Oil India Limited

Presentation

May, 2013
Strictly Private and Confidential

Oil India: Brief Overview

Rich Heritage
Independent Indias first commercial oil discoveries, with the first one being made in 1953 Presence across Oil & Gas Value Chain (E&P, Transportation and Downstream) World Class Infrastructure to support growth

Integrated O&G Player

Large Acreage

Domestic acreage: 86,729 sq. km over 58 blocks International acreage: 38,944 sq. km

Strong Reserve Base

Total 2P reserves of over 941 mmboe; with reserve replacement ratio of over 123% in FY12

Strong Financials

Market cap : Rs. 35,366 cr * FY13 Total Revenue: Rs 11,456 cr FY13 PAT : Rs. 3589 cr

Indias Premier Oil & Gas Navratna Company Engaged in the Exploration, Development, Production and Transportation of Crude Oil and Natural Gas in India
* Market cap as on 27.05.13

OIL Shareholding Structure

Others 16.0%

Listed on BSE / NSE

DII 7.9%

FII 7.7

Number of shares: 601.12 mn

GOI 68.4%

Dividend FY13 1st Interim Dividend/Share: Rs.11.00 2nd Interim Dividend/Share: Rs.12.00 Final Dividend/share: Rs.7.00

Key shareholders Indian Oil Corporation Bharat Petroleum Corporation

% Shareholding 4.45% 2.23% 2.23% 2.68% 1.04% 0.90% 0.84%

Share price (52 Week High / Low) : Rs.618 / Rs.431

Hindustan Petroleum Corporation HSBC Bank (Mauritius) Ltd. HDFC Standard Life Insurance Company Limited

Market Cap: Rs.35,366 crore

HDFC Trustee Company Limited-Top 200 Fund HDFC Trustee Company Limited- HDFC Equity Fund ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD

Source: Company Reports. (1) Shareholding data as on 27.05.2013 (2) The share price data has been adjusted for the bonus issuance

0.76%

Evolution and Key Milestones

OIL enters the field of installation, commissioning and maintenance of Crude oil pipelines Completed construction of a 401km pipeline from Duliajan to Guwahati and a 756km pipeline from Guwahati to Barauni LPG plant setup using Turbo Expander Technology Entered into a MoU with IOCL for pursuing overseas exploration and production opportunities "Company of the year" among all Navratna and Miniratna companies at the PSE Excellence Award E&P Company of the Year Award by Petrofed for the year 2010-11 Wind energy project commissioned

1959

1961

19621963

1981

1982

1999

2004

2008

20092013

Formed as a JV with Burmah Oil Company

Transformed into equal partnership JV company between Burmah Oil Company and Government of India

Became a wholly owned Government of India enterprise

Participated first time in NELP

NRL-Siliguri Product Pipeline (660km) commissioned

IPO in September 2009 raising a total of Rs.27.7 bn Received Navratna status 10% OFS by GOI

Integrated Oil & Gas Player

Exploration

Production

Transportation

Downstream

Domestic: 65 E&P blocks International: US, Venezuela , Gabon, Egypt, Iran, Libya, Nigeria, Timor Leste, and Yemen New Discoveries: 19 Small to medium size discoveries (reserve size less than 30 mn bbls) during last three years (FY1012)

50 years of experience Advanced recovery techniques to maximize production FY13 Produced 3.7 MMT of Crude oil:

Crude Oil

1,157 km pipeline
~6MMT capacity Multi-product

Refining & Marketing Petroleum Products

26% equity stake in

NRL Gas Cracker Project

660km pipeline;
1.72MMT capacity Overseas Pipeline

39 installations 1,544 km pipelines

FY13 Produced 2.64 bcm of Natural Gas:

10% equity stake in

BCPL City Gas Business

10% stake in 741km

pipeline (Sudan) Natural Gas

Signed MOU with

GAIL, HPCL, IOCL and BPCL/ONGC

26 installations 583 km pipelines

23% stake in 192 km

DNPL in North East

PSC for 3 blocks has been signed under NELP IX

5

NRL Numaligarh Refinery Limited. BCPL Brahmaputra cracker and Polymer Limited. DNPL Duliajan-Numaligarh Pipeline Limited.

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
6

Strategic Plan 2020-21

Growth

Maintain & Enhance Reserves & Production from Current Fields

Accelerated Exploration Initiatives Inorganic Growth (India and Overseas)

2012

Vertical Integration Along the Oil & Gas Value Chain

Selectively Diversify in Alternative Energy Diversify into Unconventional Hydrocarbons

2020

Be World Leader in the Field of IOR / EOR

Decades of Experience
7

Domestic Industry Environment

Steady Growth in Domestic Energy Consumption Driven by Indias Economic Growth Story
(mmtoe)

Energy Sources
Energy Sources India

524 364 381 415 445 480

559

(%)

346

Hydro electricity Renewables 5% 2% Nuclear energy 1%

Oil 29%

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

Source: BP Statistical Review of World Energy, June 2012.

Coal 53%

Natural gas 10%

Significant Supply Deficit in the Domestic Market (1)

Crude Oil (mmtoe) Total Consumption
162.3

Natural Gas (bcm)

61.1

Energy Sources Global

(%)

Deficit
15

Hydro electricity 6% Nuclear energy 5%

24.5%

Renewables 2%

121.9

Deficit
75.1%
46.1

Oil 33%

40.4

Coal 30%
Deficit Production

Natural gas 24%

Source: BP Statistical Review of World Energy, June 2012.

Robust Domestic Fundamentals

Strong Domestic Demand
India - the 4th largest Energy consumer in world (2) Robust long-term consumption outlook

India Remains a Net Importer of Crude (1)

Among largest net importers of oil globally Dependence on Imports in past decade

India A Fraction of Global Reserves (2)

0.65% of Worlds Oil reserves (2) 0.77% of Worlds Gas reserves (2)

India Significantly Under-explored (3)

Only 22% of India well explored (as of 31 March 2011)

Domestic Consumption Outlook

Gas
BCM

% of Total Oil Consumption

India: Exploration Status

FY2011

Oil
mmbpd

2030

125

4.3
Imports 81%

Poorly Explored 22%

Explored 22%

2005

36

2.6
Initiated Explor'n 44%

Unexplored 12%

(1) Source: MoPNG. (2) Source: BP Statistical Review of World Energy June 2012. (3) Source: DGH, HEDA report 2010.

Domestic Asset Overview

Significant India Presence in Regions with Proven Commercial Production or Known Accumulation of Hydrocarbons
Blocks
NELP Pre-NELPJV PEL (Nom) PML CBM Total

Op
12 7 21 40
60%

N/Op
15 2 1 18

Total
AA-ONN 40% 30%

27 2 7 21 1 58

AA-ONN 20%

ASSAM +AP ASSAM +AP

AA-ONN

AA-ONN-2009/4 50%
Kharsang

40% 40%

AS-CBM2008/IV

RJ-ONN

AA-ONN-2004/2

100% AA-ONN AA-ONN 50% 85% 40% 16% 15% 10% 85% 25% 10%

RJ-ONN

75%
GK-OSN-2010/1

30% MN-OSN 20%

AA-ONN AAP-ON

Overseas (PI) 38,749

PEL Nomination 1,445

PML Nomination 5,095

JV/PSC (NO) 316

Strong presence in prospective East Coast

AA-ONN KG-DWN 10% AA-ONN

KG-ONN KG-OSN 30% KGDWN 15% KG-DWN AN-DWN 20% 10% 30%

90%

MZ-ONN WB-ONN KG-DWN

CBM 113

NELP (Operator) 18,464

MN-DWN 20%

+
AN-DWN AN-DWN AN-DWN 40% 40% 30%

NELP (NO) 61,296

NELP I-VIII

Total Area 125,478Sq km

CY-OSN-2009/2

50%

Nomination ML(s) / PEL(s)

AN-DWN JVC Blocks

OIL as Operator Joint

Map Not to Scale Source: Company information. 11 NO Non-operator PI Participatory Interests

With Dominant International Footprint

Dominant International Footprint with Balanced Presence in Exploration Acreages & Producing Properties
EGYPT Block 3 Block 4
SUDAN Pipeline

20%

50 sqkm

US Colorado Julesburg Basin

6,725sq.km 2,600sq.km

25% (GSPC)

741sq.km

10%

50% 50% 25%(Sonatrach)

7,087sq.km 2,710sq.km 6,629sq.km

LIBYA Area 86 Area 102/4 Area 95/96

17.5% (Summit)

1,295sq.km

NIGERIA OPL 205

IRAN Farsi Offshore

3,500sq.km

20%(OVL)

TIMOR LISTE Block K GABON Shakti

1,788sq.km

12.5% (Reliance)

45%

3,761sq.km

3.5%

203sq.km 180sq.km

VENEZUELA Carabobo 1 North Carabobo 1 Central Operator Area (Sq. km) OILs Participating Interest (%)

YEMEN Block 82 Block 83

1,853sq.km 364sq.km

12.75% (Medco)

Total Area 38,749sq.km

12

Major Projects
Block Shakthi (Onshore Gabon, West Africa)

Project Carabobo (Onshore, Venezuela)

Mizoram MZ-ONN-2004/1 (NELP-VI)

Gulf of Mannar CY-OSN-2009/2 ( NELP-VIII)

KG Basin KG-ONN-2004/1 ( NELP-VI)

Two blocks (383 sq. km) in Orinoco heavy oil belt in Venezuela. Production from first well started in December,2012 Current production from three well is 1800 bopd.

Area: 3,761.65 Km Less explored, geopolitically stable, oilrich country 2 locations released for drilling Drilling of third well is in progress.

Area: 3,213 Sq. Km Pre-drilling in progress, 5 locations released for drilling 1352 LKM seismic completed. of 2D survey

Area: 1,621 Sq. Km Processing acquired completed. Data sent Interpretation. of data

Area: 549 Sq. Km

Pre-drilling in progress, 4 locations released for drilling.

Drilling of 1st well expected to start by June end.

for

3D survey expected to start soon.

2D API 511 LKM, 3D API 1621 SQKM and three well 2D and 3D acquisition and processing completed.

Overseas acquisitions Focus and Available Resources

Focus for Overseas acquisitions
Balanced overseas portfolio

Available Resources
Dedicated Multifunctional Team pursuing M&A opportunities Utilising Expertise of International M&A Advisers and Technical consultants to identify and pursue opportunities Adequate Knowledge Base/ Technical and Commercial capabilities across Organisation Strong Financial Resources (Cash/Borrowing Capability) IOCL as Partner International network/ complete Value chain Active and Focused Management Support for M&A

Acquire producing/development
/discovered blocks Both, Oil & Gas Offshore/Onshore Individual Target Production level upto 30,000 boe/d Operatorship in On-shore blocks Joint operator/Active non-operator in off-shore blocks

17

International Acquisition Strategy

International Strategy
Prepared by International consultants and adopted by Board Seek to acquire exploration acreages / producing properties Employ capital in the midstream and downstream, limited for the purpose of creating additional value in the upstream A Two Period Strategy: OIL focuses its international efforts to:
Build Period

International Partnerships and Alliances

Implement its acquisition strategy utilizing joint ventures with other leading players in the industry
Partnering strategy with potential midstream and downstream investments in order to retain focus on capital employed in E&P

Launch platforms for international core areas Acquire companies/enter partnerships as a non-operator Build skills in new onshore, offshore and gas plays

and Grow Sustain and Period GrowPeriod Sustain

Make organizational change to operate assets Sustain its core areas as an Asset manager Acquire companies and enter partnerships to grow its core areas launched in Period I Develop partnerships with technology companies to achieve efficiencies

18

Significant Reserve Base and Production Scale

1P Reserves represent:

10

Years current production of Crude Oil

12

Years current production of Natural Gas

11

Years current production of O+OEG

Total Reserves (1)

(mmbbl)

Proved and Developed Reserves Split by Type

Proved developed reserves of approximately 225 mn barrels and natural gas reserves of 199 mn barrels

473

Consistent Reserve Replacement Ratio Over One

2.04 1.69 1.65 1.42 1.23

Steady Production Growth

10.30 5.10 5.60 9.40 5.90 9.70 5.90 8.40 6.84 8.41

FY08

FY09

FY10 Crude OIL

FY11

FY12

FY08

FY09 FY10 Production Accretion

FY11 Accretion

FY12

19

Source: Company Information Note: (1) Data as of April 1, 2012.

IOR/EOR Initiatives
Improvement in Production
(in mm bbl)

Improvement in crude oil reserve

(in mm bbl)

20.21

5.19 4.26 3.46 2.62

8.10

4.47
12.72 11.04

FY08

FY09

FY10

FY11

FY12

FY08

FY09

FY10

FY11

OIL has made investments in excess of Rs.2425 crore in IOR/EOR initiatives during last five years
26

Excellent Oil and Gas Infrastructure

Infrastructure to Support E&P Activities Production and Storage Facilities

Two 2D and One 3D Seismic crew

Six Logging Trucks

72 Production Installations

14 W/over Rigs

11 Drillings Rigs

5,000km O&G Pipelines

~150k KL Crude Storage

In-house Expertise and Integration across Energy Infrastructure

20 Source: Company presentation

Presence Across Value Chain

Drilling Seismic API (2D and 3D) Wireline Logging

In-House Expertise
Transportation Field Development

IOR/EOR

Field/Reservoir Management

Production

OIL is a fully self-serviced E&P company

21

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 This vertical integration strategy is aimed at to achieve following objectives Diversification of revenue sources Improving profitability by extending operations into higher-margin segments of the product value chain

Refining and Marketing

26% equity stake in Numaligarh Refinery Limited (NRL). The other equity holders in NRL are BPCL and the Government of Assam

Gas cracker Project

10% equity stake in Brahmaputra cracker and Polymer Limited (Assam) Process natural gas, naphtha or any other petroleum product Distribute and market petrochemical products in India and abroad

City Gas / LNG projects

MOUs with HPCL, BPCL, ONGC and IOC for laying, building, operating or expanding city gas distribution networks. Commissioned Wind Energy Project in Rajasthan. LNG: MOU with Kakinada Seaports

22

Strong Government Linkage

Government Owned Enterprise and continued government support evidenced by the recently awarded Navratna status to the company making it more autonomous. 2nd Largest Public Sector E&P company Contributed Rs.68 bn to the exchequer in the FY2011 12 Management Independence A Navratna company with liberty to take financial decision upto Rs.10 bn, ability to raise Rs.30 bn

Board power has been enhanced to USD 600mn for acquisition.

Contributions to Exchequer
(Rs. in bn)

Central Government
39.1 39.1 14.2
11.5

State Government
15.2
13.5

31.3

18.6
13.4

3.5

0.2

5.0

0.1

5.0

(1)

FY10
Royalty

FY11
VAT/Sales Tax Others

FY12

23

Note: (1) Others include Service Tax, Custom Duties. (2) Others include PEL Fees and Electricity Duties.

0.1

Plan outlay expenditure

Rs/crore

2890

2050 1632 1210 1743

1557

FY08

FY09

FY10

FY 11

FY 12

FY 13

Significant Investment Lined Up

Annual Plan 201314: Rs.35,809 mn XIIth 5year Plan: Rs.1,90,030 mn
Overseas 17% Investments 1% Survey 12%

Capital Equipment 17%

Exploration 32%

Development 21%

3D Seismic Surveys
Sq km
1,795

Exploratory Drilling
No. of well
21 32

Development Drilling
No. of well
38

19
500

FY13

FY14

FY13

FY14

FY13

FY14

Substantial Increase in Exploratory and Development Drilling Planned

24

Operating Performance

25

Crude Oil and Natural Gas Production

Crude Oil Production
(in mm bbl)

Natural Gas Production

(in mm scm)

2,633
27.53

2,639

26.21

2,415

25.57

25.67

2,352

FY10

FY11

FY12

FY 13

FY10

FY11

FY12

FY 13

26

Attractive Cost Structure

OIL has the Advantage of Low Finding and Development Costs
OIL's integrated oil and gas infrastructure enables the company to manage costs efficiently by optimizing manpower costs, using inhouse services, adapting cost-saving technology, effectively using geological data and expertise
5.45
(US$/boe)

5.51 3.80 4.02

5.19

2.4.11 2.99 2.82

4.22 3.80

FY09

FY10

FY11 Finding Costs F&D Costs

FY12

FY13

Crude Oil Production Cost

USD/Barrel USD / MMBTU 7.62 8.23 2.11 0.33 0.27 8.11 2.19 0.25 0.89 5.1 5.2 5.32 5.85 5.67 1.14

Natural Gas Production Cost

1.27 1.38 0.27 0.09 1.22 0.25 1.23 0.19 0.08 0.08 0.22

6.80

7.24

0.17

0.08

0.08

1.35 0.35

1.61 0.43

1.97

0.94

0.96

1.02

0.89

FY09 FY09 FY10 Raising Cost FY11 Depreciation FY12 Depletion FY13

FY10 Raising Cost

FY11 Depreciation

FY12 Depletion

FY13

27

Source: Company Information.

Natural Gas Pricing

Natural Gas Price at USD 4.2/mmbtu for 10000 Cal (inclusive of royalty) was last approved in May,2010. OILs cost of natural Gas production is around USD 3.06/mmbtu. Cost of exploration and Development in NELP block is much higher. To make Natural Gas production attractive, there is need for price revision. Govt. formed Rangarajan committee for reviewing pricing of Natural Gas. The committee had recommended Natural Gas price as average of :

Net back Price of Indian LNG import at well head of exporting countries Average price prevailing at major natural gas market.
For every USD one increases in Natural Gas Price:

OILs PAT will improve by ~Rs 220 crore.

OILs contribution to exchequer will be increased by ~Rs 254 crore ~Rs 78 crore to State
Govt and ~Rs 176 crore to Central Govt

Sharing of Subsidy by Upstream Companies

Rs. in crore
Rs. In cr. % Sharing

% Sharing
2011-12 44,465 7,352 3,183 55,000 2012-13 49,421 7892 2687 60,000 ONGC OIL GAIL Total 200910 80% 11% 9% 100% 201011 82% 11% 7% 100% 2011-12 81% 13% 6% 100% 2012-13 81% 14% 5% 100%

200910 ONGC OIL GAIL Total 11,554 1,549 1,326 14,430

201011 24893 3293 2111 30297

Realised Price (USD/Barrel)

114.7 86.1 68.5
2.3 2.3

119.7 109.6

111.4

56.2
1.5

2.6

2.6

58.5
1.8 41.4

2.7

59.8

2.7

2.7 1.9

2.7

53.6 33.1

55.4
1.9

39.8

42.5

38.9 24.9
0 0

34.7

FY08

FY 10

FY09 FY 11 Gross Realized Price

FY 12 FY10

FY13

FY11

Q4 FY12
Net Realized Price

FY12 Q4 FY13

Realized Price after Subsidy/Discount

28

Financial Performance

29

Growing Revenue and Profit

Revenue
(Rs.mn) (Rs.mn)

EBITDA
61,234

72,414

79,056

83,206

98,632

99,476

35,680

43,800

48,050

61,110

FY09

FY10

FY11

FY12

FY 13

FY09

FY10

FY11

FY12

FY13

Net Profit
(Rs.mn) (As a % of Profit)

Dividend Payout Ratio

50% 31% 31% 33%

34,469 21,617 26,105 28,879

35,893

30%

FY09

FY10

FY11

FY12

FY 13

FY09

FY10

FY11

FY12

FY13

Source: Company financials 30

Leverage Remains Low

Earnings Per Share
(in Rs.)

Book Value Per Share

FY13 EPS is based on post bonus issue share capital
(in Rs.)

101

114

120

143

572

649

738

FY13 Book Value is based on post bonus issue share capital

60

436 320

FY09

FY10

FY11

FY12

FY 13

FY09

FY10

FY11

FY12

FY13

Total Debt
(Rs.mn)

Total Equity
10,578
(Rs.mn)

192,115 177,213 156,019 137,637

10,143

93,310

565 FY09

375 101 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13

Source: Company financials 31

Guidance: FY14

2013-14 (Target)
Crude oil production Natural gas production 3.95 MMT 2,740 mmscm

Increase in Exploratory and Development Drilling Meterage Increase in Work Overs Enhanced Water Injection Endeavour to Enhance LPG production through NGL Recycling Endeavour to Reduce Gas Flaring by Inducting LNG Technology

32

Awards and Accolades

OIL was awarded the prestigious BUSINESS LEADERSHIP AWARD in OIL & GAS

SECTOR by NDTV Profit on 7th January 2012.

E&P Company of the Year Award at the Petrofed Oil & Gas Industry awards for the year 2010-11 First Prize for Oil Industry Safety Award in Oil & Gas Assets (Onshore) Category

Motivational Leadership Award for 201011 at the World HRD Congress

Best Environment Management and Sustainable Development Award by Indian Chamber of Commerce Gold Award in Petroleum Sector for Outstanding Achievement in Safety Management by the Greentech Foundation Greentech HR Gold Award 2012 for training excellence Performance Excellence Award 2011 by Indian Institute of Industrial Engineering Golden Peacock Award for CSR for 2012

33

Conclusion

Steady and sustained Growth Sound Financial Health Strong operating track record More than 5 decades of E&P expertise Spreading its wings: NE - Pan India - Global Large prospective E&P acreage

Pioneer in Pipeline transportation

Entry into Offshore/ Deep Water Blocks Entry into discovered assets in Venezuela, Acquisition thrust continues Diversifying into new areas. Core Focus remains in E&P

34

Thank You