.
Mr. Mayank Ashar, Managing Director and CEO of Cairn India
commented:
"The Cairn team has delivered a resilient performance in a
challenging year. Drive for cost efficiency and rationalization of
capital investment have aided free cash generation despite crude
prices plummeting to a 12 year low. We are delighted to recommend a
dividend of 3 per Equity share for the year.
Our commitment towards technology and innovation has enabled us
to successfully execute one of the world's largest EOR project at
Mangala. Adopting cutting edge fraccing technology in RDG field has
demonstrated excellent results in tapping the gas potential for
future growth. The company continues with its pre-development
activities to be future ready to tap the resource base. Cairn India
shares the country's vision for energy security and to pursue this
goal, continues to engage with the Government on extension of PSC
for further investment in the prolific Rajasthan block.
The management will continue to pursue innovations and
technology in its asset portfolios, to maintain one of the lowest
cost operations in the world and create substantial value for its
stakeholders."
Operational Review
-------------------
During FY16, Cairn had a gross production of 74.6 mmboe across
all the assets, of which working interest production was 46.9
mmboe. Gross Sales was 74.5 mmboe averaging at 203,510 boepd.
During Q4 FY16, gross production was at 17.9 mmboe with daily
production at 197,039 boepd.
Average Daily Units Q4 Q3 Financial Year
Production
------------------ ------- -------------------------- --------------- -----------------------
FY16 FY15 y-o-y FY16 q-o-q FY16 FY15 y-o-y
(%) (%) (%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Total Gross
operated* Boepd 206,170 224,294 (8%) 211,843 (3%) 212,552 220,876 (4%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Gross operated Boepd 197,039 215,553 (9%) 202,668 (3%) 203,703 211,670 (4%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Oil Bopd 190,271 208,019 (9%) 196,135 (3%) 196,955 204,761 (4%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Gas Mmscfd 41 45 (10%) 39 4% 40 41 (2%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Working Interest Boepd 125,775 132,929 (5%) 128,402 (2%) 128,191 132,663 (3%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
-
-------------------------------------------------------------------------------------------------
Rajasthan (Block RJ-ON-90/1)
-------------------------------------------------------------------------------------------------
Total Gross
operated* Boepd 176,039 181,711 (3%) 178,679 (1%) 177,669 182,824 (3%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Gross operated Boepd 167,650 174,206 (4%) 170,444 (1.6%) 169,609 175,144 (3%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Oil Bopd 164,826 172,683 (5%) 167,979 (2%) 167,266 173,649 (4%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Gas Mmscfd 17 9 85% 15 15% 14 9 57%
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Gross DA
1 Boepd 150,918 150,489 0% 150,496 0% 149,623 147,558 1%
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Gross DA
2 Boepd 16,732 23,717 (29%) 19,949 (16%) 19,986 27,585 (28%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Gross DA Boepd - - - - - - - -
3
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Working Interest Boepd 117,355 121,944 (4%) 119,311 (2%) 118,726 122,601 (3%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Ravva (Block PKGM-1)
-------------------------------------------------------------------------------------------------
Total Gross
operated* Boepd 20,068 33,218 (40%) 22,975 (13%) 24,942 27,736 (10%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Gross operated Boepd 19,058 31,738 (40%) 21,703 (12%) 23,845 25,989 (8%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Oil Bopd 16,588 26,872 (38%) 19,056 (13%) 20,845 22,565 (8%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Gas Mmscfd 15 29 (49%) 16 (7%) 18 21 (12%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Working Interest Boepd 4,288 7,141 (40%) 4,883 (12%) 5,365 5,847 (8%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Cambay (Block CB/OS-2)
-------------------------------------------------------------------------------------------------
Total Gross
operated* Boepd 10,063 9,366 7% 10,189 (1%) 9,940 10,316 (4%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Gross operated Boepd 10,331 9,609 8% 10,521 (2%) 10,249 10,538 (3%)
(MORE TO FOLLOW) Dow Jones Newswires
April 22, 2016 12:05 ET (16:05 GMT)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Oil Bopd 8,856 8,464 5% 9,099 (3%) 8,844 8,547 3%
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Gas Mmscfd 9 7 29% 9 4% 8 12 (29%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
Working Interest Boepd 4,133 3,844 8% 4,208 (2%) 4,100 4,215 (3%)
------------------ ------- -------- -------- ------ ------- ------ ------- ------- -----
* Includes internal gas consumption
Operations
Rajasthan (Block RJ-ON-90/1)
For FY16, gross production from Rajasthan (RJ) block was 62.1
mmboe at an average of 169,609 boepd. Mangala EOR contributed an
average of 14,000 boepd during FY16. The excellent performance by
Mangala EOR and encouraging upside from Aishwariya infill program
aided in arresting the decline to 3% YoY in Rajasthan. Reservoir
management continued in the Bhagyam field to address the
challenges. For the year, a total of 60.9 mn barrels of oil was
sold, at an average rate of 166,509 bopd. Increase in gas
production from RDG field to an average of 27 mmscfd from 16 mmscfd
in FY15, amounted to 9.9 bcf for FY16. We started a 15 well
hydro-frac campaign in December 2015 to sustain the growth level
and have successfully completed about half the planned number of
fracs resulting in better than expected initial well
productivities. The campaign is expected to conclude by Q1 FY17.
Total gas sales were 5.1 bcf, continuing at an average rate of 14
mmscfd. The expected ultimate recovery from the RDG field has been
upgraded by over 25%.
The water-flood operating cost in Rajasthan was lowered by 11%
YoY to US$ 5.2/boe for FY16 through cost reduction in crude
processing and well maintenance activities. Blended operating cost
was US$ 6.5/boe on account of polymer injection.
During Q4 FY16, the Rajasthan block produced 15.3 mmboe at an
average rate of 167,650 boepd. Gas production from RDG field also
remained firm at 31 mmscfd. A total of 85 new wells were brought
online during the year, with 12 wells added in Q4 FY16. In
addition, almost 66 wells have been converted into polymer
injectors for Mangala EOR till the end of FY16.
With continued focus of safe operations, the average facility
uptime for the year was 98% in FY16. Lost Time Incident (LTI) free
man-hours for Rajasthan Projects was at 29 million since last
LTI.
Ravva (Block PKGM-1)
Prudent reservoir management in Ravva for the past two decades
has resulted in continued performance from the block. In FY16,
Ravva produced 8.7 mmboe at an average rate of 23,845 boepd.
Execution of a coil tubing campaign and deeper gas lift injection
has helped partially offset the natural decline. For year FY16, 7.8
mmbbls of crude and 6.6 bcf of gas were sold, averaging 21,385 bopd
of crude oil and 18 mmscfd of gas, respectively. Gross production
for Q4 FY16 was 1.7 mmboe at an average rate of 19,058 boepd. Well
stimulation in five water injectors has also helped in sustaining
required water injection rates to support production from oil
wells.
Maintaining its high safety standards, the asset recorded an
uptime of 99.7% in FY16 and Lost Time Incident (LTI) free man-hours
at 4.5 million since last LTI.
Cambay (Block CB/OS-2)
For year FY16, Cambay's production was largely stable at 3.8
mmboe at an average rate of 10,249 boepd, aided by effective
reservoir management practices offsetting its natural decline.
During the year, 3.2 mmbbls of crude and 3.1 bcf of gas were sold,
averaging 8,867 bopd of crude oil and 8.4 mmscfd of gas,
respectively. Gross production in Q4 FY16 increased to 0.9 mmboe at
an average rate of 10,331 boepd, driven by commissioning of an
artificial gas lift system and better reservoir performance.
Facilities recorded an excellent uptime of 99.9% in FY16 and 3.1
million LTI free man-hours since last LTI.
Development
Following development projects and activities were carried out
during the year FY16:
Mangala EOR: Successful execution of polymer flood has yielded
positive results with an increase in oil production and
stabilization of water cut. In Q4 2016, polymer injection ramped up
to planned levels of 400,000 barrels of liquid per day and we plan
to maintain the injection at this level going forward. EOR
contribution increased to an average of about 32,000 boepd in Q4
FY16 from 19,000 boepd in Q3 FY16. The Integrated drilling program
was completed for all the 93 new wells during the year. The central
polymer facility was made fully operationalized with four trains
preparing polymer solution, in October 2015. The MPT facilities
modifications required to handle the back-produced polymer fluids
are now in the final stages of commissioning. Common facilities for
all well-pads including the E-houses are in place and injection is
now ongoing at all the well-pads.
Aishwariya Infill: During FY16, the planned infill wells program
in Aishwariya was successfully completed. All the 20 infill wells
have been brought online and they are playing a key role in
sustaining the field oil rates. These wells along with ramp up of
injection and sector wise voidage management are leading to
optimization of reservoir management and increase in production
recovery.
Injection Water Upgrade: Water injection capacity at Mangala
Processing Terminal has been upgraded through building a new 30"
water pipeline from Thumbli and installing an additional injection
water pump. Capacity of injection water system has been increased
to around 700,000 barrels of water per day now. Intent of this
additional facility is to increase Voidage Replacement Ratio
through enhanced injection water capacity. A higher ratio will help
to maintain field pressure resulting into an improvement in overall
recovery.
Bhogat Commissioning: During Q3 FY16, Salaya Bhogat Pipeline
(SBPL), storage terminal & marine export facilities at Bhogat
were commissioned and consequently first cargo of Rajasthan crude
oil was successfully loaded through the terminal for Mangalore
Refinery Petroleum Ltd. We are generating superior realization
through this sale.
Barmer Hill: The appraisal program for the tight oil
developments has been completed with the results broadly as per our
expectation. Gaining valuable data gathered through the campaign is
now being used for a full field development plan. For Aishwariya
Barmer Hill, we have achieved sub-surface technical alignment with
our JV partner and are also progressing on technical alignment for
surface facility.
Gas Development at RDG Field: Ramp-up of gas production in a
phased manner through low cost augmentation of the existing
facility and installation of additional gas compressor stations is
underway. A very successful ongoing hydro-frac campaign in the RDG
field has resulted in higher than expected well productivity that
will aid in future growth. About half the planned number of fracs
to sustain the growth level has been completed and the campaign is
expected to conclude by the end of current quarter. Tendering
process for new gas processing terminal and rig services is also
progressing well. As a result of the successful application of
hydro frac technology and better reservoir characterisation, the
expected ultimate recovery form the RDG field has been upgraded by
over 25%. During this hydro frac campaign, Cairn has successfully
placed the largest Frac in India in one of the RDG wells.
Bhagyam EOR: In view of sustained low oil prices, various
development options to improve the viability of the project are
being looked into; it includes leveraging the existing facilities
built for the Mangala EOR project. Plans are being drawn up to
conduct further polymer injection test program in multiple wells to
demonstrate modelled injection rates. Techno commercial proposal
for multi well injectivity test has been submitted to JV for review
and approval. Currently, technical and cost alignment with JV is
ongoing.
Exploration
Rajasthan
During FY16, activity continued to be focused upon appraisal of
new discoveries and processing of the new 3D seismic data over high
priority areas, in-line with our re-phased exploration program.
Earlier in the year, oil was discovered in volcanic reservoirs,
in three zones in well Raageshwari Deep North and in two zones in
well Raageshwari Deep Main. The subsurface data pertaining to the
deeper layers within the volcanic reservoirs in the Raageshwari
area were analyzed during the fourth quarter. This led to an
increase of over 300 million barrels in oil in-place volumes (OIIP)
during the year. Since resumption of exploration in the Rajasthan
block in 2013, Cairn India has discovered 1.7 billion boe of
drilled and tested HIIP with an additional 0.45 billion boe drilled
but yet to be tested. Exploration successes in Rajasthan have led
to the addition of over 200 mmboe of 2C Resources since 2013.
The data obtained from fraccing and testing of wells NL-2,
Vandana-10A and V2Y Down Dip are being analyzed, with the objective
of progressing these discoveries to development. The processing of
newly acquired 3D seismic data is ongoing with a focus upon
identification of additional prospects that will act to replenish
the exploration prospect inventory.
Other India and International Assets
KG Offshore (Block KG-OSN-2009/3): Cairn is engaging with the
MoPNG for an extension contingent upon full life clearances.
Phase-I expired on 8(th) March 2016. Interpretation of the new
seismic volumes has resulted in identification of four prospects
and a number of smaller leads over different play types.
KG Onshore (Block KG-ON-2003/1): ONGC, the development operator,
has submitted a Field Development Plan to the Management Committee
and it is under review. The project is in the pre-development
phase.
(MORE TO FOLLOW) Dow Jones Newswires
April 22, 2016 12:05 ET (16:05 GMT)
Mumbai Offshore (Block MB-DWN-2009/1): Due to lack of
prospectivity, Cairn will exit the block at the end of the current
license term in April, 2016.
Palar-Pennar (Block PR-OSN-2004/1): Preparation for drilling the
three commitment wells in 2017-18 is in progress. Cairn India has
made a request to the Government in order to seek an extension of
the current exploration license period by two years.
Sri Lanka (SL 2007-01-001): The exploration license for the
block expired on 15(th) October, 2015. Cairn India has completed
exit formalities related to the block with the Sri Lankan
Government.
South Africa (Block 1): De-risking of inboard leads and
prospects is finalized. We are awaiting a decision on the proposed
legislative changes to the Mineral and Petroleum Resources
Development Act 2002 and the consequently applicable fiscal regime
before considering a decision to progress into the second
exploration license phase.
Reserves update
We started the year with Working Interest 2P reserves of 242
mmboe, and ended the year with Working Interest 2P reserves of 175
mmboe. Excluding production, our Working Interest 2P reserves for
the year declined by approximately 18 mmboe. We made some additions
from reservoir performance and projects in Aishwariya and Offshore
fields. However, project deferrals and Bhagyam under-performance
resulted in this downward revision in the reserves. Most of this
revision has been reclassified as 2C resources, and it would be
restored to the reserves category upon the granting of a Rajasthan
PSC extension. The project deferrals are the result of the
uncertainty regarding PSC extension coupled with the prevailing low
oil prices.
Financial Review
-----------------
Q4 Q3 Financial Year
------------- ------------------------ -------------- ------------------------
Crore FY16 FY15 y-o-y FY16 q-o-q FY16 FY15 y-o-y
(%) (%) (%)
------------- -------- ------ ------ ------ ------ ------- ------- ------
Net Revenue 1,717 2,677 (36%) 2,039 (16%) 8,626 14,646 (41%)
------------- -------- ------ ------ ------ ------ ------- ------- ------
EBITDA 571 727 (21%) 665 (14%) 3,505 8,660 (60%)
------------- -------- ------ ------ ------ ------ ------- ------- ------
Margin
(%) 33% 27% 33% 41% 59%
------------- -------- ------ ------ ------ ------ ------- ------- ------
Normalized
PAT 628 193 225% 9 - 2,145 6,541 (67%)
------------- -------- ------ ------ ------ ------ ------- ------- ------
Reported
PAT -10,948 -241 NA 9 NA -9,432 4,480 NA
------------- -------- ------ ------ ------ ------ ------- ------- ------
Margin
(%) -638% -9% 0% -109% 31%
------------- -------- ------ ------ ------ ------ ------- ------- ------
EPS ( )
- Diluted -58.25 -1.28 NA 0.05 NA -50.17 23.77 NA
------------- -------- ------ ------ ------ ------ ------- ------- ------
Cash EPS
( ) 6.76 4.94 37% 4.06 66% 24.71 47.65 (48%)
------------- -------- ------ ------ ------ ------ ------- ------- ------
Note: EBITDA includes forex gain/(loss) on operating
activities
Average Units Q4 Q3 Financial Year
Price
Realization
-------------- ---------- -------------------- ------------- --------------------
FY16 FY15 y-o-y FY16 q-o-q FY16 FY15 y-o-y
(%) (%) (%)
-------------- ---------- ----- ----- ------ ----- ------ ----- ----- ------
Cairn
India US$/boe 28.2 48.4 (42%) 35.2 (20%) 40.9 76.0 (46%)
-------------- ---------- ----- ----- ------ ----- ------ ----- ----- ------
Oil US$/bbl 27.8 48.6 (43%) 35.0 (21%) 40.8 76.8 (47%)
-------------- ---------- ----- ----- ------ ----- ------ ----- ----- ------
Gas US$/mscf 7.4 6.2 19% 7.2 3% 7.1 6.4 11%
-------------- ---------- ----- ----- ------ ----- ------ ----- ----- ------
Net revenue for FY16 decreased 41% YoY to 8,626 crore on account
of a significant decline in Brent prices and a lower production.
Brent prices witnessed a decline of 44% during the year, resulting
into a 46% YoY decline in the overall realization to US$ 40.9/boe.
Discount to Brent for Rajasthan crude was at US$ 7.2/bbl compared
to US$ 9/bbl in FY15, resulting in an average realization for RJ
crude at US$ 40.4/bbl in FY16. However, 7% depreciation in average
rate of Rupee vs Dollar partially negated the impact. During the
year, net profit petroleum was 2,364 crore (US$ 361 million)
including 1,983 crore (US$ 303 million) for Rajasthan block. Net
royalty was 1,532 crore (US$ 234 million) with Rajasthan share of
1,517 crore (US$ 232 million).
Our focus towards reducing operating expenses has resulted into
decreasing our already low Rajasthan water-flood operating cost by
11% YoY to US$ 5.2/boe. We have realized the cost saving from
reduction in uneconomic work-overs, decrease in requirement of
well-intervention units and lower unit rentals. Polymer injection
in the later part of year raised our blended operating cost for
Rajasthan to US$ 6.5/boe. However, it was contained through our
ongoing interventions which resulted in almost 20% reduction in the
polymer cost. We have also started purchasing 10MW power from open
exchange at about 25% lower costs during the last year.
EBITDA for the year was reported at 3,505 crore with an EBITDA
margin of 41%. Lower revenue, higher operating cost due to polymer
injection and excessive Cess burden led to decline in EBITDA.
DD&A charges increased 21% YoY to 3,107 crore due to faster
depreciation of the latest capex incurred since PSC is expiring in
2020. A favourable movement in Rupee of 6% depreciation versus US
Dollar resulted into a forex gain of 714 crore on our investments
and operating activities.
Normalized profit after tax was low at 2,145 crore due to lower
EBITDA and higher DD&A charges. Exceptional items for the year
amounted to 11,674 crore primarily on account of Impairment of
goodwill due to a significant decline in oil prices last year. Net
loss after exceptional items was reported at 9,432 crore resulting
into an Earning per share of (50.3) for FY16. Cash EPS was also
down 48% YoY to 24.7 due to lower EBITDA.
Cash flow from operations for FY16 was 4,134 crore. Net capital
expenditure incurred for the year was 1,626 crore (US$ 248 million)
with 78% of the investment made in development activities and 22%
on exploration work. Our closing cash and cash equivalent position
was robust at 19,521 crore (US$ 2.9 billion), of which 69% is
invested in rupee funds and 31% in dollar funds.
For the fourth quarter, revenue declined 16% QoQ to 1,717 crore
due to 22% decrease in Brent prices which was partially made-up by
improvement in discount to Brent for Rajasthan crude to US$ 6.8/bbl
from US$ 9.2/bbl in third quarter. EBITDA was also lower by 14% QoQ
to 571 crore, which was partly offset by reduction in Cess charges
post revision and forex gain on operating activities. DD&A
charges were 47% lower QoQ at 473 crore due to increase in proved
and developed reserves. Other income increased to 650 crore as
gains from certain investments are recognized on realization as per
Accounting Standards. Normalized profit after tax was higher
sequentially at 628 crore, aided by lower DD&A charges and
higher other income.
Health, Safety, Environment and Sustainability
-----------------------------------------------
Cairn India's continued focus on health and safety has helped
build an excellent HSES record over the years. This year Mangala
Field was conferred First (Gold) Prize in the prestigious FICCI
Safety System Excellence Award for Large Scale Category. Pursuing
our 'Zero Injuries' goal, we have significantly lowered the Lost
Time Injury Frequency (LTIF) in FY16 to 0.19 as compared to 0.26 in
FY15. Rajasthan (RJ) Projects, MBA and Raageshwari Operations
clocked 29, 17.1 & 11.5 million LTI free man-hours respectively
till Q4 FY16. To improve the HSE induction process, the RJ HSE
Learning & Development Centre has been set up in compliance to
DGMS requirements. We launched SAP EHS Audit Management and
Occupational Health Modules for managing and tracking of HSEQ
audits, inspections and recommendations and occupational health
records respectively.
Corporate Social Responsibility
--------------------------------
As part of our ongoing engagements with the local community,
significant progress has been achieved in establishing 70 water
purification plants under our 'safe drinking water' initiative and
helped generate awareness amongst 12,000 people in Barmer. Cairn
Centre of Excellence witnessed excellent campus placement as
certificates were distributed by Cairn CSR and TUV senior
management to the 160 trainees. Taking forward the MoU between
Vedanta and the Ministry of Women and Child Development, several
anganwadis were established in Barmer. The NRM project saw
setting-up of a strong market linkage for cumin famers and 18 water
harvesting systems.
FY17 Outlook
-------------
(MORE TO FOLLOW) Dow Jones Newswires
April 22, 2016 12:05 ET (16:05 GMT)
Continuing with our commitment to create long term value, Cairn
India will maintain its focus on its Rajasthan asset in FY16. We
aim to maintain production from Rajasthan asset broadly at FY16
level. With an estimated net capex of US$ 100 million, we plan to
invest 80% in development (primarily RDG Gas and Mangala EOR
completion activities) and 20% in exploration. We will continue
investing in pre-development activities of our key projects in Core
MBA fields, Barmer Hills and Satellite fields, to ensure project
readiness for development with rebound in oil prices and grant of
extension of PSC. We maintain the flexibility to raise our capital
investment as oil prices improve and aim to generate a healthy cash
flow post capex so as to retain the ability to pay dividends.
Cairn India Limited Fact Sheet
On 9 January, 2007, Cairn India Limited was listed on the Bombay
Stock Exchange and the National Stock Exchange of India. Cairn
India is now a subsidiary of Vedanta Limited; part of the Vedanta
Group, a globally diversified natural resources group.
Cairn India is headquartered in Gurgaon in the National Capital
Region. The Company has operational offices in India including
Andhra Pradesh, Gujarat, Rajasthan, Tamil Nadu and International
offices in Colombo and Houston.
Cairn India is one of the largest independent oil and gas
exploration and production companies in India. Together with its JV
partners, Cairn India accounted for 28% of India's domestic crude
oil production target of Government for FY16. Average gross
operated production was 203,703 boepd for FY16. The Company sells
its oil and gas to major PSU and private buyers in India.
The Company has a world-class resource base, with interest in
seven blocks in India and one in South Africa. Cairn India's
resource base is located in four strategically focused areas namely
one block in Rajasthan, two on the west coast of India, four on the
east coast of India and one in South Africa.
The blocks are located in the Barmer Basin, Krishna-Godavari
Basin, the Palar-Pennar Basin, the Cambay Basin, the Mumbai
Offshore Basin and Orange Basin.
Cairn India's focus on India has resulted in a significant
number of oil and gas discoveries. Cairn India made a major oil
discovery (Mangala) in Rajasthan in the north west of India at the
beginning of 2004. To date, thirty eight discoveries have been made
in the Rajasthan block RJ-ON-90/1
In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a PSC
signed on 15 May, 1995 comprising of three development areas. The
main Development Area (DA-1; 1,859 km2), which includes discoveries
namely Mangala, Aishwariya, Raageshwari and Saraswati is shared
between Cairn India and ONGC. Further Development Areas (DA-2; 430
km2), including the Bhagyam, NI and NE fields and (DA-3; 822 km2)
comprising of the Kaameshwari West Development Area, is shared
between Cairn India and ONGC, with Cairn India holding 70% and ONGC
having exercised their back in right for 30%.
In Andhra Pradesh and Gujarat, Cairn India on behalf of its JV
partners operates two processing plants, with a production of over
34,000 boepd for FY16.
The farm-in agreement was signed with PetroSA on 16(th) August,
2012 in the 'Block-I' located in Orange basin, South Africa. The
block covers an area of 19,898 sq km. The assignment of 60%
interest and operatorship has been granted by the South African
regulatory authorities.
For further information on Cairn India Limited, kindly visit
www.cairnindia.com
Corporate Glossary
----------------------------------------
Cairn Cairn India Limited
India and/or its subsidiaries
as appropriate
------------ --------------------------
Company Cairn India Limited
------------ --------------------------
Cairn Refers to Cairn
Lanka Lanka (Pvt) Ltd,
a wholly owned
subsidiary of
Cairn India
------------ --------------------------
Cash PAT adjusted for
EPS DD&A, impact of
forex fluctuation,
MAT credit and
deferred tax
------------ --------------------------
CFFO Cash Flow from
Operations includes
PAT (excluding
other income and
exceptional item)
prior to non-cash
expenses and exploration
costs.
------------ --------------------------
CPT Central Processing
Terminal
------------ --------------------------
CY Calendar Year
------------ --------------------------
DoC Declaration of
Commerciality
------------ --------------------------
E&P Exploration and
Production
------------ --------------------------
EBITDA Earnings before
Interest, Taxes,
Depreciation and
Amortisation includes
forex gain/loss
earned as part
of operations
------------ --------------------------
Normalized Net profit before
net profit exceptional items
------------ --------------------------
EPS Earnings Per Share
------------ --------------------------
FY Financial Year
------------ --------------------------
GBA Gas Balancing
Agreement
------------ --------------------------
GoI Government of
India
------------ --------------------------
GoR Government of
Rajasthan
------------ --------------------------
Group The Company and
its subsidiaries
------------ --------------------------
JV Joint Venture
------------ --------------------------
MC Management Committee
------------ --------------------------
MoPNG Ministry of Petroleum
and Natural Gas
------------ --------------------------
NELP New Exploration
Licensing Policy
------------ --------------------------
NRM National Rural
Mission
------------ --------------------------
ONGC Oil and Natural
Gas Corporation
Limited
------------ --------------------------
OC Operating Committee
------------ --------------------------
PPAC Petroleum Planning
& Analysis Cell
------------ --------------------------
qoq Quarter on Quarter
------------ --------------------------
Vedanta Vedanta Resources
Group plc and/or its
subsidiaries from
time to time
------------ --------------------------
yoy Year on Year
------------ --------------------------
Technical Glossary
--------------------------------------
2P Proven plus probable
--------- ---------------------------
3P Proven plus probable
and possible
--------- ---------------------------
2D/3D/4D Two dimensional/three
dimensional/ time
lapse
--------- ---------------------------
Blpd Barrel(s) of (polymerized)
liquid per day
--------- ---------------------------
Boe Barrel(s) of oil
equivalent
--------- ---------------------------
Boepd Barrels of oil
equivalent per
day
--------- ---------------------------
Bopd Barrels of oil
per day
--------- ---------------------------
Bscf Billion standard
cubic feet of
gas
--------- ---------------------------
Tcf Trillion standard
cubic feet of
gas
--------- ---------------------------
EOR Enhanced Oil Recovery
--------- ---------------------------
FDP Field Development
Plan
--------- ---------------------------
LTI Lost Time Incident
--------- ---------------------------
MDT Modular Dynamic
Tester
--------- ---------------------------
Mmboe million barrels
of oil equivalent
--------- ---------------------------
Mmscfd million standard
cubic feet of
gas per day
--------- ---------------------------
Mmt million metric
tonne
--------- ---------------------------
PSU Public Sector
Utilities
--------- ---------------------------
SPM Single Point Mooring
--------- ---------------------------
PSC Production Sharing
Contract
--------- ---------------------------
Field Glossary
Barmer Lower permeability
Hill reservoir which
Formation overlies the Fatehgarh
----------- --------------------------
Dharvi Secondary reservoirs
Dungar in the Guda field
and is the reservoir
rock encountered
in the recent
Kaameshwari West
discoveries
----------- --------------------------
Fatehgarh Name given to
the primary reservoir
rock of the Northern
Rajasthan fields
of Mangala, Aishwariya
and Bhagyam
----------- --------------------------
MBARS Mangala, Bhagyam,
Aishwariya, Raageshwari,
Saraswati
----------- --------------------------
Thumbli Youngest reservoirs
encountered in
the basin. The
Thumbli is the
primary reservoir
for the Raageshwari
field
----------- --------------------------
Disclaimer
(MORE TO FOLLOW) Dow Jones Newswires
April 22, 2016 12:05 ET (16:05 GMT)
This material contains forward-looking statements regarding
Cairn India and its affiliates, 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. Unless otherwise stated the reserves and resource
numbers within this document represent the views of Cairn India and
do not represent the views of any other party, including the
Government of India, the Directorate General of Hydrocarbons or any
of Cairn India's joint venture partner
For further information, please contact:
Communications Finsbury
Roma Balwani Daniela Fleischmann
President - Group Communications, Tel: +44 20 7251 3801
Sustainability
and CSR
Tel: +91 22 6646 1000
gc@vedanta.co.in
Investors
Ashwin Bajaj Tel: +44 20 7659 4732
Director - Investor Relations Tel: +91 22 6646 1531
ir@vedanta.co.in
Radhika Arora
Associate General Manager
- Investor Relations
Ravindra Bhandari
Manager - Investor Relations
About Vedanta Resources
Vedanta Resources plc ("Vedanta") is a London listed diversified
global natural resources company. The group produces aluminium,
copper, zinc, lead, silver, iron ore, oil & gas and commercial
energy. Vedanta has operations in India, Zambia, Namibia, South
Africa, Ireland, Liberia and Australia. With an empowered talent
pool globally, Vedanta places strong emphasis on partnering with
all its stakeholders based on the core values of trust,
sustainability, growth, entrepreneurship, integrity, respect and
care. For more information, please visit
www.vedantaresources.com.
Disclaimer
This press release contains "forward-looking statements" - that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "should" or "will." Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and/or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UUVVRNSASUAR
(END) Dow Jones Newswires
April 22, 2016 12:05 ET (16:05 GMT)
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