Analyst Meet - 3rd Feb09

Cairn India Analyst Presentation Mumbai – February 2009
CAIRN INDIA LTD

Analyst Presentation
Mumbai, February 2009
Cairn India Analyst Presentation Mumbai – February 2009 2
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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Agenda
¾ Cairn India Overview - Rahul Dhir, Chief Executive Officer
¾ Rajasthan Project:
¾ Rick Bott, Chief Operating Officer
¾ S V Nair, Director Projects
¾ H P Bhalla, Director Midstream
¾ Rajasthan Reserves - Ananthakrishnan , Head Reservoir Development
¾ Rajasthan Crude Marketing - P Elango, Director Strategy
¾ Producing Assets - Santosh Chandra, Director Drilling and Petroleum Engineering
¾ Exploration - David Ginger, Director Exploration
¾ Finance - Indrajit Banerjee, Chief Financial Officer
¾ Conclusion - Rahul Dhir, Chief Executive Officer
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Cairn Overview
Rahul Dhir Chief Executive Officer
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Overview
¾ Rajasthan
¾ Focused on delivery and growth
¾ World class resource base
¾ Enhanced Oil Recovery (EOR) potential
¾ Pipeline route allows access to multiple buyers
¾ Large volume on long term basis
¾ Increased delivery, consistent cash flow
¾ 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 (GoR) and

Government of India (GoI)
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Overview - Journey Since IPO
Maximise Execute Maximise Identify

recovery from Rajasthan Potential in new growth
production base development Rajasthan opportunities
Successful drilling - First production >3,000 km2 under Unrisked potential:

Ravva and CB/OS-2 Mangala Q3 2009 long term contract 1.4 billion bbls
Major regulatory Growing resource New leads in existing

Maintaining low clearances obtained base portfolio
operating cost base
Delivery point shifted Increased Mangala Seismic programmes
recovery completed
Time lapse (4D) Major contracts
seismic in Ravva awarded EOR Acreage in Sri Lanka
Mangala FDP Monetise Barmer Hill

revision submitted and other fields
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Overview - Cairn India Assets
Rajasthan – Exploration (RJ-ON-90/1)

Total 14 blocks
Cairn (Operator) 100%
2 Production Blocks
Rajasthan – Development ¾ Operated gross field production
Cairn (Operator) 70% ~63,000 boepd
(net to Cairn ~16,500 boepd)
ONGC 30%
1 Development Block
RJ-ON-90/1
¾ Rajasthan block under
Gross production target development – Mangala,
expected ≥175,000 bopd Bhagyam and Aishwariya fields
with a further 22 discoveries
11 Exploration Blocks
¾ 6 operated in India and Sri
CB/OS-2 Lanka
Gross Production* RAVVA
~13,500 boepd
Cambay (CB/OS-2) Ravva

Gross Production*
Cairn (Operator) 40% ~49,000 boepd Cairn (Operator) 22.5%
ONGC 50% ONGC 40%
Tata 10% Videocon 25%

Ravva Oil 12.5%
All Q4 2008 figures
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Overview - Transformational Growth

~200,000 bopd
Gross
Increase in production Cairn India

Gross: 200% production including
Working Interest >600% peak output from
Mangala, Bhagyam
and Aishwariya
fields
~63,000 bopd
Gross
Production from Cairn

India assets Ravva and
Cambay
Working Interest
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Q4 2008 2011
Overview - Rajasthan Funding
Estimated Costs US$ billion Financed By US$ million
Gross 2008 and 2009 2.0 ¾ Cash available 441

(1st Jan’08)
¾ Upstream 1.2
¾ Pipeline 0.8 ¾ Cash flow from operation in 2008 182
Net to Cairn 2008 and 2009 1.4 ¾ Preferential allotment 625
Gross 2010 and 2011 1.5 – 1.8 ¾ Existing debt facility 850
(drawn to date – US$ 640mm)
Total 2,098
Capital Optimisation 2008 / 2009 ~US$ 600 million Gross
¾ Bhagyam and Aishwarya phasing

Additional Sources
¾ Drilling optimisation
¾ Cash flow from operations 2009 and beyond
¾ Startup with smaller train ¾ Proposed additional debt facility
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Rajasthan Project
Rick Bott Chief Operating Officer
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Rajasthan - Overview
Shakti
N-I-North Shakti NE
¾ 1995 - Production Sharing Contract Development Area-2

Awarded: Nov 2006
NC West Oil and Gas
(PSC) awarded Area: 430 km2 N-I

MANGALA
Mangala Barmer Hill

¾ 1997 - acquired 10% interest BHAGYAM
Bhagyam AISHWARIYA
South
¾ 2002 - acquired 100% interest

Vijaya and Vandana
N-E
N-R
¾ 2004 - Mangala discovery N-P

Development Area-1
Awarded: Oct 2004
Area: 1,859 km2
¾ 2007 - IPO of Cairn India Kameshwari West
GS-V
¾ ~80% total gross reserves of Cairn India Saraswati
Kameshwari
¾ 25 discoveries to date Kameshwari West

Development Area RAAGESHWARI OIL
Area: 822 km2
RAAGESHWARI EAST
¾ Production Target 175,000 bopd
RAAGESHWARI GAS
from Mangala, Bhagyam and Aishwariya (MBA) Guda
¾ Peak production will account for >20%

of India’s estimated oil production
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Rajasthan - Reserves and Resource Base
MBA Fields
> 2 billion boe

under development
Reserves and Resources

over 1 billion boe
Gross 2P recoverable Chemical EOR resource

(to 2041) potential
685 mmbbls > 300 mmbbls
¾ Work on reserves, resources and potential production from

remaining fields ongoing including:
¾ Barmer Hill potential ~400 mmbbls STOIIP
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Rajasthan - Production Schedule
Mangala Processing Terminal (MPT) four

processing trains; capacity 205,000 bopd:
Schematic
¾ Train 1 (30,000 bopd capacity)
Q3 2009 Initial export by trucking
175,000
EOR Current
FDP
bopd Potential to
¾ Train 2 (50,000 bopd capacity) extend and
Q4 2009 Additional Mangala enhance
Oil Rate
production, export by pipeline plateau
¾ Train 3 (50,000 bopd capacity) MBA Water flood

H1 2010 Mangala 125,000 bopd plateau
¾ Train 4 (75,000 bopd capacity)

2011 MBA plateau 175,000 bopd
Q3 10 Years
2009
EOR 2013 onwards full field implementation
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Rajasthan - Recovery System

Fuel Gas
Distribution Gas Recovery System
System
Export
Oil Storage
Separator + Heat Export

Pipeline
Water
Injector
Vertical Horizontal Heat Saline Water
Well Well Abstraction
Water Table
Fresh Water
T
Sali humbli
ne A
quif
er
Oil
Bar
me
rH
ill
F at
eh g
arh
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Rajasthan - Project Delivery
UPSTREAM PIPELINE PROJECT

ACTIVITY
Status Status
Detailed Engineering and Design 9 9

Land Acquisition / Right Of User (RoU)
and Statutory Approvals 9 Nearing Completion
Procurement (Long Leads items) 9 9

Construction Mobilisation 9 9
MPT Production facilities
Export Pipeline
RGT facilities
AGIs
Mangala well pads
Viramgam Terminal
Construction Activities Thumbli water fields
Radhanpur Terminal
Terminal buildings, sub
stations etc
Intra field pipelines
Pipeline Works (Infield and Main Export) In Progress In Progress
Drilling Rigs Mobilisation 9 NA
Development Drilling Feb 2009 NA
Commissioning and First Oil Q3 2009 Q4 2009
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Rajasthan - Contracts
¾ Staggered contracting strategy – civil and main contract

¾ Early award of civil contract (Dec 2007) to fast track site development
¾ Major contracts awarded to Indian contractors
¾ Orders for long lead items placed in 2007

¾ Mitigate cost pressures
¾ Guaranteed delivery as per the project schedule
¾ Timely order of the line pipe
¾ Strategic use of local resources

¾ Unskilled labour and equipments for civil works hired locally
¾ Drilling and completion tubulars

¾ First in India - supply chain management contract
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Rajasthan
S V Nair Director Projects
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Rajasthan - Development Layout
MPT and well

¾ Integrated upstream and midstream development Bhagyam
pads
Field
focused around MPT with local power and water
supply Aishwariya
Field
Intra field
¾ Six fields under development focused around pipelines
and crossings
Thumbli water
field well pads
MBA Barmer
and facilities
¾ Raageshwari Gas Terminal (RGT) and Thumbli

water field supply
¾ Intra field pipelines
¾ Viramgam Terminal
¾ Above Ground Installations (AGIs)

RGT & well pads
¾ Highest onshore production rate wells in India

Export Oil Pipeline
Gas and Condensate Pipeline
Flow
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Rajasthan - Mangala Processing Terminal

Steam
Turbine 1 3
Generators Steam Boilers
Oil Export Tanks
Water
Tanks
Power Water
Oil
Injection Water Settling
Tanks
Produced Water
Export Oil Pipeline
Fluids from Well Pads

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Rajasthan - MPT Construction Progress
Boiler Area
Boiler Area Pipe rack 2
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Rajasthan - MPT Construction Progress
Off Spec & Settling Tanks Well Pad 9
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Rajasthan
H P Bhalla Director Midstream
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Rajasthan - Export Pipeline
¾ Heated and insulated pipeline ~600 km
¾ More than 30 heating stations
¾ 1 Mega Watt power generator at

heating stations
¾ Pipeline passing through two states:

Rajasthan and Gujarat
¾ All land acquired for AGIs and terminals
Coastal
09S0004AE00 Terminal Pipeline Route
Rajasthan - Pipeline Schematic

Sanchore Heated crude
35 SEHMS Pigging Station oil pipeline
Mangala
Processing
Terminal Gas pipeline
Raageshwari
Gas supply
Viramgam
Intermediate
Terminal Buyer
storage, pumping
and export
Coastal Terminal
storage and export
Distribution to Refiners Wankaner

Pigging Station
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Rajasthan - Pipeline Construction Work
Pipe laying
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Rajasthan - Viramgam Terminal
Cairn constructed oil storage tank

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Rajasthan Resources
Ananthakrishnan Head Reservoir Development
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Rajasthan Resources - Cairn MBA 2P Estimates

STOIIP (mmboe) 2P Gross (mmboe) 2P Net (mmboe)
2,054
MBA & MBA EOR
685
MBA
479
MBA EOR
MBA EOR
MBA
308
216
Cairn Total 2,054 Cairn Total 993 Cairn Total 695
• 2P Reserves and Resources – Gross & Cairn Net 2007 year end – Cairn India Limited and DeGolyer & MacNaughton
• 2P Reserves include estimates of expected production during the current PSC term (14 May 2020 for Rajasthan)
• 2C Resources are those volumes expected to be produced outside the current PSC term (end of field life) or where development planning or approval is pending
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Rajasthan Resources - Mangala
Application of cost effective technology has 1500

resulted in: Mangala
¾20% increase in STOIIP over FDP 1293 STOIIP
mmbbls
¾30% increase in reserves and resources 1202
¾25% increase in plateau rate
1071
Pre STM 3D Seismic, PHIE, SWT, DS Data

Post STM 3D Seismic, PHIE, SWE, DS Data
956
1000
829
Post STM 3D Seismic, PHIE, SWE

Additional 2D Seismic, PHIE, SWE
( 9 Wells )
( 7 Wells )
2D Seismic, PHIE, SWE
( 7 Wells )
( 7 Wells )
( 2 Wells )
500
DoC DoC Update FDP IPO Dec 2007

09S0004AE00 (June 2004) (Aug. 2004) (Oct. 2005) Dec 2006
Rajasthan Resources - Bhagyam And Aishwariya
Bhagyam 3D
Bhagyam
¾ Field Development Plan (FDP) approved:
Offtake rate 40,000 bopd
¾ Front End Engineering Design (FEED) completed
Aishwariya
¾ Aishwariya STOIIP increased to 293 mmbbls from
the FDP approved STOIIP of 213 mmbbls
¾ Increase in STOIIP provides a commensurate increase in field recoverable

volumes to 64 mmbbls
¾ Production potential increase from 10,000 bopd to 20,000 bopd subject to

regulatory approvals
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Rajasthan Resources - EOR
¾ Increased reserves Schematic

¾ Better sweep efficiency
¾ Better displacement efficiency 175,000
EOR Current
FDP
bopd Potential to
extend and
¾ Plateau extension / enhancement enhance
Oil Rate
plateau
¾ Mobilise more oil
¾ Increase in production rate
MBA Water flood
¾ Reduced costs
¾ Reduced water handling
¾ Reduced energy requirement Q3 2009 10 Years
¾ EOR potential from MBA fields ~300 mmbbls
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Rajasthan Resources - EOR
Courtesy : SNF
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Rajasthan Resources - EOR Processes
Alkaline-Surfactant-Polymer (ASP) Flooding Oil Saturation Display at Pore

Level Reduction in Trapped Oil
Original oil
Sand Grain Remaining oil Water
Initial After Waterflood After ASP flood
Polymer Flooding
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Rajasthan Resources - EOR Analogue Fields
Analogue Field Performance

Daqing - ASP Pilot Performance
¾ Two large oil fields in China (Daqing and
Shengli) have produced ~100 mmbbls oil
per annum by polymer flooding alone in
recent years
Incremental Recovery, %
¾ Incremental polymer flooding recovery
~12% STOIIP
¾ ASP pilots in Daqing since 1994 indicate

incremental recovery of ~20-25% of
STOIIP
SPE 77871, Wang Demin (2002)
¾ ASP pilots in Shengli reported incremental Time
recovery of >20% of STOIIP
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Rajasthan Resources - EOR Laboratory Studies
¾ Core Flood:
¾ Two independent
laboratories indicate
30-40% incremental
recovery from ASP
Oil Cut, %
Cumulative Oil, %
¾ Simulation:
¾ Indicates significant
potential for ASP/Polymer
flooding compared to water
flooding Cum Oil
Cum Cut
¾ Incremental recovery expected

to be ~15% from MBA fields
(~300 mmbbls) Incremental ASP recovery post
water flood in laboratory test
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Rajasthan Resources - EOR Potential Timelines
¾ EOR potential from MBA fields is

~300 mmbbls Mangala
Discovery Well
January 2004
¾ Mangala EOR pilot planning under

final review
¾ 2011: Approval process
Mangala
¾ 2013 - 2014: Mangala field wide Processing
Terminal
implementation
¾ Bhagyam and Aishwariya to follow Export

Oil Pipeline
36
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Rajasthan Resources - Barmer Hill
¾ Potential STOIIP 400 mmbbls
¾ Low permeability reservoir

¾ Further technical studies
underway fracture stimulation
required
¾ Wells tested in Mangala and

Aishwariya at 30 - 250 bopd
¾ Development options under

consideration
¾ Recoveries in analogue fields:

¾ Primary recovery 7-10%
¾ Secondary recovery >20%
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Rajasthan Resources - Small Fields

SHAKTI Shakti NE
N-I-North
¾ Low cost development through technology application NC West Oil and Gas
¾ Low Cost drilling N-I

Mangala
¾ Modular facilities Bhagyam MANGALA BARMER HILL
Bhagyam Aishwariya
South
¾ Leveraging existing infrastructure: N-E

Vijaya and Vandana
¾ Tie in to MPT N-R

N-P
Status: Kameshwari West
GS-V
¾ Kameshwari West Development Area awarded Saraswati
Kameshwari
¾ Shakti FDP submitted Raageshwari Oil
Raageshwari East
¾ Guda FDP under preparation

Raageshwari Gas
GUDA
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Rajasthan Crude Marketing

P Elango Director Strategy
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Rajasthan Crude - Marketing Overview
¾ India currently:
¾ Imports*: ~2.4 mmbbls/day
¾ Produces*: >680,000 bbls/day
¾ Exports: ~400,000 bbls/day of product
¾ Sufficient demand for Rajasthan crude
¾ GoI in process of confirming nominees for crude oil sales
¾ Initiate sales by Q3 2009
¾ Pipeline route allows access to multiple buyers and refineries
* Source: MoPNG – Petroleum Statistics 2007-2008

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Rajasthan Crude - Quality

Classification Range Crudes
Indian Crude Slate : 2007 - 2008
Bombay High (39.3)
Light > 31 Brent (38.0),
WTI (38.7)
API o
Dubai (30.4)
Medium 22 – 31 Rajasthan
(28.4) Medium Sour
59.5%
Maya (21.1) (Dubai)
Heavy < 22
Duri (21)
Key Elements Quality Transportation Light

Light Medium Sweet Sour
Heavy
Sweet 14.5% 1.0%
Sour
19.8% (Oman)
API √ 5.1%
(Maya)
Viscosity √
(Rajasthan)
Pour Point √ (BH, Brent)
Sulphur √
Yield √
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API (American Petroleum Institute) Classification
India - Crude Quantity
Indian Crude Slate : 2007 - 2008
Imported
78.1% 60.8%
75.9%
Domestic
21.9% 100%
Domestic
79.7% 39.2%
24.1%
Rajasthan
Crude
20.3% Coastal Inland Private
Refineries Refineries Refineries
Imported Indigenous
Rajasthan peak production 175,000 bopd will

represent >20% of domestic production Imported & Domestic Quantity : MOPNG Data
Future : Assuming Indian production remains at current levels.
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Rajasthan Crude - Sales
Contractors sell Crude to government (or its nominee) on price determined as per PSC
Government Government Free

Nominees purchases full Marketing
volume
GoI to appoint nominees Contractor can freely lift, sell & transport
the balance volume
Delivery Point at the outlet flange of the

export terminal or the customer’s facilities in
India
Agreement on a Crude Oil lifting procedure
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Rajasthan Crude - Marketing

Bhatinda
¾ Multiple Customers
Panipat
¾ On land and coastal
DELHI
¾ Access to 75% of India’s
refining capacity
Rajasthan
Mathura
¾ Multimodal sales Mangala

¾ Neat and blend options
¾ Multimodal transport
¾ Trucking, pipeline and tankers Viramgam
Jamnagar
¾ Crude Oil Sales Agreement (COSA) Koyali

Gujarat
¾ Long and short term
Tankers to
Coastal
Refineries Pipeline Route
Existing Pipelines
Refinery
Cairn blocks
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Rajasthan Crude - Summary
¾ Targets achieved:
¾ GoI agreed to shifting of Delivery Point
¾ GoI agreed to nominate multiple buyers
¾ Blending studies carried out
¾ Evaluated the supply chain constraints
¾ Ongoing
¾ Appointment of multiple nominees by GoI
¾ Agreement of reference crude basket for pricing with GoI
¾ Agreement of COSA / lifting procedures with buyers
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Producing Assets
Santosh Chandra Director Drilling and Petroleum Engineering
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Producing Assets
CB/OS-2 - Onshore Plant Capacity RAVVA - Onshore Plant Capacity
Crude 10,000bpd Crude 70,000bpd
Gas Processing 150 MMscfd Gas Processing 95 MMscfd
Crude Storage 28,000 bbls Crude Storage 1 Million bbls
CB/OS-2 - Offshore RAVVA - Offshore

Platforms 8
Platforms 3
Export Facility Single Point Mooring
Sub-sea Pipelines ~35 KM
Sub-sea Pipelines ~170 KM
CB/OS-2 Gross Production*

Gross Production* ~49,000 boepd
RAVVA
~13,500 boepd
Cambay (CB/OS-2)
Ravva
Cairn (Operator) 40%
Cairn (Operator) 22.5%
ONGC 50%
ONGC 40%
Tata 10%
Videocon 25%
All Q4 2008 figures Ravva Oil 12.5%
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Producing Assets - Ravva Field
Field Milestones
¾ Increased production from 3,700 bopd to 50,000
bopd – now in decline
¾ Plateau extended to 8 years, reserves doubled
¾ Produced >200 mmbbls
¾ Health, Safety and Environment (HSE):
¾ 2.4 million hours with no Lost Time
Injuries (LTI)
¾ ISO14001 and OHSAS18001 Certified
2008 Business Results

¾ Drilling campaign completed
¾ Gross Production ~53,500 boepd
¾ Field direct Opex ~1.5 $/Boe
¾ Contract for 4D seismic awarded
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Producing Assets - CB/OS-2 Cambay Basin
Field Milestones
¾ Discovery to delivery in 26 months
¾ HSE Standards
¾ 1.4 million hours with no LTI
¾ ISO14001 and OHSAS18001 Certified
2008 Business Results

¾ Offshore rig campaign completed successfully
¾ Gross Production ~13,800 boepd
¾ Field direct Opex ~2.7 $/boe
¾ Facilities upgraded
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Producing Assets - Forward Strategy
¾ Maintain world class QHSE

standards and operating practices
¾ Enhance value through maximising

production and reserves
¾ Application of technology
¾ 4D seismic in Ravva
¾ Pursue exploration opportunities
¾ Continue top quartile performance

for operating costs
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Exploration
David Ginger Director Exploration
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Exploration - Platform for Future
¾ Major long term player

¾ Large proprietary database
¾ Experienced team
¾ Successful exploration over 10 years:
Success ratio ~40%
Cairn Rajasthan
¾ Play based approach to building

portfolio Cairn Cambay
¾ Diversity of basin, plays and

INDIA
environments Cairn Ravva
¾ Regional petroleum system studies ONGC/Cairn Deepwater
ongoing in key basins
¾ “Drill Bit exploration”; 181 exploratory
wells versus 56 obligation wells
Oil & Gas Seeps
Recent Discoveries
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Exploration - Integrated Application of Technology

Reprocessed and enhanced
regional gravity data used in
integrated basin modeling
OLD
Cairn reprocessed
INDIA
Acquisition and
processing of “best
in class” seismic data
in KG and Palar
Fully integrated Petroleum Basins
systems modeling
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Exploration - Portfolio
Portfolio Content
Net Unrisked Prospective Resource (mmboe)
Frontier and
Emerging Play
Plays Extensions
66% 23%
Deep Water Onshore Appraisal

61% 28% 11%
Shallow Water
11%
¾ Consistent growth since IPO: building a portfolio to deliver continued growth

¾ >1,400 mmboe net unrisked resource potential
¾ Rajasthan discovery December 2008
¾ 90% operated by Cairn India
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Exploration - Raageshwari East Discovery
¾ Separate oil discovery adjacent to

Raageshwari
Raageshwari field Oil Field
¾ Test: 500 bopd and 0.4 mmscfd, 40o

API waxy oil
¾ 10.24m net pay, 81m gross in 2 oil

columns Raageshwari-East-1Z
¾ Lowest known oil in area deepened Most

Likely Oil
by 60m Raageshwari
Deep Gas
¾ Upside: future drilling and possible

Possible
3D seismic Upside
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Exploration - Kameshwari West Development Area
Development Area-2
Third Development Area awarded by GoI Awarded: Nov 2006
Area: 430 km2
Kameshwari West Development Area: 822 km2

¾ Kameshwari West 2, 3 and 6 discoveries
¾ Kameshwari West 2 and 3 lie in new play in Upper
Barmer Hill/Lower Dharvi Dungar Sandstones Development Area-1
Awarded: Oct 2004
Area: 1,859 km2
Total area under long term contract: 3,111 km2

¾ Mangala (Development Area-1): 1,858 km2
¾ Bhagyam (Development Area-2): 430 km2
Kameshwari West
Development Area
Area: 822 km2
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Exploration - Sri Lanka: Block SL 2007-01-001
¾ Cairn Lanka 100% Working Interest

(NOC back-in 15%) India
¾ Block Area: 3,000 km2
¾ Water depth: 200-1,800 m
¾ Extension of proven hydrocarbon play

(Cauvery / Mannar)
SL 2007 01 001
¾ Under explored, frontier basin with
multiple plays
¾ Future Work
¾ 2D / 3D seismic - 2009 / 2010
¾ Drilling in 2011 SRI LANKA
Prospects & Leads

50km
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Exploration - Ongoing Programme
RJ-ONN-2003/1 VN-ONN-2003/1 GV-ONN-2003/1 GV-ONN-2002/1

2 to 4 wells Finish processing of Complete 550 km 2D Complete drilling
2D seismic. seismic; processing operations, decision
Decision on Phase II and interpretation on Phase II
RJ-ON-90/1
Drilling and 3D
seismic to continue
resource additions
CB-ONN-2002/1 KG-ONN-2003/1
2 wells 2009
2 wells 2009
3 wells 2010
INDIA RAVVA
GS-OSN-2003/1
Planning appraisal &
1 well in 2010 exploration wells to
support production
KK-DWN-2004/1 KG-DWN-98/2
Complete 3,800 km
3 wells 2009; Ultra-
2D. Processing and
deep drilling 2010
Interpretation
SL-2007-01-001 PR-OSN-2004/1
Seismic:5,000km 2D, SRI LANKA 8,000 km2, 2010
OPERATED 1,000km2 3D by 2010 Drilling 2011
NON-OPERATED Drilling 2011
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Finance
Indrajit Banerjee Chief Financial Officer
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Finance - Consistent Cash Flow from Operations
100 102
US$ million
86
23
74 76 25
71
20 2 Cash cost
60 8 60
14 17 3 8 27 Tax
29 6
3 3 21 Other income
17 9 9
2 10 Cash flow
8 1
7 from operations
57 59 50 18 (CFFO)
33 45 45 30
20
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2007 2008
¾ **CFFO = PAT + Exploration + Deferred Tax + Other Non cash – Other Income
¾ Cash cost = Production cost + G&A + Interest paid
¾ Other Income = Income from Investments
¾ Tax = Current Tax + FBT on ESOP.
¾ Conversion Rate: Q1‘07 Rs.44.14; Q2‘07 Rs.41.26; Q3‘07 Rs. 40.53; Q4‘07 Rs. 39.43; Q1‘08 Rs.39.82; Q2’08 Rs.41.65; Q3’08 43.65; Q4’08: 48.72
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Finance - Cost Efficient Operations
Production cost at Ravva and CB

Other costs
US$ / boe
Field Direct Opex
7.22 7.14
6.25 6.18 5.93
3.85 4.05
4.88 4.83
4.59 3.72 3.16 3.42
3.04 2.96
3.67
3.36 3.09 3.02

2.53 2.51
1.84 1.87
0.92
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2007 2008
¾ Field Direct costs excludes the workover costs(Q1’07: $1.12/bbl, Q4’07: $4.24/bbl, Q2’08: $0.88/bbl, Q3’08: $0.58/bbl)
¾ Conversion Rate: Q1‘07 Rs.44.14; Q2‘07 Rs.41.26; Q3‘07 Rs. 40.53; Q4‘07 Rs. 39.43; Q1‘08 Rs.39.82; Q2’08 Rs.41.65; Q3’08 43.65; Q4’08: 48.72
¾ Production cost /boe are based on working interest
09S0004AE00
Finance - Price Realisation
Oil Price Realisation Gas Price Realisation

140 6
128
118
122
120 4.8
116 5 4.7 4.6
118
100 4.4 4.4
112 4.2 4.2
4.1
100 91 97
4
89 94
77
US$ / mscf
3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9
US$ / bbl
80 71
75 83
61 69 3
69 57
60 58 56
59
56 Ravva 54 2
40 CB-OS/2
Brent
Ravva
1
CB-OS/2
20
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2007 2008 2007 2008
09S0004AE00
Finance - Rajasthan Funding 2009
Estimated Costs US$ billion Financed By US$ million
Gross 2008 and 2009 2.0 ¾ Cash available 441

(1st Jan’08)
¾ Upstream 1.2
¾ Pipeline 0.8 ¾ Cash flow from operation in 2008 182
Net to Cairn 2008 and 2009 1.4 ¾ Preferential allotment 625
Gross 2010 and 2011 1.5 – 1.8 ¾ Existing debt facility 850
(drawn to date – US$ 640mm)
Total 2,098
Capital Optimisation 2008 / 2009 ~US$ 600 million Gross
¾ Bhagyam and Aishwarya phasing

Additional Sources
¾ Drilling optimisation
¾ Cash flow from operations 2009 and beyond
¾ Startup with smaller train ¾ Proposed additional debt facility
09S0004AE00
Finance - Government of India Share
Profit Petroleum
65% Ravva
US$192.3 million US$279 million
Sales Tax
Income 23%
Tax US$78 million
3% Cess Corporate Taxes CB/OS-2
US$12 million 3% US$21 million US$39 million
US$10 million
Service
Tax Royalty
3% 2% Total Contribution 2008
US$9 million US$7 million
US$339 million
09S0004AE00
Finance - Rajasthan Profit Sharing
Gross Revenue Gross Revenue:

Sales Revenue
Cost Petroleum:
Cost Petroleum 100% Cost recovery of Exploration,
Development and Production costs
(upstream and pipeline)
Profit Petroleum:
Profit Petroleum
(Gross Revenue – Cost Petroleum)
JV share in Profit Petroleum GoI share in Profit Petroleum GoI Profit Petroleum:
80.…70…60..50% 20.…30…40..50% Based on Investment
Multiple applied on Fiscal
Year basis
Cairn - 70% (WI) ONGC - 30% (WI)
Development – 70% Development – 30%

Exploration – 100%
09S0004AE00
Finance - Summary
¾ Funding in place to deliver core Rajasthan project and pipeline
¾ Consistent performance of Cash Generation from efficient operations
¾ Achieved an average Gross Profit Margin of 83% in last 2 years
¾ Crude selling price consistent with benchmark
¾ Forward production predominantly oil
09S0004AE00
Conclusion
Rahul Dhir Chief Executive Officer
09S0004AE00
Conclusion
¾ Rajasthan
¾ Focused on delivery and growth
¾ World class resource base
¾ Enhanced oil recovery potential
¾ Pipeline route allows access to multiple buyers
¾ Large volume on long term basis
¾ Increased delivery, consistent cash flow
¾ 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
09S0004AE00

Analyst Meet - 3rd Feb09

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Analyst Meet - 3rd Feb09

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Cairn India Analyst Presentation Mumbai – February 2009

CAIRN INDIA LTD

¾ Cairn India Overview - Rahul Dhir, Chief Executive Officer

¾ Rajasthan Reserves - Ananthakrishnan , Head Reservoir Development

¾ Rajasthan Crude Marketing - P Elango, Director Strategy

¾ Producing Assets - Santosh Chandra, Director Drilling and Petroleum Engineering

¾ Exploration - David Ginger, Director Exploration

¾ Finance - Indrajit Banerjee, Chief Financial Officer

¾ Conclusion - Rahul Dhir, Chief Executive Officer

¾ Maximise production from current producing assets

¾ Increasing exploration potential

¾ Strong economic contribution to the State of Rajasthan (GoR) and

Overview - Journey Since IPO

Maximise Execute Maximise Identify

Successful drilling - First production >3,000 km2 under Unrisked potential:

Major regulatory Growing resource New leads in existing

Mangala FDP Monetise Barmer Hill

Overview - Cairn India Assets

Rajasthan – Exploration (RJ-ON-90/1)

Cambay (CB/OS-2) Ravva

ONGC 50% ONGC 40%

Tata 10% Videocon 25%

Overview - Transformational Growth

Increase in production Cairn India

Production from Cairn

Overview - Rajasthan Funding

Estimated Costs US$ billion Financed By US$ million

Gross 2008 and 2009 2.0 ¾ Cash available 441

Net to Cairn 2008 and 2009 1.4 ¾ Preferential allotment 625

Capital Optimisation 2008 / 2009 ~US$ 600 million Gross

¾ Bhagyam and Aishwarya phasing

¾ 1995 - Production Sharing Contract Development Area-2

(PSC) awarded Area: 430 km2 N-I

Mangala Barmer Hill

¾ 2002 - acquired 100% interest

¾ 2004 - Mangala discovery N-P

¾ ~80% total gross reserves of Cairn India Saraswati

¾ 25 discoveries to date Kameshwari West

¾ Peak production will account for >20%

Rajasthan - Reserves and Resource Base

> 2 billion boe

Reserves and Resources

Gross 2P recoverable Chemical EOR resource

¾ Work on reserves, resources and potential production from

Rajasthan - Production Schedule

Mangala Processing Terminal (MPT) four

¾ Train 3 (50,000 bopd capacity) MBA Water flood

¾ Train 4 (75,000 bopd capacity)

Rajasthan - Recovery System

Separator + Heat Export

Rajasthan - Project Delivery

UPSTREAM PIPELINE PROJECT

Detailed Engineering and Design 9 9

Procurement (Long Leads items) 9 9

¾ Staggered contracting strategy – civil and main contract

¾ Orders for long lead items placed in 2007

¾ Strategic use of local resources

¾ Drilling and completion tubulars

Rajasthan - Development Layout

MPT and well

¾ Raageshwari Gas Terminal (RGT) and Thumbli

¾ Intra field pipelines

¾ Above Ground Installations (AGIs)