Cairn India operates the largest producing oil field in the Indian private sector and has pioneered

the use of cutting-edge technology to extend production life. Today, Cairn India has a worldclass resource base, with interest in 10 blocks in India and one in Sri Lanka. The Company made two successful bids in the New Exploration Licensing Policy (NELP) VIII licensing round, and was awarded the KG-OSN-2009/3 and MB-DWN-2009/1 blocks. Cairn India is already one of the most significant oil and gas exploration and production companies in South Asia. The company operates the largest producing oil field in the Indian private sector and has pioneered the use of cutting-edge technology to extend production life. Cairn India sells its oil to four major refineries across India and its gas to both public and private buyers. These successes have created a company with more than 1295 employees in India alone, and world class oil reserves in one of the fastest-growing economies in the world Today. Cairn India has operations in Andhra Pradesh, Gujarat and Rajasthan. In Andhra Pradesh and Gujarat, Cairn India on behalf of its joint venture (JV) partners operates two processing plants, 11 platforms and more than 200 km of sub-sea pipelines with a production of approx. 50,000 bopd. In Rajasthan, the Mangala field in the RJ-ON-90/1 block is currently producing 100,000 bopd. Cairn India and its JV partner ONGC have set up the Mangala Processing Terminal in Barmer to process the crude from the Rajasthan fields. A continuously heated and insulated pipeline has also been constructed to transport the crude from Barmer to Bhogat in the coast of Gujarat. The pipeline section from Barmer to Salaya is operational and sales have commenced to Essar, RIL and IOC.

How does the company maintain low operating cost? Maintaining Companys low operating cost base through efficient operations is critical. Its strategy is to focus on life-cycle planning and continuous monitoring and control of operational costs as well as applying innovative operating concepts and technologies. One of the key objectives of the company is to maintain the current production volumes from its existing assets in Ravva and Cambay is one of Cairn India's key objectives. Both of these assets have benefited from revised gas prices and improved oil production. The completion of the 4D seismic in Ravva and the infill drilling programme in Cambay will ensure that these assets continue to produce for an enhanced period of time.

What are the companys growth plans and how does it explore new opportunities? We believe that India has significant under-explored potential, with 26 basins covering a sedimentary area of 3.14 million km2. In addition to its existing exploration portfolio, Cairn is seeking out new exploration opportunities through organic growth, acquisition opportunities and by participating in New Exploration Licensing Policy (NELP) rounds. We also believe that there are significant reserves in Rajasthan. We are in the process of assessing how advanced technologies can be used to help increase recovery from this resource base. We are actively exploring for hydrocarbons in basins throughout India. In addition to the exploration potential in Rajasthan, it has identified a number of leads and prospects in India, where Cairn has an interest in other blocks. This diversification allows drilling a large number of potential prospects with high geologic risk, as well as exploring for and drilling smaller potential accumulations that carry less risk. This exploration strategy has delivered early entry into several potential hydrocarbon-bearing regions in India.

Which are the geographical areas where the company focuses the most? We believe that there are significant reserves in Rajasthan.We are in the process of assessing how advanced technologies can be used to help increase recovery from this resource base, harnessing hydraulic fracture stimulation techniques. Laboratory studies have indicated that the early application of enhanced oil recovery (EOR) techniques on the Mangala and Bhagyam fields is expected to extend the production plateau and ultimate reserves for these fields. EOR pilot programme in Mangala is already in progress. Further work is also planned to determine the best method of extracting the oil from the potentially productive Barmer Hill formation.

Comment upon the Operations in mangala oil field Cairn discovered the largest onshore oilfield in India since 1985 the Mangala field in Rajasthan. The company began production from its Mangala oilfield in August 2009. Mangala Processing Terminal has been set up in Barmer to process the crude from the Rajasthan fields. The mangala field is currently producing 100,000 bopd. The company next aims to develop the Bhagyam and Aishwariya fields over the next two years. Production from the Mangala, Bhagyam and Aishwariya (MBA) fields will gradually ramp up to a plateau of at least 175,000 barrels of oil per day (bopd).