Goals and performance in 2012/2013

We create and realise value for shareholders through exploration and development in the global oil and gas sector. 

We create and realise value for shareholders by:

• Setting ourselves clear strategic objectives
• Our business model
• Achieving our benchmarks
• Managing appropriate risks

Our objectives

During 2012, Cairn delivered on its main strategic goal of positioning the company for future growth.

The Group’s strategic objectives for 2012/13 are:

• To operate safely
• To focus on exploration led growth, recognising the strengths of the Group and to find commercial quantities of hydrocarbons
• To hold a focused, balanced asset portfolio (with potential for full cycle capability)
• To have appropriate exposure to transformational potential in frontier basins
• To progress development assets successfully to transform discovered resource to reserves and cash flow generation
• To maintain a strong balance sheet and financial flexibility

Our business model 

Our benchmarks

Summary of KPIs for 2012:

• Realise cash from Cairn India shareholding
• Preserve cash for investments – maintaining a strong balance sheet
• Grow reserves and reserves base
• Build a balanced portfolio and mature new prospects
• Reduce cost exposure in Greenland
• Successful and safely complete our operated 2012 work programme
• Maintain our licence to operate through the Group’s approach to HSE

Summary of KPIs for 2013:

• Preserve cash for investments and maintain balance sheet strength
• Continue to enhance the Group’s approach to HSE risk identification and management
• Grow the reserves and resources base to provide the funding for future growth and cash flow
• Successfully and safely deliver our operated 2013 work programme  

> Find out more about our KPIs [links to new page]  

Managing risk

Summary of key risks during 2012:

• Failure to monetise Cairn India shareholding at the right price and at the right time
• Limited availability of rigs and other services with associated cost pressures
• Lack of near term drillable frontier exploration opportunities
• Negative stakeholder reactions to operations  

Summary of key risks at Q1 2013:

• Failure to monetise Cairn India shareholding at the right price and at the right time
• Lack of operated exploration success
• Lack of near term drillable frontier exploration opportunities
• Negative stakeholder reactions to operations
   

Find out more about how we manage risk