Presentation to MoS (I.C.

) (PNG)

IOC’s Overseas Projects

11th August 2014

 Carabobo Project-1, Venezuela Area 86, Libya

Area 95/96, Libya Block 102/4, Libya

Farsi, Iran

PNW LNG Block 82, Yemen

Project,
Canada
Block 83, Yemen

OML 142, Nigeria

Niobrara Shale Oil
Assets, USA

Block Shakthi, Gabon

IndianOil’s Overseas Upstream Assets

 Sequence of Presentation
 Overseas Producing Assets

 PNW LNG Project, Canada

 Niobrara Shale Project, USA

 Carabobo Project-1, Venezuela

 Overseas Exploratory Assets

 Active Exploratory Assets

 Area 95-96, Libya; Shakthi, Gabon; OML 142, Nigeria; Block 82, Yemen

 Other Exploratory Assets

 Farsi, Iran; Block 86, Libya; Area 102/4, Libya

 Relinquished Exploratory Assets

 Block K, Timor Leste; Block 83, Yemen

Overseas Producing Assets
Pacific Northwest (PNW) LNG Project, Canada
Pacific Northwest (PNW) LNG Project
 PNW LNG Project, Canada
Location British Colombia

Operator Progress Energy Canada Ltd.

Progress Energy Canada Ltd. (62%, Operator)

Japex (10%)
JV Partners Petroleum Brunei (3%)
IOCL (10%)
Sinopec (15%)

Upstream :
1.16 million gross acres; 8.35 Tcfe gross 2P Reserves
Downstream :
Project Details
2 x 6 MMTPA LNG Trains
LNG Offtake Commitment :
10% LNG from liquefaction Plant (i.e. 1.2 MMTPA)

Approved Investment C$3.97 billion (including acquisition cost)

Date of Transaction Closure 25.03.2014
Estimated IRR 9.4 %
 PNW LNG Project, Canada
Benefits expected at the time of Acquisition
 Access to producing asset & securing significant gas resource for future use

 Access to substantial reserves & resource base

 Gain of significant experience in unconventional resource development

 Securing new LNG supply thereby diversifying exiting LNG supply sources

 Access to one of the few Canadian LNG projects at an advance stage of

execution

 Opportunity to partner with Petronas, which has significant experience of

integrated LNG projects

 Benefit from being part of a world class large-scale resource play & Greenfield
LNG development

 Presence in a stable economy with a favourable policy & regulatory framework

PNW LNG Project – Year-wise Revenue

2014 (Jan-June’14)
Revenue
(C$ MM)
Projection Actual

Net to IOCL 48.5 46.0

Niobrara Shale Project, USA
Niobrara Shale Project, USA
 Niobrara Shale Project, USA
Weld, Morgan and Adams Counties, State of Colorado,
Location
USA

Carrizo Oil & Gas Inc. (USA), Noble Energy Inc. (USA),
Operator
Whiting Oil & Gas Corp. (USA), etc.

Carrizo – 60%
OIL India (USA) Inc. – 20%
JV Partners
IOCL (USA) Inc. – 10%
Haimo Oil & Gas LLC – 10%

Project Details ~75,430 Gross Acres; 138 MMBoe Gross 2P Reserves

Approved Investment ~US$130 million (including Acquisition Cost)

Date of Transaction Closure 1.10.2012

Estimated IRR 15.6 %

 Niobrara Shale Project, USA
Benefits expected at the time of Acquisition
 Access to US unconventional shale asset

 Gaining foothold in producing Niobrara Shale play

 Possible future association with Carrizo in its assets located in USA’s most

promising shale plays Eagle Ford, Barnett, Marcellus and Utica Shales

 Exposure and hands-on experience through secondment

 Possibility of participating / bidding jointly with Carrizo in future for shale

oil/gas blocks to be offered in India and elsewhere

 Niobrara Shale Project – Year-wise Revenue

Q4 2012 2013 Total 2014

Revenue
(US$ MM) P
P A P A P A P A
(6-month)
Net to IOCL 0.9 1.13 6.2 6.56 7.1 7.69 14.4 7.2 5.721

P: Projection A: Actual
Revenue for June 2014 to be received from Noble Energy by end of Aug-14
1
CARABOBO PROJECT-1, VENEZUELA
 Carabobo Project-1, Venezuela

Carabobo
Project-1

Reserves: 3,038 million barrels

Area: 383 km2
(IOC’s share: 106 million barrels)
 Carabobo Project-1, Venezuela
Location Orinoco Heavy Oil Belt, Onshore Venezuela

Operator PDVSA

PDVSA: 71%
Repsol: 11%
JV Partners
OVL: 11%
INDOIL: 7% (JV between OIL and IOCL having 50% each)

Project Details 383 sq km gross area; 3,000 MMBoe Gross 2P Reserves

Approved Investment US$ 424 million

Date of Award 25.5.2010 (awarded through licensing round)

Estimated IRR 16%

 Carabobo Project-1, Venezuela
Benefits expected at the time of Acquisition
 Opportunity to work in a giant discovered field in Venezuela in consortium
with reputed international oil companies

 Discovered asset with huge resource potential

 Access to long-life Project (25 years + 15 years), with likely improvement in

returns due to possibility of higher crude oil prices over the project cycle

 Access to significant future source of crude oil supplies – heavy crude oil
from the Project can be processed in IOCL’s refineries

 Benefit of better understanding the regional geology and investment climate

in nearby prolific countries such as Columbia, Brazil, Argentina etc. for
making future investments in the Latin American region
 Carabobo Project-1 – Year-wise Revenue

 Commencement of Production since Dec 2012

 Total No. of Producing Wells: 11

 IOCL’s share of Production (June 2014): 8.3 MBoe (277 b/d)

 Revenue to be realized after finalization of Sales & Purchase Agreement

(SPA) – being negotiated
Overseas Exploratory Assets
 Carabobo Project-1, Venezuela
Location Orinoco Heavy Oil Belt, Onshore Venezuela

Operator PDVSA

PDVSA: 71%
Repsol: 11%
JV Partners
OVL: 11%
INDOIL: 7% (JV between OIL and IOCL having 50% each)

Project Details 383 sq km gross area; 3,000 MMBoe Gross 2P Reserves

Approved Investment US$ 424 million

Date of Award 25.5.2010 (awarded through licensing round)

Estimated IRR 16%

 Area 95-96, Libya
Location Ghadames Basin, Onshore Libya
Operator Sonatrach (Algeria)
Sonatrach (Algeria)-50%
JV Partners OIL-25%
IOC-25%
Type of Contract Exploration & Production Sharing Agreement (EPSA)
Entry Date June 2008

Exploration Period Validity August 2015

Expected Start of Production 2016

Estimated IRR 18%
• Drilling of 5 wells completed - all encountered
hydrocarbon (oil and/or gas)
Current Status • Drilling of 6th well in progress
• Operation suspended on 19.5.2014 due to unrest in
Libya
 Block Shakthi, Gabon
Location Onshore Gabon
Operator OIL
OIL-45%
JV Partners Mavis (Singapore)-10%
IOC-45%
Type of Contract Production Sharing Contract (PSC)
Entry Date April 2006

Exploration Period Validity January 2023

Expected Start of Production 2019

Estimated IRR 23%
• Hydrocarbon discovery made in the 3rd exploratory well
Current Status • Drilling of 2nd appraisal well in progress
 OML 142, Nigeria
Location NE corner of Niger Delta, Onshore Nigeria
Operator Summit Oil Int’l Ltd., Nigeria
Summit Oil Int’l Ltd., Nigeria – 30%
Suntera Nigeria 205 Ltd., Nigeria – 70%*
JV Partners
(*Share holding in SN205 –
SRL 142 Holding Limited-50%, OIL-25%, IOC-25%)
Type of Contract Sole Risk (Tax & Royalty)
Entry Date October 2006
Oil Prospecting License (OPL) expired on 19.1.2009
Contract Period Validity
Oil Mining Lease (OML) granted for 20 years w.e.f. 12.6.2009
Expected Start of Production 2016
Estimated IRR 18%
• Appraisal of existing gas/condensate discovery & further
exploration in progress – 3D seismic data acquisition completed;
Current Status processing & interpretation to follow
• SRL 142 Holding Ltd in the process of divesting its stake in
SN205 to M/s Seven Energy, Nigeria
 Block 82, Yemen
Location Onshore Yemen
Operator Medco Energi, Indonesia
Medco Energi, Indonesia-38.25% (Op.)
Kuwait Energy, Kuwait -21.25%
JV Partners YOGC-15% (carried)
OIL-12.75%
IOC-12.75%
Type of Contract Production Sharing Contract (PSC)
Entry Date March 2009

Exploration Period Validity March 2015

Expected Start of
---
Production
Estimated IRR 15%
• 2D/3D seismic data acquired; to be processed &
interpreted
Current Status
• Operations suspended due to political crisis in Yemen –
no activity since Aug-13
 Other Exploratory Assets

Farsi Area 86 Block 102/4

Parameter
Offshore Iran Onshore Libya Onshore Libya

Entry Date Dec 2002 March 2005 Dec 2005

Consortium OVL-40% (Operator) OIL-50% (Operator) OIL-50% (Operator)

OIL – 20% IOC – 50% IOC – 50%
IOC – 40%

Status • Minimum Work Programme • MWP completed • MWP completed

(MWP) completed • No hydrocarbon • No hydrocarbon
• Commercial gas discovery find find
made • To be relinquished • To be relinquished
• Exploration Service Contract
expired on 24.6.2009
• Development Service Contract
under negotiation – progress
hampered due to US sanctions
 Relinquished Exploratory Assets

Block K Block 83
Parameter
Deepwater Timor Leste Onshore Yemen

Entry Date June 2008 March 2009

Consortium Reliance E&P DMCC-75% Medco Energi, Indonesia – 45%

(Operator) (Operator)
OIL-12.5% Kuwait Energy, Kuwait – 25%
IOC-12.5% OIL –15%
IOC – 15%

Status • MWP completed • Very low chance of success and

• No hydrocarbon find negative Estimated Monetary Value
• Relinquished on 30.1.2012 • Relinquished on 30.7.2014
Thank You