EX-15.12

EX-15.12 9 d165852dex1512.htm EX-15.12 EX-15.12

Exhibit 15.12

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, 2021

RESERVES and REVENUE

CERTAIN FIELDS

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, 2021

RESERVES and REVENUE

CERTAIN FIELDS

INDIA

with interests attributable to

CAIRN OIL & GAS, DIVISION OF VEDANTA LIMITED

FOREWORD

Scope of Investigation

This report presents estimates, as of March 31, 2021, 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, 2021. 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		2

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. A detailed explanation of the terms of these agreements is included in the Valuation of Reserves section of this report.

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 (18 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
	Oil and		Sales
	Condensate		Gas
Contract Area	(percent)		(percent)

CB/OS-2 PSC		25.95		25.95
KG-ONN-2003/1 PSC		48.60		48.62
RJ-ON-90/1 PSC		46.70		46.64
PKGM-1 PSC		9.50		9.09


DEGOLYER AND MACNAUGHTON		3

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 INR73.30 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.


DEGOLYER AND MACNAUGHTON		4

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 was not considered necessary for the purposes of this report.


DEGOLYER AND MACNAUGHTON		5

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.


DEGOLYER AND MACNAUGHTON		6

(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.


DEGOLYER AND MACNAUGHTON		7

(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.


DEGOLYER AND MACNAUGHTON		8

(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


DEGOLYER AND MACNAUGHTON		9

(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.


DEGOLYER AND MACNAUGHTON		10

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.


DEGOLYER AND MACNAUGHTON		11

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, 2021, 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, 2021. Cumulative production, as of March 31, 2021, 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).


DEGOLYER AND MACNAUGHTON		12

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.

Reserves estimated herein were forecast 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 29, 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, 2021, is shown in Table 4.

The estimated gross and net proved developed, proved undeveloped, and total proved reserves, as of March 31, 2021, 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

223.551

98.964

221.829

98.751

10.046

5.337

22.455

11.020

233.597

104.301

244.284

109.771


DEGOLYER AND MACNAUGHTON		13

VALUATION of RESERVES

Revenue values in this report were estimated using initial prices, expenses, and costs provided by Cairn. Future prices were estimated using guidelines established by the SEC and the FASB. An exchange rate of INR73.30 per U.S.$1.00 was used based on representation from Cairn that it was the prevailing exchange rate on March 31, 2021. 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 reference price, calculated as the unweighted arithmetic 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 reserves estimated herein are sold under contractual agreements. Cairn supplied differentials to a Brent price of U.S.$41.09 per barrel and the prices were held constant thereafter. The volume-weighted average adjusted price attributable to the estimated proved reserves over the lives of the properties was U.S.$39.04 per barrel of oil and condensate.

Gas Prices

Cairn has represented that the gas prices are defined by contractual agreements based on specific market conditions. The volume-weighted average adjusted price attributable to the estimated proved reserves was U.S.$4.38 per thousand cubic feet of gas. The average contract prices for each contract area were held constant for the lives of the properties.


DEGOLYER AND MACNAUGHTON		14

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 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, 2021, 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.


DEGOLYER AND MACNAUGHTON		15

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, 2021, 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.$):


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

	57,384		38,839		58,722		39,145		783		530		801		534


DEGOLYER AND MACNAUGHTON		16

Standardized measure of discounted future net cash flows (SMV) and changes therein relating to proved reserves, as of March 31, 2021, 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, 932-235-50-6, 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.


DEGOLYER AND MACNAUGHTON		17

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, 2021, 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

98.964

98.751

115.422

Proved Undeveloped

5.337

11.020

7.174

Total Proved

104.301

109.771

122.596

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, 2021, 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		38,839		530
Total Proved		39,145		534

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, 2021, estimated reserves.


DEGOLYER AND MACNAUGHTON		18

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,

/s/ DeGOLYER and MacNAUGHTON

DeGOLYER and MacNAUGHTON

Texas Registered Engineering Firm F-716

SIGNED: April 20, 2021

/s/ Thomas C. Pence, P.E.

Thomas C. Pence, P.E.

Senior Vice President

DeGolyer and MacNaughton

TABLE 1

WORKING INTERESTS and CONTRACT EXPIRATION DATES

as of

MARCH 31, 2021

for

CERTAIN AREAS

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

Country Area

Fiscal Regime

Working Interest
(%)

Expiration Dates

India

CB/OS-2 PSC

PSC

40.0

June 29, 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, 2021

for

CERTAIN FIELDS

INDIA


	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		1.050		0.784		1.181		0.000		0.000		0.000		1.050		0.784		1.181
Lakshmi		4.233		5.732		5.188		0.000		0.000		0.000		4.233		5.732		5.188


Total CB/OS-2 PSC		5.283		6.516		6.369		0.000		0.000		0.000		5.283		6.516		6.369

KG-ONN-2003/1 PSC
Nagayalanka		1.638		2.534		2.060		0.000		0.000		0.000		1.638		2.534		2.060

RJ-ON-90/1 PSC
Aishwariya		24.456		0.000		24.456		0.000		0.000		0.000		24.456		0.000		24.456
Aishwariya Barmer Hill		19.631		0.000		19.631		3.294		0.000		3.294		22.925		0.000		22.925
Bhagyam		28.772		0.000		28.772		0.000		0.000		0.000		28.772		0.000		28.772
GS-V		0.000		0.000		0.000		0.086		0.000		0.086		0.086		0.000		0.086
Guda		0.271		0.000		0.271		0.000		0.000		0.000		0.271		0.000		0.271
Kaameshwari-1		0.000		0.000		0.000		0.555		0.000		0.555		0.555		0.000		0.555
Kaameshwari West-2		0.139		0.000		0.139		0.000		0.000		0.000		0.139		0.000		0.139
Mangala		121.923		0.000		121.923		1.192		0.000		1.192		123.115		0.000		123.115
N-E		0.868		0.000		0.868		0.000		0.000		0.000		0.868		0.000		0.868
N-I		1.020		0.000		1.020		0.000		0.000		0.000		1.020		0.000		1.020
NL		0.000		0.000		0.000		1.113		0.000		1.113		1.113		0.000		1.113
Raageshwari Deep Gas		8.539		205.170		42.734		0.910		22.455		4.653		9.449		227.625		47.387
Raageshwari Oil		0.517		0.000		0.517		1.213		0.000		1.213		1.730		0.000		1.730
Raageshwari South-1		0.000		0.000		0.000		0.315		0.000		0.315		0.315		0.000		0.315
Saraswati		0.419		0.000		0.419		0.000		0.000		0.000		0.419		0.000		0.419
Saraswati-4 Basement		0.082		0.000		0.082		0.000		0.000		0.000		0.082		0.000		0.082
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		1.120		0.000		1.120		1.120		0.000		1.120


Total RJ-ON-90/1 PSC		206.637		205.170		240.832		10.046		22.455		13.789		216.683		227.625		254.621

PKGM-1 PSC
Ravva		9.993		7.609		11.261		0.000		0.000		0.000		9.993		7.609		11.261

Grand Total		223.551		221.829		260.522		10.046		22.455		13.789		233.597		244.284		274.311

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, 2021

for CERTAIN AREAS

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED


	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 (10⁹ ft³)		Oil Equivalent (10⁶boe)

CB/OS-2 PSC		1.371		1.691		1.653		0.000		0.000		0.000		1.371		1.691		1.653
KG-ONN-2003/1 PSC		0.796		1.232		1.001		0.000		0.000		0.000		0.796		1.232		1.001
RJ-ON-90/1 PSC		95.848		95.136		111.704		5.337		11.020		7.174		101.185		106.156		118.878
PKGM-1 PSC		0.949		0.692		1.064		0.000		0.000		0.000		0.949		0.692		1.064


Total		98.964		98.751		115.422		5.337		11.020		7.174		104.301		109.771		122.596

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, 2021

for

CERTAIN AREAS

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED


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

Reserves as of March 31, 2020		104.044			119.024			123.882

Revisions		21.474			9.205			23.007
Improved Recovery		0.000			0.000			0.000
Purchases or (Sales) of Minerals in Place		0.000			0.000			0.000
Extensions and Discoveries		0.667			0.000			0.667
Annual Production		(21.884	)		(18.458	)		(24.960	)

Proved Developed and Undeveloped Reserves as of March 31, 2021		104.301			109.771			122.596

Proved Developed Reserves
March 31, 2020		91.490			100.451			108.233
March 31, 2021		98.964			98.751			115.422

Note:

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

TABLE 5

STANDARDIZED MEASURE of DISCOUNTED FUTURE NET CASH FLOWS and

CHANGES THEREIN relating to PROVED RESERVES

as of

MARCH 31, 2021

for

CERTAIN AREAS

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED


	Total Proved (10⁶INR)			Total Proved (10⁶U.S.$)
Future cash inflows		333,722			4,553
Future production costs		232,675			3,174
Future development costs		31,722			433
Future income tax expenses		10,603			145
Future net cash flows		58,722			801
10% annual discount for estimated timing of cash flows		(19,577	)		(267	)
Standardized measure of discounted future net cash flows		39,145			534

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, 2020		86,705			1,159
Sales and transfers of oil and gas produced, net of production costs		(35,349	)		(482	)
Net changes in prices and production costs		(58,612	)		(777	)
Extensions, discoveries and improved recovery		354			5
Development costs incurred during the period		8,720			119
Revisions of previous quantity estimates		12,944			177
Change in estimated development costs		(13,021	)		(178	)
Purchase or (Sales) of Minerals in Place		0			0
Accretion of discount		13,026			178
Net change in income taxes		24,378			333

Standardized Measure March 31, 2021		39,145			534

Notes:

1.	Indian Rupees (INR) were converted to United States dollars (U.S.$) using an exchange rate of INR73.30 per U.S.$1.00.

2.	For FY2020, an exchange rate of INR74.81 per U.S.$1.00 was used.

TABLE 6

SUMMARY of NET RESERVES and FUTURE NET REVENUE

as of

MARCH 31, 2021

for

CERTAIN PROPERTIES

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED

Net Reserves

Future
Gross

Royalty

Operating

Capital

Income

Future Net

Present
Worth

Reserves Category

Oil
(10⁶bbl)

Sales Gas
(10⁹ft³)

Revenue
(10⁶INR)

and Cess
(10⁶INR)

Expenses
(10⁶INR)

Costs
(10⁶INR)

Tax
(10⁶INR)

Revenue
(10⁶INR)

at 10 Percent
(10⁶INR)

Proved Developed

98.964

98.751

314,896

70,209

155,115

22,546

9,642

57,384

38,839

Proved Undeveloped

5.337

11.020

18,826

3,394

3,957

9,176

961

1,338

306

Total Proved

104.301

109.771

333,722

73,603

159,072

31,722

10,603

58,722

39,145

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, 2021

for

CERTAIN FIELDS

located in the

CB/OS-2 PSC

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED


	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 (10⁶INR)		and Cess (10⁶INR)		Expenses (10⁶INR)		Costs (10⁶INR)		Tax (10⁶INR)		Revenue (10⁶INR)		at 10 Percent (10⁶INR)

2021		2.796		0.716		3.306		0.846		2,861.63		366.50		2,358		0		751		122		496		989		938
2022		2.074		0.545		2.741		0.720		2,861.63		366.50		1,824		0		680		59		351		734		571
2023		0.413		0.110		0.469		0.125		2,861.63		366.50		360		0		137		15		6		202		142
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
2035		0.000		0.000		0.000		0.000		—		—		0		0		0		0		0		0		0


Total		5.283		1.371		6.516		1.691						4,542		0		1,568		196		853		1,925		1,651

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, 2021

for

CERTAIN FIELDS

located in the

CB/OS-2 PSC

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED


													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 (10⁶INR)		and Cess (10⁶INR)		Expenses (10⁶INR)		Costs (10⁶INR)		Tax (10⁶INR)		Revenue (10⁶INR)		at 10 Percent (10⁶INR)

2021		2.796		0.716		3.306		0.846		2,861.63		366.50		2,358		0		751		122		496		989		938
2022		2.074		0.545		2.741		0.720		2,861.63		366.50		1,824		0		680		59		351		734		571
2023		0.413		0.110		0.469		0.125		2,861.63		366.50		360		0		137		15		6		202		142
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
2035		0.000		0.000		0.000		0.000		—		—		0		0		0		0		0		0		0


Total		5.283		1.371		6.516		1.691						4,542		0		1,568		196		853		1,925		1,651

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, 2021

for the

NAGAYALANKA FIELD

located in the

KG-ONN-2003/1 PSC

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED


													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 (10⁶INR)		and Cess (10⁶INR)		Expenses (10⁶INR)		Costs (10⁶INR)		Tax (10⁶INR)		Revenue (10⁶INR)		at 10 Percent (10⁶INR)

2021		0.344		0.167		0.454		0.221		2,830.85		161.26		509		59		180		53		0		217		206
2022		0.266		0.129		0.367		0.178		2,830.85		161.26		395		46		151		48		0		150		129
2023		0.212		0.103		0.306		0.149		2,830.85		161.26		316		36		124		32		0		124		96
2024		0.174		0.085		0.264		0.128		2,830.85		161.26		260		30		105		30		0		95		67
2025		0.145		0.071		0.231		0.112		2,830.85		161.26		218		25		92		28		0		73		47
2026		0.122		0.059		0.202		0.098		2,830.85		161.26		184		21		81		26		0		56		32
2027		0.105		0.051		0.182		0.089		2,830.85		161.26		159		18		73		25		0		43		22
2028		0.091		0.044		0.168		0.082		2,830.85		161.26		138		16		66		24		0		32		15
2029		0.078		0.038		0.151		0.073		2,830.85		161.26		119		14		60		23		0		22		10
2030		0.070		0.034		0.143		0.070		2,830.85		161.26		108		12		55		23		0		18		7
2031		0.031		0.015		0.066		0.032		2,830.85		161.26		48		6		25		11		0		6		2
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
2035		0.000		0.000		0.000		0.000		—		—		0		0		0		0		0		0		0


Total		1.638		0.796		2.534		1.232						2,454		283		1,012		323		0		836		633

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, 2021

for the

NAGAYALANKA FIELD

located in the

KG-ONN-2003/1 PSC

INDIA

with interests held by

CAIRN OIL & GAS, DIVISION of VEDANTA LIMITED


													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 (10⁶INR)		Expenses (10⁶INR)		Costs (10⁶INR)		Tax (10⁶INR)		Revenue (10⁶INR)		at 10 Percent (10⁶INR)

2021		0.344		0.167		0.454		0.221		2,830.85		161.26		509		59		180		53		0		217		206
2022		0.266		0.129		0.367		0.178		2,830.85		161.26		395		46		151		48		0		150		129
2023		0.212		0.103		0.306		0.149		2,830.85		161.26		316		36		124		32		0		124		96
2024		0.174		0.085		0.264		0.128		2,830.85		161.26		260		30		105		30		0		95		67
2025		0.145		0.071		0.231		0.112		2,830.85		161.26		218		25		92		28		0		73		47
2026		0.122		0.059		0.202		0.098		2,830.85		161.26		184		21		81		26		0		56		32
2027		0.105		0.051		0.182		0.089		2,830.85		161.26		159		18		73		25		0		43		22
2028		0.091		0.044		0.168		0.082		2,830.85		161.26		138		16		66		24		0		32		15
2029		0.078		0.038		0.151		0.073		2,830.85		161.26		119		14		60		23		0		22		10
2030		0.070		0.034		0.143		0.070		2,830.85		161.26		108		12		55		23		0		18		7
2031		0.031		0.015		0.066		0.032		2,830.85		161.26		48		6		25		11		0		6		2
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
2035		0.000		0.000		0.000		0.000		—		—		0		0		0		0		0		0		0


Total		1.638		0.796		2.534		1.232						2,454		283		1,012		323		0		836		633

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, 2021

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


													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 (10⁶INR)		and Cess (10⁶INR)		Expenses (10⁶INR)		Costs (10⁶INR)		Tax (10⁶INR)		Revenue (10⁶INR)		at 10 Percent (10⁶INR)

2021		39.872		18.072		40.197		18.219		2,861.63		322.52		57,592		13,474		23,517		6,655		2,738		11,208		9,616
2022		33.213		15.402		33.928		15.734		2,861.63		322.52		49,150		11,223		21,290		6,440		1,686		8,511		6,611
2023		27.886		12.379		27.601		12.253		2,861.63		322.52		39,376		9,423		18,464		1,788		1,333		8,368		5,883
2024		23.467		10.583		23.083		10.410		2,861.63		322.52		33,642		7,930		16,381		1,520		963		6,848		4,359
2025		20.190		9.269		19.832		9.104		2,861.63		322.52		29,460		6,823		14,939		1,321		717		5,660		3,261
2026		17.645		8.234		17.348		8.095		2,861.63		322.52		26,172		5,963		13,753		1,162		559		4,735		2,469
2027		15.666		7.457		15.432		7.346		2,861.63		322.52		23,708		5,294		12,982		1,040		433		3,959		1,869
2028		14.292		7.066		13.808		6.827		2,861.63		322.52		22,422		4,830		13,190		955		255		3,192		1,364
2029		12.939		6.639		12.511		6.420		2,861.63		322.52		21,069		4,372		14,381		870		0		1,446		560
2030		1.467		0.747		1.430		0.728		2,861.63		322.52		2,372		496		1,731		99		0		46		16
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
2035		0.000		0.000		0.000		0.000		—		—		0		0		0		0		0		0		0


Total		206.637		95.848		205.170		95.136						304,963		69,828		150,628		21,850		8,684		53,973		36,008

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, 2021

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


													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 (10⁶INR)		and Cess (10⁶INR)		Expenses (10⁶INR)		Costs (10⁶INR)		Tax (10⁶INR)		Revenue (10⁶INR)		at 10 Percent (10⁶INR)

2021		41.431		19.946		40.472		19.484		2,861.63		322.52		63,362		14,000		24,040		13,318		2,613		9,391		8,058
2022		35.155		16.460		39.823		18.646		2,861.63		322.52		53,117		11,880		22,110		8,495		1,939		8,693		6,751
2023		29.868		13.113		32.888		14.439		2,861.63		322.52		42,180		10,093		19,271		1,969		1,650		9,197		6,466
2024		24.837		11.085		26.588		11.867		2,861.63		322.52		35,549		8,393		16,925		1,625		1,161		7,445		4,738
2025		21.191		9.635		22.287		10.133		2,861.63		322.52		30,839		7,161		15,338		1,387		845		6,108		3,519
2026		18.404		8.511		19.135		8.849		2,861.63		322.52		27,209		6,219		14,058		1,206		646		5,080		2,649
2027		16.250		7.669		16.770		7.915		2,861.63		322.52		24,499		5,491		13,215		1,069		493		4,231		1,998
2028		14.754		7.232		14.833		7.271		2,861.63		322.52		23,041		4,986		13,373		974		298		3,410		1,457
2029		13.294		6.779		13.321		6.793		2,861.63		322.52		21,589		4,492		14,513		883		0		1,701		658
2030		1.499		0.755		1.508		0.759		2,861.63		322.52		2,404		507		1,742		100		0		55		20
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
2035		0.000		0.000		0.000		0.000		—		—		0		0		0		0		0		0		0


Total		216.683		101.185		227.625		106.156						323,789		73,222		154,585		31,026		9,645		55,311		36,314

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, 2021

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


													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 (10⁶INR)		and Cess (10⁶INR)		Expenses (10⁶INR)		Costs (10⁶INR)		Tax (10⁶INR)		Revenue (10⁶INR)		at 10 Percent (10⁶INR)

2021		3.906		0.318		3.916		0.319		2,861.63		322.52		1,012		49		570		23		79		291		275
2022		2.203		0.193		1.577		0.138		2,861.63		322.52		598		49		368		23		17		141		120
2023		1.358		0.132		0.865		0.084		2,861.63		322.52		406		0		278		20		9		99		77
2024		0.882		0.101		0.506		0.058		2,861.63		322.52		307		0		237		20		0		50		35
2025		0.595		0.071		0.305		0.036		2,861.63		322.52		214		0		164		20		0		30		19
2026		0.416		0.051		0.194		0.024		2,861.63		322.52		153		0		115		20		0		18		11
2027		0.302		0.038		0.125		0.016		2,861.63		322.52		115		0		83		20		0		12		6
2028		0.216		0.029		0.079		0.011		2,861.63		322.52		86		0		60		20		0		6		3
2029		0.115		0.016		0.042		0.006		2,861.63		322.52		46		0		32		11		0		3		1
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
2035		0.000		0.000		0.000		0.000		—		—		0		0		0		0		0		0		0


Total		9.993		0.949		7.609		0.692						2,937		98		1,907		177		105		650		547

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, 2021

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


													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 (10⁶INR)		and Cess (10⁶INR)		Expenses (10⁶INR)		Costs (10⁶INR)		Tax (10⁶INR)		Revenue (10⁶INR)		at 10 Percent (10⁶INR)

2021		3.906		0.318		3.916		0.319		2,861.63		322.52		1,012		49		570		23		79		291		275
2022		2.203		0.193		1.577		0.138		2,861.63		322.52		598		49		368		23		17		141		120
2023		1.358		0.132		0.865		0.084		2,861.63		322.52		406		0		278		20		9		99		77
2024		0.882		0.101		0.506		0.058		2,861.63		322.52		307		0		237		20		0		50		35
2025		0.595		0.071		0.305		0.036		2,861.63		322.52		214		0		164		20		0		30		19
2026		0.416		0.051		0.194		0.024		2,861.63		322.52		153		0		115		20		0		18		11
2027		0.302		0.038		0.125		0.016		2,861.63		322.52		115		0		83		20		0		12		6
2028		0.216		0.029		0.079		0.011		2,861.63		322.52		86		0		60		20		0		6		3
2029		0.115		0.016		0.042		0.006		2,861.63		322.52		46		0		32		11		0		3		1
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
2035		0.000		0.000		0.000		0.000		—		—		0		0		0		0		0		0		0


Total		9.993		0.949		7.609		0.692						2,937		98		1,907		177		105		650		547

Note:

Capital costs include abandonment.

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