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Essar Oil – Company Update January 2008 Strictly Private & Confidential

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Page 1: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

Essar Oil – Company UpdateJanuary 2008

Strictly Private & Confidential

Page 2: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

Confidential

2

Disclaimer

All information and material in this presentation is provided by Essar Oil Limited (“Company”) on an "as is" basis. No information contained herein has been verified for truthfulness completeness, accuracy, reliability or otherwise whatsoever by anyone. While the Company will use reasonable efforts to provide reliable information through this presentation, no representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted by the Company or its directors or employees, with respect to the truthfulness, completeness, accuracy or reliability or otherwise whatsoever of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither the Company nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith.

This presentation may not be used, reproduced, copied, published, distributed, shared, transmitted or disseminated in any manner.

This presentation is for information purposes only and does not constitute an offer, invitation, solicitation or advertisement in any jurisdiction with respect to the purchase or sale of any security of Essar Oil Limited (the “Company”) and no part or all of it shall form the basis of or be relied upon in connection with any contract, investment decision or commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This presentation is not a complete description of the Company. Certain statements in the presentation contain words or phrases that are forward looking statements based on currently held views and assumptions of management which are expressed in good faith. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results, financial conditions, performance or achievements of the Company/Industry to differ materially from those contemplated / implied by the relevant forward looking statement. No opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection and hence, all concerned are cautioned not to place undue reliance on these statements. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Company. We do not have any obligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.

Page 3: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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3

Table of Contents

Management Team

Marketing and Distribution Business

Exploration and Production Business

Refining Opportunity: Delivering Value

Refining Business Overview

Essar Group Overview

Page 4: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

Essar Group Overview

Page 5: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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5

Essar: Amongst the Leading Indian Business Houses

Essar Global Limited

Essar Shipping & Logistics Limited

Essar Steel Holdings Limited

Essar Energy Holdings Limited

Essar Communications Holdings Limited

EssarPower Holdings

LimitedEssar

Projects Limited

Essar Steel

4.6 MTPA IntegratedSteel Plant (‘ISP’)

Essar Steel - Hazira

4 MTPA ISP *

Essar Steel Orissa

6 MTPA Pellet Plant*

Algoma Steel, Canada

4.0 MTPA ISP

Minnesota Steel, US•6 MTPA Pellet Plant*•1.4 biliion tonnes Iron Ore Reserves

P T Essar Indonesia0.4 MTPA cold rolling Complex

Essar Steelhypermart

Essar Oil

Refining

Refinery Complex - 10.5 MMTPA

Expanding capacity to 34 MMTPA

Oil Retail Marketing

1,274 Retail Outlets

Exploration & Production Blocks:

▪ Ratna, India ▪ Mehsana, India▪ Raniganj, India▪ Assam▪ Madagascar (1)

▪ Nigeria (1)

Vodafone Essar

40 million subscribers

Telecom Tower & Infrastructure

3,500 towers

Essar Telecom Retail

Chain of over 450 retail outlets

Aegis - BPO

Amongst the largest BPO’s in India, with 9 centers in India and 9 centers in USA

BPL Mobile

1 Million subscribers

Kenyan Mobile License

Essar Shipping

Fleet of 25 vessels, DWT of 1.31 mn

Vadinar OilTerminal

Terminal facility of 33 MMTPA – Liquid Cargo being expanded to 96 MMTPA

Essar Oilfields A drilling company with 13 rigs

Essar Logistics

Owns and operates transshipment assets

Essar Bulk Terminal

Dry bulk port facilities

Essar Power / Bhander Power Existing

1015 MW combined cycle

ExpansionEssar Power (MP) Limited – 1200 MW Essar Power (Gujarat) Limited – 1200 MW Essar Power Jharkhand Limited –1200 MW

Vadinar Power (2)

• Power Generation Capacity of 77MW being expanded to 457MW

• Steam capacity of 230TPH being expanded to 2580TPH

Essar Construction

▪ Engineering▪ Fabrication▪ Construction

Fully geared to execute turnkey EPC jobs in India and Overseas

Global Supplies (UAE)FZE Global procurement company

(1)Subject to neccessary approvals for transfer(2) In the process of owning a majority stake of upto 74%* Projects under implementation

Page 6: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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Rapid Growth in Core Sectors, built on Firm Foundation

• Expanded capacity to 8.6 MTPA in India and Canada with over US$ 5.4bn investment

• Further expansion of 6.5 MTPA with a US$ 4.9bn investment planned

2nd Largest domestic private player

Steel

Amongst the Largest domestic private playerConstruction

• Unique expertise in industrial projects across core sector • Executed EPC projects worth over US$ 12.5 bn

Essar Group has grown to become amongst the top five diversified corporate houses in India with assets of over US$ 15 bn and revenues in excess of US$ 8 bn

Telecom

• ~33% stake in Vodafone Essar - Over 40 million subscribers• 3,500 telecom towers and 450 telecom retail stores

• Set up 10.5 MMTPA refinery• Expanding to one of the largest refineries globally - further promoter

commitment of US$ 2 bnEnergy

2nd Largest domestic private player

3nd Largest telecom operator

• Set up power capacity of over 1,000 MW • Expanding to 4,000 MW by 2010 with investment of US$ 3.5 bn to gain pan

India presencePower

First private Independent Power Plant in India

2nd Largest domestic private player

• Built one of the world’s leading integrated sea logistics companies• Shipping, port, oil-field services, terminals• Liquid / solid cargo capacity to expand from 50 MTPA to 130 MTPAShipping

Page 7: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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With A Long-Term Growth Vision For The Energy Sector

Vision to be a fully integrated energy group with global footprint

Setup Indian retail network Setup Indian retail network of 5,000 outlets and of 5,000 outlets and establish footprint in establish footprint in

important export marketsimportant export markets

Crude Oil Crude Oil -- 30% of 30% of refining capacity refining capacity

Gas Gas –– 100% of group feed 100% of group feed stock requirementstock requirement

Target refining capacity Target refining capacity ––1 million bpd with state of 1 million bpd with state of

the art technologythe art technology

Significant Presence throughout hydrocarbon

value-chain

Page 8: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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Becoming An Integrated Energy Company

Aiming to become an integrated company with global footprint through organic and inorganic growth* Subject to neccessary approvals for transfer

Note: Reserves as per RPS Scott Pickford estimates

● Expansion to 34 MMTPA at an estimated project cost of US$6 billion expected to be completed by December 2010

● Significant group synergies, including captive infrastructure –captive EPC, port & terminal facility and power plant

● 16 supply points spread across India

– 7 terminals and 9 depots● Well positioned to capture

petroleum retail growth opportunity

Refining Marketing

● Existing 10.5 MMTPA refinery● Expansion to 34.0 MMTPA

● Develop & Maintain well spread out distribution network

● Presently 1,274 retail outlets

● 50% interest in Ratna and R-Series blocks in India (Gross 2P reserves of 146.85 mmbbl of oil and 89.40 Bcf of gas)

● 70% interest in CB-ON/3 development block in Mehsana, India (Gross 2P reserves of 2.71 mmbbl of oil and 1.58bcf of gas)

● Significant potential from other exploration portfolio

Exploration

Domestic● Ratna● Mehsana● Raniganj● Assam

International*● Madagascar● Nigeria

Page 9: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

Essar Oil: Refining Business Overview

Page 10: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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Strategically Located World Class Refinery

● Recently commissioned 10.5 MMTPA capacity refinery at Vadinar, Gujarat (in November 2006)● Designed as a cracking refinery utilising FCC as major conversion technology with complexity of 6.1● Location advantage at Vadinar, Gujarat● Internationally acclaimed technology from process licensors (ABB, Axens, Shaw Stone & Webster, Stork Comprimo, Merichem etc) ● Currently capable of producing Euro II/III Products, processed about 45 million barrels of crude ● Significant tax benefits ● Home market demand (PSU and private refiners) could provide strong market for our products

Refinery is up and running with key captive infrastructure in place

Operational Highlights

Euro II / III Markets Globally

Suppliers

Customers

Vadinar

Domestic Demand

Page 11: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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End to End Infrastructure in Place with Ability to Ramp Up Capacity

SBM COT

7 km

VBU Treaters NHT / CCR ARU/ SRUFCCU

18 km

Water Intake

Dispatch Area

Rail GantryTruck Gantry Product Jetty

Administration

DHDS

Captive Power Plant

22 km

Existing Infrastructure to reduce expansion cost

CDU / VDU

Main Refinery

Page 12: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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Vadinar Oil Terminal Limited

Township

SBM Port Handling Tank Farms

Refinery

Essar Construction

Vadinar Power Plant

Essar Steel

Essar Shipping

..And Ability to Leverage Synergies with Group Companies

Page 13: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

Refining Opportunity: Delivering Value

Page 14: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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Refinery Details

Upto Euro V / US SpecsUpto Euro IIIProduct Grades

2.0%

35.5

BaseRefinery

2.97%Sulphur %, Avg.

24.8API (Density), Avg.

Total Capacity post Expansion

Particulars

Designed to handle high acidity crudes upto 2 TAN

Ramping up Capacity to 34 MMTPA with Complexity of 12.8

12.8 Complexity, 34.0 MMTPA

6.1 Complexity, 10.5 MMTPA

Page 15: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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Euro V90%

Euro IV10%

Euro V61%

Euro II11%Euro IV

28%

..With Capability to Produce 16 MMTPA Euro V Products

6.6

11.3 11.2

7.2 5.3

5.43.42.9

7.66.0

8.1

28.2

5.0

31.235.9

24.7

● Largest producer of EURO V MS & HSD from a single refinery location● Euro V grade maximised at 90% in MS pool● Euro V grade maximised at 61% in HSD pool ● Lighter products provide flexibility for potential petrochemical expansion

10.5 MMTPA * 34 MMTPA

Diesel: 12.2 MMTPA

Gasoline: 9.6 MMTPA

Gasoline

Diesel

Aviation Turbine

Fuel & Loss Residue

Others

Kerosene

Note: Products as % of total

** Expected and could change from time to time depending on market dynamics

PropyleneLPG

Fuel Oil Pet Coke

Page 16: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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…and Leverage Light Heavy Differential

● Since January 2007 the monthly average differential between Bonny Light and Maya has been between $13.47/bbl and $18.08/bbl

● Light heavy differential expected to remain high

Ability to Process Wide Range of Crudes

Light / Sweet30%

Medium / Sour 40%

Tough10% Heavy Sour

20%

Tough75%

Light / Sweet

0%

Medium / Sour15%

Heavy Sour10%

Leverage Processing

34

10.5

Crude Processing Capacity (MMTPA)

35.5

24.8

API (Av.)

And Leverage Light Heavy Differential

Source – Bloomberg

40

50

60

70

80

90

100

Jan-06 Apr-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07

Valu

e - $

/bbl

Bonny Light Arab Light Arab Heavy Maya

Page 17: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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17

Expansion Scheduled to Come On-stream in 2010

● The upgradation of existing assets would add to interim cash-flows until 2010● Procurement of Long Lead items to be complete by Q2 2008

Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Refinery Expansion10.5 to 34 MMTPA

Basic Engineering

Detailed Engineering

Procurement of Long lead Items

Delivery of Equipment/ Material

Construction/ Erection

Mechanical completion

Oil in

2007 2008 2009 2010

UOP Mandated Development Train I Optimization

Train II Expansion

● Maximize Euro V product slate

● Heavy, sour acidic crude acidity processing

● Petchem integration

● UOP developed LP model and carried 300 LP runs

● Final configuration for Train I and II

● 10.5 MMTPA to 16.0 MMPTA

● Revamps, modification and addition of new process units

● 18 MMTPA capacity configured

● Mostly Repeat units● Integration with Train I

Project is On Track to Create the Refinery

Page 18: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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On Track with Support from World Class Partners

● Essar Oil Limited’s PMC subcontracts EPC work

Basic Engineering

Detailed Engineering Procurement Construction

● Overall Basic Engineering completion status – 90% - Balance by 1Q ’08

● LLI Datasheets generated on high priority kick start procurement

● Completed Basic Engineering for all units for Trains I & II except five units

● Overall Detailed Engineering Completion Status – 20% - Balance by 1Q09.

● Overall Plot Plan Layout frozen & Unit wise layout of most process units, utilities & infrastructure facilities completed – fronts and drawings released to commence civil work

● 40% of enquiries for the equipment and bulk materials already floated

● All LLIs to be ordered by 2Q’08.

● 75% of Balance Equipment/Materials to be also ordered by 2 Q’08

● Site already mobilised with base refinery contractors, equipment & workers

● Civil work for expansion has commenced

Leverage existing vendor relations for rapid execution of expansion

Key Contracts

Engineering

Construction

Page 19: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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Current financing structure provides adequate flexibility for future requirements and growth capital

Planned to be Financed through a D/E of 1.3:1.0

Key Highlights

● GDS infusion of US$ 2bn by promoters in two tranches● Base refinery to be virtually debt free post GDS● Fresh debt of upto US$ 5.3 billion to be raised through ECB and INR Loans

Estimated Project Cost for ExpansionCost Head US$ milllion (%)

Land & Buildings 50 1%

Plant & Machinery 4,614 77%Project Management & Engineering Fees 246 4%

Preliminary & Preoperative Expenses 105 2%

Financing Cost 656 11%

Contingency 329 5%

Total Project Cost 6,000 100.00

2630

797

1037

0 500 1000 1500 2000 2500 3000

10.5 MMTPA

18.0 MMTPA

34.0 MMTPA

Cost (USD/bpd/complexity)

Low Cost of Capital

Page 20: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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Refinery Business: Set to Deliver Strong Value

Strategic Location, Proximity to Materials, Access to End

Markets

Strategic Location, Proximity Strategic Location, Proximity to Materials, Access to End to Materials, Access to End

MarketsMarkets

One of the Largest Single Location Refineries Globally –Economies of Scale Benefits

One of the Largest Single One of the Largest Single Location Refineries Globally Location Refineries Globally ––Economies of Scale BenefitsEconomies of Scale Benefits

High Complexity, Cost Competitiveness,

Product Flexibility and High GRM Potential

High Complexity, Cost High Complexity, Cost Competitiveness, Competitiveness,

Product Flexibility and High Product Flexibility and High GRM Potential GRM Potential

Refining Industry Outlook Remains Strong

Refining Industry Outlook Refining Industry Outlook Remains Strong Remains Strong

India Emerging as a Global Refining Hub

India Emerging as a Global India Emerging as a Global Refining HubRefining Hub

Leverage Existing Project Execution Capabilities and

Infrastructure

Leverage Existing Project Leverage Existing Project Execution Capabilities and Execution Capabilities and

InfrastructureInfrastructure

Building an Environmental Friendly “Green Merchant Refinery”

Page 21: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

Exploration and Production Business

Page 22: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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E&P Assets

Madagascar *● 3 exploration blocks (100%

interest)

Nigeria *● 63% interest in OPL 226

exploration block

Ratna● 50% joint operators interest

in Ratna & R series blocks ● Estimated working interest

reserves of 41.14mmbbl of oil and 26.72 bcf of gas (1P) and 73.43 mmbbl of oil and 44.70 bcf of gas (2P)

Develop: CB-ON/3● 70% operatorship interest

in Mehsana ● Estimated working interest

reserves of 0.60 mmbbl of oil & 0.61bcf of gas(1P) and 1.90mmbbl of oil & 1.11bcf of gas (2P)

Assam● 2 exploration blocks (100%

interest)

West Bengal● 100% interest in RG(East)-

CBM-2001/1 block in Durgapur, WB

Strong E&P footprint with plans to bid for more blocks in the next NELP round

Note: Reserves as per RPS Scott Pickford estimates

* Subject to transfer to EOL

Page 23: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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● Essar - 50%, ONGC - 40%, Premier Oil - 10% with Joint operatorship

Ratna & R-Series Development Fields

2P certifiedBlock to reach 2P

44.70 bcf- Natural Gas (2P)

73.43 mmbbls- Crude Oil (2P)

~ 80.88 mmboeEstimated Working Interest Reserves (2P)

● New wells, reactivation of old wells, refurbishment of infrastructure and construction of new pipeline

Note: Ratna block development Subject to neccessary approvalsReserves as per RPS Scott Pickford estimates

Participating Interest

Location

Area

Work Done

Petroleum System

Development Plan

● 90 km South West of Mumbai in petroliferous regions of Bombay High, Bassein, Heera and Neelam fields

● Aerial extent of ~ 1,000 Sq Km with 45-50 meters water depth

● 38 exploration and 10 development wells drilled previously. Nearby discoveries in Panna, Mukta, Heera and Neelam

● Crude Quality 35 - 39° API

Page 24: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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CB-ON/3 – Mehsana – Development Field

● Essar – 100% (70%) with ONGC – 30% (back-in rights on discovery)

● Exploratory drilling in progress in Prospect G

Participating Interest

Location

Area

Work Done

Petroleum System

Development Plan

● Petroliferous Cambay basin of Gujarat, India having a string of discoveries

● Original area of 574 Sq Km

● 180 Sq Km of 3D seismic has been acquired, 1,300 Lkm of 2D reprocessed and 8 wells drilled● 5 prospects identified and discoveries in 3 prospects - Prospect B, Prospect A and Prospect F

● Crude quality: Varying between 12° API to 35° API

2P certifiedProspect to reach 2P

Prospect BProduction Profile

Q1 FY 2007-08Commercial Production

1.11 bcf- Natural Gas (2P)

1.90 mmbbl- Crude Oil (2P)

2.09 mmboeEstimated Working Interest Reserves (2P)

Page 25: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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Block OPL 226 – Nigeria

● 63% interest in OPL 226 exploration block

● Work commitments include G&G studies, 3D seismic and drilling of wells

Participating Interest

Location

Petroleum System

Development Plan

● Nigeria

● Crude quality: around 35° API

2No. of Platforms

8Appraisal/Prod. wells (nos.)

3Exploratory wells (nos.)

Page 26: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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Raniganj CBM Block

● Essar -100%

● Drilling of horizontal multilateral test wells for establishing the test flow potential of Raniganj Coal seams likely to begin in the 2nd quarter of CY2008

Participating Interest

Location

Area

Work Done

Development Plan

● Coaliferous belt of the Eastern Raniganj Coalfields, West Bengal

● 500 Sq Km

● Exploration Phase I commenced 29th March 2005 and voluminous data on coal has been generated since

850 btuCalorific Value

90No. of Multilateral wells

DURGAPUR

Page 27: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

Marketing and Distribution Business

Page 28: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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0

2

4

6

8

10

Canad

aUSA

Saudi

Arabia

Austra

lia

Russia

France

South

Korea

German

y

Japa

nU.K

.

Spain Ita

ly

Ukraine

South

Africa

Iran

Mexico

China

Brazil

Indon

esia

India

Worl

d

India: Amongst the world’s fastest growing energy consumers

Per Capita Consumption of Energy (kgoe)In per-capita consumption India ranks 20th

Source: IEA

Petroleum Products Demand

Source: Government of India and Crisil

0

20

40

60

80

100

120

140

160

1997

-9819

98-99

1999

-0020

00-01

2001

-0220

02-03

2003

-0420

04-05

2005

-0620

06-07

E20

07-08

E20

08-09

E20

09-10

E20

10-11

E

(Mto

n)

LPG Gasoline Naphtha Kerosene Diesel Fuel Oil Others

Petroleum Demand Supply trends

Source: Government of India and CrisilRefining Capacity excluding committed exports

Source: Government of India and EOL estimate.

Demand & Supply of OilConstrained supply builds pressure on additional capacity...

30 30 40

80

120

70

120

170190

360

0

50

100

150

200

250

300

350

400

1990-00 2001-02 2006-07E 2011-12E 2024-25E

(mill

ion

tons

)

Production+Oil Equity Demand

50

70

90

110

130

150

170

190

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

milli

on to

nnes

pa

Consumpion Refining Capacity

Page 29: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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29 Designed to optimize profits as well as balance short and long term objectives

Oil Distribution and Marketing

Own Supply Points spread all across India

16 supply points - 7 terminals and 9 depots 73

8

19

30

2

1

2

187

53

30

69

35

44

163

1103

3

33

53

93

1

59

1

175

8

37

1

First private company in India to enter petro-retailing sector (2003) through a franchisee model

Existing platform can be rapidly ramped up after emergence of favorable regulatory policy

Presence across India with 1,274 retail Outlets

Existing government subsidies for transportation fuelsunfavorable for development of retail marketing

Focus on exports / OMC & bulk domestic sales in prevailing pricing regime

MoU with some Oil Companies for product offtakeand infrastructure sharing

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Management Team

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Experienced Management Team

Senior ManagementNaresh K NayyarManaging Director

Chartered Accountant and IIM, Ahmedabad Alumnus33 years of experience in Oil & Gas sector including development of multi billion dollar project, new markets and global operations in Oil & Gas IndustryWas on the Board of reputed companies like IOC, ONGC, IBP and Petronet LNG

Suresh MathurWhole-time Director

Chartered Accountant with over 40 years of experience mainly in Oil & Gas sectorWas the CEO & MD of Petronet LNG Limited, which under his leadership set up India’s first LNG import and regasification terminal of 5 MMTPA capacity at Dahej and was Director Finance at IOC

S. R. AgrawalHead of the E&P division

Chartered Accountant with over 30 years experience in oil & gas

Daryl PattisonHead – IST

35 years of working internationally in the energy industryResponsible for the International supply and Trading

Eion TurnbullHead – Refinery

Over 27 years of experience in operations, research and technology and projects

Sourcing Refining E&P MarketingMr. ThangapandianHead - Marketing

Over 25 years of experience in the Oil and Gas industry in Sales & Marketing

Adi ShroffCIO – System Engineer

Over 36 years of IT experience

V SureshCFO – Refinery

Qualified Chartered Accountant & Company SecretaryOver 25 years experience across IB/ consultancy/ Industry across verticals

Mohan KumarHead – HR

Post Graduate from XLRICertified instructor for Blake and Mounton’s GRID Management programs

Raj VermaHead - Buss. Development

47 years of experience in Indian oil industry

Strong and Experienced Management Team in Place

Sheikh ShaffiCompany Secretary

Over 30 years of experience in Legal, Secretarial, Compliances

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Confidential

32

Experienced Execution Team

Gordon ClarkeProject Director – PMC Group

B.Sc. (Hons) from Salford UniversityOver 31 years of rich experience, 9 years as Project Director at Foster Wheeler and 4 years as Head of Central Planning at Shell BruneiWorked with LASMO, Kerr McGee Oil, Davy Offshore Ltd., Heerema/Lewis Offshore, Shell Expro

B. K. MukherjeeTechnical Head

Chemical Engineer with an illustrious experience of more than 38 years with IOCL as Executive Director of Gujarat Refinery for 2 years & the Executive Director of Haldia Refinery for 3 yearsResponsible for completion & commissioning of Base Refinery after restart in 2005

Shyam BagrodiaPresident – Refinery Expansion

B. Tech (Hons.)- IIT, Kharagpur ; MBA from University of Rochester, NY 37years experience in Chemical, Cement, Edible Oil and Petroleum Industries; including setting up of Green Field ProjectsWorked with the refinery since inception; managed Commercial, Financial & ABB

Shailesh SawaCFO – Refinery Expansion

Chartered Accountant & Cost AccountantMore than 25 years of experience into Corporate Finance having worked with Gujarat Ambuja and SEBI

Eugene SchmelzerConsultant - Technical Services

B.S.(Chemical) from Case Institute of Technology and a certified Six Sigma Green BeltRecently retired as Director of Engineering after a career that spanned more than 38 years of rich experience with UOP overseeing Refinery process technology, R&D and process design engineering areas

Blair JacksonHead – Construction (PMC Group)

B.Eng (Hons) from Bolton InstituteMore than 23 years of project construction management experience in the O&G industryPreviously worked with Bechtel OG&C Ltd. as a Project Construction Manager, John Brown Hydrocarbons Ltd., Kvaerner Process (UK) Ltd.

D.K. ShuklaHead – Refinery Execution (ISBL)

PG Diploma MBA from I.I.Sc, Bangalore and B.Tech (Chemical) from HBTI, Kanpur30 years experience and has previously worked with Reliance Industries as a Sr. VP leading the process engineering for 6 yearsWorked earlier with Engineers India Ltd., MW Kellogg (Houston), BOC Gases

D.K. JhaHead – Refinery Execution (OSBL)

MBA from IIPM, Gurgaon and B.Tech (Chemical) from IIT KanpurOver 25 years of experience and has joined us from Reliance Industries where he was heading Economics Planning & Scheduling for 3 yearsChief Operator for UOP at NNPC Nigeria and has worked with IOC, Barauni Refinery

Albert RolnikConsultant - Refinery Expansion

MBA from Northwestern University and B.S. (Chemical) from Carnegie Mellon University38 years of rich experience, has retired as Project Director - Engineering from UOP and has overseen detailed engineering

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Strong and Experienced Project Implementation Team

Page 33: Essar Oil - Company Update - AceAnalyser Meet/100134_20080131.pdf · Confidential 2 Disclaimer All information and material in this presentation is provided by Essar Oil Limited (“Company”)

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