EX-15.11 7 d941179dex1511.htm EX-15.11 EX-15.11

Exhibit 15.11

DEGOLYER AND MACNAUGHTON

5001 SPRING VALLEY ROAD

SUITE 800 EAST

DALLAS, TEXAS 75244

This is a digital representation of a DeGolyer and MacNaughton report.

This file is intended to be a manifestation of certain data in the subject report and as such are subject to the same conditions thereof. The information and data contained in this file may be subject to misinterpretation; therefore, the signed and bound copy of this report should be considered the only authoritative source of such information.

 

LOGO

DEGOLYER AND MACNAUGHTON

5001 SPRING VALLEY ROAD

SUITE 800 EAST

DALLAS, TEXAS 75244

REPORT

as of

MARCH 31, 2020

on

RESERVES and REVENUE

of

CERTAIN FIELDS

in

INDIA

with interests attributable to

CAIRN OIL & GAS, DIVISION OF VEDANTA LIMITED

DEGOLYER AND MACNAUGHTON

TABLE of CONTENTS

 

     Page  

FOREWORD

      1  

Scope of Investigation

      1  

Authority .

      4  

Source of Information

      4  

DEFINITION of RESERVES

      5  

ESTIMATION of RESERVES

      10  

VALUATION of RESERVES

      13  

Discussion of Fiscal Terms

      14  

RJ-ON-90/1 PSC (Rajasthan)

      14  

CB/OS-2 PSC (Cambay)

      14  

KG-ONN-2003/1 PSC (Nagayalanka)

      15  

PKGM-1 PSC (Ravva)

      15  

SUMMARY and CONCLUSIONS

      17  

TABLES

   

Table 1 – Working Interests and Contract Expiration Dates

   

Table 2 – Gross Proved Reserves

   

Table 3 – Net Proved Reserves

   

Table 4 – Reconciliation of Net Proved Reserves

   

Table 5 – Standardized Measure of Discounted Future Net Cash Flows and Changes therein relating to Proved Reserves

   

Table 6 – Summary of Net Reserves and Future Net Revenue

   

Table 7 – Projection of Proved Developed Reserves and Future Net Revenue, CB/OS-2 PSC

   

Table 8 – Projection of Total Proved Reserves and Future Net Revenue, CB/OS-2 PSC

   

Table 9 – Projection of Proved Developed Reserves and Future Net Revenue, KG-ONN-2003/1 PSC

   

Table 10 – Projection of Total Proved Reserves and Future Net Revenue, KG-ONN-2003/1 PSC

   

Table 11 – Projection of Proved Developed Reserves and Future Net Revenue, RJ-ON-90/1 PSC

   

Table 12 – Projection of Total Proved Reserves and Future Net Revenue, RJ-ON-90/1 PSC

   

Table 13 – Projection of Proved Developed Reserves and Future Net Revenue, PKGM-1 PSC

   

Table 14 – Projection of Total Proved Reserves and Future Net Revenue, PKGM-1 PSC

   

DEGOLYER AND MACNAUGHTON

5001 SPRING VALLEY ROAD

SUITE 800 EAST

DALLAS, TEXAS 75244

REPORT

as of

MARCH 31, 2020

on

RESERVES and REVENUE

of

CERTAIN FIELDS

in

INDIA

with interests attributable to

CAIRN OIL & GAS, DIVISION OF VEDANTA LIMITED

FOREWORD

Scope of Investigation

This report presents estimates, as of March 31, 2020, of the extent and value of the proved oil, condensate, and sales gas reserves of certain fields in India in which Cairn Oil & Gas, Division of Vedanta Limited (Cairn) has represented it holds an interest under the terms of various production sharing contracts (PSC) with the Government of India (GOI). Table 1 presents a listing of the properties evaluated along with contract type, interest evaluated, and expiration of each license area.

Estimates of reserves presented in this report have been prepared in compliance with the regulations promulgated by the United States Securities and Exchange Commission (SEC). These reserves definitions are discussed in detail in the Definition of Reserves section of this report.

Reserves estimated in this report are expressed as gross reserves and net reserves. Gross reserves are defined as the total estimated petroleum remaining to be produced from these properties after March 31, 2020. Net reserves are defined as that portion of the gross reserves attributable to the interests held by Cairn after deducting all interests held by others.

 

DEGOLYER AND MACNAUGHTON

 

Certain properties in which Cairn has represented it holds an interest are subject to the terms of various PSCs. The terms of these agreements generally allow for working interest participants to be reimbursed for portions of capital costs and operating expenses and to share in the profits. The reimbursements and profit proceeds are converted to a barrel of oil equivalent or standard cubic foot of gas equivalent by dividing by product prices to estimate the “entitlement quantities.” These entitlement quantities are equivalent in principle to net reserves and are used to calculate an equivalent net share, termed an “entitlement interest.” In this report, Cairn’s net reserves or interest for certain properties subject to these agreements is the entitlement based on Cairn’s working interest.

The fields evaluated herein are located in the CB/OS-2 PSC (3 fields), the KG-ONN-2003/1 PSC (1 field), the RJ-ON-90/1 PSC (16 fields), and the PKGM-1 PSC (1 field).

The CB-X, Gauri, and Lakshmi fields are located in the CB/OS-2 PSC (Cambay), the Nagayalanka field is located in the KG-ONN-2003/1 PSC (Nagayalanka), the Aishwariya, Aishwariya Barmer Hill, Bhagyam, GS-V, Guda, Kaameshwari-1, Kaameshwari West-2, Mangala, N-E, N-I, Raagashwari Oil, Raagashwari Deep Gas, Saraswati, Saraswati-4 Basement, Shakti, and Tukarum fields are located in the RJ-ON-90/1 PSC (Rajasthan), and the Ravva field is located in the PKGM-1 PSC (Ravva).

The net entitlement interests for the properties evaluated in this report were calculated for each PSC and may change from year to year depending on changes to the estimated costs projected for each field, the timing of production, and price assumptions. Estimates of the entitlement interest for the total proved reserves for each PSC are as follows:

 

     Net Entitlement
Interest		  

Contract Area

    Oil and
Condensate
(percent)		      Sales
Gas
(percent)		  

CB/OS-2 PSC

      23.65        23.64  

KG-ONN-2003/1 PSC

      48.53        48.64  

RJ-ON-90/1 PSC

      41.99        41.75  

PKGM-1 PSC

      8.43        8.04  

 

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DEGOLYER AND MACNAUGHTON

 

This report presents values for proved reserves that were estimated using prices, expenses, and costs provided by Cairn. Future prices were estimated using guidelines established by the SEC and the Financial Accounting Standards Board (FASB). Prices, expenses, and costs were provided in Indian rupees (INR) or United States dollars (U.S.$). At the request of Cairn, an exchange rate of INR74.81 per U.S.$1.00 was used. All values were estimated in INR and U.S.$, and all prices, expenses, costs, and revenue shown in this report are expressed in INR and U.S.$. A detailed explanation of the future price, expense, and cost assumptions is included in the Valuation of Reserves section of this report.

Values for proved reserves in this report are expressed in terms of future gross revenue, future net revenue, and present worth. Future gross revenue is defined as that revenue which will accrue to the evaluated interests from the production and sale of the estimated net reserves. Future net revenue is calculated by deducting cash royalties, production taxes (termed “cess”), operating expenses, capital costs, and Indian income tax from future gross revenue. Operating expenses include field operating expenses, workover costs, compression costs, and all other direct costs specified by Cairn. Capital costs include such items as platforms, pipelines, wells, compressors, and abandonment fund payments. Abandonment costs are represented by Cairn to be inclusive of those costs associated with the removal of equipment, plugging of wells, and reclamation and restoration associated with the abandonment. Present worth is defined as future net revenue discounted at a specified arbitrary discount rate compounded monthly over the expected period of realization. Present worth should not be construed as fair market value because no consideration was given to additional factors that influence the prices at which properties are bought and sold. In this report, present worth values using a nominal discount rate of 10 percent are reported.

Estimates of reserves and revenue should be regarded only as estimates that may change as further production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

 

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DEGOLYER AND MACNAUGHTON

 

Authority

This report was authorized by Mr. M. Suresh Kumar, Chief Reservoir Engineer, Cairn Oil & Gas, Division of Vedanta Limited.

Source of Information

Information used in the preparation of this report was obtained from Cairn. In the preparation of this report we have relied, without independent verification, upon information furnished by Cairn with respect to the property interests being evaluated, production from such properties, current costs of operation and development, current prices for production, agreements relating to current and future operations and sale of production, and various other information and data that were accepted as represented. A field examination of the properties was not considered necessary for the purposes of this report.

 

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DEGOLYER AND MACNAUGHTON

 

DEFINITION of RESERVES

Petroleum reserves included in this report are classified as proved. Only proved reserves have been evaluated for this report. Reserves classifications used in this report are in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC. Reserves are judged to be economically producible in future years from known reservoirs under existing economic and operating conditions and assuming continuation of current regulatory practices using conventional production methods and equipment. In the analyses of production-decline curves, reserves were estimated only to the limit of economic rates of production under existing economic and operating conditions using prices and costs consistent with the effective date of this report, including consideration of changes in existing prices provided only by contractual arrangements but not including escalations based upon future conditions. The petroleum reserves are classified as follows:

Proved oil and gas reserves – Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.

(i) The area of the reservoir considered as proved includes:

(A) The area identified by drilling and limited by fluid contacts, if any, and (B) Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data.

(ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with reasonable certainty.

 

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DEGOLYER AND MACNAUGHTON

 

(iii) Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.

(iv) Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when:

(A) Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and (B) The project has been approved for development by all necessary parties and entities, including governmental entities.

(v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.

Probable reserves – Probable reserves are those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered.

(i) When deterministic methods are used, it is as likely as not that actual remaining quantities recovered will exceed the sum of estimated proved plus probable reserves. When probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the proved plus probable reserves estimates.

 

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DEGOLYER AND MACNAUGHTON

 

(ii) Probable reserves may be assigned to areas of a reservoir adjacent to proved reserves where data control or interpretations of available data are less certain, even if the interpreted reservoir continuity of structure or productivity does not meet the reasonable certainty criterion. Probable reserves may be assigned to areas that are structurally higher than the proved area if these areas are in communication with the proved reservoir.

(iii) Probable reserves estimates also include potential incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than assumed for proved reserves.

(iv) See also guidelines in paragraphs (iv) and (vi) of the definition of possible reserves.

Possible reserves – Possible reserves are those additional reserves that are less certain to be recovered than probable reserves.

(i) When deterministic methods are used, the total quantities ultimately recovered from a project have a low probability of exceeding proved plus probable plus possible reserves. When probabilistic methods are used, there should be at least a 10% probability that the total quantities ultimately recovered will equal or exceed the proved plus probable plus possible reserves estimates.

(ii) Possible reserves may be assigned to areas of a reservoir adjacent to probable reserves where data control and interpretations of available data are progressively less certain. Frequently, this will be in areas where geoscience and engineering data are unable to define clearly the area and vertical limits of commercial production from the reservoir by a defined project.

 

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DEGOLYER AND MACNAUGHTON

 

(iii) Possible reserves also include incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than the recovery quantities assumed for probable reserves.

(iv) The proved plus probable and proved plus probable plus possible reserves estimates must be based on reasonable alternative technical and commercial interpretations within the reservoir or subject project that are clearly documented, including comparisons to results in successful similar projects.

(v) Possible reserves may be assigned where geoscience and engineering data identify directly adjacent portions of a reservoir within the same accumulation that may be separated from proved areas by faults with displacement less than formation thickness or other geological discontinuities and that have not been penetrated by a wellbore, and the registrant believes that such adjacent portions are in communication with the known (proved) reservoir. Possible reserves may be assigned to areas that are structurally higher or lower than the proved area if these areas are in communication with the proved reservoir.

(vi) Pursuant to paragraph (iii) of the proved oil and gas reserves definition, where direct observation has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves should be assigned in the structurally higher portions of the reservoir above the HKO only if the higher contact can be established with reasonable certainty through reliable technology. Portions of the reservoir that do not meet this reasonable certainty criterion may be assigned as probable and possible oil or gas based on reservoir fluid properties and pressure gradient interpretations.

Developed oil and gas reserves – Developed oil and gas reserves are reserves of any category that can be expected to be recovered:

(i) Through existing wells with existing equipment and operating methods or in which the cost of the required

equipment is relatively minor compared to the cost of a new well; and

 

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DEGOLYER AND MACNAUGHTON

 

(ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.

Undeveloped oil and gas reserves – Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.

(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.

(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances justify a longer time.

(iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, as defined in [section 210.4–10 (a) Definitions], or by other evidence using reliable technology establishing reasonable certainty.

The extent to which probable and possible reserves ultimately may be reclassified as proved reserves is dependent upon future drilling, testing, and well performance. The degree of risk to be applied in evaluating probable and possible reserves is influenced by economic and technological factors as well as the time element. No probable or possible reserves have been evaluated for this report.

 

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DEGOLYER AND MACNAUGHTON

 

ESTIMATION of RESERVES

Estimates of reserves were prepared by the use of appropriate geologic, petroleum engineering, and evaluation principles and techniques that are in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC and with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers entitled “Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (revised June 2019) Approved by the SPE Board on 25 June 2019.” The method or combination of methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basic data, and production history.

Based on the current stage of field development, production performance, the development plans provided by Cairn, and analyses of areas offsetting existing wells with test or production data, reserves were classified as proved developed or proved undeveloped.

The proved undeveloped reserves estimates were based on opportunities identified in the plan of development provided by Cairn.

Cairn has represented that its senior management is committed to the development plan provided by Cairn and that Cairn has the financial capability to execute the development plan, including the drilling and completion of wells and the installation of equipment and facilities.

The volumetric method was used to estimate the original oil in place (OOIP) and original gas in place (OGIP). Structure maps were prepared to delineate each reservoir, and isopach maps were constructed to estimate reservoir volume. Electrical logs, radioactivity logs, core analyses, and other available data were used to prepare these maps as well as to estimate representative values for porosity and water saturation. When adequate data were available and when circumstances justified, material-balance methods were used to estimate OOIP or OGIP.

 

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DEGOLYER AND MACNAUGHTON

 

Estimates of ultimate recovery were obtained after applying recovery factors to OOIP and OGIP. These recovery factors were based on consideration of the type of energy inherent in the reservoirs, analyses of the petroleum, the structural positions of the properties, and the production histories. When applicable, material balance and other engineering methods were used to estimate recovery factors based on an analysis of reservoir performance, including production rate, reservoir pressure, and reservoir fluid properties.

For depletion-type reservoirs or those whose performance disclosed a reliable decline in producing-rate trends or other diagnostic characteristics, reserves were estimated by the application of appropriate decline curves or other performance relationships. In the analyses of production-decline curves, reserves were estimated only to the limits of economic production as defined in the Definition of Reserves section of this report or the expiration of the fiscal agreement, as appropriate.

In certain cases, reserves were estimated by incorporating elements of analogy with similar wells or reservoirs for which more complete data were available.

Data provided by Cairn from wells drilled through March 31, 2020, and made available for this evaluation were used to prepare the reserves estimates herein. These reserves estimates were based on consideration of production data through March 31, 2020. Cumulative production, as of March 31, 2020, was deducted from the estimated gross ultimate recovery to estimate gross reserves.

Oil and condensate reserves estimated herein are to be recovered by normal field separation and are expressed in millions of barrels (106bbl). In these estimates, 1 barrel equals 42 United States gallons. For reporting purposes, oil and condensate reserves have been estimated separately and are presented herein as a summed quantity.

Gas quantities estimated herein are expressed as sales gas. Sales gas is defined as the total gas to be produced from the reservoirs, measured at the point of delivery, after reduction for fuel usage, flare, and shrinkage resulting from field separation and processing. Gas reserves estimated herein are reported as sales gas. Gas quantities are expressed at a temperature base of 60 degrees Fahrenheit (°F) and at a pressure base of 14.7 pounds per square inch absolute (psia). Gas quantities included in this report are expressed in billions of cubic feet (109ft3).

 

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DEGOLYER AND MACNAUGHTON

 

Gas quantities are identified by the type of reservoir from which the gas will be produced. Nonassociated gas is gas at initial reservoir conditions with no oil present in the reservoir. Associated gas is both gas-cap gas and solution gas. Gas-cap gas is gas at initial reservoir conditions and is in communication with an underlying oil zone. Solution gas is gas dissolved in oil at initial reservoir conditions. Gas quantities estimated herein include both associated and nonassociated gas.

At the request of Cairn, sales gas reserves estimated herein were converted to oil equivalent using an energy equivalent factor of 6,000 cubic feet of gas per 1 barrel of oil equivalent.

Forecasts of reserves provided herein are reported on a fiscal-year basis starting April 1 of each year and ending March 31 of the following calendar year.

Reserves were forecast to the expiration of each PSC. The expiration date for each PSC is as follows:

 

Contract Area

   

Expiration Date

CB/OS-2 PSC

    June 30, 2023

KG-ONN-2003/1 PSC

    September 24, 2031

RJ-ON-90/1 PSC

    May 14, 2030

PKGM-1 PSC

    October 27, 2029

The gross and net proved reserves evaluated herein are presented in Tables 2 and 3, respectively. A reconciliation of the net proved oil and condensate and sales gas reserves, as of March 31, 2019, is shown in Table 4.

The estimated gross and net proved developed, proved undeveloped, and total proved reserves, as of March 31, 2019, of the properties evaluated herein are summarized as follows, expressed in millions of barrels (106bbl) and billions of cubic feet (109ft3):

 

Proved Developed     Proved Undeveloped     Total Proved  
Oil and
Condensate
(106bbl)		     Sales Gas
(109ft3)		     Oil and
Condensate
(106bbl)		     Sales Gas
(109ft3)		     Oil and
Condensate
(106bbl)		     Sales Gas
(109ft3)		  
Gross     Net     Gross     Net     Gross     Net     Gross     Net     Gross     Net     Gross     Net  
  231.297       91.490       250.980       100.451       30.296       12.554       43.472       18.573       261.593       104.044       294.452       119.024  

 

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DEGOLYER AND MACNAUGHTON

 

VALUATION of RESERVES

Revenue values in this report were estimated using initial prices, expenses, and costs provided by Cairn. An exchange rate of INR74.81 per U.S.$1.00 was used based on representation from Cairn that it was the prevailing exchange rate on March 31, 2020. Future prices were estimated using guidelines established by the SEC and the FASB. The following economic assumptions were used for estimating the revenue values reported herein:

Oil and Condensate Prices

Cairn has represented that the oil and condensate prices were based on a 12-month average price, calculated as the unweighted average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period, unless prices are defined by contractual agreements. All oil and condensate estimated herein is sold under contractual agreements. The volume-weighted average adjusted product price attributable to estimated proved reserves was U.S.$58.80 per barrel for oil and condensate, based on a 12-month average Brent reference price of U.S.$62.59 per barrel. Cairn supplied differentials by field to the Brent reference price, and these prices were held constant for the lives of the properties.

Gas Prices

Cairn has represented that the gas prices are defined by contractual agreements based on specific market conditions. The volume-weighted average adjusted product price attributable to estimated proved reserves was U.S.$4.07 per thousand cubic feet. The average contract prices for each contract area were held constant for the lives of the properties.

 

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DEGOLYER AND MACNAUGHTON

 

Operating Expenses, Capital Costs, and Abandonment Costs

Estimates of future operating expenses, capital costs, and abandonment costs were based on information provided by Cairn. This information included historical costs as well as operating expense and capital cost estimates for future development. Estimates of future operating expenses and capital costs, either higher or lower than the Cairn development plan estimates, may have been made in order to conform to the respective reserves cases. Abandonment costs, which are those costs associated with the removal of equipment, plugging of wells, and reclamation and restoration associated with the abandonment, were provided by Cairn for each field or contract area and were included as capital costs through escrow payments over the life of the remaining reserves. As of March 31, 2020, Cairn has represented that no additional funding for abandonment costs is required for the CB/OS-2 PSC. Estimates of operating expenses, capital costs, and abandonment costs provided by Cairn have been considered in determining the economic viability of the undeveloped reserves estimated herein. No escalation of operating expenses, capital costs, or abandonment costs have been applied.

Discussion of Fiscal Terms

RJ-ON-90/1 PSC (Rajasthan)

Cairn has represented that under the terms of the PSC signed with the GOI, the Contractor (Cairn and its partners) has the right to recover costs and share in the profit proceeds with the GOI. The Licensee, Oil and Natural Gas Corporation (ONGC), pays royalties of 20 percent on the wellhead value of oil and condensate sales and 10 percent on the wellhead value of gas sales. The Contractor is liable for a production tax (termed “cess”) of 20 percent ad-valorem. Royalties and cess are considered allowable costs for cost recovery purposes. Profits are shared based on a sliding scale tied to the ratio of cumulative revenues divided by cumulative investments (exploration and development). Income taxes are assessable at statutory rates for domestic and foreign companies (Cairn’s interests are held by two entities: one domestic entity and one foreign entity).

CB/OS-2 PSC (Cambay)

Cairn has represented that under the terms of the PSC signed with the GOI, the Contractor has the right to recover costs and share in the profit proceeds with the GOI. The Contractor is not responsible for royalties or cess under the terms of this contract and the same are payable by Licensee (ONGC). Profits are shared based on a sliding scale tied to the after-tax rate of return. Income taxes are assessable at statutory rates for domestic companies.

 

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DEGOLYER AND MACNAUGHTON

 

KG-ONN-2003/1 PSC (Nagayalanka)

Cairn has represented that under the terms of the PSC signed with the GOI, the Contractor has the right to recover costs with 95 percent of revenue limit and share in the profit proceeds with the GOI. The Contractor pays royalties of 12.5 percent ad-valorem on the wellhead value of oil and condensate sales and 10 percent on the wellhead value of gas sales. Profits are shared based on a sliding scale tied to the ratio of cumulative revenues divided by cumulative investments (exploration and development). Income taxes are assessable at statutory rates for domestic companies.

PKGM-1 PSC (Ravva)

Cairn has represented that under the terms of the PSC signed with the GOI, the Contractor has the right to recover costs and share in the profit proceeds with the GOI. Royalties were paid at a rate of INR481 per metric ton for oil and 10 percent ad-valorem of the wellhead value for gas sales until October 2019 (in accordance with the terms of the original PSC). Royalties after October 2019 (in accordance with the terms of the PSC extension) are paid at a rate of 10 percent on the wellhead value for oil and gas sales. Cess rates were INR900 per metric ton of oil until October 2019 (in accordance with the terms of the original PSC). Cess rates after October 2019 are paid at a rate of 20 percent ad-valorem on the wellhead value of oil sales (in accordance with the terms of the PSC extension). Royalties and cess payments are deducted before profit sharing. Profits are shared based on a sliding scale tied to the after-tax rate of return. Income taxes are assessable at statutory rates for domestic companies.

The estimated future net revenue and present worth discounted at a rate of 10 percent to be derived from the production and sale of the net proved developed and total proved reserves, as of March 31, 2020, of the properties evaluated using the guidelines established by the SEC are summarized as follows, expressed in millions of Indian rupees (106INR) and millions of United States dollars (106U.S.$):

 

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DEGOLYER AND MACNAUGHTON

 

Proved Developed     Total Proved     Proved Developed     Total Proved  
Future Net
Revenue
(106INR)		     Present
Worth at 10
Percent
(106INR)		     Future Net
Revenue
(106INR)		     Present
Worth at 10
Percent
(106INR)		     Future Net
Revenue
(106U.S.$)		     Present
Worth at 10
Percent
(106U.S.$)		     Future Net
Revenue
(106U.S.$)		     Present
Worth at 10
Percent
(106U.S.$)		  
  112,210       82,978       120,003       86,705       1,500       1,109       1,604       1,159  

Standardized measure of discounted future net cash flows (SMV) and changes therein relating to proved reserves, as of March 31, 2020, are shown in Table 5. The SMV is the net present worth discounted at 10 percent. Table 6 presents a summary of net reserves and future net revenue. Tables 7 through 14 show the projection of proved developed and total proved reserves and future net revenue by PSC.

In our opinion, the information relating to estimated proved reserves, estimated future net revenue from proved reserves, and present worth of estimated future net revenue from proved reserves of oil, condensate, and gas contained in this report has been prepared in accordance with Paragraphs 932-235-50-4 through 932-235-50-7, 932-235-50-9, 932-235-50-30, and 932-235-50-31 of the Accounting Standards Update 932-235-50, Extractive Industries – Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and Disclosures (January 2010) of the FASB and Rules 4–10(a) (1)–(32) of Regulation S–X and Rules 302(b), 1201, 1202(a) (1), (2), (3), (4), (8)(i), (ii), and (v)–(x), and 1203(a) of Regulation S–K of the SEC; provided, however, the reserves and values are presented on a fiscal-year basis and not on a calendar-year basis. This report does not include certain disclosures required by Item 1202 (a)(8) of Regulation S–K and is thus not to be used for inclusion in certain SEC filings.

To the extent the above-enumerated rules, regulations, and statements require determinations of an accounting or legal nature, we, as engineers, are necessarily unable to express an opinion as to whether the above-described information is in accordance therewith or sufficient therefor.

 

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DEGOLYER AND MACNAUGHTON

 

SUMMARY and CONCLUSIONS

Cairn has represented that it holds an interest in certain properties located in India evaluated herein. The estimated net proved developed, proved undeveloped, and total proved reserves, as of March 31, 2020, of the properties evaluated herein are summarized as follows, expressed in millions of barrels (106bbl), billions of cubic feet (109ft3), and millions of barrels of oil equivalent (106boe):

 

     Net Reserves  
     Oil and
Condensate
(106bbl)		      Sales
Gas
(109ft3)		      Oil
Equivalent
(106boe)		  

Proved Developed

      91.490        100.451        108.233  

Proved Undeveloped

      12.554        18.573        15.649  
  

 

 

     

 

 

     

 

 

  

Total Proved

      104.044        119.024        123.882  

 

Note:

Sales gas resereves estimated herein were converted to oil equivalent using an energy equivalent factor of 6,000 cubic feet of gas per 1 barrel of oil equivalent.

The estimated present worth discounted at a rate of 10 percent attributable to Cairn’s interest in the proved developed and total proved reserves, as of March 31, 2020, of the properties evaluated using the guidelines established by the SEC is summarized as follows, expressed in millions of Indian rupees (106INR) and millions of United States dollars (106U.S.$):

 

     Present Worth at
10 Percent
(106INR)		      Present Worth at
10 Percent
(106U.S.$)		  

Proved Developed

      82,978        1,109  

Total Proved

      86,705        1,159  

While the oil and gas industry may be subject to regulatory changes from time to time that could affect an industry participant’s ability to recover its reserves, we are not aware of any such governmental actions which would restrict the recovery of the March 31, 2020, estimated reserves.

 

17

DEGOLYER AND MACNAUGHTON

 

DeGolyer and MacNaughton is an independent petroleum engineering consulting firm that has been providing petroleum consulting services throughout the world since 1936. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Cairn. DeGolyer and MacNaughton has used all assumptions, procedures, data, and methods that it considers necessary to prepare this report.

 

Submitted,
LOGO
DeGOLYER and MacNAUGHTON
Texas Registered Engineering Firm F-716

SIGNED: April 20, 2020

 

LOGO

 

LOGO

 

Thomas C. Pence, P.E.
Senior Vice President
DeGolyer and MacNaughton

 

18

 

 

TABLE 1

WORKING INTERESTS and CONTRACT EXPIRATION DATES

as of

MARCH 31, 2020

for

CERTAIN AREAS

in

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

Country Area

    Fiscal Regime      Working Interest
(%)		      Expiration Dates  

India

         

CB/OS-2 PSC

      PSC        40.0        June 30, 2023  

KG-ONN-2003/1 PSC

      PSC        49.0        September 24, 2031  

RJ-ON-90/1PSC

      PSC        70.0        May 14, 2030  

PKGM-1 PSC

      PSC        22.5        October 27, 2029  

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

 

 

TABLE 2

GROSS PROVED RESERVES

as of

MARCH 31, 2020

for

CERTAIN FIELDS

in

INDIA

   LOGO

 

     Gross Reserves  
     Proved Developed      Proved Undeveloped      Total Proved  

Area Field

    Oil and
Condensate
(106bbl)		      Sales
Gas
(109ft3)		      Oil
Equivalent
(106boe)		      Oil and
Condensate
(106bbl)		      Sales
Gas
(109ft3)		      Oil
Equivalent
(106boe)		      Oil and
Condensate
(106bbl)		      Sales
Gas
(109ft3)		      Oil
Equivalent
(106boe)		  

CB/OS-2 PSC

                           

CB-X

      0.000        0.000        0.000        0.000        0.000        0.000        0.000        0.000        0.000  

Gauri

      1.115        0.972        1.277        0.000        0.000        0.000        1.115        0.972        1.277  

Lakshmi

      6.465        5.525        7.386        0.000        1.041        0.173        6.465        6.566        7.559  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total CB/OS-2 PSC

      7.580        6.497        8.663        0.000        1.041        0.173        7.580        7.538        8.836  

KG-ONN-2003/1 PSC

                           

Nagayalanka

      1.867        3.277        2.413        0.000        0.000        0.000        1.867        3.277        2.413  

RJ-ON-90/1 PSC

                           

Aishwariya

      27.210        0.000        27.210        2.858        0.000        2.858        30.068        0.000        30.068  

Aishwariya Barmer Hill

      19.286        0.000        19.286        4.802        0.000        4.802        24.088        0.000        24.088  

Bhagyam

      27.570        0.000        27.570        4.765        0.000        4.765        32.335        0.000        32.335  

GS-V

      0.000        0.000        0.000        0.098        0.000        0.098        0.098        0.000        0.098  

Guda

      0.334        0.000        0.334        0.000        0.000        0.000        0.334        0.000        0.334  

Kaameshwari-1

      0.000        0.000        0.000        0.570        0.000        0.570        0.570        0.000        0.570  

Kaameshwari West-2

      0.229        0.000        0.229        0.000        0.000        0.000        0.229        0.000        0.229  

Mangala

      123.466        0.000        123.466        10.532        0.000        10.532        133.998        0.000        133.998  

N-E

      1.123        0.000        1.123        0.000        0.000        0.000        1.123        0.000        1.123  

N-I

      1.381        0.000        1.381        0.000        0.000        0.000        1.381        0.000        1.381  

Raageshwari Deep Gas

      10.988        233.577        49.918        1.176        41.846        8.150        12.164        275.423        58.068  

Raageshwari Oil

      0.588        0.000        0.588        0.000        0.000        0.000        0.588        0.000        0.588  

Saraswati

      0.232        0.000        0.232        0.000        0.000        0.000        0.232        0.000        0.232  

Saraswati-4 Basement

      0.095        0.000        0.095        0.000        0.000        0.000        0.095        0.000        0.095  

Shakti

      0.000        0.000        0.000        0.248        0.000        0.248        0.248        0.000        0.248  

Tukaram

      0.000        0.000        0.000        1.111        0.000        1.111        1.111        0.000        1.111  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total RJ-ON-90/1 PSC

      212.502        233.577        251.432        26.160        41.846        33.134        238.662        275.423        284.566  

PKGM-1 PSC

                           

Ravva

      9.348        7.629        10.620        4.136        0.585        4.233        13.484        8.214        14.853  

Grand Total

      231.297        250.980        273.128        30.296        43.472        37.540        261.593        294.452        310.668  

 

Note:

Sales gas is converted to oil equivalent using an energy equivalent factor of 6,000 cubic feet of gas per 1 barrel of oil equivalent.

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

 

 

TABLE 3

NET PROVED RESERVES

as of

MARCH 31, 2020

for

CERTAIN AREAS

in

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

     Net Reserves  
     Proved Developed      Proved Undeveloped      Total Proved  

Area

    Oil and
Condensate
(106bbl)		      Sales
Gas
(109ft3)		      Oil
Equivalent
(106boe)		      Oil and
Condensate
(106bbl)		      Sales
Gas
(109ft3)		      Oil
Equivalent
(106boe)		      Oil and
Condensate
(106bbl)		      Sales
Gas
(109ft3)		      Oil
Equivalent
(106boe)		  

CB/OS-2 PSC

      1.790        1.533        2.046        0.003        0.249        0.044        1.793        1.782        2.090  

KG-ONN-2003/1 PSC

      0.906        1.594        1.172        0.000        0.000        0.000        0.906        1.594        1.172  

RJ-ON-90/1 PSC

      88.020        96.729        104.142        12.188        18.259        15.231        100.208        114.988        119.373  

PKGM-1 PSC

      0.774        0.595        0.873        0.363        0.065        0.374        1.137        0.660        1.247  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      91.490        100.451        108.233        12.554        18.573        15.649        104.044        119.024        123.882  

 

Note:

Sales gas is converted to oil equivalent using an energy equivalent factor of 6,000 cubic feet of gas per 1 barrel of oil equivalent.

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

  

 

TABLE 4

RECONCILIATION of NET PROVED RESERVES

as of

MARCH 31, 2020

for

CERTAIN AREAS

in

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

Proved Developed and Undeveloped    Oil and
Condensate
(106bbl)		     Sales
Gas
(109ft3)		     Oil
Equivalent
(106boe)		  

Reserves as of March 31, 2019

      126.830       95.365       142.724  

Revisions

      5.403       42.373       12.466  

Improved Recovery

      0.000       0.000       0.000  

Purchases or (Sales) of Minerals in Place

      0.000       0.000       0.000  

Extensions and Discoveries

      0.040       0.000       0.040  

Annual Production

      (28.229 )      (18.714 )      (31.348 ) 

Proved Developed and Undeveloped Reserves as of March 31, 2020

      104.044       119.024       123.882  

Proved Developed Reserves

       

March 31, 2019

      101.399       56.448       110.806  

March 31, 2020

      91.490       100.451       108.233  

 

Note:

Sales gas is converted to oil equivalent using a factor of 6,000 cubic feet of gas per 1 barrel of oil equivalent.

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

  

 

TABLE 5

STANDARDIZED MEASURE of DISCOUNTED FUTURE NET CASH FLOWS and CHANGES THEREIN relating to PROVED RESERVES

as of

MARCH 31, 2020

for

CERTAIN AREAS

in

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

     Total
Proved
(106 INR)		     Total
Proved
(106 U.S.$)		  

Future cash inflows

      493,984       6,603  

Future production costs

      301,972       4,037  

Future development costs

      28,465       380  

Future income tax expenses

      43,544       582  

Future net cash flows

      120,003       1,604  

10% annual discount for estimated timing of cash flows

      (33,298 )      (445 ) 

Standardized measure of discounted future net cash flows

      86,705       1,159  

The following are the principal sources of change in the standardized measure of discounted future net cash flows during Fiscal Year 2019:

     

Standardized Measure March 31, 2019

      114,044       1,646  

Sales and transfers of oil and gas produced, net of production costs

      (80,409 )      (1,075 ) 

Net changes in prices and production costs

      (35,288 )      (594 ) 

Extensions, discoveries and improved recovery

      43       1  

Development costs incurred during the period

      39,114       523  

Revisions of previous quantity estimates

      13,595       182  

Change in estimated development costs

      (436 )      (6 ) 

Purchase or (Sales) of Minerals in Place

      0       0  

Accretion of discount

      18,193       243  

Net change in income taxes

      17,849       239  

Standardized Measure March 31, 2020

      86,705       1,159  

Notes:

 

1.

Indian Rupees (INR) were converted to United States dollars (U.S.$) using an exchange rate of INR74.81 per U.S.$1.00.

2.

For FY2019, an exchange rate of INR69.28 per U.S.$1.00 was used.

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

  

 

TABLE 6

SUMMARY of NET RESERVES and FUTURE NET REVENUE

as of

MARCH 31, 2020

for

CERTAIN PROPERTIES

in

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

     Net Reserves      Future
Gross		      Royalty      Operating      Capital      Income      Future Net      Present
Worth		  

Reserves Category

    Oil
(106bbl)		      Sales Gas
(109ft3)		      Revenue
(106 INR)		      and Cess
(106 INR)		      Expenses
(106 INR)		      Costs
(106 INR)		      Tax
(106 INR)		      Revenue
(106 INR)		      at 10 Percent
(106 INR)		  

Proved Developed

      91.490        100.451        433,415        109,664        162,476        11,485        37,580        112,210        82,978  

Proved Undeveloped

      12.554        18.573        60,569        13,475        16,357        16,980        5,964        7,793        3,727  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Proved

      104.044        119.024        493,984        123,139        178,833        28,465        43,544        120,003        86,705  

 

Note:

Capital costs include abandonment.

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

 

 

TABLE 7

PROJECTION OF PROVED DEVELOPED RESERVES and FUTURE NET REVENUE

as of

MARCH 31, 2020

for

CERTAIN FIELDS

located in the

CB/OS-2 PSC

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

    Oil and Condensate     Sales Gas                 Future
Gross		     Royalty     Operating     Capital     Income     Future
Net		     Present
Worth		  

Fiscal
Year

   Gross
(106bbl)		     Net
(106bbl)		     Gross
(109ft3)		     Net
(109ft3)		     Oil Price
(INR/bbl)		     Gas Price
(INR/103ft3)		     Revenue
(106 INR)		     and Cess
(106 INR)		     Expenses
(106 INR)		     Costs
(106 INR)		     Tax
(106 INR)		     Revenue
(106 INR)		     at 10 Percent
(106 INR)		  
2020     3.592       0.865       3.077       0.741       4,371.90       385.27       4,067       0       920       84       1,012       2,051       1,945  
2021     2.192       0.505       2.076       0.478       4,371.90       385.27       2,391       0       324       34       656       1,377       1,181  
2022     1.359       0.317       1.002       0.234       4,371.90       385.27       1,475       0       221       24       384       846       656  
2023     0.437       0.103       0.342       0.080       4,371.90       385.27       479       0       77       6       15       381       268  
2024     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2025     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2026     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2027     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2028     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2029     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2030     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2031     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2032     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2033     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2034     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
 

 

 

    

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Total     7.580       1.790       6.497       1.533           8,412       0       1,542       148       2,067       4,655       4,050  

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

 

 

TABLE 8

PROJECTION OF TOTAL PROVED RESERVES and FUTURE NET REVENUE

as of

MARCH 31, 2020

for

CERTAIN FIELDS

located in the

CB/OS-2 PSC

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

                                        Future                                   Present  
    Oil and Condensate     Sales Gas                 Gross     Royalty     Operating     Capital     Income     Future Net     Worth  

Fiscal
Year

   Gross
(106bbl)		     Net
(106bbl)		     Gross
(109ft3)		     Net
(109ft3)		     Oil Price
(INR/bbl)		     Gas Price
(INR/103ft3)		     Revenue
(106 INR)		     and Cess
(106 INR)		     Expenses
(106 INR)		     Costs
(106 INR)		     Tax
(106 INR)		     Revenue
(106 INR)		     at 10 Percent
(106 INR)		  
2020     3.592       0.868       3.611       0.872       4,371.90       385.27       4,130       0       941       100       1,023       2,066       1,958  
2021     2.192       0.505       2.583       0.596       4,371.90       385.27       2,439       0       336       34       669       1,400       1,202  
2022     1.359       0.317       1.002       0.234       4,371.90       385.27       1,475       0       221       24       384       846       657  
2023     0.437       0.103       0.342       0.080       4,371.90       385.27       479       0       77       6       15       381       268  
2024     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2025     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2026     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2027     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2028     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2029     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2030     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2031     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2032     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2033     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2034     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
 

 

 

    

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Total     7.580       1.793       7.538       1.782           8,523       0       1,575       164       2,091       4,693       4,085  

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

 

 

TABLE 9

PROJECTION OF PROVED DEVELOPED RESERVES and FUTURE NET REVENUE

as of

MARCH 31, 2020

for the

NAGAYALANKA FIELD

located in the

KG-ONN-2003/1 PSC

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

                                        Future                                   Present  
    Oil and Condensate     Sales Gas                 Gross     Royalty     Operating     Capital     Income     Future Net     Worth  

Fiscal
Year

   Gross
(106bbl)		     Net
(106bbl)		     Gross
(109ft3)		     Net
(109ft3)		     Oil Price
(INR/bbl)		     Gas Price
(INR/103ft3)		     Revenue
(106 INR)		     and Cess
(106 INR)		     Expenses
(106 INR)		     Costs
(106 INR)		     Tax
(106 INR)		     Revenue
(106 INR)		     at 10 Percent
(106 INR)		  
2020     0.451       0.219       0.707       0.344       4,264.17       230.22       1,014       117       230       51       61       555       527  
2021     0.340       0.165       0.559       0.272       4,264.17       230.22       768       88       221       46       35       378       323  
2022     0.261       0.127       0.449       0.218       4,264.17       230.22       592       68       180       40       23       281       218  
2023     0.206       0.100       0.371       0.180       4,264.17       230.22       469       54       117       29       45       224       158  
2024     0.150       0.073       0.267       0.130       4,264.17       230.22       341       39       86       25       55       136       86  
2025     0.117       0.057       0.215       0.105       4,264.17       230.22       267       31       69       22       41       104       60  
2026     0.090       0.044       0.169       0.082       4,264.17       230.22       206       24       54       19       29       80       41  
2027     0.075       0.036       0.150       0.073       4,264.17       230.22       172       20       46       18       24       64       31  
2028     0.062       0.030       0.129       0.063       4,264.17       230.22       143       16       39       17       19       52       23  
2029     0.052       0.025       0.114       0.055       4,264.17       230.22       121       14       33       15       15       44       17  
2030     0.044       0.021       0.102       0.050       4,264.17       230.22       103       12       29       15       12       35       12  
2031     0.019       0.009       0.045       0.022       4,264.17       230.22       45       5       13       12       1       14       19  
2032     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2033     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2034     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
 

 

 

    

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Total     1.867       0.906       3.277       1.594           4,241       488       1,117       309       360       1,967       1,515  

 

Note:

Capital costs include abandonment.

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

 

 

TABLE 10

PROJECTION OF TOTAL PROVED RESERVES and FUTURE NET REVENUE

as of

MARCH 31, 2020

for the

NAGAYALANKA FIELD

located in the

KG-ONN-2003/1 PSC

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

                                        Future                                   Present  
    Oil and Condensate     Sales Gas                 Gross     Royalty     Operating     Capital     Income     Future Net     Worth  

Fiscal
Year

   Gross
(106bbl)		     Net
(106bbl)		     Gross
(109ft3)		     Net
(109ft3)		     Oil Price
(INR/bbl)		     Gas Price
(INR/103ft3)		     Revenue
(106 INR)		     and Cess
(106 INR)		     Expenses
(106 INR)		     Costs
(106 INR)		     Tax
(106 INR)		     Revenue
(106 INR)		     at 10 Percent
(106 INR)		  
2020     0.451       0.219       0.707       0.344       4,264.17       230.22       1,014       117       230       51       61       555       527  
2021     0.340       0.165       0.559       0.272       4,264.17       230.22       768       88       221       46       35       378       323  
2022     0.261       0.127       0.449       0.218       4,264.17       230.22       592       68       180       40       23       281       218  
2023     0.206       0.100       0.371       0.180       4,264.17       230.22       469       54       117       29       45       224       158  
2024     0.150       0.073       0.267       0.130       4,264.17       230.22       341       39       86       25       55       136       86  
2025     0.117       0.057       0.215       0.105       4,264.17       230.22       267       31       69       22       41       104       60  
2026     0.090       0.044       0.169       0.082       4,264.17       230.22       206       24       54       19       29       80       41  
2027     0.075       0.036       0.150       0.073       4,264.17       230.22       172       20       46       18       24       64       31  
2028     0.062       0.030       0.129       0.063       4,264.17       230.22       143       16       39       17       19       52       23  
2029     0.052       0.025       0.114       0.055       4,264.17       230.22       121       14       33       15       15       44       17  
2030     0.044       0.021       0.102       0.050       4,264.17       230.22       103       12       29       15       12       35       12  
2031     0.019       0.009       0.045       0.022       4,264.17       230.22       45       5       13       12       1       14       19  
2032     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2033     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2034     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
 

 

 

    

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Total     1.867       0.906       3.277       1.594           4,241       488       1,117       309       360       1,967       1,515  

 

Note:

Capital costs include abandonment.

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

 

 

TABLE 11

PROJECTION OF PROVED DEVELOPED RESERVES and FUTURE NET REVENUE

as of

MARCH 31, 2020

for

CERTAIN FIELDS

located in the

RJ-ON-90/1 PSC

RAJASTHAN STATE, INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

                                        Future                                   Present  
    Oil and Condensate     Sales Gas                 Gross     Royalty     Operating     Capital     Income     Future Net     Worth  

Fiscal
Year

   Gross
(106bbl)		     Net
(106bbl)		     Gross
(109ft3)		     Net
(109ft3)		     Oil Price
(INR/bbl)		     Gas Price
(INR/103ft3)		     Revenue
(106 INR)		     and Cess
(106 INR)		     Expenses
(106 INR)		     Costs
(106 INR)		     Tax
(106 INR)		     Revenue
(106 INR)		     at 10 Percent
(106 INR)		  
2020     43.176       18.531       40.472       17.371       4,399.58       297.00       86,689       22,162       27,486       2,128       9,975       24,938       23,639  
2021     34.368       13.737       38.193       15.266       4,399.58       297.74       64,981       17,641       22,674       1,733       5,828       17,105       14,678  
2022     27.641       11.013       30.806       12.274       4,399.58       301.48       52,151       14,188       18,738       1,419       4,290       13,516       10,497  
2023     23.123       9.323       25.535       10.295       4,399.58       305.97       44,167       11,869       16,538       1,203       3,420       11,137       7,831  
2024     19.505       7.958       21.638       8.829       4,399.58       308.97       37,741       10,012       14,702       1,025       2,760       9,242       5,881  
2025     16.836       6.959       18.772       7.760       4,399.58       313.45       33,051       8,642       13,416       895       2,307       7,791       4,488  
2026     14.444       6.063       16.545       6.945       4,399.58       317.94       28,883       7,414       12,290       774       1,891       6,514       3,397  
2027     12.396       5.283       14.806       6.310       4,399.58       322.43       25,277       6,363       11,245       668       1,551       5,450       2,573  
2028     10.636       4.596       13.313       5.752       4,399.58       326.17       22,095       5,459       10,218       577       1,275       4,566       1,951  
2029     9.255       4.060       12.109       5.312       4,399.58       330.66       19,619       4,750       9,445       504       1,066       3,854       1,491  
2030     1.122       0.497       1.388       0.615       4,399.58       335.15       2,393       576       1,178       61       170       408       143  
2031     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2032     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2033     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2034     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
 

 

 

    

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Total     212.502       88.020       233.577       96.729           417,047       109,076       157,930       10,987       34,533       104,521       76,569  

 

Note:

Capital costs include abandonment.

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

 

 

TABLE 12

PROJECTION OF TOTAL PROVED RESERVES and FUTURE NET REVENUE

as of

MARCH 31, 2020

for

CERTAIN FIELDS

located in the

RJ-ON-90/1 PSC

RAJASTHAN STATE, INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

    Oil and Condensate     Sales Gas                

Future

Gross

     Royalty     Operating     Capital     Income     Future Net    

Present

Worth

  

Fiscal
Year

   Gross
(106bbl)		     Net
(106bbl)		     Gross
(109ft3)		     Net
(109ft3)		     Oil Price
(INR/bbl)		     Gas Price
(INR/103ft3)		     Revenue
(106 INR)		     and Cess
(1060 INR)		     Expenses
(106 INR)		     Costs
(106 INR)		     Tax
(106 INR)		     Revenue
(106 INR)		     at 10 Percent
(106 INR)		  
2020     46.943       21.142       40.472       18.227       4,399.58       297.00       98,429       24,095       29,433       11,757       10,570       22,574       21,397  
2021     37.348       15.354       40.471       16.638       4,399.58       297.00       72,495       19,170       23,803       6,189       6,405       16,928       14,525  
2022     29.979       12.077       40.437       16.290       4,399.58       297.00       57,971       15,388       19,325       3,029       5,199       15,030       11,675  
2023     25.748       10.392       35.076       14.157       4,399.58       299.24       49,958       13,216       17,769       1,670       4,295       13,008       9,146  
2024     21.705       8.769       28.018       11.320       4,399.58       302.98       42,010       11,141       15,938       1,131       3,245       10,555       6,717  
2025     18.762       7.695       23.285       9.550       4,399.58       307.47       36,792       9,630       14,643       983       2,682       8,854       5,101  
2026     16.490       6.873       19.859       8.277       4,399.58       311.96       32,820       8,464       13,712       867       2,268       7,509       3,916  
2027     14.709       6.228       17.328       7.337       4,399.58       316.45       29,723       7,550       12,991       776       1,966       6,440       3,040  
2028     13.413       5.764       15.275       6.564       4,399.58       320.93       27,466       6,885       12,488       710       1,765       5,618       2,401  
2029     12.179       5.304       13.661       5.949       4,399.58       325.42       25,270       6,251       11,890       646       1,581       4,902       1,896  
2030     1.386       0.610       1.541       0.679       4,399.58       329.91       2,909       711       1,407       74       211       506       177  
2031     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2032     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2033     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2034     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
 

 

 

    

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Total     238.662       100.208       275.423       114.988           475,843       122,501       173,399       27,832       40,187       111,924       79,991  

 

Note:

Capital costs include abandonment.

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

 

 

TABLE 13

PROJECTION OF PROVED DEVELOPED RESERVES and FUTURE NET REVENUE

as of

MARCH 31, 2020

for the

RAVVA FIELD

located in the

PKGM-1 PSC

BAY OF BENGAL, INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

    Oil and Condensate     Sales Gas                 Future
Gross		     Royalty     Operating     Capital     Income     Future Net     Present
Worth		  

Fiscal
Year

   Gross
(106bbl)		     Net
(106bbl)		     Gross
(109ft3)		     Net
(109ft3)		     Oil Price
(INR/bbl)		     Gas Price
(INR/103ft3)		     Revenue
(106 INR)		     and Cess
(106 INR)		     Expenses
(106 INR)		     Costs
(106 INR)		     Tax
(106 INR)		     Revenue
(106 INR)		     at 10 Percent
(106 INR)		  
2020     3.457       0.249       3.869       0.278       4,511.04       374.44       1,226       50       463       5       411       297       281  
2021     1.862       0.137       1.589       0.117       4,511.04       374.44       661       0       265       5       101       290       249  
2022     1.230       0.099       0.903       0.073       4,511.04       374.44       476       50       234       5       38       149       115  
2023     0.866       0.079       0.546       0.050       4,511.04       374.44       373       0       221       4       31       117       82  
2024     0.616       0.062       0.260       0.026       4,511.04       374.44       292       0       198       4       16       74       47  
2025     0.452       0.050       0.172       0.019       4,511.04       374.44       232       0       170       4       8       50       28  
2026     0.333       0.037       0.121       0.013       4,511.04       374.44       172       0       126       4       6       36       19  
2027     0.248       0.028       0.086       0.010       4,511.04       374.44       131       0       97       4       3       27       12  
2028     0.187       0.022       0.055       0.006       4,511.04       374.44       100       0       75       4       2       19       8  
2029     0.097       0.011       0.028       0.003       4,511.04       374.44       52       0       38       2       4       8       3  
2030     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2031     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2032     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2033     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2034     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
 

 

 

    

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Total     9.348       0.774       7.629       0.595           3,715       100       1,887       41       620       1,067       844  

 

Note:

Capital costs include abandonment.

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.

 

 

TABLE 14

PROJECTION OF TOTAL PROVED RESERVES and FUTURE NET REVENUE

as of

MARCH 31, 2020

for the

RAVVA FIELD

located in the

PKGM-1 PSC

BAY OF BENGAL, INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

   LOGO

 

    Oil and Condensate     Sales Gas                 Future
Gross		     Royalty     Operating     Capital     Income     Future Net     Present
Worth		  
Fiscal
Year		   Gross
(106bbl)		     Net
(106bbl)		     Gross
(109ft3)		     Net
(109ft3)		     Oil Price
(INR/bbl)		     Gas Price
(INR/103ft3)		     Revenue
(106 INR)		     and Cess
(106 INR)		     Expenses
(106 INR)		     Costs
(106 INR)		     Tax
(106 INR)		     Revenue
(106 INR)		     at 10 Percent
(106 INR)		  
2020     4.239       0.322       3.982       0.303       4,511.04       374.44       1,568       50       568       124       530       296       280  
2021     3.257       0.240       1.781       0.131       4,511.04       374.44       1,131       50       463       5       174       439       376  
2022     1.862       0.151       0.992       0.080       4,511.04       374.44       710       0       354       5       92       259       200  
2023     1.303       0.118       0.608       0.055       4,511.04       374.44       554       0       332       4       53       165       116  
2024     0.941       0.095       0.307       0.031       4,511.04       374.44       442       50       302       4       12       74       46  
2025     0.696       0.077       0.207       0.023       4,511.04       374.44       354       0       262       4       18       70       40  
2026     0.516       0.057       0.148       0.016       4,511.04       374.44       264       0       196       4       12       52       27  
2027     0.386       0.044       0.106       0.012       4,511.04       374.44       202       0       152       4       9       37       18  
2028     0.187       0.022       0.055       0.006       4,511.04       374.44       100       0       75       4       2       19       8  
2029     0.097       0.011       0.028       0.003       4,511.04       374.44       52       0       38       2       4       8       3  
2030     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2031     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2032     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2033     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
2034     0.000       0.000       0.000       0.000       —         —         0       0       0       0       0       0       0  
 

 

 

    

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Total     13.484       1.137       8.214       0.660           5,377       150       2,742       160       906       1,419       1,114  

 

Note:

Capital costs include abandonment.

These data accompany the report of DeGolyer and MacNaughton and are subject to its specific conditions.