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What's in Store for You
� Trends in Oil & Gas Sector
� What's happening in India
� Survival is tough in the “Brown Jungle”
07S0
� Survival is tough in the “Brown Jungle”
� Leadership experience in Cairn
� Finally, few thoughts on the topic !!!!!
Claimer
� Sorry, couldn't avoid Power Point and Statistics
� It’s a Research – I have not stolen the idea from one source!!!
� Intention is certainly not to preach
07S0
Power of Oil & Gas – It’s a Big Business
� World consumes $8 bn* worth of oil & gas every single day
� International daily trade (OTC & Exchanges) at $50 bn*
� 9 Oil companies occupy the top 20 positions in Fortune 500 list
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NOC
IOC
Independent
2008
* July’09 PricesSource – Goldman Sachs Research Report
Oil Resource – God has not been fair
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55% 5% 9% 15% 11% 6%Population
Source – World Bank & BP Statistical Review of World Energy 2009
3% 6% 10% 10% 11% 60%
Brown Jungle – Entry is only Adults!!!!
Offshore Well
Deep Water Well
$80mm
Exploration
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Onshore Well
$2mm
Offshore Well
$15mm
$80mm
� Exploration – It’s a search for pins in a dark room
� Its Transformational – Go to bed as a child and wake up as an Adult
More Players, More Risk Investment & More Discoveries (2000-2008)
� Total Discoveries – 183
� Discovery of Oil in 2004 by Cairn in Rajasthan
� India’s largest on-shore oil discovery in over two
decades
� World class resource base of 3.7bn barrels
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� At production peak to contribute ~20% of India’s
domestic production
� First Oil – H2 2009
� Discovery of Gas by Reliance in Andhra Offshore
� World’s largest gas discovery for the year
� Doubles the India’s gas production
� Triggers downstream investment in gas pipeline
and City Gas Distribution
Source – DGH India
Gas will enter your Kitchen & Drive your Car
21%
9%
5%
41%
24%
65%
OECD - 2008
Coal
Oil
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51%
1% 7%
32%
9%
41%
India - 2008
Coal Nuclear Hydro Oil Gas
Gas
Source – BP Statistical Review of World Energy 2009
Market Cap
3.5
2.7
2.4
Vastar Resources
Oryx
Gulf Canada
1998-2002: Half of the mid-sized E&Ps were acquired...
Acquired by Shell 2002
Acquired by ENI 2000
Acquired by BP 2000
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4.8
4.8
Enterprise Oil
LASMO
$bn1997
Source – McKinsey & Co Research
Acquired by Kerr McGee 1998
Acquired by Conoco 2001
Big Fish don’t let you swim for long!!
But... Those survived grew 4-6X
�Effective
Leadership
Secret of Survival
Apache
Devon
CNR
Market Cap 1997 2009
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Leadership
0 5 10 15 20 25 30 35
Woodside
Anadarko
$bn
Source – McKinsey & Co Research
If you manage to escape you could be
the Big Fish!!
Leadership – To Add Value and Make a Difference
Innovation
in
Excellence
InMaterial
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in
Strategy
In
Execution
Material
Growth
Leadership – How do you experience it ? - What I Experienced in Cairn !!!!
� Leadership by Visioning (Back in the Early Nineties…)
� Leadership by Being (Walk the Talk !!)
Leadership by Winning (Part of a winning team !! )
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� Leadership by Winning (Part of a winning team !! )
Leadership – How do others experience yours?
� If I can, then everyone has the leadership potential !!!
� Do you enjoy being led by others?
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� Job of a Leader is to create more leaders
Its all about People !!!
� Grain to Bread - Value Addition 5 times
� Uncut Diamond to Finished Diamond – 10 times
� When u learn the Art of turning ordinary people to do extraordinary things- Can u quantify the value addition ????
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things- Can u quantify the value addition ????
� Two things that every Individual and Company aspire for :
I. Recognition
II. Respect
Broad banding The Leadership Profile
• Future growth
• Materiality
• Excellence in Execution
• Spirit of Entrepreneur
• Responsibility of a Trustee
Ownership Focus
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• Integrity
• Commitment
• Corporate Governance
• Build the Team
• Build the Brand
Trust Communication