Oil India Limited Investor Presentation August 2015 Strictly Private & Confidential
Table of Contents 1. Company Background 2. Asset and Reserve Overview 3. Strategic Strengths 4. Operating and Financial Highlights 5. Growth Strategy 1
Company background
Oil India Ltd.: An Introduction � Over 5 decades of experience in oil & gas sector Rich Heritage � Credited with creation, operation and maintenance of a fully-automated crude oil pipeline � GoI ownership of 67.64% Strong Parentage with � Awarded ‘ Navratna ’ status in 2010 Government of India (GoI) Second 1 largest national oil and gas company in India � � Presence across Oil & Gas Value Chain Integrated and fully serviced Oil & Gas (O&G) Player � Integrated infrastructure and In-house expertise � Domestic: 55 blocks; 86,194 sq. km Dominant India and Expanding Global Presence International: 13 blocks; 74,721 sq. km � Total 2P 2 reserves of over 121 mmtoe � Strong Reserve Base � Consistent reserve replacement ratio of well over 100% � Senior management team with strong in-house Experienced Management Team technical expertise in Company ’ s core business � Q1 FY16 Revenue: Rs.3,160 crore, PAT: Rs.775 crore Consistent Growth and Robust Balance Sheet � FY15 Revenue: Rs.11,020 crore, PAT: Rs.2,510 crore Oil India is a leading Oil & Gas ‘ Navratna ’ Company engaged in Exploration, Development, Production and Transportation of Crude Oil and Natural Gas Note: 1.Based on total proved plus probable oil and natural gas reserves and production 2.Proved plus probable reserves 2
Our vision Fastest Growing Energy Company with Highest Profitability Delight Customers with Quality Products and Services at Competitive Prices Team, Committed to Honesty, Integrity, Transparency and Mutual Trust creating Employee Pride Fully Committed to Safety, Health and Environment Learning Organization, Nurturing Initiatives, Innovations and Aspirations with Best Practices Responsible Corporate Citizen Deeply Committed to Socio-economic Development in its Areas of Operations “ The Fastest Growing Energy Company With a Global Presence Providing Value to Stakeholders ” 3
Key Highlights Acquisition of 50% stake in producing property in License 61 Block in Russia Acquisition of 50% PI in Blocks SS04 and SS09 in Bangladesh Acquisition of 60% PI in Block YEB & M-4 in Myanmar Discovery of Gas in Kakinada Project Commissioned additional Wind Energy project for 54 MW in Gujarat & MP Commissioned 5 MW Solar power project in Rajasthan 4
Key Highlights (Contd … .) Reaffirmation of International Credit Ratings : ‘ Baa2 ’ by Moody's and ‘ BBB- ’ by Fitch Maiden Foreign Currency Bond Issue of US$ 1 billion Highest ever Capex of Rs.3,773 crore in FY 15, 104% of the Planned Capex Implementation of New Natural Gas Pricing Guidelines with linkage to international prices Sharp reduction in subsidy burden as a result of regulatory developments 5
Shareholding Structure Others 14.8% GOI 67.6% DII 8.0% Listed on BSE / NSE FII Number of shares 9.6% 601.14 mn Key shareholders % Shareholding Dividend FY15 Rs.20 /Share Indian Oil Corporation 4.45% Bharat Petroleum Corporation 2.23% Share price (52 Week High / Low) Hindustan Petroleum Corporation 2.23% Rs.669 / Rs.420 HSBC Bank (Mauritius) Ltd. 1.99% HDFC Standard Life Insurance Co. Ltd. 1.01% Market Cap 1 Life insurance Corporation of India 0.93% Rs.26,670 crore HDFC Trustee Co. Ltd. - Top 200 Fund 0.90% HDFC Trustee Co. Ltd.- HDFC Equity Fund 0.88% ICICI Prudential Life Insurance Co. Ltd. 0.76% 1. As on 24.08.2015 6
Oil India: Milestones and Track Record IPO – Raised Acquisition in Rovuma ‘ Baa2 ’ Credit Rating by Formed as a JV with Participates first time in Rs.2777 crore. Awarded Navratna Offshore Block in Moody's and BBB-by Burmah Oil Company NELP Listed in Stock Status Mozambique and License 61 Fitch Exchanges Block in Russia 2009 1959 1981 1999 2010 2012 2013 2014 Became wholly owned “ Company of the Year Raised offshore FCB 10% OFS by GoI Government of India Award ” Completes fifty years by Indian of US$ 1 billion (Rs.3,145 crore) enterprise Chamber of Commerce Over 50 Years of Experience in Oil & Gas Sector 7
Strong Parentage and Experienced Management Team Strong Parentage of Govt. of India Best In-Class Management Team 2 nd Largest Public Sector E&P company � Appointed Chairman & Managing Director in U P Singh July, 2015 Chairman & MD � During his rich and varied experience as an IAS � Became a Public Sector Undertaking in 1981 officer, he has held various administrative IAS, Additional Secretary positions in both the State & Central Govt. in MoP&NG � Prior to joining MoP&NG, he was Joint � Govt. owns 67.64% and Central Public Sector Secretary, Ministry of Steel. Enterprises (IOCL, BPCL & HPCL) own 8.9% � Appointed Director (Finance) in October, 2013 R S Borah � Experience in diverse fields of financial Director (Finance) � 2 Government nominees on the Board management, audit and strategic planning Over 30 years of O&G Industry experience Awarded ‘ Navratna ’ Status in 2010 � Appointed Director (E&D) in August, 2014 Sudhakar Mahapatra � Experience in diverse fields of exploration Director (Expl. & Dev.) management under PSC/JV regimes, E&P � Status accords complete autonomy in Company ’ Over 33 years of O&G s business development process Industry experience operations except; � Appointed Director (HR & BD) in May, 2015 Biswajit Roy � M&A or equity investment in a single JV / Wholly � Experience in diverse functions including Director (HR & BD) Marketing, Operations, Business Development, owned subsidiary Over 32 years of O&G Human Resources, Industry experience � Domestic : Up to Rs.1,000 crore or 15% of net worth � Appointed Director (Operations) in June, 2015 P K Sharma � Experience in the E&P industry in India and Director (Operations) � International : Up to Rs.3,000 crore or 25% of net worth abroad Over 33 years of O&G Industry experience Awards Platts Top 250 Global Energy Forbes Global 2000 BT Star Indian Chamber of Commerce NDTV Business Leadership Golden Peacock Award Company Rankings ’ 1,638 th Rank Best PSU Company of the Year award in Oil & Gas Sector Corporate Governance 2014 2013 2013 2012 2012 2012 8
Integrated and Diversified Oil & Gas Player Non Conventional Exploration Production Transportation Downstream Energy � Domestic: 56 E&P blocks � Crude oil � Crude Oil � Refining and marketing � Wind Energy (including 1 CBM block) petroleum products � 41 installations � 1,157 km pipeline; Over � Capacity: 121.6 MW 44 mmbbls capacity � International: Presence � 1,602km pipelines � 26% equity stake � Solar Power in US, Russia, in NRL 3 � Multi-product � Natural gas � Capacity: 5.23 MW Venezuela, � 5% equity stake � 660 km pipeline; Mozambique, Gabon, � 29 installations in IOCL 4 � Shale Oil / Gas 1.70 MMT capacity Libya, Bangladesh, � 730km pipelines � 20% stake in Niobrara Nigeria, Yemen and � Gas cracker project � Overseas pipeline Myanmar Liquid Shale asset, � Advanced Recovery � 10% equity stake � 10% stake in 741 km USA techniques to � Discoveries: 29 Small in BCPL 5 pipeline (Sudan) maximize production to Medium1 size discoveries during last � Natural Gas four years � 23% stake in 192km DNPL 2 in North-east Upstream Oil & Gas Downstream Note: 1. Small to Medium size discoveries: Estimated proved plus probable reserves size of less than 30mn barrels of oil and oil equivalent gas. 2. DNPL – Duliajan-Numaligarh Pipeline Limited. 3. NRL – Numaligarh Refinery Limited. 4. IOCL – Indian Oil Corporation Limited 5. BCPL – Brahmaputra Cracker and Polymer Limited Fully serviced E&P Company and diversifying into non-conventional energy 9
Large and Diversified Reserve Base Large Reserve Base with Reserve Replacement Ratio attractive Oil & Gas Mix (2P reserves) Crude Oil 115 (MMT) 83 31 1.64 Natural Gas 66 1.39 (BCM) 1.29 44 24 FY2013 FY2014 FY2015 1P 2P 3P Significant reserve base of over 121 MMTOE Track record of Reserve Replacement Ratio >1.0x 10
Downstream Operations OIL intends to continue an active strategy of vertical integration into downstream sectors such as refining, processing, distribution and retailing, cracking and fractionation of gas Vertical integration strategy aimed at achieving: – Diversification of revenue sources – Improving profitability by extending operations into higher-margin segments of the product value chain Refining and Marketing Gas cracker Project Renewable Energy/LNG projects 26% equity stake in Numaligarh 10% equity stake in Brahmaputra Commissioned Wind Energy Refinery Limited (NRL). cracker and Polymer Limited Project in Rajasthan, Gujarat and (Assam) MP. The other equity holders in NRL are BPCL and the Government of Process natural gas, naphtha or Assam any other petroleum product LNG: MOU with Kakinada Seaports Distribute and market petrochemical products in India and abroad 11
Asset and reserve overview
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