Investment in Cairn India

Cairn retains a ~10% investment in Cairn India Limited which is listed on the Bombay Stock Exchange and the National Stock Exchange of India. Cairn India has interests in India, Sri Lanka and South Africa.

History

Cairn has been operating in India since 1996.  During this time Cairn has made more than 40 significant oil and gas discoveries.

In 2004 Cairn made a major oil discovery in Rajasthan, where more than 25 discoveries have now been made.  The Rajasthan development has a potential resource base of 7.3 billion barrels of oil equivalent (boe) and the potential to produce over 300,000 bopd and to provide ~35% of India's crude oil production.  The Rajasthan development is of national importance and at current prices can be expected to generate well over $100bn of revenues for the Government of India and the Rajasthan State.

The Rajasthan fields lie in the heart of the Thar desert in the Barmar district in northwest India.  The Rajasthan development, which includes a processing terminal and pipeline, is one of the largest oil and gas developments in India with a total acreage of ~3,000km2.  At the peak of development construction approximately 16,000 workers were involved.  Cairn successfully took this project from discovery in 2004 to production in 2009, in just over five years.

Today the Mangala, Bhagyam and Aishwariya fields are the main fields under development in Rajasthan.  In 2004 Cairn discovered the Mangala field, the largest onshore oil find in India for 25 years, followed by the Bhagyam and Aishwariya fields, the second and third largest discoveries respectively.

The Mangala Processing Terminal was planned, built and completed in little over two years and covers an area equivalent to 200 football pitches.  To carry Rajasthan's crude to market Cairn built the world's longest continually heated pipeline which will measure 670km at its full length.

In 1996 Cairn acquired interests in the Ravva offshore oil and gas field (east India).  Cairn redeveloped this field in just over two years and by 1999 the field's reserves had doubled and production had increased over tenfold.

In 2000 Cairn discovered oil and gas fields in the Cambay Basin (west India).  The Lakshmi and Gauri fields were discovered in 2000 and 2001 respectively; gas production commenced in 2002 and 2004 respectively and oil production from the fields commenced in 2005.   

 

2012
2011
2010
  • Key event - India

    Production via the pipeline from the Mangala field in Rajasthan starts

    The Cairn constructed ~600km heated pipeline carries crude from the Mangala Processing Terminal in Rajasthan to Salaya. The Gujarat pipeline is the longest of its type in the world today. Production from the Mangala field is now 140,000 bopd.

  • Key event - Corporate - India

    Proposed part sale of Cairn India to Vedanta Resources plc

    Cairn announces the proposed part sale of up to 51% of its shareholding in Cairn India to Vedanta.

2009
  • India

    Production from the Mangala field in Rajasthan commences

    Oil production starts on 29 August, gradually ramping up to an approved plateau rate of 125,000. Oil production from Rajasthan fields accounts for over 20% of India's domestic oil production.

  • India

    Ravva Development celebrates 15 years of operations

2007
  • Key event - Corporate - India

    Cairn India listed on BSE and NSE

    IPO of Cairn India Ltd on the Bombay Stock Exchange raises $1.98billion. Cairn Energy PLC retains a 69% holding. At the time, this was the largest IPO in Indian corporate history.

  • Corporate - India

    $1billion returned to shareholders post IPO of Cairn India

  • India

    Signs Production Sharing Contracts (PSCs) for two blocks under the Indian NELP VI exploration licensing round

    9 Feb 2007

2006
  • India

    Director General of Hydrocarbons (DGH) approves Field Development Plans for Mangala, Aishwariya, Raageshwari and Saraswati

  • India

    Conducts successful hydraulic fracturing campaign in Block RJ-ON-90/1, India

    Increases Block RJ-ON-90/1 estimate to >3.6bnbbls STOIIP, and gross 2P+EOR 864mmbbls recoverable

2005
  • India

    Signs Production Sharing Contracts (PSCs) for five blocks under the Indian NELP V exploration licensing round

  • India

    Block RJ-ON-90/1 estimate >1.9mmbbls STOIIP and gross 2P+EOR 795mmbbls recoverable

  • India

    Submits Field Development Plans for the Mangala, Aishwariya, Raageshwari and Saraswati fields

  • India

    Gauri field in the Cambay Basin commences oil production

  • India

    New Cairn India Head Office opens in Gurgaon on the outskirts of Delhi

2004
  • Key event - India

    Major discovery of the Mangala field followed by the Aishwariya and Bhagyam fields

    Exploration drilling programme in Block RJ-ON-90/1 leads to the discovery of the Mangala, Aishwariya, Bhagyam, Shakti, Vijaya and Vandana oil fields. Mangala is the largest oil discovery in India for over 20 years.

  • India

    Five rigs moved to Rajasthan for ongoing exploration and appraisal programme

  • India

    Acquires 2,306km of 2D seismic and 468sq km 3D seismic on Block RJ-ON-90/1

  • Key event - India

    Gauri field in the Cambay Basin commences gas production

  • Corporate - India

    Successful placing of 7,512,850 new ordinary shares (5%) of £13.70/share raises ~£102.9 million before expenses

2003
  • Key event - India

    Raageshwari discovery

    Exploration drilling programme on block RJ-ON-90/1, India leads to discovery of the Raageshwari oil and gas field.

  • India

    Offshore exploration drilling programme on Blocks KG-OS/6 and CB-OS/2

2002
  • Key event - India

    First gas from Lakshmi

    Completes development of the offshore Lakshmi gas field, 29 months after discovery; production started in November at 90mmscfd.

  • India

    Oil tested at Lakshmi, India at 10,500 bopd

  • Corporate - India

    Cairn acquires Shell's remaining 50% working interest in the Rajasthan block RJ-ON-90/1 and assumes operatorship

2001
2000
  • India

    Acquires 2,500+km 2D seismic survey in CB-OS/2, India

  • India

    Acquires 277sq km OBC 3D seismic survey over Ravva field, India

  • India

    Acquires 760sq km 3D seismic survey in KG-OS/6, India

  • India

    Acquires 1,500sq km 3D seismic survey in KG-DWN-98/2, India

  • India

    Acquires 1,000km 2D seismic survey in RJ-ON-90/1 and commenced acquisition of 450sq km 3D seismic survey over Guda oil discovery trend, Rajasthan

  • India

    Concludes 450sq km 3D seismic survey over Guda oil discovery trend

  • India

    Discovery of Lakshmi oil and gas field in the CB-OS/2 block, Cambay Basin

    This is the first discovery in the block.

  • India

    Seven well deepwater drilling campaign in KG-DWN-98/2 and KG-OS/6 leads to discovery of hydrocarbons at DWN-N-1, Annapurna, Padmavati and Karnaka Durga

    Cairn establishes the water depth record for drilling in India and confirms the hydrocarbon prospectivity of the Krishna-Godavari basin, home to the world's largest gas discovery in 2004.

1999
  • India

    Ravva field, India production increases from 35,000 bopd to new approved plateau rate of 50,000 bopd

  • India

    Acquires 1,500 km 2D seismic survey in KG-OS/6

  • India

    Takes over operatorship of Rajasthan block from Shell increasing interest to 50%

  • Corporate - India - Thailand - China

    Continues to increase focus on the Indian subcontinent by selling non-core interests in China and Thailand and by a moratorium on non-Indian new ventures

  • Key event - India

    First Rajasthan discovery

    Cairn and Shell discover Guda.

1998
  • India

    Exploration well in Ravva tests 45 mmscfd from two zones

  • India

    Signs PSCs for KG-OS/6 and CB-OS/2, offshore India

  • India

    Farms in for 27.5% interest to Shell operated exploration Block RJ-ON-90/1 in Rajasthan

1997
  • Key event - Corporate - Bangladesh - India

    Bangladesh transaction with Shell

    In July, Cairn and Shell sign an operational alliance over the whole of Bangladesh and parts of India – including the Rajasthan block interest.

1996
  • India

    Assumes operatorship and development responsibility for the Ravva oil and gas field, offshore India (22.5% interest). Production increases from 3,000bopd to 35,000bopd.

1994
  • Key event - India

    Ravva field development commenced leading to significant oil production