Cairn India

Rajasthan Northern Area Development Projects

Contractors / Suppliers PresentationJanuary 2006

Cairn India

Northern Field Developments

Contents

Cairn India

Field Development Plans

Mangala Field Development Status Contracting Strategy Local Content strategy Execution strategy

Cairn team

Payment for work done

Project objectives

Core issues

Strategic view

Expectations

Cairn India

Cairn India

In India since 1995

Head Quartered at Gurgaon, Haryana

Two Existing producing assets at Ravva, CB-OS/2 including Lakshmi and Gauri

With New World Class Resource Base in Rajasthan where :- Cairn has 100% interest during Exploration Phase 70% interest during Development & Production Phase

with ONGC as JV partners having 30% interest

Cairn India

Ravva – Facilities

Onshore Plant Capacity

Gross Fluid Handling

90,000bpd

Crude 70,000bpd

Gas Processing 2.7 MMSCMD

Water Injection 1,10,000 bpd

ETP 20,000bpd

Crude Storage 1 Million BBLS

Power Generation 10MW

Opex <$1/boe

ISO 14001 certified - Zero flaring

Uptime of Equipment : >96%

Offshore

Platforms 8 (Unmanned)

Export Facility Single Point Mooring

Sub-sea Pipelines 22, total ~170KM

Cairn India

Cairn India

Cairn India

Onshore Plant Capacity

Gas Processing 150 MMSCFD

Crude 5,000 bpd

ETP 3,000 bpd

Crude Storage 28,300 bbls

Power Generation

5MW

CB-OS/2 : Lakshmi & Gauri Facilities

Offshore

Platforms 3 (Unmanned)

Sub-sea Pipelines

36 KM, 24 inch

5 KM, 12 inch

ISO 14001 certified

Uptime of Equipment : >96%

Cairn India

Cairn India

CBOS/2 – Future Development

Declaration of commerciality Jan 2006FDP under preparation

Lakshmi

Gauri

North TaptiAmbe

Hazira

Shell /TotalLNG Terminal

4 well drilling programme in 2007 to access untapped natural gas & apprise further crude oil potential

SuvaliTerminal

FDP approved in March 2006Development for gas is ongoing

Ambe

Lakshmi & Gauri CB-X

Cairn India

Cairn India

Rajasthan – Block Overview Major discoveries in Rajasthan

~130 wells drilled, 20 discovers to date

Significant discoveries are Mangala, Aishwariya and Bhagyam

New oil province established – resource base around1 billion barrels

Over US$600m (net risked capital) investment to date

Target Block Production ~150,000bopd

Total original block area

= 11,108 km2

Cairn India

Northern Field Developments

Field Development Plans

We are aiming for Saraswati and Raageshwari oil fields to be on stream in 2007 subject to GOI approval and finalisation of an oil sales agreement. As of today some wells are available for export of oil

Mangala oil field, including Raageshwari gas field and the Thumbli water aquifer, is the first major field to be developed

Next in line will be Bhagyam / Shakti and Aishwariya oil fields, 6 and 12 months behind Mangala respectively. Detailed design and engineering is being run in parallel

A single MPT (Main Process Terminal) will be constructed to accommodate these fields

Cairn India

Northern Field Developments

Field Development Plans (cont)

Other smaller fields will be looked at on a case by case basis as the infrastructure surrounding the larger discoveries are completed e.g. Raageshwari Oil

Cairn continue to appraise further areas of the existing Rajasthan blocks

Cairn India

Rajasthan – Development Schedule

“l ”

Procurement start

“ ”

MANGALA / RAAG GAS

BHAGYAM / SHAKTI

AISHWARIYA

SARASWATI

RAAGESHWARI OIL

2008 2009FIELD / ITEM 2005 2006 2007

Land Acquisition / ClearancesProject Definition (Concept/FEED)Detailed Design & EngineeringFabrication / ConstructionWellsCommissioning / Start Up

Land Acquisition / ClearancesProject Definition (Concept/FEED)Detailed Design & EngineeringFabrication / ConstructionWellsCommissioning / Start Up

Land Acquisition / ClearancesProject Definition (Concept/FEED)Detailed Design & EngineeringFabrication / ConstructionWellsCommissioning / Start Up

Land Acquisition / Clearances / Eng.Fabrication / Construction / WellsCommissioning / Start Up

Land Acquisition / Clearances / Eng.Fabrication / Construction / WellsCommissioning / Start Up

“ ”

“ ”

FDP approved

CGWA appr. rec.

EC granted

FDP app. expected

DOC app. expected

Legend:

“

Cairn India

Northern Field Developments

Current Status

Sanction Funding in place

Target for Mangala oil at 100,000 Boe/day is 2009

Procurement EOI’s issued expect complete early 2007 RFQ’s issued expect complete end 2007

Cairn India

Northern Field Developments

Current Status (cont)

Engineering

Mangala and Raageshwari gas detailed design at 20%

Bhagyam, Shakti, Aishwariya concept selection complete FEED in progress and due to complete April 2007

Site

Pioneer Camp (site office) in place

Site fence erection in progress at Terminal site

Cairn India

Northern Field Developments

Current Status (cont)

Still to be developed

Raageshwari Oil Field

Raageshwari deep gas

Other small fields following main infrastructure completion

Other Projects

X-port Pipeline – FEED/concept select in progress – to complete January 2007

Expected value $340m (Rs 1,500 crore)

Cairn India

Northern Field Developments

FDP Approval of MARS Fields

Government Approval May 2006

Funding Banking Syndicate (+ IFC) Signed

Detail design contract Mustang Engineering, Houston

Oil sales agreement

Principles embedded in PSC - Detailed negotiations ongoing

Land acquisition Phase 1 & II now completed}

Environmental clearance Granted by MoEF

Water usage approval Granted by Rajasthan State

Supplementary gas source for fuel supply

Raageshwari gas

Water source Substantial saline aquifers

Approvals Status

Cairn India

Mangala Processing Facilities

Animated views of Mangala processing

facilities

Slug Catcher

Cairn India

Mangala Field Development

Contract Strategy

Detailed Design Work Man hour reimbursable at rates Existing contract for Mangala with Mustang Engineering Houston.

Work subcontracted to L&T Valdel in Bangalore and JPK Triune in Delhi

Procurement Lump sums supply – currently by Cairn, option for main contractors

to procure for and on behalf of Cairn

Main Contracts Based on cost reimbursable rates measurable using RHICOMS (Rider Hunt International Common Norms) Bill of quantities with agreed measure on a monthly basis

Commissioning and Start-up will be by Cairn with contractor support at reimbursable man hour rates

Cairn India

Mangala Field Development

Local Content Strategy

We are committed to maximising local content levels. Main contractors will be required to meet the minimum local content requirements.

We intend to nominate subcontractors where we feel confident that a local contractor would have the required experience and quality standards required

Cairn India

Mangala Field Development

Execution Strategy

Site living and sleeping accommodation will be provided by Cairn through a separate sub-contract. We would expect any site offices to be provided by the individual contractors. Cairn will provide and give access to any land required for offices and storage of materials.

We would expect personnel to be rotated out of site

Procurement of key long lead equipment is being carried out by Cairn from their India HQ at Gurgaon.

Manufacturing and materials will be based on preferred Indian content

Cairn India

Mangala Field Development

Execution Strategy (cont)

Main Contracts, preferred Indian JV or partner contractors with experience and capability, execution to mechanical completion, bulk procurement

Contact split as follows Main Civil Contractor Main Mechanical Main Instrument and Electrical Pipeline (s) Camp Provider Freight forwarding ICS (integrated Control System)

Cairn India

Mangala Field Development

Execution Strategy (cont)

Main Civil Work Scope All civil engineering work with in the development area. To include

roads, all building, tank, plant and process equipment and pipe work foundations, excavations, underground concrete tanks and separation pits and the like.

Main Mechanical Work Scope All mechanical equipment installation, hook-up and mechanical

commissioning to hand over. To include all site erected tanks and associated pipe work.

Cairn India

Mangala Field Development

Execution Strategy (cont) Main E& I work Scope

To include all HV and LV cable installation terminations, transformers, JB’s and testing to mechanical completion. Includes all security installation work and telecommunications. Include inter field HV transmission lines

Pipeline To include all interconnecting pipelines from Thumbli Field to Mangala

and from Raageshwari to Mangala. To include all excavation, rail and road crossings, welding and backfilling. To include commissioning to mechanical completion.

Cairn India

Mangala Field Development

Execution Strategy (cont)

Camp Contractor Provision of 130 client accommodation and 2500 construction

accommodation camps. To include provision of all hotel services for multi cultural work force. Provision of camp to include provision of water and sewage management and waste disposal.

ICS Contractor Provision of all hard ware and software associated with the

development of a fully integrated process control system. Provision will include the function testing and commissioning of the system. Contract to include provision for ongoing maintenance work

Cairn India

Mangala Field Development

Execution Strategy (cont)

Note

All contracts will have potential for the extension of the work to include the development of the Bhagyam, Aishwariya and Shakti fields currently in FEED design.

Cairn India

Northern Field Developments

Payment

Cairn Finances are in place as widely reported.

Work will be carried out on RHICOMS. Work will be measure monthly and appropriate valuation submitted for payment.

Mobilisations and de-mobilisations to site are Lump Sum

Cairn are implementing a SAP financial system such that all payments will be expedited effectively

Cairn India

Northern Field Developments

Project Objectives

Schedule – to meet 2009 production target

Quality - to meet international standards and achieve greater than 98% reliability of the process plant in continuous operation

Safety – zero fatalities and a TCRF of less than 0.7

Environmental – to have zero releases and minimal long term environmental impact

Cost - to meet approved budgets

Cairn India

Northern Field Developments

Core Issues

Remote location little or no infrastructure

Low indigenous skill base in Rajasthan but who have high expectations

Water supply currently aim to develop water aquifers at Thumbli but this will be in parallel with construction work

Safety is always a challenge but zero fatalities is a must

Cairn India

Northern Field Developments

Expectations

We expect to have RFQ’s for Mangala developments issued by the end third quarter of 2007. Long lead items by end first quarter 2007

We expect to place all main contracts by end of 2 Q 07

Expected start dates on site as follows :

Civil End 2Q 2007 Mechanical End 3Q2007 E&I End 3Q 2007 Pipeline (infield) End 4Q 2007