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E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s                cairn india limited




                                                                                                from Frontiers to Mature Basins
                                                                                                    Exploration Excellence
                            Energy for India
2
  E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s




                                                                                                  cairn india employs an entrepreneurial         an enviable track record of successful
                                                                                                  strategy of using appropriate leading-         oil and gas exploration including more
                                                                                                  edge        technology to search for           than 40 discoveries in the last 10 years,
                                                                                                  commercial hydrocarbons by drilling            building an acknowledged exploration
                                                                                                  high risk but high reward wells on             success ratio that exceeds 50%. as a
                                                                                                  prospective structures in and around           result, cairn india boasts an extensive
                                                                                                  india. the key tools used by the               resource base across 10 blocks in india
                                                                                                  company are seismic data, including            and is the operator of the first licenced
                                                                                                  novel acquisition, processing and              acreage in sri lanka.
                                                                                                  interpretation, integrated geological
                                                                                                  evaluation, basin modelling to predict         underlying this exploration success is
                                                                                                  hydrocarbon generation, migration and          the belief in “drill bit exploration”; the
                                                                                                  charge distribution, and petrophysical         company has drilled 181 exploratory
                                                                                                  evaluation of well data. the company           and appraisal wells versus 56 obligation
                                                                                                  invests extensively in developing              wells in 10 years resulting in more than
                                                                                                  high quality in house technical                25 discoveries made so far in rajasthan,
                                                                                                  capabilities, buidling expert knowledge        providing oil in place of 3.6bn barrels
                                                                                                  and implementing new technology.               of oil equivalent (boe). indeed, 3 of the
                                                                                                  additionally, cairn has a sharp                7 landmark discoveries made in india
                                                                                                  focus on the best Health, safety and           since 2000 have been made by cairn.
                                                                                                  Environmental (HsE) practice, ensuring
                                                                                                  the safety of employees, the integrity
                                                                                                  of the business, and the environment in
                                                                                                  which we work.

                                                                                                  cairn is an established major long
                                                                                                  term exploration player in india with
cairn india limited




                                                                                                  purpose-built, mobile, low cost drilling rig   HsE in action, safely shooting land seismic
                                                                                                  exploring in the desert of rajasthan           with the acquisition-explosives team and flag man
3




                                                                         E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s
                                                                                      cairn india limited




         cairn india Exploration portfolio and producing assets
(mB-DWn-2009/1 and KG-osn-2009/3 provisionaly awarded under nElp Viii)
4
  E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s




                                                                                                  in January 2004, cairn discovered
                                                                                                  the largest onshore oil field in india
                                                                                                  since 1985 – the mangala field in
                                                                                                  rajasthan followed by the Bhagyam and
                                                                                                  aishwariya oil fields. these three fields
                                                                                                  have a combined oil in place of more that
                                                                                                  2 billion boe.

                                                                                                  Exploration is inherently associated with
                                                                                                  risk and uncertainty. Determining the
                                                                                                  probability of success of an exploration
                                                                                                  well is based on a comprehensive
                                                                                                  understanding of the petroleum system
                                                                                                  in the basin and the associated geological
                                                                                                  risk. in the first instance, access to regional
                                                                                                  proprietry databases and high resolution
                                                                                                  seismic has been a significant factor in          cairn india exploration acreage in rajasthan
                                                                                                  cairns success story. over the years cairn        overlain on high resolution gravity anomaly
                                                                                                  has invested in georeferenced regional            data. regional faults shown in white

                                                                                                  gravity, magnetic and seismic data sets,
                                                                                                  and has used these to create regional
                                                                                                  models of basin distribution and evolution
                                                                                                  through time. these databases are
                                                                                                  calibrated to local data acquired by cairn
                                                                                                  india and used as a front-end exploration
                                                                                                  screening tool and linked to plate tectonic
                                                                                                  reconstructions of basin evolution.
                                                                                                  the company’s knowledge of depth to
                                                                                                  basement across all the key petroleum
                                                                                                  basins in india and of basin fill evolution is
                                                                                                  unrivalled in india.

                                                                                                  similarly, our investment at the basin
                                                                                                  scale in seismic imaging and optimised
                                                                                                  seismic acquisition and processing
                                                                                                  parameterisation has provided world               an image from a regional exploration tool
                                                                                                  class subsurface imaging. High resolution         unique to cairn india-showing integrated
                                                                                                                                                    gravity-magnetic-modelled depth to basement
                                                                                                  seismic, combined with appropriate                imaging of basin distribution. Basin in blue
                                                                                                  coring and reservoir description provides         colour, basement in red and yellow
cairn india limited




                                                                                                  our subsurface teams with the ability
5




                                                                                                  E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s
to generate high resolution, calibrated             deltaic deposits. Emerging plays in the
models of depositional facies, source rock          Barmer Basin include stratigraphic traps
distribution and seal properties. cairn             in post-rift sequences and deep water
india has a current portfolio that includes a       depositional systems in the KG basin and
diversity of basins, plays and depositional         sri lanka. the overall exploration strategy
environments.Exploration activity across            is to maximise resource additions from
the spread of frontier to proven, mature            key assets with a focus on high impact
basins provides a balanced risk in the              exploration.
portfolio with significant upside but
manifold opportunities in basins that are           With 10 existing blocks, a growing
understood well. this is particularly the           portfolio including 2 new nElp Viii
case in the Barmer Basin of rajasthan               provisional awards (subject to the
where        advanced       basin analysis          ministry of petroleum and natural Gas
techniques have revealed several new                approval), cairn india explores across
unexplored plays in an extensional                  a range of operating environments
rift basin with more than 25 existing               (onshore to deep water) and has
discoveries. our historical exploration             established a remarkable track record
efforts have developed considerable                 of success. our current major activities
expertise in rift basins with lacustrine            include 1450 km2 of deep water 3D
sources and syn-rift reservoirs and passive         seismic acquisition in sri lanka leading
extensional margins with marine and                 to drilling of 3 exploratory wells in 2011,




                                                                                      w
3D interpretation of an exploration prospect with integrated                          a
                                                                                      t
reflection seismic and coherence volume
                                                                                                               cairn india limited




                                                                                      e
                                                                                      r
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  E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s




                                                                                                  Seal




                                                                                                   Breached
                                                                                                   Reservoir




                                                                                                   Migration
                                                                                                    Pathway




                                                                                                               ‘the prize’-high quality sandstone reservoir (top, thin section,
                                                                                                               middle, scanning electron micrograph) showing intergramular
                                                                                                               porosity. Bottom: cairn india is a trend setter in the novel use
                                                                                                               of fluid inclusions to identify petroleum systems and (left ) fluid
                                                                                                               inclusions stratigraphy to interpret migration pathways and
                                                                                                               breached palaeo structures in dry wells
cairn india limited
7




                                                                         E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s
integration: from seismic to core sample to 3D immersive
visualisation, integration of critical data is characteristic of cairn
india’s exploration philosophy



800 km2 of 3D seismic acquisition and drilling of 3
exploratory wells in the palar block, a 5 well onshore
exploration programme in the KG basin, and a rolling
programme of onshore seismic acquisition and well
drilling in rajasthan.

to explore for hydrocarbons effectively, cairn
india embeds regional high resolution prediction
of hydrocarbon phase and volume distribution in
prospects from basin models, incorporating geological
risks in the play, as a routine integrated part of its
exploration activity. these models are based on an
understanding of basin evolution and heat flow,
stratigraphy and facies distributions. the models are
calibrated with temperature data from wells, including
palaeo-geothermometers, and a unique hydrocarbon
shows database which includes present day and
palaeo-hydrocarbon distributions from fluid inclusion
stratigraphy.

in many areas, particularly frontier basins, the data
required to construct and calibrate models are scarce,
and may have large inherent uncertainties. thus,
it is essential that basin modeling allows simulation
                                                                                      cairn india limited
8




                                                                                                 E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s
                                                   early stage of its exploration project life
                                                   cycle that capture the critical aspects
                                                   of the geological system, runs multiple
                                                   simulations, and incorporates results as
                                                   probabilities into prospect evaluation.
                                                   as an exploration area matures, more
                                                   complex and ‘deterministic’ models
                                                   can be constructed and calibrated to
                                                   thermal, stratigraphical, geochemical
                                                   and rock property data, as exemplified
                                                   by our exploration success in the Barmer
                                                   Basin of rajasthan.

                                                   in all cases, basin models are incomplete
                                                   representations of the sub-surface,
                                                   dependent upon the limited available
Gis-based depositional environment map             inputs (minute in terms of basin
showing facies distribution used as an input for   volume), inadequacies of the numerical
basin modelling
                                                   simulator used and the time available for
of multiple ‘scenarios’ to ask ‘What               model building. confidence in model
if?’ questions, for investigating the              predictions arises from the stability of
sensitivity of petroleum systems to critical       results in sensitivity studies. statistical
parameters or key unknowns – such as               calculations performed on the output
thermal history, source rock thickness,            models test the sensitivity of the model
migration efficiency or trap leakage for           to input variables. the probability
examples. to do this effectively, cairn            distribution of oil and gas accumulations
india constructs basin models at an                for hundreds of input parameter
                                                   variations can then be calculated for
                                                   each prospect to determine the best
                                                   probability of success.
                                                                                                              cairn india limited.




3D basin model (shown on a depth surface) predicting hydrocarbon migration
pathways (green lines) and oil (green) and gas (red) accumulations
CAIRN INDIA LIMITED

cairn india is one of the largest independent oil and gas exploration and production
companies in india. it is headquartered in Gurgaon near Delhi and has material
exploration and production positions in nine blocks in india and one in sri lanka.
cairn produces oil and gas from three blocks in india: ravva in andhra pradesh,
cB-os/2 in the cambay Basin in Gujarat and rJ-on-90/1 in rajasthan where it
works in partnership with onGc. in 2007, cairn india was listed on the national
and Bombay stock Exchanges.

cairn has been operating in india for more than 15 years and has played an
active role in developing the oil and gas resources in the country. the mangala
field, discovered in January 2004 near Barmer, rajasthan and dedicated to the
nation in august 2009 by the prime minister, the Hon’ble Dr. manmohan singh,
is the largest onshore oil discovery in india in more than 20 years. the mangala,
Bhagyam and aishwariya fields have recoverable oil reserves and resources of
approximately 1 billion barrels.

in total there have been more than 25 discoveries on the rajasthan block and the
company is focused on exploiting the full potential.

cairn india will account for more than 20 percent of india’s domestic crude
oil production when the rajasthan fields reach the current approved plateau
production rate of 175,000 barrels of oil per day in 2011.

Health, safety and the environment are integral to cairn india’s business
management and the company is committed to working with all stakeholders to
deliver material growth.
www.cairnindia.com

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Exploration Excellence from Frontier to Mature Basins

  • 1. E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s cairn india limited from Frontiers to Mature Basins Exploration Excellence Energy for India
  • 2. 2 E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s cairn india employs an entrepreneurial an enviable track record of successful strategy of using appropriate leading- oil and gas exploration including more edge technology to search for than 40 discoveries in the last 10 years, commercial hydrocarbons by drilling building an acknowledged exploration high risk but high reward wells on success ratio that exceeds 50%. as a prospective structures in and around result, cairn india boasts an extensive india. the key tools used by the resource base across 10 blocks in india company are seismic data, including and is the operator of the first licenced novel acquisition, processing and acreage in sri lanka. interpretation, integrated geological evaluation, basin modelling to predict underlying this exploration success is hydrocarbon generation, migration and the belief in “drill bit exploration”; the charge distribution, and petrophysical company has drilled 181 exploratory evaluation of well data. the company and appraisal wells versus 56 obligation invests extensively in developing wells in 10 years resulting in more than high quality in house technical 25 discoveries made so far in rajasthan, capabilities, buidling expert knowledge providing oil in place of 3.6bn barrels and implementing new technology. of oil equivalent (boe). indeed, 3 of the additionally, cairn has a sharp 7 landmark discoveries made in india focus on the best Health, safety and since 2000 have been made by cairn. Environmental (HsE) practice, ensuring the safety of employees, the integrity of the business, and the environment in which we work. cairn is an established major long term exploration player in india with cairn india limited purpose-built, mobile, low cost drilling rig HsE in action, safely shooting land seismic exploring in the desert of rajasthan with the acquisition-explosives team and flag man
  • 3. 3 E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s cairn india limited cairn india Exploration portfolio and producing assets (mB-DWn-2009/1 and KG-osn-2009/3 provisionaly awarded under nElp Viii)
  • 4. 4 E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s in January 2004, cairn discovered the largest onshore oil field in india since 1985 – the mangala field in rajasthan followed by the Bhagyam and aishwariya oil fields. these three fields have a combined oil in place of more that 2 billion boe. Exploration is inherently associated with risk and uncertainty. Determining the probability of success of an exploration well is based on a comprehensive understanding of the petroleum system in the basin and the associated geological risk. in the first instance, access to regional proprietry databases and high resolution seismic has been a significant factor in cairn india exploration acreage in rajasthan cairns success story. over the years cairn overlain on high resolution gravity anomaly has invested in georeferenced regional data. regional faults shown in white gravity, magnetic and seismic data sets, and has used these to create regional models of basin distribution and evolution through time. these databases are calibrated to local data acquired by cairn india and used as a front-end exploration screening tool and linked to plate tectonic reconstructions of basin evolution. the company’s knowledge of depth to basement across all the key petroleum basins in india and of basin fill evolution is unrivalled in india. similarly, our investment at the basin scale in seismic imaging and optimised seismic acquisition and processing parameterisation has provided world an image from a regional exploration tool class subsurface imaging. High resolution unique to cairn india-showing integrated gravity-magnetic-modelled depth to basement seismic, combined with appropriate imaging of basin distribution. Basin in blue coring and reservoir description provides colour, basement in red and yellow cairn india limited our subsurface teams with the ability
  • 5. 5 E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s to generate high resolution, calibrated deltaic deposits. Emerging plays in the models of depositional facies, source rock Barmer Basin include stratigraphic traps distribution and seal properties. cairn in post-rift sequences and deep water india has a current portfolio that includes a depositional systems in the KG basin and diversity of basins, plays and depositional sri lanka. the overall exploration strategy environments.Exploration activity across is to maximise resource additions from the spread of frontier to proven, mature key assets with a focus on high impact basins provides a balanced risk in the exploration. portfolio with significant upside but manifold opportunities in basins that are With 10 existing blocks, a growing understood well. this is particularly the portfolio including 2 new nElp Viii case in the Barmer Basin of rajasthan provisional awards (subject to the where advanced basin analysis ministry of petroleum and natural Gas techniques have revealed several new approval), cairn india explores across unexplored plays in an extensional a range of operating environments rift basin with more than 25 existing (onshore to deep water) and has discoveries. our historical exploration established a remarkable track record efforts have developed considerable of success. our current major activities expertise in rift basins with lacustrine include 1450 km2 of deep water 3D sources and syn-rift reservoirs and passive seismic acquisition in sri lanka leading extensional margins with marine and to drilling of 3 exploratory wells in 2011, w 3D interpretation of an exploration prospect with integrated a t reflection seismic and coherence volume cairn india limited e r
  • 6. 6 E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s Seal Breached Reservoir Migration Pathway ‘the prize’-high quality sandstone reservoir (top, thin section, middle, scanning electron micrograph) showing intergramular porosity. Bottom: cairn india is a trend setter in the novel use of fluid inclusions to identify petroleum systems and (left ) fluid inclusions stratigraphy to interpret migration pathways and breached palaeo structures in dry wells cairn india limited
  • 7. 7 E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s integration: from seismic to core sample to 3D immersive visualisation, integration of critical data is characteristic of cairn india’s exploration philosophy 800 km2 of 3D seismic acquisition and drilling of 3 exploratory wells in the palar block, a 5 well onshore exploration programme in the KG basin, and a rolling programme of onshore seismic acquisition and well drilling in rajasthan. to explore for hydrocarbons effectively, cairn india embeds regional high resolution prediction of hydrocarbon phase and volume distribution in prospects from basin models, incorporating geological risks in the play, as a routine integrated part of its exploration activity. these models are based on an understanding of basin evolution and heat flow, stratigraphy and facies distributions. the models are calibrated with temperature data from wells, including palaeo-geothermometers, and a unique hydrocarbon shows database which includes present day and palaeo-hydrocarbon distributions from fluid inclusion stratigraphy. in many areas, particularly frontier basins, the data required to construct and calibrate models are scarce, and may have large inherent uncertainties. thus, it is essential that basin modeling allows simulation cairn india limited
  • 8. 8 E x p l o r at i o n E x c E l l E n c E f r o m f r o n t i E r s t o m at u r E B a s i n s early stage of its exploration project life cycle that capture the critical aspects of the geological system, runs multiple simulations, and incorporates results as probabilities into prospect evaluation. as an exploration area matures, more complex and ‘deterministic’ models can be constructed and calibrated to thermal, stratigraphical, geochemical and rock property data, as exemplified by our exploration success in the Barmer Basin of rajasthan. in all cases, basin models are incomplete representations of the sub-surface, dependent upon the limited available Gis-based depositional environment map inputs (minute in terms of basin showing facies distribution used as an input for volume), inadequacies of the numerical basin modelling simulator used and the time available for of multiple ‘scenarios’ to ask ‘What model building. confidence in model if?’ questions, for investigating the predictions arises from the stability of sensitivity of petroleum systems to critical results in sensitivity studies. statistical parameters or key unknowns – such as calculations performed on the output thermal history, source rock thickness, models test the sensitivity of the model migration efficiency or trap leakage for to input variables. the probability examples. to do this effectively, cairn distribution of oil and gas accumulations india constructs basin models at an for hundreds of input parameter variations can then be calculated for each prospect to determine the best probability of success. cairn india limited. 3D basin model (shown on a depth surface) predicting hydrocarbon migration pathways (green lines) and oil (green) and gas (red) accumulations
  • 9. CAIRN INDIA LIMITED cairn india is one of the largest independent oil and gas exploration and production companies in india. it is headquartered in Gurgaon near Delhi and has material exploration and production positions in nine blocks in india and one in sri lanka. cairn produces oil and gas from three blocks in india: ravva in andhra pradesh, cB-os/2 in the cambay Basin in Gujarat and rJ-on-90/1 in rajasthan where it works in partnership with onGc. in 2007, cairn india was listed on the national and Bombay stock Exchanges. cairn has been operating in india for more than 15 years and has played an active role in developing the oil and gas resources in the country. the mangala field, discovered in January 2004 near Barmer, rajasthan and dedicated to the nation in august 2009 by the prime minister, the Hon’ble Dr. manmohan singh, is the largest onshore oil discovery in india in more than 20 years. the mangala, Bhagyam and aishwariya fields have recoverable oil reserves and resources of approximately 1 billion barrels. in total there have been more than 25 discoveries on the rajasthan block and the company is focused on exploiting the full potential. cairn india will account for more than 20 percent of india’s domestic crude oil production when the rajasthan fields reach the current approved plateau production rate of 175,000 barrels of oil per day in 2011. Health, safety and the environment are integral to cairn india’s business management and the company is committed to working with all stakeholders to deliver material growth.