Cairn India

In India, we face a range of complex issues, including land acquisition, water use, security of installations and community development. We have made good progress in managing these issues proactively and responsibly.

Cairn India is a key player in oil and gas exploration and production in India. It is estimated that the Company will provide in excess of 20% of India's domestic oil production beyond 2011 from its producing fields in Rajasthan if current output levels and production forecasts are achieved. Cairn India was established as a separate company in 2007, with Cairn retaining a 62.39% shareholding.

Our Activities in 2009

Cairn India's operational activities in 2009 have focused on production operations at Ravva and Suvali (since 1997 and 2002 respectively) and the major development of the Mangala oilfield in the Rajasthan desert.

Following significant investment since its discovery in 2004, Cairn India began production from the Mangala oilfield in August 2009. Construction work has continued in 2009 with the MPT and the 600 km pipeline from Barmer to Salaya, which will provide the means of exporting oil from this major field. Rajasthan oil production commenced in August 2009 and, at the end of 2009, approximately 15,430 barrels per day were being exported by road tanker from the MPT to the buyers' facilities.

Construction work on both the MPT and pipeline are continuing in 2010 as the oilfield moves towards full operational capacity. Development of the Bhagyam and Aishwariya fields will follow and, together with Mangala, will gradually increase to a combined production of at least 175,000 barrels of oil per day in 2011.

Corporate Responsibility in India

CR is integral to the way Cairn India operates. The Company works closely with local communities to ensure they are active partners in our activities, and to ensure we balance social and environmental needs.

Cairn India takes an inclusive and consultative approach to its diverse CR initiatives, involving communities, local government and non-governmental organisations when designing and implementing our programmes.

Across its different operations, Cairn India faces a diverse range of often complex issues. The Company has made good progress in managing these issues proactively and responsibly, developing and implementing long-term strategies with measurable performance indicators.