08 August 2012
Vedanta Resources plc
Cairn India Limited announces departure of MD & CEO Rahul Dhir
The following release was issued by Vedanta Resources Plc's subsidiary Cairn India Limited today.
For Immediate Release
08 August, 2012
Cairn India announces departure of MD & CEO Rahul Dhir
The Board of Cairn India announces that Mr. Rahul Dhir has decided to step down as Managing Director and Chief Executive Officer of the Company effective 31 August, 2012 to pursue his entrepreneurial interests.
The search for Mr. Dhir's successor is underway and an announcement is expected soon. During this intervening period, the Board has appointed Mr. P. Elango, Director - Strategy and Business Services and a member of Cairn India's Executive Committee, as the Interim CEO. Mr. Elango, an experienced oil & gas veteran has been with Cairn for over 15 years and has worked competently alongside Mr. Dhir for the past six years.
The Board expresses its appreciation for Mr. Dhir's dedicated service and for leading the company from the front. Mr. Navin Agarwal, Chairman of Cairn India, said: "The success of Cairn India, under Rahul's leadership has been achieved through building a globally competitive team, ensuring a strong focus on disciplined execution, sustaining low cost and safe operations and innovative application of technology. These strategic pillars will continue to remain core to Cairn India's operating philosophy as it enters the next phase of its growth. We thank Rahul for his valuable contribution and wish him success in his future endeavours".
Mr. Dhir has led Cairn India since its inception in 2006 and was instrumental in the successful IPO in January 2007. Under his leadership, Cairn India has grown into one of the leading oil & gas companies in India, with a market capitalization of over US $11 billion. Cairn India has a world-class resource base, and operates over 200,000 boepd of oil & gas production.
On the eve of this announcement, Mr Dhir said, "It's been a privilege to be part of Cairn India's remarkable growth story over the past six years. We have achieved all major milestones set out at the time of the IPO. With the completion of Vedanta's acquisition, Cairn India's exceptional organization and unique asset base are well placed to continue to deliver sustainable growth and value for our Nation and all our stakeholders. This is the right transition point for me to pursue my entrepreneurial interests. I take this opportunity to thank all my colleagues at Cairn India, and our Board for their contribution and support in creating this amazing Company!"
Mr. Agarwal further added "Cairn India is well poised to continue its focus on exploration, and on augmenting our current production from Rajasthan and focus on growth in India and beyond."
Dr. Sunil Bharati, Head, Corporate Affairs & Communications
Rajesh Chaturvedi, Adfactors
Anurag Pattnaik, DGM - Geology & Investor Relations
Cairn India Limited Fact Sheet
On 9 January, 2007, Cairn India Limited was listed on the Bombay Stock Exchange and the National Stock Exchange of India. Cairn India is now part of the Vedanta Group, a globally diversified natural resources group with wide ranging interests in aluminium, copper, zinc, lead, silver, iron ore, etc.
Cairn India is headquartered in Gurgaon in the National Capital Region, with operational offices in Tamil Nadu, Gujarat, Andhra Pradesh, Rajasthan and Sri Lanka.
Cairn India is primarily engaged in the business of oil and gas exploration, production and transportation. Average daily gross operated production was 206,963 boe in Q1 FY2012-13. The Company sells its oil to major refineries in India and its gas to both PSU and private buyers.
The Company has a world-class resource base, with interest in eight blocks in India and one in Sri Lanka. Cairn India's resource base is located in three strategically focused areas namely one block in Rajasthan, two on the west coast of India and six on the east coast of India, including one in Sri Lanka.
The blocks are located in the Barmer Basin, Krishna-Godavari Basin, the Palar-Pennar Basin, the Cambay Basin, the Mumbai Offshore Basin and the frontier Mannar Basin.
Cairn India's focus on India has resulted in a significant number of oil and gas discoveries. Cairn made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. To date, twenty five discoveries have been made in the Rajasthan block RJ-ON-90/1.
In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a PSC signed on 15 May, 1995. The main Development Area (1,859 km2), which includes Mangala, Aishwariya, Raageshwari and Saraswati is shared between Cairn India and ONGC, with Cairn India holding 70% and ONGC having exercised their back in right for 30%. The Operating Committee for Block RJ-ON-90/1 consists of Cairn India and ONGC.
Further Development Areas (430 km2), including the Bhagyam and Shakti fields and (822 km2) comprising of the Kaameshwari West Development Area, is also
shared between Cairn India and ONGC in the same proportion. The Mangala, Bhagyam and Aishwariya (MBA) fields have gross recoverable oil reserves and resources of approximately 1 billion barrels, which includes proved plus probable (2P) gross reserves and resources of 636 mmboe with a further 300 mmboe or more of EOR resource potential. The Rajasthan block is contributing more than one fifth of current domestic crude production. The total resource base supports a vision to produce 300,000 bopd, (equivalent to a contribution of approximately 40% of India's current domestic crude production), subject to further investments and regulatory approvals.
In Andhra Pradesh and Gujarat, Cairn India on behalf of its JV partners operates two processing plants, 11 platforms and more than 200 km of sub-sea pipelines with a production of approximately 40,000 boepd.
Block SL 2007-01-001 was awarded to Cairn Lanka in the bid round held in 2008. This offshore block is located in the Gulf of Mannar. The water depths range from 400 to 1,900 meter. Cairn Lanka (Private) Limited is a wholly owned subsidiary of Cairn India and holds a 100% participating interest in the block. The signing of the Petroleum Resource Agreement (PRA) to explore oil and natural gas in the Mannar Basin was held in July 2008 in Colombo.
India currently imports more than 2.5* million bopd of crude oil. The domestic crude oil production is approximately 0.76 million bopd of which Cairn India operated assets (Ravva, CB/OS-2 and the RJ-ON-90/1) contribute more than one-fifth.
For further information on Cairn India Limited & Cairn Lanka (Pvt.) Limited see www.cairnindia.com & www.cairnlanka.com
*PPAC Provisional data for FY 2011-12
This material contains forward-looking statements regarding Cairn India and its affiliates, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward- looking statements are based on our management's assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are by their nature subject to significant risks and uncertainties; and actual results, performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from expectations include, but are not limited to, regulatory changes, future levels of industry product supply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and use of technology, acts of competitors and other changes to business conditions. Cairn India undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn India's expectations with regard thereto or any change in circumstances or events after the date hereof. Unless otherwise stated the reserves and resource numbers within this document represent the views of Cairn India and do not represent the views of any other party, including the Government of India, the Directorate General of Hydrocarbons or any of Cairn India's joint venture partner.
For further information, please contact:
Senior Vice President - Investor Relations
Vedanta Resources plc
Tel: +91 22 6646 1531
Tel: +44 20 7251 3801
About Vedanta Resources plc
Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified global natural resources major. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please visit www.vedantaresources.com.
This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.