Oil India Investor Presentation – FY2010

O ^IL I ^NDIA L ^IMITED

Investor Presentation

May, 2010

Oil India Investor Presentation – FY2010

2

Oil India Investor Presentation – FY2010

Disclaimer

This presentation contains certain forward looking statements concerning OIL India’s future business prospects and business

profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in

such forward looking statements. The risks and uncertainties relating to these statements include, but not limited to, risks and

uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international),

economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on projects, our ability to

manage our international operations, government policies and actions with respect to investments, fiscal deficits, regulations, etc.,

interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement

in case any of these forward looking statements become materially incorrect in future or update any forward looking statements

made from time to time by or on behalf of the company.

Sector outlook and opportunities OIL India – An overview

Business structure, performance and strategy Financial performance

Oil India Investor Presentation – H1 FY2009 Oil India Investor Presentation – FY2010

Sector outlook and opportunities OIL India – An overview

Business structure, performance and strategy

Financial performance

5

Oil India Investor Presentation – FY2010

Global Oil and Gas trends

Source: Broker reports, Bloomberg, Wood Mackenzie, CERA

(Rebased to Brent)

25 35 45 55 65 75 85

Mar-09 Jun-09 Aug-09 Nov-09 Mar-10 Brent

FTSE Eurofirst (Oil and Gas) FTSE AIM (Oil and Gas)

+32%

+115%

+76%

(US$/bbl)

0 20 40 60 80 100 120 140 160

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Broker high/ low range Historical Brent ICE Brent futures (Mar-10) Wood Mackenzie (Mar-10) CERA Global Fissures (Mar-10) CERA Asian Phoenix (Mar-10) CERA Break Point (Mar-10) Broker average (Mar-10)

Source: Datastream, FactSet market data as at March 2010

Most analyst reports point to a long term increase in the prices of crude oil as reflected in the Brent oil price futures and the recovery in the Oil-related indices

Brent oil price futures/forwards and forecasts LTM oil price and equity market performance

6

Oil India Investor Presentation – FY2010

31.2 0.8

53.4 8.6 6.0

Coal Crude Oil Natural Gas Hydro Nuclear CAGR 4.36%

Note:

1.As of 31stDecember 2008 (BP Statistical Review of World Energy, 2009)

279 773 1,052

73%

30.6 10.8 41.4

26%

Crude Oil (mmbbls) Natural gas (bcm) Deficit Production Total

Consumption

Note:

1.As of 31stDecember 2008 (BP Statistical Review of World Energy, 2009)

(mmtoe) Energy Sources - India

Domestic Industry environment

Steady growth in domestic energy consumption driven by India’s economic growth story¹

261 295 344 379

433

0 100 200 300 400 500

1997 2000 2004 2006 2008

Significant supply deficit in the domestic market¹

34.8 5.5 29.2

24.1 6.4

Coal Crude Oil Natural Gas Hydro Nuclear Energy Sources - Global

Energy sources (%)

Crude oil and natural gas sources would tend to grow in significance as the Indian economy

develops

7

India: Energy scenario

Primary Energy Consumption (MTOE) Crude Oil Consumption (MTOE)

• 53% of primary energy consumed by 5 countries

• India is the 5th largest consumer of Primary Energy

−India CAGR (1998-2008): 4.8% vs. Global CAGR: 2.4%

• World oil consumption (2008): 3,928 MTOE

• India is the 4th largest consumer of Oil comprising 3.4% of total

− India CAGR (1998-2008): 3.9% vs. Global CAGR:

1.3%

Note:

(1)Annualized crude oil production rate of 26.24 mmboe in Q2 FY2010 (2)Annualized crude oil delivery rate of 26.90 mmboe in Q2 FY2010

Note:

(1)1 BCM of Natural Gas = 6.2898 MMBOE 2,299

2,003 685

508 330 311 258 240 212

433

0 500 1,000 1,500 2,000 2,500

USA China Russia Japan India Canada Germany France South Korea UK

3.8% of total 3.4% of total

885 376

222 118 103 102

135 130

0 200 400 600 800 1,000

USA China Japan India Russia Germany S. Korea Canada

8

Oil India Investor Presentation – FY2010

OIL at a glance

India’s premier Oil & Gas company engaged in the exploration, development, production and transportation of crude oil and natural gas in India

Professionally managed company with experienced managementwith a proven track record

Management

ICRAhas assigned an A1+ (A one plus)rating to Rs. 5 billion short-term debt programme of OIL indicating highest safety

Credit rating

Revenue: USD 1,666 m (FY10) PAT : USD 550m (FY 10) Market cap : USD 6.54 bn

Size

A corporate citizen committed towards corporate social responsibility, environment protection, implementation of safety measures & conservation of natural resources

Domestic acreage: 127,881 square kilometers; International acreage: 41,656 square kilometers

Acreage

Oil India Investor Presentation – H1 FY2009 Oil India Investor Presentation – FY2010

Sector outlook and opportunities OIL India – An overview

Business structure, performance and strategy Financial performance

10

Oil India Investor Presentation – FY2010

Rich heritage of building a company

• Independent India’s first commercial oil discoveries were made by Assam Oil Company

– Nahorkatiya, Assam – 1953 – Moran, Assam – 1956

• Incorporated as Joint Sector Company on 18 February, 1959 – 2/3

Owned by Assam Oil Company / Burmah Oil Company – 1/3

Owned by Government of India

• Became a Public Sector Undertaking, GOI on 14 October, 1981

• Five decades of experience in Exploration & Production

• Second largest national oil and gas company in India

• Achieved overwhelming response in its maiden public issue on

30 September 2009

11

• OIL’s shares listed in Mumbai Stock Exchange on 30.09.2009.

• Achieved the highest daily rate of crude oil production of 3.61 MTPA (> 26 mmbbls)

• Achieved the highest daily rate of natural gas production of 6.67 MMSCMD in North East and potential of 0.93 MMSCMD in Rajasthan.

• Performance during 2010 :

3 25.70

MMBBL Crude Oil Production

25 144862

Mtrs Drilling

4.22 25.76

MMBBL Crude Oil Sales

6.44 2.415

BCM Natural Gas Production

7.2 1.86

BCM Natural Gas sales

% Increase over 2008-09 2009-10

Parameter Unit

Select highlights for FY2010

•

12

Oil India Investor Presentation – FY2010

• Completed 660 Km long NRL – Siliguri Product Pipeline.

• LPG plant completed 26 years of continuous service with excellent track record of 99%

Plant Load Capacity. LPG production of 44,950 tonnes in 2009-10 was 103.1% of target

• Made two hydrocarbon discoveries (Umatara -1 & South Tinali) in Assam. Reserve replacement was 1.65 times production.

• Provisionally won 9 blocks in NELP-VIII round - the highest so far by OIL - 2 as Operator, 1 as Joint Operator and PIs in 6.

• The first Operator to commence drilling in NELP – VI block in October, 2009.

• Commenced drilling in Libya as Operator in October, 2009.The second well is showing promising prospects at shallow depths.

• Awarded as “Heavy Weight Mini Ratna PSU” by Dalal Street Journal

• Duliajan – Numaligarh Gas Pipeline (DNPL) Project likely to be completed by June, 2010.

• Measurement of Carbon footprint initiated.

• Revisiting Long Term Strategic Plan and PMS.

Select Highlights of 2009-10

13

Oil India Investor Presentation – FY2010

• NAVRATNA status awarded to OIL in April’ 2010.

• The Board of NAVRATNA companies enjoy enhanced autonomy and DOP in following areas:

– Capital expenditure without any monetary ceiling

– Equity investment in joint ventures / subsidiaries in India or abroad, including purchase or other arrangements, technology and know-how

– To raise debt from the domestic capital markets and for borrowings from international market

– Human resources development including to structure and implement schemes relating to personnel and human resource management, training, voluntary retirement schemes, etc

– To effect Organizational Restructuring including establishment of profit centres, opening of offices in India and abroad, creating new activity centres, etc

– The Board of the these PSEs shall have the powers for mergers and acquisitions

NAVRATNA Status to OIL

14

Oil India Investor Presentation – FY2010

Shareholding pattern

78.4%

2.1%2.9%

3.5%

12.3%

0.8%

Promoters (GOI) Bodies Corporate

Public & Others FII

MF FI / Banks

0.54%

HDFC Trustee Co Ltd-HDFC Top 200 Fund

2.23%

Hindustan Petroleum Corporation

1.41%

ICICI Prudential Life Insurance

0.88%

HDFC Standard Life Insurance

2.23%

Bharat Petroleum Corporation

0.34%

Reliance Life Insurance Company Limited

0.34%

PCA India Equity Open Limited

4.45%

Indian Oil Corporation

% Shareholding Key shareholders

• Listing :Listed on BSE/NSE on 30^thSept 2009

• Number of shares : 240.45 mn

• Dividend :FY10 Int dividend/share : Rs.18 F Dividend (Prop)/ share : Rs.16

• Share price (H/L) :Rs.1374 / Rs.1019

• Market Cap :Rs.30153 cr / USD 6.54 bn

15

Performance of OIL’s Shares (W.r.t. Sector)

OIL SHARE PERFORMANCE VS OIL & GAS SECTOR (From 01.04.2010 to 21.05.2010)

1000.00 1050.00 1100.00 1150.00 1200.00 1250.00 1300.00

1 April 5 April 6 April 7 April 8 April 9 April 12 April 13 April 15 April 16 April 19 April 20 April 21 April 22 April 23 April 26 April 27 April 28 April 29 April 30 April 3 May 4 May 5 May 6 May 7 May 10 May 11 May 12 May 13 May 14-May-10 17-May-10 18-May-10 19-May-10 20-May-10 21-May-10

OIL Share Price (Rs.)

9000.00 9200.00 9400.00 9600.00 9800.00 10000.00 10200.00 10400.00 10600.00

OIL OIL INDEX

OIL SHARE PERFORMANCE VS ONGC (FROM 01.04.2010 TO 21.05.2010)

1000.00 1050.00 1100.00 1150.00 1200.00 1250.00 1300.00

1-Apr-10 5-Apr-10 6-Apr-10 7-Apr-10 8-Apr-10 9-Apr-10 12-Apr-10 13-Apr-10 15-Apr-10 16-Apr-10 19-Apr-10 20-Apr-10 21-Apr-10 22-Apr-10 23-Apr-10 26-Apr-10 27-Apr-10 28-Apr-10 29-Apr-10 30-Apr-10 3-May-10 4-May-10 5-May-10 6-May-10 7-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 17-May-10 18-May-10 19-May-10 20-May-10 21-May-10

OIL Share Price (Rs).

900 950 1000 1050 1100 1150

OIL ONGC

16

Oil India Investor Presentation – FY2010

Performance of OIL’s Shares (w.r.t. SENSEX / NIFTY)

OIL VS. NIFTY (FROM 01.04.2010 TO 21.05.2010)

1020.00 1060.00 1100.00 1140.00 1180.00 1220.00 1260.00 1300.00

1-Apr-10 5-Apr-10 6-Apr-10 7-Apr-10 8-Apr-10 9-Apr-10 12-Apr-10 13-Apr-10 15-Apr-10 16-Apr-10 19-Apr-10 20-Apr-10 21-Apr-10 22-Apr-10 23-Apr-10 26-Apr-10 27-Apr-10 28-Apr-10 29-Apr-10 30-Apr-10 3-May-10 4-May-10 5-May-10 6-May-10 7-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 17-May-10 18-May-10 19-May-10 20-May-10 21-May-10

OIL Share Price (Rs.)

4600.00 4700.00 4800.00 4900.00 5000.00 5100.00 5200.00 5300.00 5400.00 5500.00

OIL NIFTY

OIL VS. SENSEX (FROM 01.04.2010 TO 21.05.2010)

1020.00 1060.00 1100.00 1140.00 1180.00 1220.00 1260.00 1300.00

1-Apr-10 5-Apr-10 6-Apr-10 7-Apr-10 8-Apr-10 9-Apr-10 12-Apr-10 13-Apr-10 15-Apr-10 16-Apr-10 19-Apr-10 20-Apr-10 21-Apr-10 22-Apr-10 23-Apr-10 26-Apr-10 27-Apr-10 28-Apr-10 29-Apr-10 30-Apr-10 3-May-10 4-May-10 5-May-10 6-May-10 7-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 17-May-10 18-May-10 19-May-10 20-May-10 21-May-10

OIL Share Price (Rs.)

15600.00 15900.00 16200.00 16500.00 16800.00 17100.00 17400.00 17700.00 18000.00 18300.00

OIL SENSEX

Oil India Investor Presentation – H1 FY2009 Oil India Investor Presentation – FY2010

Sector outlook and opportunities OIL India – An overview

Business structure, performance and strategy Financial performance

18

Oil India Investor Presentation – FY2010

Key lines of business

•Domestic: 23 exploration blocks through NELP¹

•International: Egypt, Gabon, Iran, Libya, Nigeria, Timor Leste and Yemen²

•Discoveries: 11 Small to Medium³size discoveries from Fiscal 2007 to Fiscal 2010.

•Refining and marketing petroleum products: 26%

equity stake in NRL¹

•Gas cracker project: 10%

equity stake in BCPL²

•Acquiring, transporting and distributingnatural gas - 23% equity stake in DNPL³

•City gas business- Signed MOU with GAIL, HPCL, IOCL and BPCL

•50 yearsof experience in Oil

& Gas production

•Crude oil: 40 installations and est. 1,315 km of internal crude oil pipelines grid; FY10 production of 25.70 mmbbl

•Natural gas: 29 instllations and est. 571 km of internal gas network pipelines grid;

FY10 production of 2415 mmscm

•Advanced Recovery Techniques- Artificial Lifting, Enhanced Oil Recovery and horizontal drilling

Exploration Production Transportation Downstream

•Crude Oil: 1,157 km crude oil pipeline with an annual capacity of over 44 mn barrels

•Multi-Product: 660 km pipeline from NRL1 to Siliguri with an estimated capacity of 2.13 million kiloliters of refined petroleum products

•Overseas pipeline: 10%

equity stake in a 741 km pipeline in Sudan

•Natural Gas: 23% stake in the 192 km DNPL³, which proposes to lay a 192 km pipeline project to transport natural gas from Duliajan to Numaligarh

Note:

1.NRL – Numaligarh Refinery Limited 2.BCPL – Brahmaputra Cracker and Polymer

Limited

3.DNPL – Duliajan-Numaligarh Pipeline Limited Note:

1. 9 blocks have been provisionally awarded under NELP VIII.

2. Participating interests in exploration and development blocks.

3. Small to Medium size discoveries: Estimated proved plus probable reserves size of less than 30 million barrels of oil and oil equivalent gas 4. MMBOE – Million Barrels of Oil Equivalent

19 Note:

NO – Non-operator PI – Participatory Interests

1. Includes a 40% PI in the Kharsang fields of area 11 sq. km.

2. Includes 3,992 Sq Km of Joint Operatorship Strong presence in prospective East Coast RJ-ONN

KG-DWN

KG-OSN MN-DWN

AA-ONN AA-ONN AA-ONN

AA-ONN

AA-ONN AAP-ON

MZ-ONN

KG-DWN

AN-DWN

AA-ONN

AA-ONN

CY-DWN

WB-ONN RJ-ONN

RJ-ONN

30%

90%

85%

16%

15%

10%

75%

25%

10%

75%

60%

60%

10%

20%

30% 20%

KG-DWN 10%

20%

85%

20%

15%

20%

KG-ONN 90%

GK-OSJ-3 MN-OSN

Exploration Blocks : National Presence

Total Area – 169,537 Sq. Km Summary of Acreage (sq. km.)

1

OIL as Operator NELP I-VIII Nomination ML(s)/PEL(s) JVC Blocks

Map Not to Scale 4,811

41,656

97,910 2,519

6,04116,600

PEL Nomination PML Nomination JV/PSC (NO) NELP (Operator) NELP (NO) Overseas (PI)

ASSAM +AP

AA-ONN ^50%

CY-DWN 50%

^{KG-DWN 15%}

KG-DWN 15%

AA-ONN 50%

AN-DWN 30%

AN-DWN 40%

AN-DWN 40%

AN-DWN 30%

+

+ Joint Operator

1 2

20

Oil India Investor Presentation – FY2010

3,735

616 460

Assam Arunachal Pradesh

Rajasthan

2,003

516

Assam Arunachal Pradesh

15 2 2 8 5

PML Areas 19 4,811 Pre-NELP – JV/PSC (Non Operator) 3 6,041

305 5,725

11 Assam & AP Kutch

Offshore Kharsang

1 1 1

Operator Blocks (NELP) 12

*

1,460 275

7,650

1,518 5,697

IV V VI VII VIII

1 1 6 1

Non-Operator Blocks (NELP) 18 97,910

4,970 37,066

110 1,060 22,829

16,140 15735

I II III IV VI VII VIII

1 4 1 1 2 3

All Onshore (

*

Block category Blocks Area (Sq.km.)

Petro. Mining License (PML) Petro. Exploration License (PEL) JV/Production Sharing Contract (PSC)

Area (Sq.km.) Blocks

PEL Areas 13 2519

1

Map Not to Scale

Exploration Acreage

3

*

21

Oil India Investor Presentation – FY2010

LIBYA LIBYALIBYA LIBYA Area 86 Area 102/4 Area 95/96

GABON GABON GABON GABON Shakti

NIGERIA NIGERIA NIGERIA NIGERIA OPL 205

TIMOR LESTE TIMOR LESTE TIMOR LESTE TIMOR LESTE Block K

YEMEN YEMEN YEMEN YEMEN Block 82 Block 83 EGYPT*

EGYPT*EGYPT*

EGYPT*

Block 3 Block 4

IRAN IRAN IRAN IRAN

Farsi Offshore 3,5003,5003,5003,500 20 20 20 20 (OVL) (OVL) (OVL) (OVL) 8,287

8,2878,287 8,287 2,600 2,6002,600 2,600

25 25 25 25 (GSPC) (GSPC) (GSPC) (GSPC)

2,094 2,0942,094 2,094 17.5 17.5 17.5 17.5 ((((SunteraSunteraSunteraSuntera))))

3,761 3,761 3,761 3,761 45 4545 45

1,857 1,857 1,857 1,857 364364364 364

15 15 15 15 (Medco) (Medco) (Medco) (Medco) 2,384 2,384 2,384 2,384 12.5 12.5 12.5 12.5

(Reliance) (Reliance)(Reliance) (Reliance) 7,087

7,0877,087 7,087 2,710 2,7102,710 2,710 6,629 6,6296,629 6,629 50 50 50 50 50 50 50 50 25 25 25 25 ((((SonatrachSonatrachSonatrachSonatrach))))

Area Area Area

Area – – – – 41,656 sq.km. 41,656 sq.km. 41,656 sq.km. 41,656 sq.km.

19 Blocks 19 Blocks 19 Blocks

19 Blocks

Area (Sq. Km)

OIL’s Participating Interest (%)

Total Total Total Total

OIL also holds a 10% equity stake in 741 km crude oil pipeline OIL also holds a 10% equity stake in 741 km crude oil pipeline OIL also holds a 10% equity stake in 741 km crude oil pipeline OIL also holds a 10% equity stake in 741 km crude oil pipeline in Sudanin Sudanin Sudanin Sudan VENEZUELA

VENEZUELA VENEZUELA VENEZUELA Corabobo 1 North Corabobo 1 Central 203

203 203 203 180180 180180 3.5 3.5 3.5 3.5 (Mixed (Mixed (Mixed (Mixed Company) Company) Company) Company) Repsol Repsol Repsol Repsol 11%11%11%11%

Petronas PetronasPetronas Petronas 11%11%11%11%

OVL 11%

OVL 11%

OVL 11%

OVL 11%

IOC 3.5%

IOC 3.5%

IOC 3.5%

IOC 3.5%

Overseas Exploration and Development Blocks

22

Oil India Investor Presentation – FY2010

Exploration and Development Growth Mapping (Acreage)

0 20000 40000 60000 80000 100000 120000 140000 160000 180000

Nomination Including Pre- NELP JVs (Till 1998) Very limited

Scope for Growth

NELP (1999 onwards)

+

Overseas (2005 onwards)

Competition Level Playing Field

Operation Area – NE, RJ, UP, Uttarakhand Operation Area – Pan India + Overseas Acreage (Sq. Km)

Gro wth

~ 10 Times Growth

Current Acreage

Domestic = 127,881 sq.km

Overseas = 41,656 sq.km

23

E&P Infrastructure in India

6 Logging trucks 1 Mud logging Unit 11

Drilling Rigs

14 W/over Rigs 3 (2D-2, 3D-1)

Seismic Crew

State-of-art exploration facilities

24

Oil India Investor Presentation – FY2010

E&P Infrastructure in India

149535 KLs Crude Storage

>5000 Km Oil & Gas Pipelines 70

Production Installations

Globally comparable Production

& transportation facilities

Pipeline to Deliver Crude Oil to 4 Refineries NSPL Product Pipeline No. of Pump Station – 10 No. of Terminal Station – 1

25

Oil India Investor Presentation – FY2010

Proved Proved & Probable Proved, Probable & Possible

Crude Oil and Natural Gas Reserves

283 296 285

540 588 575

1,000 1,039 999

0 300 600 900 1,200 1,500 1,800

2007 2008 2009

169289 233345 247399

471 472 543

0 300 600 900 1,200 1,500 1,800

2007 2008 2009

452 529 532

829

933 974

1,471 1,511 1,542

0 300 600 900 1,200 1,500 1,800

2007 2008 2009

Has improved the overall reserves available consistently over the past 3 years through enhanced oil recovery methods and aggressive exploration

Crude Oil Reserves (mmboe) Natural Gas Reserves (mmboe) Overall Reserves (mmboe)

26

Oil India Investor Presentation – FY2010

Crude Oil and Natural Gas Reserves

1P Reserves represent:

≥ 11 Years current production of Crude Oil

≥ 15 Years current production of Natural Gas

≥ 12 Years current production of O+OEG

27

Crude Oil and Natural Gas Production

2265

2341

2269

2415

1000 1500 2000 2500

2006-07 2007-08 2008-09 2009-10

Crude Oil Production (mmbbl) Natural Gas Production (mmscm)

• Crude oil production during FY 10 increased by 3% over FY 09 • Natural gas production during FY 10 increased by 6.44% over FY 09

22.17 22.38

24.95 25.70

0 5 10 15 20 25 30

2006-07 2007-08 2008-09 2009-10

28

Oil India Investor Presentation – FY2010

Crude Oil and Natural Gas Sales

6.18 6.40

6.09 6.04 6.24

6.70 6.46 6.36

1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Crude Oil Quarter on quarter sales (mmbbl) Natural Gas Quarter on quarter Sales (mmscm)

438.05 454.71 442.61 402.00

470.99 459.83 485.66 446.10

0.00 100.00 200.00 300.00 400.00 500.00 600.00

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

29

Oil India Investor Presentation – FY2010

2.53 2.99

4.11 4.22

0 1 2 3 4 5

FY2007 FY2008 FY2009 FY2010

1.81 1.83

2.99 2.82

0 1 2 3 4

FY2007 FY2008 FY2009 FY2010

Low Finding and Development costs

F&D Costs (US$/bbl) Finding Costs (US$/bbl)

Note:

(1)BOE: Barrels of Oil Equivalent

30

Oil India Investor Presentation – FY2010

4.80 7.10 6.81

7.24

0 2 4 6 8

FY2007 FY2008 FY2009 FY2010

Low Lifting & Production costs

Lifting Costs (US$/bbl) Production Cost NG (US$/MMBTU)

0.77 1.11

1.15 1.17

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 FY2007

FY2008 FY2009 FY2010

31

Healthy reserve replacement ratio

176 159

204 204 169

165

0 50 100 150 200 250

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

Crude Oil and Natural Gas (O+OEG)

Adequate reserve replenishment

32

Oil India Investor Presentation – FY2010

83.22 81.69

68.53

44.64

75.7

58.13

55.57 56.21

41.58

53.32

36.15 39.01 39.80

27.94

37.13

0 20 40 60 80 100

FY2008 FY2009 FY2010 Q4 FY2009 Q4 FY2010

Gross Realized Price Realized Price after Subsidy/Discount Net Realized Price

Realized Price

Realized Price ($/barrel)

Current subsidy burden only on auto fuels

33

Oil India Investor Presentation – FY2010

Impact of discount

Impact on PAT Impact on PBT Statutory Levies Discount

US $ Mn

Post Discount Less: Discount Pre - Discount

US $ / BBL

Particulars

6 9 2 12 55.65

1.84 57.49 Q1

39 55 14 72 56.93 10.45 67.39 Q2

53 81 20 100 58.78 15.11 73.89 Q3

FY 2009-10 FY 2008-09

Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL

75.70 68.53 121.54 114.16 54.27 44.64 81.69

22.38 12.32 40.48 47.65 16.79 3.06 26.13

53.32 56.21 81.06 66.51 37.48 41.58 55.56

141 325 252 310 108 18 657

28 64 49 60 21 4 127

113 258 203 250 87 14 530

74 172 133 165 57 10 350

34

Oil India Investor Presentation – FY2010

Sharing of Subsidy by Upstream Companies

100%

100%

100%

100%

100%

100%

100%

Total

7%

9%

5%

5%

7%

8%

19%

GAIL

9%

11%

9%

9%

10%

7%

12%

OIL

84%

80%

86%

86%

83%

85%

69%

ONGC

TOTAL 2009-10

2008-09 2007-08

2006-07 2005-06

2004-05

113537 14430

32943 25709

20507 14001

5947 Total

8110 1326

1694 1401

1488 1064

1137 GAIL

10557 1549

3023 2307

1994 978

706 OIL

94869 11554

28226 22001

17025 11959

4104 ONGC

TOTAL 2009-10 2008-09

2007-08 2006-07

2005-06 2004-05

RS./CRORES

% SHARING

35

Sharing of Subsidy by Upstream Companies

SHARING OF SUBSIDY BY OIL INDIA LTD. VIS-A-VIS OTHER UPSTREAM COMPANIES

706 978 1994 2307 3023

1549 11959

17025

22001

28226

11554

1137 1064 1488 1401 1694 1326

4104

0 5000 10000 15000 20000 25000 30000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

RS. IN CRORES

OIL ONGC GAIL

36

Oil India Investor Presentation – FY2010

Subsidy Mechanism

Recommendations of Expert Group (Kirit S. Parikh Committee)

- To continue with the present system for subsidy on Kerosene & LPG (i.e. Apparently no burden to Upstream Companies)

- The prices of Petrol and Diesel should be market driven

- Increase of Rs. 6 per litre for Kerosene to reduce the subsidy burden

- Increase of Rs. 100 per cylinder for LPG

37

Oil India Investor Presentation – FY2010

Upside from 2011

• Price for Natural Gas increased to US$ 4.2/ MMBTU

• Consequentially additional gross revenue generation of US$ 110 mn (annualised)

38

Oil India Investor Presentation – FY2010

Strategic Initiatives

Increase in Exploratory and Development Drilling Meterage.

Increase in Work Overs.

Enhanced Water Injection to Increase Production.

Endeavour to Enhance LPG production through NGL Recycling.

Endeavour to Reduce Gas Flaring / Pollution by Inducting LNG Technology.

Completed Preliminary Activities in order to Develop CNG Network in

Assam

39

Business strategy

Geographic Diversification of Upstream Assets

Integrated business portfolio leading to stable long-term shareholder value

addition

• Achieve balanced growth of portfolio through acquisition of new assets

• Pursue selective bidding strategy in future rounds of NELP in India 1

Increase Reserves and Production

• Conduct detailed 2D and 3D seismic data Acquisition, Processing and Interpretation (API) in blocks

• Drill Exploratory wells and Development wells in identified blocks

2

Monetisation of Gas reserves in the Upper Assam Basin

• Commercialize existing natural gas reserves in the Upper Assam basin through upstream and downstream investment

• Improve utilisation of natural gas through the implementation of advanced technology and techniques Selectively diversify our domestic 3

operations through Downstream Integration

• Pursue strategy of vertical integration

• Diversify sources of revenue through investments in downstream sectors such as refining and processing

• Improve profitability by extending operations into higher margin segments of product value chain

4

Application of Advanced Recovery Techniques to improve the Recovery rate

• Capacity augmentation to increase water injection in matured fields combined with in-fill drilling to drain the reservoirs more effectively

• Installation of modern Artificial Pumping and Lifting equipment

• Implementation of Water Arrest techniques

5

Oil India Investor Presentation – H1 FY2009 Oil India Investor Presentation – FY2010

Sector outlook and opportunities OIL India – An overview

Business structure, performance and strategy

Financial performance

41

Oil India Investor Presentation – FY2010

Revenue and profitability analysis (USD mn)

Revenue and profitability

1,239

1,401

1,677 1,666

317 367

460

550

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

FY2007 FY2008 FY2009 FY2010

Revenue PAT

42

Oil India Investor Presentation – FY2010

Networth and Book Value

Networth (USD mn) and Book Value Analysis (USD)

1,406

1,629

1,935

2,897

6.6

7.6

9

12

0 500 1,000 1,500 2,000 2,500 3,000 3,500

FY2007 FY2008 FY2009 FY2010

0 2 4 6 8 10 12 14 Ne tworth (LHS) Book Value (RHS)

43

Cash Flow (USD mn) EBITDA (USD mn) and EBITDA MARGIN (%)

Consistent and Attractive Cash Flow EBITDA EBITDA MARGIN

Cash Flow and EBITDA Margin

275

344

391

450

0 50 100 150 200 250 300 350 400 450 500

FY2007 FY2008 FY2009 FY2010

586

734

923 49%

42%

44%

0 100 200 300 400 500 600 700 800 900 1000

FY2008 FY2009 FY2010

38%

40%

42%

44%

46%

48%

50%

44

Oil India Investor Presentation – FY2010

33.93 32.9

30.19

32.23 340

305

260 275

10 15 20 25 30 35 40

FY2007 FY2008 FY2009 FY2010

0 50 100 150 200 250 300 350 400

Dividend Payout (%) - LHS Dividends (%) - RHS

Dividends distribution Earnings per share and Debt-Equity ratio

The dividend per share has shown a consistent uptrend Steady increase in EPS and minimal debt on the balance sheet 86

72 83

104 114

0.003x 0.006x 0.02x 0.06x

0.12x

0 20 40 60 80 100 120

FY2006 FY2007 FY2008 FY2009 FY2010 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14

Earnings per share (INR) Debt/Equity

Dividends distribution and Earnings per share highlights

45

Oil India Investor Presentation – FY2010

Investment Plans

IN R M il li o n

1879 813

1066 US$ Million

84543 36579

47964 Grand Total INR Million

22833 270

22563 Acquisition & Diversification

5781 3878

1903 Overseas Projects

55929 32431

23498 Total INR Million

6116 3423

2693 Capital Equipments & Facilities

15415 9888

5527 Development Activities

34398 19120

15278 Exploration & appraisal activities

Total 2011-12

2010-11

46

Oil India Investor Presentation – FY2010

THANK YOU

THANK YOU

47

Venezuela - Project Carabobo

• Contains two Blocks – North and Central

• OIL’s PI – 3.5% [PdVSA-60%, REPSOL, PETRONAS, OVL – 11% each, IOC-3.5%]

• Contract Period – 25 Years, Possible Extension – 15 Years

• Estd Oil In Place – 27.3 billion barrels

• Recoverable Reserve (in 25 Years) - 3 billion barrels

• Expected Daily Production – 400,000 bbl

• Expected Annual Production – 146 Mn bbl

• Estd. Investment for OIL - $ 424 Mn [Debt: Equity – 1.5:1]

• Estd Capex - $ 6.37/ bbl for 25 Years

• Estd Opex - $ 6.47/ bbl for 25 Years

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