Shiv-Vani Oil & Gas

Exploration Services
Limited

By
a.arun(peo59)

Table of Contents

Company Overview
3
Business Overview
7
Key Investment Highlights
15
Financial Snapshot
23

Company Overview

Corporate Overview

A leading private sector onshore Oil & Gas services provider in India with
40 onshore rigs and 10 seismic crews

Incorporated in 1989 and promoted by the Singhee family

Product suite includes onshore E&P services ranging from seismic, deepdrilling, coal-bed methane to integrated well services

Strong customer relationships with major Indian national oil companies like
Oil and Natural Gas Corp. Ltd. (ONGC), Oil India Ltd. (OIL) and
Petroleum Development Oman (PDO)
Projects spread across over 30 sites in India and Oman / Middle East,
providing cost and time advantages

Outstanding order book of $ 671m as of 30th Sep, 2010

International partnerships expand capabilities

Express Drilling Systems, USA -(Executing US$200m CBM project via unincorporated
JV)

KCS, Kazakhstan

(Seismic and Transit Zone technology)

TNG Group, Russia

(JV for specialised seismic jobs)

Shiv-Vani Evolution
Growth history
Raised $ 80 m by FCCB in July 2010
Coupon 5%, YTM 5.74%, Conversion price Rs 516
US$20m equity investment by Franklin Templeton
Deployed 10 large drilling rigs
Commenced all the eight large Rigs for ONGC USD 354.5 m contract
by July 10

Acquired drilling rig in India with capacity of 3,000 HP

International partnerships with Schlumberger, Baker Hughes
Commenced integrated well services
Obtained US$354.5m 3-year contract from ONGC

Commenced operations in Oman / Middle East

FCCB offering US$55.0m (converted in 2007)
Entered CBM operations
CVC invested US$25.4m
Acquired 7 seismic fleets

Purchased first work over & drilling

rig
Diversified into seismic services

2009

200508

Deployed offshore logistics support vessel

Commenced Natural gas compression
operations

199904
199498

IPO in Nov 1993

Commenced operations with shot-hole drilling
services

2010-11

199093

6
Onshore
drilling
contract with
PDO
Oman/Shell
Group
Commenced
since 2005 - 3
Rigs
(deployed)

8 Rigs

Total Contract
Value:
US$244m (15
years period)
Evergreen
contract with
no expiry

Shiv-Vani Oil
& Gas Co. LLC
(Oman)
99%

Rigs leased to
SV India

1%

Annual
turnover
US$18m

4 Rigs
4 Rigs leased
to SV India
2 Seismic
sets working
for Seismic
Solutions in
Middle east

Oil Blocks
Holding
Limited
(Cyprus)
SV Videsh
Limited
(Cyprus)
100%

SV Oil &
Natural Gas
Limited
(Mauritius)
100%

Natural Oil &

Gas Services
Limited
(Mauritius)
100%

Shiv-Vani
Singapore
Pte Limited
(Singapore)
Shiv-Vani Oil
Services
Limited
(India)

TNG Shiv Geo

Oil Services
Limited
(India)

Other
Subsidiaries
100%

51%

sets)
Shiv-Vani Oil & Gas Exploration Services Limited (25 Rigs, 8 Seismic

Organisational Structure

Business Overview

Established Integrated Oil & Gas Services

Provider
Services

Revenues1
($m)

% of Total
Revenues

Seismic
117.4

42%

Description

Large fleet of 10 sets of seismic equipments

Shot-hole rigs (truck-mounted & portable): 350
Well-equipped to carry out operations in varied terrains ranging from mountains to dense forests
Order book of ~US$35m1

Large fleet of 40 deep drilling and work over rigs

Fleet includes advanced drilling rigs with capacity to drill wells up-to a maximum depth of 8,000
meters, including one 3,000HP drilling rig
Robust order book of ~US$520m1

Deep
Drilling

137.1

49%

Coal Bed
Methane

Integrated
Well
Services

19.1

7%

Other
Services

2.3

1%

(1) As of Sep 30th , 2010

1.5

1%

Provides multilateral inseam, horizontal directional drilling, which results in increase in flow rates
8 sets of modern directional drilling equipment
Executing US$ 200m contract for development of 3 CBM blocks for ONGC on turn key basis in
technical collaboration with Express Drilling LLC, USA
Strong order book of US$89m1

One stop solution provider

Services include well logging, cementing, mud engineering, directional drilling, well testing etc
Technology collaboration with leading international players
Improved EBITDA margins in integrated contracts

US$ INR used for all translations: 45.14 as of March 31 st, 2010

Other E&P services include operation of 4 offshore logistics support vessels,

natural
& 44.92
as on gas
30th Sep 2010
compression, design and building of gas gathering stations, laying of pipelines etc.
Marginal field service contract at Charaideo, Assam with ONGC
Strong order book of US$27m1
8

Offering high-tech seismic services

Seismic services

Large fleet of 10 sets of seismic

equipments
Shot-hole rigs (truck-mounted & portable):
350
Number of channels: 55,000
Well-equipped to carry out operations in
varied terrains ranging from mountains to
dense forests
Dedicated team of geophysicists, surveyors
and engineers
Order book of ~US$35m (as of 30th Sep
2010)

Sourcing from world class vendors

Shot-hole drilling rigs Jacro (USA)

Seismograph Sercel, Aram (France)
Geophones / Hydrophones Geosensor
(Canada), Geospace (USA)
DGPS Leica (Switzerland)
Sorting system Pelton (USA)
Total Station Trimble (USA), Leica
(Switzerland)
Testing Equipment - Sercel, Aram (France)
Airgun BOLT (USA)
Uphole unit Seistronix (USA)
Cables Sercel, Aram (France)

Amongst the largest onshore advanced deep

drilling services provider in India
Extensive range of 40 rigs

Deep drilling services

Note: Split of fleet shown in terms of capacity

Sourcing from world class vendors

Large fleet of 40 deep drilling and work

over rigs
Fleet includes advanced drilling rigs with
capacity to drill wells up-to a maximum
depth of 8,000 meters, including one 3,000
HP drilling rig
Long term partnership with original
equipment manufacturers for equipment
maintenance
Large inventory of stores and spares; 3
workshops spread across India
Robust order book of ~US$520m (as of 30th
Sep 2010)

Basic Rig & structure

Top Drive System NOV (USA)
Rotary drive system Kelly (USA)
Blow Out Preventor (BOP) Cameron,
Hydrill & Shaffer (USA)
Mud System Derrick (Europe)

10

Demonstrated successful diversification into

CBM services
Growth potential from largely unexplored
blocks

Coal bed methane

India has 247 Billions tonnes of Coal Reserves 4th

largest in the world.

The CBM resource is estimated at 50 TCF

Total Sedimentary area for CBM Exploration in

India is 26,000 Sq Km

Round Round Round Round

I*
II
III
IV
PSUs
PSU - Private
JVs
Private JVs

Nil

Nil

Out of this exploration has been initiated in about

60% area by way of CBM rounds

Other private `

Nil

Total

10

Target CBM production 7.4 MMSCMD by 2013-14

from the current 0.15 MMSCMD.

*Including 3 awarded on nomination/FIPB route

Source: Directorate General of Hydrocarbons website

Shiv Vani is pioneer and leading provider of

integrated CBM development services in India

Ability to provide multilateral inseam, horizontal

directional drilling
results in significant increase in flow rates and
optimises CBM production

Executing US$200m contract for

development of 3 CBM blocks for ONGC on
turn key basis

In technical collaboration with Express

Drilling LLC, USA

Strong order book of US$89m (as of 30 th

Sep 2010)

Advanced simulators for production and recovery

of methane from coal seam reservoirs

11

Stable business terms as well as asset base

Stable contract terms

Long term contracts (majority three years)

Limited credit risk as significant business with PSUs

Fixed terms contracts no negotiations including revision in pricing

Majority on day-rate basis

Contract revenues de-linked from prospecting results or oil price fluctuations

Evergreen contract with PD Oman

Stable asset / skill base

Asset acquisition against confirmed contracts

Own fleet of logistics support vehicles and workshop reduces downtime

Long term maintenance contracts with OEMs

Large inventory of stores and spares

Geographical spread provides flexibility to offer location choice to employees

Advanced technical equipment and expertise that helps in retention of skilled

talent

12

Expanding operations: pan India and

internationally
ONGC, Shot Hole
Drilling & Seismic Job
Services
Jwalamukhi, Manali
and other areas in HP

ONGC, Shot Hole

Drilling & Seismic Job
Services - Solan, HP

ONGC, Shot Hole

Drilling & Seismic Job
Services - Katni, MP)

PDO, Oman,
Drilling &
Work over
evergreen
contracts

ONGC, Shot Hole

Drilling & Seismic
Job Services Satna, Batul,
Shadol & other
parts of MP

ONGC, Shot Hole

Drilling & Seismic
Job Services Damoh & Zabera,
MP

ONGC, 3D
Seismic Data
Acquisition
Sector-IX,
Mehsana/Patan

ONGC, 2D Seismic
Data Acquisition
Rajouri to Punch,
Himalayan Foothills
of J&K

OIL, 3 Nos.
ONGC, 2D
ONGC, 3D
2000 HP & 1
Seismic Data
Seismic Data
No. 1500 HP
Acquisition,
Acquisition
Drilling Rigs &
using Vibroseis
Sector-I,
2 Nos. Work
Duliajan
Sibsagar
over Rigs
at/near
ONGC Duliajan
ONGC, 1 No. 2000
ONGC, 3D
Charaideo
HP Integrated
Seismic Data
Marginal
Drilling Rig at
Acquisition
Field
Itarsi, MP (Frontier
1 No. E&P
Silchar
Basin)
Blocks
ONGC, 2D Seismic
NELP-VI,
Data Acquisition
Amgudi
Vindhyan Basin, MP
OIL + Shiv
ONGC, Shot Hole
Drilling &
Seismic Job
Services - Tura,
Meghalaya

2D/3D Seismic Data Acquisition

Crew
Shot Hole
Reservoir Data Acquisition

ONGC, Shot Hole

Drilling & Seismic
Job Services Cachar
ONGC, 3D
Seismic Data
Acquisition
Dumapur

ONGC, 3D & 2D Seismic

Data Acquisition
Sector-III & IV, Tripura &
Sector-A, Sector-B

ONGC, 2 Nos.
2000 HP
Integrated
Drilling Rigs & 2
No. 175 Ton
Work over Rig at
Ankleshwar
ONGC, Reservoir Data
Acquisition for two
years at Ankleshwar,
Bharuch in Gujarat

Oil & Gas Exploration

ONGC, 2D Seismic
Data Acquisition
Manabum, AP

ONGC, 3 Nos. 2000 HP &

1 No. 3000 HP
Integrated Drilling
Rigs at Sibsagar
OIL, 3D Seismic Data
Acquisition Sadiya,
Jonai & Moran

ONGC, 3 Sets.
MWD, SDMM and
Drilling Jar along
with Directional
Drillers at
Ankleshwar

Work over
Drilling
Integrated Services for CBM

ONGC, 2D
Seismic Data
Acquisition
Pasighat AP

ONGC, 3 Nos.
Crew Boats
Mumbai
Offshore

ONGC, 2 Nos.
2000 HP
Integrated
Drilling Rigs & 1
Nos. 175 Ton
Work over Rigs at
Rajahmundry
ONGC, 2D Seismic
Data Acquisition KG
Basin, Across river

ONGC, 2 Nos.
2000 HP
Integrated
Drilling Rigs at
Agartala
ONGC, 1 No.
5o Ton Work
over Rig at
Bokaro

One No. E&P

Block NELP-VI,
OIL +
Shiv+Suntera

ONGC,
Integrated CBM
Operation at
Bokaro

ONGC, Shot Hole

Drilling & Seismic Job
Services- Pondicherry,
Tamil Nadu

Note: Above illustration covers current and recently completed projects

13

Key Investment Highlights

14

Key Investment Highlights

Strong Macro
Drivers
Total Oil&Gas
outlay expected to

Established Management Team with Deep Domain Expertise

Expert senior management with substantial
industry experience, sole focus on oil & gas
sector since the last 15 years
High quality investors including Templeton
and CVC support organic and inorganic
growth strategy

Established Integrated Oil & Gas

Services Provider

Attractive Financial Profile

Track record of consistent revenue
with CAGR of 59% from FY Dec06 to FY Mar-10
Strong EBITDA margins with
average of c.41% over 3 years
Current book stands at
~US$671mn, which is ~4.0* FY10
revenue and ~2.5x FY10 revenue

One-stop service provider for E&P

operators
Owns young fleet of 40 onshore
rigs and 10 seismic crews
Long term fixed terms contract
Conservative capex strategy

Blue Chip Customer Portfolio

Multiple Growth Opportunities

Broaden end to end services from
drilling and work over to further up
value chain like casing, fabrication etc
Expand geographically in Middle East
and North Africa (MENA) region

increase from US$21.8bn in 2002-07

to US$48.2bn in 2007-12
PSU E&P outlay expected to increase
from US$12.5bn in 2002-07 to
US$31.8bn in 2007-12
Indias natural gas demand is
expected to increase by ~42% to
~279mmscmd in the next three years

Strong relationship with leading

government controlled companies
including ONGC and OIL
High entry barriers to tap PSU segment
Evergreen contract with Petro. Dev.
Oman ( Shell Int.) well positioned to tap
international opportunities

15

Indian Oil & Gas Industry Scenario

Total Sedimentary basins in India are 3.14
Mill Sq Km.

INDIA : Energy Source

Onland & Shallow water (upto200 m): 1.79

M SQKM
Deep water

Coal 52%
Crude Oil 32%
NaturalGas 10%
Hydro 5%
Nuclear 1%

: 1.35 M SQKM

Explored

22%

Exploration Initiated

44%

Partly Explored / Unexplored 34%

India is Vth largest primary energy

consumer with a CAGR of 4.5%
However per capita Energy consumption is
only 0.51 TOE : 28% of global Average
Huge gap in Oil and Gas Demand Curve of
2011-25 prompting nation to strive for
exploration
Rising Domestic Energy Consumption CAGR
6.4%

mmtoe

500
400
300

WORLD

: Energy Source

Coal 29%
Crude Oil 34%
NaturalGas 24%
Hydro 5%
Nuclear 6%

200
100
0
1997

2000

2004

2006

2008

2009

Indias Oil and Gas Energy Source is 42% against Worlds average
of 58%

16

Established Integrated Oil & Gas Services Provider

One of the few companies in India to provide

integrated oil & gas services
Owned equipment with average age of c.1
year and estimated remaining life of c.20 years
Growing integrated oil services business
expected to yield higher EBITDA margins
Increasingly sub-contracting to global
oilfield services companies including
Halliburton, Schlumberger
Conservative capex strategy Typically the
company procures rigs post successfully
winning a contract from its customers
Long term contracts (majority 3 years) with
usually no negotiations including revisions
in pricing

JE John Energy, DR Dewanchand Ramsaran

JE1

DR1

Alphageo

Asian
Oilfields

Seismic

Onshore
Drilling

Directional
Drilling

Well
Logging

Mud
Logging

Cementation

CBM
Services

Source: Respective company websites

Business Segment wise Historical Order book

(1)

ShivVani

Business Segment wise Historical Revenue

US$ INR used for 2008 39.41, 2009 50.95, 2010 45.14

17

Blue Chip Customer Portfolio

High Entry Barriers to Tap PSU segment

Low counterparty risk due to strong relationship with ONGC and

OIL

Obtained US$354.5m contract from ONGC in 2009

Evergreen contract with PD Oman, well positioned to tap

international opportunities
Key Customers (US$ mn)

ONGC

OIL

Market Capitalisation1

62,664

7,584

74.1%

78.4%

22,915.1

1,751.3

44.5%

46.9%

16,826.7

2,977.5

Government Ownership

Revenues2
EBITDA Margin2
Planned E&P Expenditure

Pre qualification for PSU bids on the basis of technical

expertise
Minimum networth criteria
Past track record
10% price preference over a foreign company for a contract
bid
Ability to offer advanced functionalities helps reduce
operators cost
Ability to participate in complex operations/contracts
Tie-ups with subcontractors for offering various services
Tie-ups with vendors key for efficient rig procurement
Mobility of equipment and employees
Integrated offerings provide an efficient alternative to
operators

US$ INR used for all translations: 45.14

Customer wise Historical Order book

(1)
(2)
(3)

Customer wise Historical Revenue

US$ INR used for 2008 39.41, 2009 50.95, 2010 45.14

As of Nov 15th 2010

As of FY ended March 31st, 2010
For 2007-2012, Source: Planning Commission of the Government of India, Eleventh Five-Year Plan Report dated June 2008

18

Multiple Growth Opportunities

Invest in technology, training and
development
Build in-house technical expertise in areas currently

Continue building order book of

quality contracts
Pursue new contracts in India and abroad

dependent upon technical sub-contractors

backed by:

Invest in R&D and training:

Demonstrated expertise and experience

Keep pace with technological changes

Established track record

Introduce new complementary service

Concentrate on key customers

Offers integrated business services:
Improves quality of contract portfolio and
generates higher profit margins

Explore opportunities to diversity

Grow via international expansion and

Expand business lines in specialised

services
Identify, evaluate and enter new business lines that

acquisitions

offer services to complement existing operations

Invest in businesses aligned with strategic

objectives

Expand CBM development services in India and

abroad

Middle East and North Africa (MENA)

region due to increased E&P activity and
better margins

Expand technical capabilities in integrated well

services
Continue to collaborate with reputable third party
suppliers and contractors to deliver additional
product and service offerings

Experienced & Professional Management Team

Strong Leadership Team with Deep Industry Knowledge and Experience
Prem Singhee

Chairman & Managing

Director

Associated with the company since its

inception
Over 21 years of experience in oil & gas
industry

Padam Singhee

Joint Managing Director

President

Joined the company in Jul-2008

Previously employed at Infotat International
in Houston, USA

Rajan Gupta

CFO

Pradip Kumar Chaudhary

CEO (Technical
Overseas)

Senior Vice President

(Drilling and WO)

Vice President (Finance)

S.K. Chandak

Vice President (Technical)

S.M. Kaushik

Vice President (Operations)

Dr. D.S.Mathur

General Manager - Contracts

A.K. Vasudeva

General Manager (HSE)

Clinton Miller

General Manager (Directional Drilling)

S. Roy Chowdhury

General Manager (Geophysical

Services)

Vimal Chadha

Company Secretary

Joined the company in Apr-1996

Qualified Chartered Accountant, Company
Secretary

J Swain

P.K. Gupta

Associated with the company since 1990

Over 20 years of experience with more than
15 years in oil & gas industry

Prakash Chiman Lal Singhee

With a Deep Bench

Joined the company in Apr-2006

Over 35 years of experience

Joined the company in Oct-2005
Previously served at Jindal Drilling &
Industries
Holds a B.E. (Mechanical) Degree

Gopal Mohta

Senior Vice President

(Commercial)

Joined the company in Jan-1996

20

Financial Snapshot

21

Strong Operating Profile

Revenue growth boosted by new contracts & higher
tariffs
R:
CAG

Improving EBITDA margins

59%

Strong earnings growth

Increasing asset base

Net Fixed Assets

owth
6x gr

US$ INR used for 2006 45.07, 2008 39.41, 2009 50.95, 2010 45.14

22

Shiv-Vani: Significant competitive advantages

A leading player in
onshore oilfield
services

Order book* of close to US$ 671m

Fleet size includes 40 on-land rigs and latest technology seismic crews 10 sets
Offering integrated services model, towards which industry is moving
Well positioned to capitalise on large potential for growth

Significant cost
advantage

Economies of scale leading to cost advantage

Lower manpower costs, including cost of rotation
Pan-India presence
Strategic global sourcing
Own engineering workshops resulting in significant cost advantages and reduction in dependencies

Good working history

with key customers
and suppliers

Own asset base

Domestic bid
advantage

Experienced senior
management and
well-trained
employees

Successful track record with large upstream players in India and abroad
Well positioned to strengthen and grow these relationships
Good relationship with equipment suppliers leading to timely and economic procurement

Ownership resulting in lower costs

Full control over deployment of assets
Ownership of majority of logistics support vehicles reduces cost of movement of equipment

Indian PSUs provide 10% price preference to domestic players in bidding

Substantial portion of Companys contracts with Indian PSUs
Well positioned to compete against potential foreign entrants, given track record and expertise

Expert senior management with substantial industry experience

Well qualified team of technical professionals
Over 1,000 well trained and skilled labour
Extensive in-house training program
Technological up-gradation from international JVs

*Order book as on 30 th Sep10

23

THANK YOU