Essar Oil Limited

Analyst Presentation April 16 , 2010 Essar Oil-E&P Higgghlights

1 Received Competent Persons Reports (CPR) for 4 most promising blocks ; Ratna, Raniganj, Rajmahal and Nigeria

2 Emerging as a significant player in CBM in India with low risk, significant demand and better fiscal regime

3 Raniganj & Rajmahal – 2C & prospective CBM resources: 993 BCF & 4.7 TCF respectively

4 Execution of off take Agreement with Matix Fertilizers and Chemicals for supply of 2 .8 mmscmd for 20 years

5 Nigeria PSC executed in March, 2010; plans are under way to farm out 37% in favour of local partner;

6 Nigeria has shown great potential with 2C and best estimate prospective resource of ~ 126 mmboe

7 Trail production of gas from raniganj to commence by Q2 CY2010 & Commercial Production to start by Q4 CY 2010.

Total Reserve portfolio increased to ~1400 mmboe ; 2C & prospective resource – 1162 mmboe & unrisked 8 resource – 238 mmboe

1 Essar Oil Refininggp and Expansion Proj jggect Highlights

1 Achieved throughput of 3.60 MMTPA for the quarter and 13. 50 MMTPA for the year

2 76 % of the crude processed was Heavy or Ultra Heavy, helping strengthen refining margins

3 Commenced supply of BS IV grade HSD and BS III grade MS to OMCs

4 Natural Gas ( 1 mmscmd) usage and Mangla Crude (20 – 30 kbpd) processing to commence in this quarter .

5 Refinery Expansion Phase I on track, scheduled for mechanical completion by March, 2011 - Overall progress of 53%

6 Achieved 729 days of Lost Time Incident Free operation, equivalent to 13.19 million safe man-hours

7 Won British Safety Council International Award for 2009 – 5th award for EOL for Health Safety and Environment

8 Awarded second position, CII-SHE Award 2009, in the manufacturing (Large) category in the Western Region

2 Essar Oil Marketingggg Highlights

1 1338 retail outlets operational all over India, with addition of around 50 retail outlets in the last quarter

2 Focus on Gujarat and Western India due to sales tax and logistics advantages

3 Captured 7.53 % market share in MS and HSD retail in Gujarat; currently in the process of adding Auto LPG facilities in the ROs

4 73% of sales (by value) in the domestic market in the quarter; 75% in the year

5 Captured 13% share of bitumen market in India; commissioned the packed bitumen sales in this quarter

6 Increased the number of supply locations in India to 25, lowering the cost of placing products in far-away markets

7 Retail Sales for the quarter Rs. 676 crore the year ( FY 2010 - Rs 2875 crore & Qty - 0.8 MT)

3 Essar Oil – Financial Higgghlights

1 Essar Oil clocked Turnover of Rs. 42402 crore for the year 2009-10; EBIDTA Rs 1935 crores; GRM 4.38 $/ bbl

2 Net Profit for year 2009-2010 is Rs. 29 crore, as against loss of Rs 514 crore for 2008-09

3 For quarter ending March-2010: Turnover of Rs. 11941 crore; EBIDTA Rs 680 crores; GRM 5.12 $/ bbl

4 Net Profit for Quarter ending March-2010 is Rs 179 crore as against a loss of Rs 226 crore in Quarter ending Dec-09

Equity Infusion of Rs 2000 Crores committed by promoters & tie up of Debt of Rs 4600 crore for Phase I Refinery Expansion 5 Project, completed

6 Essar Energy plc, holding company of Essar’s refinery, E&P and power businesses, to list at London Stock Exchange

7 Part of proceeds will be utilized for refinery expansion, E&P activities and corporate purpose

4 CEO’s Message

• Refining margins have bottomed out in this quarter and are expected to be higher in coming quarters boosted by demand from emerging economies. • Per capita oil consumption in India set to rise with growth in Indian economy, increase in per capita income, growth in vehicles and Govt. focus on infrastructure spending. • India will remain the anchor market for Essar’s expanded capacity and the company will continue toaugment itsretiltail netktwork torealize the opportititunities availa ble in Indian Market • Going forward, E&P business is expected to emerge as a major value creator for the company

5 Stronggg India GDP growth outlook

…is expected to drive among the fastest GDP growth rates in India has low GDP per capita… the world GDP growth rate 1.6% 1.4% 4.8% 3.1% 10.0% 7.1% (2000 – 2009) 46,400 9.6%

32,700 7.5% 2009 (US$) al) growthrate capita 09 – 2014) rr ee –– (20 15,200 3.6% 3.5% GDP (r GDP pe GDP 10,200 2.4% 2.3% 6,500

(PPP terms) terms) (PPP 3,100

USA EU Russia Brazil China India China India Brazil Russia UK US Source: CIA World Factbook, International Monetary Fund Source: International Monetary Fund, World Economic Outlook Database, October 2009

Increased government spending levels… …supporting private sector growth

Total 68 80 97 120 149 160 % infrastructure spending by private sector 140 CAGR: 22% 24.4% 120 51 30.1% 100 41 (US$154bn)

– prices) 2007 80 32 16.0% 19.8% 47 (US$43bn) 25 60 21 39 33 40 29 26 25.8% 51 20 32 40 21 26 US$bn (at 2006 US$bn 0 2007 – 08 2008 – 09 2009 – 10 2010 – 11 2011 – 12 IdiIndian Gov tXPlt. X Plan IdiIndian Gov tXIPlt. XI Plan (FY03 – FY07) (FY08 – FY12) Energy Transportation Others Note: Energy includes electricity and gas Source: Projections of Investment in Infrastructure during the Eleventh Plan available on http://www.infrastructure.gov.in/ Transportation includes roads, ports, railways & airports Others includes telecom, irrigation, water & storage 6 Increasinggg oil and gas consum ption

Low per capita oil consumption Low per capita gas consumption

1.9% 0.8% 0.7% 9.8% 18.9% 6.9%

105.7 23.1

75.3 ) –) 2008 as consumption feet/person) - 2008 mption (annual (annual mption

gg nn uu 11. 0 cc 35.1 7.3 4.4 2.2 capita Per (annual cubi (annual barrels/perso 0.9 4.5 2.1 1.2 Per capitaPer oil cons USA EU Russia Brazil China India Russia USA EU Brazil China India Source: KBC

Note: Figures in ovals represent gas consumption CAGR (2003 – 2008). Source: BP Statistical Review of World Energy June 2009, CIA World Factbook Source: BP Statistical Review of World Energy June 2009, CIA World Factbook

Strong potential uplift from vehicle ownership… …as India catches up with developed countries

900 2005 20.0 140 2030 800

120 ' per Cars German 16.0 700 UK 100 600 Japan Kuwait 12.0 80 500

0 S Korea er '000 drivers ita (US$'ita 000) 00 drivers 00 pp pp 400 Brazil 8.0 60 China 300 Russia 40 Cars 4.0 200 Thailand 20 Pakistan GDP per ca 100 India 0.0 0 0 2000 2010 2020 2030 1,000 10,000 100,000 GDP per capita Car ownership GDP US$2004 (PPP) Source: KBC Source: KBC

7 Industry Trends

16% $12 13.90%* 14% 10.00 MS Growth HSD Growth $10 12% 11.30% Light-Heavy Price Diffrential 8.45 11.10% $8 (Arab Light -Arab Heavy) 10% 6.80 7.40% 8.80% 8% 8.70%* $6 8.50% 4.95 6.90% 6.70% 6% 4.30% $4 4.35 4.80% 2.65 4% 4.50% $2 1.70 2% 2.20 1.20% 1.40% 1.55 1.20 1.50 0% $0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Apr - Feb. *As per IPR 09-10

Gasoil FO Jet Gasoline 11.2 $12 10.1 8.0 929.2 7.0 7.3 9.0 7.8 6.2 7.6 8.8 7.2 8.8 10.2 7.6 6.9 6.9 6.9 8.7 10.5 $7 5.9 8.2 8.2 6.0 7.7 7.0 7.5 6.2 6.5 6.3 5.6 6.3 6.2 3.5

$2 2.2 2.9

-1.9 -2.3 -2.9 -2.1 $(3) -4.0 -4.5 -3.3 -7.6 -4.9 -545.4 -4.9 -5.4 $(8) Jul-09 Jan-10 Jun-09 Oct-09 Feb-10 Apr-09 Sep-09 Dec-09 Aug-09 Nov-09 Mar-10 May-09 8 Essar Oil Limited

A world-class, low cost Indian integrated energy company

Exploration & Production Refining Marketing

Low cost refining complex centred around High impact E&P platform Pan India Presence through Retail Network Vadinar supersite

Capitalise on India’s rapidly growing energy demand

9 Exploration & Production

10 A higgp,h impact, Indian-led E&P platform

Mehsana(a) Rajmahal(b) Vietnam(e)

„ 70% interest (ESU) „ 100% interest in CBM block „ 100% interest in block 114 „ 2P reserves: 2mmbbl (()oil) „ Best estimate ppprospective „ Unrisked/undiscovered in-place „ Potentially significant CBM play resources: 4.7tcf CBM gas resources: 1.0tcf gas (167mmboe) (787mmboe) „ CPR by ARI (2010)

Nigeria(c)(e)

„ 100% interest in offshore block OPL 226 – in discussion with local partner to farm down to 63% „ 2C and best estimate prospective resources (based on 63% interest): 126mmboe (f) (48% oil) „ CPR by NSAI (2010)

Other Assets „ Assam (()e) (100% interest): Unrisked/undiscovered in-place Ratna /R Series(d) resources: 10mmboe (oil) (e) „ 50% interest „ Mumbai Offshore (50% interest): „ 2C resources: 81mmboe (92% oil, Unrisked/undiscovered in-place resources: 186bcf (31mmboe) 8% gas) Raniganj(c) „ Commercial production: Q4 „ Indonesia (e) (49.5% interest): CY2013(()d) „ 100% interest Unrisked/undiscovered in-place „ Expected gross peak production: „ 2C and best estimate prospective resources: 30mmbl (oil) 35kbbl/d resources: 993bcf CBM gas „ Madagascar(e) „ CPR by RPS Energy (2010) (165mmboe) „ Trial production: Q2 CY2010 „ Australia(e) Note: Reserves and resources data is working interest, adjusted to reflect Essar Oil’s interest „ Expected gross peak production: (a) Signed PSC for Oil; CBM rights subject to government approval and modification in government policy 3.5mmscm/d (g) 2P reserves/ 2C and prospective resources (b) Provisional winner, formal award awaited „ CPR by NSAI (2010) Unrisked/undiscovered in-place resources ()(c) Signe d PSC (d) PSC expected to be signed by June 2010, which is subject to a government approval process (e) Subject to necessary approval for transfer to Essar Oil (f) c.22mmboe (2C) of gas classified as development not viable (g) Relates to 2C and best estimate prospective resources Source: Company information 11 Details of E&P blocks with reserves and resource estimates

Best estimate prospective 2C resources(a) resources(a) Unrisked in-place resources(a)

Oil Gas Total Oil Gas Total Oil Gas Total Capex(i) Peak Assets Comments Ownership mmbbl Bcf mmboe mmbbl Bcf mmboe mmbbl Bcf mmboe (US$mm) Opex Prodn.

Discovered fields. 35k Ratna/ R-Series (b)(j) Development to commence 50%(e) 74 40 81 – – – – – – 568 $5.3/bbl bbl/d post signing of PSC Test production commenced. $0.43/ 3.5(p) Raniganj (CBM)(c)(j) Moving to commercial 100% – 201 33 – 792 132 – – – 439 mmbtu mmscm/d development Potentially significant CBM Mehsana (j) 70%(f) 2(m) -2–––––– 4 –– play Located in proven Nigerian Nigeria(c)(j)(o) 63%(k) (q) 11 136 33 49 264 93 – – – 16 petroliferous basin Larggge acreage. Situated in Rajmahal (CBM) (d)(j) 100% – – – – 4, 723 787 – – – 4 rich coal belt

Assam(l) Close to discovered oil area 100%(q) – – – – – – 10 – 10 13

Mumbai Offshore (l) Potential shallow gas play 50%(h) (q) – – – – – – – 186 31 3

Located in proven Central Indonesia(()l) 49. 5%(g) (q) – – – – – – 30 – 30 4 Sumatra basin

Large acreage and Vietnam(l) 100%(q) – – – – – – – 1,000 167 3 considered highly prospective

Total 87 377 150 49 5,779 1,012 40 1,185 238 1,055

(a) Working interest , adjusted to reflect Essar Oil’ ssinterest interest (b) RPS Energy CPR (2010) (c) Netherland Sewell & Associates Inc. CPR (2010) (d) Advanced Resources International CPR (2010) (e) For Ratna / R-Series, balance 50% is held by ONGC (40%) and Premier Oil (10%) (f) For Mehsana (ESU oil field), balance 30% ownership is held by ONGC. Essar Oil’s interest in the rest of the block is 100% (g) For Indonesia, balance 50.5% ownership is held by GSPC (h) For Mumbai Offshore, balance 50% ownership is held by Noble Energy (i) Capex for Ratna & R-series fields and Raniganj CBM blocks are for the full field development (net share of Essar Oil) (j) Mehsana - signed PSC for Oil; CBM rights subject to government approval and change in government policy; Rajmahal – provisional winner, formal award awaited; Raniganj – PSC signed; Nigeria - block awarded, PSC signed Ratna - PSC expected to be signed by June 2010 (subject (subject to government approval process) (k) In discussion with local partner to farm down to 63% (l) Essar Oil estimates (m) 2mmbl of 2P reserves (Essar Oil estimate) (n) c.22mmboe of gas classified as development not viable (p) Relates to 2C and best estimate prospective resources (q) Subject to necessary approvals for transfer to Essar Oil 12 Essar Energy – Exploration & Production

High impact E&P platform Key highlights

Reserves & resources (mmboe)(b) 1 Diverse portfolio of offshore and onshore oil & gas blocks

238 1,400 17% Emerging as a significant player in Indian natural gas(a)(b) - lower risk Oil 13% 2 1,012 83% and with siggggpnificant demand and exciting growth profile Gas 5%

Ratna – 2C resources: 81mmboe (92% oil, 8% gas); commercial 3 production expected Q4 2013; gross peak production: 35kbpd

95% 87% Raniganj –2C and best estimate prospective resources: 993bcf (CBM 4 gas); operational 2010; gross peak production: 3.5mmscm/d

150 58% 5 42% MhMehsana – 2P reserves: 2 mmbl ( oil) 2P and 2C Best estimate Unrisked/ Total contingent prospective inplace resources resources resources resources 6 Rajmahal – Best estimate prospective resources: 4.7tcf (CBM gas)

„ Total investment to date c.US$160mm International and other domestic – Unrisked/in-place resources of 7 over 238 mmboe

(a) Coal Bed Methane gas from three blocks – Raniganj, Rajmahal and Mehsana (b) Subject to necessary approvals. Please refer to E&P slides for further details Source: Company information, ARI, RPS Energy, NSAI

13 Leadinggp private Indian g as p lay er

25 Gas reserves and resources 23. 0

20

15 (tcf)

10

5.9

5

2.1 1.0 0.2 0 Reliance Essar Energy (b) Niko Great Eastern Indus Gas (a) Industries (a) Resources (a) Energy (c)

(a) Wood Mackenzie working interest commercial and technical gas reserves for India (b) Includes Rajmahal (4,723bcf), Raniganj (993bcf), Mumbai Offshore (186bcf), Ratna (40bcf) working interest 2C and best estimate prospective resources (c) As per broker research (RBC 9-Nov-09) – working interest remaining reserves

Source: Company information, RPS Energy, ARI and NSAI (for Essar EneEnergy)rgy), Broker research (for Great Eastern Energy) , Wood Mackenzie (for Reliance Industries, Niko Resources and Indus Gas)

14 Ratna/R-Series Fields – gross peak production of nearly 35,,py000 barrels per day

Field overview „ Offshore block, located 90km southwest of Mumbai Resources „ 81mmboe (net to Essar Oil) of 2C resources (92% oil), CPR by RPS Energy (2010)

Interest „ Essar Oil (50%) , Premier Oil (10%), ONGC (40%) #

„ 35 exploration and 9 development wells drilled Current status previously by ONGC „ Awaiting signing ofdldf PSC and related agreements

„ PSC/JOA and off-take agreement expected to be signed Key milestones by June 2010 (subject to government approval process) „ Commercial production expected in Q4 CY 2013(a)

„ Government profit share varies, depending on capex Government take spend and recovery of the capex and pricing „ FOB prices at delivery point as per market

Gross production profile „ Equity invested to date: US$3.0mn Capex to full „ Capex to full development: c.US$568mn (Essar share) development 40 „ to be funded 70/30 debt/equity 35 30 Opex guidance „ US$5.3/bbl 25 tion (Kbp/d) tion

cc 20 „ CY 2010 : c. US$9mn ( net sh are) Capex guidance and „ CY 2011 : c.US$27mn (net share) 15 phasing 10 „ CY 2012 : c.US$79mn (net share) 5 „ Gross produ Gross API – 32 – 45 Other 0 „ Cost/well: US$11 – 12mn 22 33 44 55 66 77 88 99 00 11 22 33 44 55 66 77 88 99 00 11 22 33 44 55 66 77 88 99 00 11 22 33

FY1 FY1 FY1 FY1 FY1 FY1 FY1 FY1 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY3 FY3 FY3 FY3 FY3 FY3 FY3 FY3 FY3 FY3 FY4 FY4 FY4 FY4 Evacuation „ 40km pipeline to be laid to connect to existing pipeline (a) Assuming PSC signing by June 2010 „ Source: Company information, RPS Energy Customer Government nominated PSU 15 # Premier Oil is currently Operator under terms of award. The Joint Venture parties have discussed in good faith to implement a joint operatorship model post execution of PSC subject to requisite approval Raniganj – low risk development to serve customers in Eastern India’s gas deficit industrial belt

Field overview „ Onshore block, located in Damodar Valley coal field in the Raniganj region of West Bengal Resources „ 993bcf (165mmboe) of 2C and best estimate prospective resources ()(CBM gas), CPR by NSAI ()(2010) Interest / „ 100% interest, Essar Oil is operator operator „ 17 information wells 15 test wells drilled; gas flow Current status started „ Awaiting approval of development plan

„ 500 wells to be drilled over the life of the asset Key milestones „ Trial production sales planned for Q2 CY2010 „ Commercial production expected by December 2010

„ Royalty at the rate of 10% of well-head price is payable to the government of West Bengal. Production level Government take payments (PLP) linked to a percentage of revenue are and pricing also payable to the Government of India, based on a formula Production profile „ Capex to full development: c.US$439mn 4.0 Capex to full – to be funded 70/30 debt/equity 3.5 development – capex figure reflects estimated expenditure for 3.0 both 2C and prospective resources 2.5 scm/d) Opex guidance „ US$0.43/mmbtu mm 202.0 1.5 Capex guidance and „ CY 2010 : c.US$97mn (net share) 1.0 phasing „ CY 2011 : c.US$131mn (net share)

0.5 Other „ Cost/well: US$0.63mn Production (m Production 0.0 99 00 22 33 44 55 66 77 88 99 00 22 33 44 55 66 77 88 99 00 22 33 44 55 66 77 88 99 00 22 Evacuation „ Pipeline being built FY0 FY1 FY11 FY1 FY1 FY1 FY1 FY1 FY1 FY1 FY1 FY2 FY21 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY2 FY3 FY31 FY3 FY3 FY3 FY3 FY3 FY3 FY3 FY3 FY4 FY41 FY4

Note: FY ended March 31st. Production profile reflects both 2C and best estimate prospective resources Source: Company information, NSAI Customers „ Philips Carbon, Matix Fertilizers already signed up

16 Refining & Marketing

17 Vadinar refinery

18 Operational Performance

Crude Processed Ultra Heavy Heavy Light 15.00 13.50 100% 11.95 27% 31% 26% 28% 27% 12.00 80%

9.00 60% 46% 51% 6006.00 40% 60% 52% 57% 3.31 3.51 3.60 3.00 20% 28% 22% 13% 17% 15% 0.00 0% QE0309 QE1209 QE0310 FY-09 FY-10 QE0309 QE1209 QE0310 FY- 09 FY-10 100%

Distillates Heavy Middle Light 90% Export PSUs Direct/ Bulk Retail

100% 80% 11% 3% 23% 70% 8% 23% 24% 25% 24% 8% 7% 6% 80% 9% 7% 60% 7% 7% 50% 60% 52% 49% 44% 51% 48% 40% 65% 40% 30% 58% 56% 57% 60% 20% 20% 30% 29% 26% 25% 24% 28% 31% 26% 27% 10% 22%

0% 0% QE0309 QE1209 QE0310 FY-09 FY-10 QE0309 QE1209 QE0310 FY-09 FY-10

19 Essar Energy – Refining & Marketing

Increasing capacity and complexity Key highlights

Capacity (MT ) Low cost , safe and efficient operations – refinery operating cost (a) 1 Current March 2011 March 2013 US$1-2 per barrel lower than global peers 36

2 Strategically located on the west coast of India 18 14

Increasing complexity from 6.1 to 11.8 following Phase 1, enhancing 3 crude and product flexibility Post Post

Today Phase 1 expansionPhase 2 expansion Total cumulative (b) Crude slate geared towards heavy crudes (89% of crude mix capex US$2.5bn US$4.0bn US$8.4bn 4 comprises of heavy and ultra-heavy crude) Total incremental capex(b) – US$1.5bn US$4.4bn Comppylexity: 6.1 11.8 12.8 Vadinar currentlyyg one of India’s largest refineries: will be among st 5 (d) API (density) avg.: 31.3 24.8 24.0 the top 5 globally at 750k bbl/d post Phase 2

Sulphur % avg.: 1.6% 3.0% 3.0% The timing for Phase 2 will be finalised based on a review of market Product grade: Euro III/IV Euro IV/V Euro V/ 6 US Spec/ conditions and attainment of financial closure CARB (a) The timing for Phase 2 will be finalised based on a review of market conditions and Expansion at competitive capex cost; cost/complexity/bbl of $1011 attainment of financial closure 7 (b) INR/US$: 50.95 and $962 post Phase I & Phase II respectively (c) Ultra-heavy crude defined as having API <25 and heavy crude as having API between 25 & 33 (d) Calculated on the basis of number of operating days per annum

Source: Company information

20 To be Fifth largest refinery in the world post phase II expansion

1,400

1,200

1,000

800 bpd

600 1,240

940 400 817 730 688 605 580 540 500 460 200 279

0 SK Ulsan GS-Caltex S-Oil Onsan ftegaz Kirishi - Paraguana FPCC Mailiao Essar current Mobil Jurong r Phase Two* ENSACroix St ce - Jamnagar ee nn AA aa VV Ess HO Exxo PDVS Relian Surgutn * As per KBC report 21 Expansion at highly competitive capex

New grass roots refineries – capacity vs capex New refineries capex – country average

60,000 30, 000

50,000 25,000

40,000 20,000

30,000 15,000 Capex ($/bpd) Capex Capex ($/bpd) Capex World average: US$23,400/bpd

20,000 10,000

Essar Energy post phase 2

10,000 Essar Energy post phase 1 5,000 Essar Energy current

0 0 0 100 200 300 400 500 600 700 800 World China Saudi India Essar Essar Essar average Arabia Energy Energy Energy current post post Capacity (kbp/d) phase I phase II Note: The timing for Phase 2 will be finished based on a review of market condition and attainment of financial closure Source: KBC, Company information

22 Expppansion to provide crude as well as p roduct flexibility

Ultra- Light Light heavy 11% 6% 20% Light 28% Heavy Heavy 31% 25%

Ultra- Ultra- rude mix heavy heavy CC 64% 63% Heavy 52% 14MT 18MT 36MT (current) (expected post phase 1 expansion) (expected post phase 2 expansion)

Heavy end Light Heavy end Light Heavy end 15% distillates 15% Light 25% distillates 22% distillates 22% 29%

ield FllFuel loss 6% VGO Propylene 10% 3% Middle Middle Middle distillates distillates distillates 48% Fuel loss Product y 47% 49% Fuel loss 4% 5%

14MT 18MT 36MT (current) (expected post phase 1 expansion) (expected post phase 2 expansion) „ Processing an increasingly high proportion of high sulphur and low API crudes „ Focus on delivery of higher margin products (middle/light distillates)

Note: Excludes Kenya Petroleum refinery Ultra-heavy crude defined as having API<25, heavy crude with API 25 – 33, light crude with API>33 Dar and Mangala crude with high tan and wax content classified as heavy crude Product yield – fuel and loss does not include natural gas Source: Company information 23 Yield to shift to higher grade products…optimal for export markets

„ Conversion of entire negative margin fuel oil into high value added products and pet coke „ Building higher flexibility between light and middle distillates „ Flexibility to produce petrochemical feed stock „ Euro IV & V grade at 87% in Gasoline pool and 78.4% in Diesel pool Gasoline: 9MT Euro III LPG/ Naphtha 13.0% 4.2 5.0 7.8

Gasoline Euro V 16.9 13.9 49.9% 24.4 Euro IV 37.0%

Diesel: 13MT Euro III Diesel 21.5% 40.9 42.9 37.8 Euro IV ` 47.2%

Jt/Jet /Kero Euro V 6.5 6.5 31.2% 11.0 Fuel Oil 10.2 Propylene 20.3 Pet Coke 2.8 3.3 11.4 Others 11.4 4.3 1.5 1.5 Fuel & Loss Residue 6.1 4.0 5.4

14MT (a) 18MT (a) 36MT (a)

Note: Others include bitumen, sulphur and HDT VGO (a) Expected and could change from time to time depending on market dynamics Source: Company information

24 Phase 1 – Overall Projjpect completion is 53% ( March 2010)

Basic Detailed Procurement Construction Engineering Engineering

y All long lead items ordered y OSBL pipe rack is in advanced y All Basic Engineering y Model reviews staggpe of completion and p ppgiping Completed completed y Balance items to be ordered by April-10. erection progressing in various y 87 % Piping Bulk material fronts. y Short / Long Lead y Drawings released for ordering Completed & 40 y ISBL Pipe rack , Technological items’ Datasheets all major % of pipes materials structures & Heater works are issued civil, Structure, Heater, received at site. progressing in full swing. ftfor procurement Piping & Tankages y works y Total 193 out of 1212 Nos 230,000 CUM of RCC completed. of Mechanical Tagged y 10500 MT Structural Steel y Schedule A package Equipment received at fabricated & 3100 MT erected for all Units received. y Drawings for E & I site. y works are in Progress. 18100 MT of Tankages Fabrication & 15600 MT Erection Completed.

25 Financial Highlights

26 Financial Results

Particulars Quarter Quarter Quarter 2008-09 2009-10 Mar-09 Dec-09 Mar-10 Full Year Full Year Throughput - Million Tonnes 3313.31 3513.51 3603.60 11.95 13.50 INCOME Income from operation 8,031 11,421 11,941 41,816 42,402 Less : Excise duty & Taxes 1,248 1,494 1,489 4,300 5,897 Net Income from operation 6,783 9,927 10,452 37,516 36,505 Other Income 51 38 92 184 210 Total Income 6,834 9,965 10,544 37,700 36,715

EXPENDITURE Cost of Goods Sold 5,469 9,576 9,831 34,203 34,255 Operating Expenditure 333 330 279 1,033 1,186 Forex Loss/( Gain) (94) (169) (246) 1,261 (661) Total Expenditure 5,708 9,738 9,864 36,498 34,780

EBITDA 1,126 228 680 1,203 1,935

Interest & Finance Charges 322 285 319 1,091 1,179 Operational Cash Profit 804 (()58) 360 111 757 Depreciation 175 184 181 655 728 PBT 629 (242)179 (544)28 Tax (32) (15) - (30) (1) PAT 661 (226)179 (514)29 GRM (USD/bbl) With Sales Tax Incentive $ 10.33 $ 2.21 $ 5.12 $ 7.69 $ 4.38 GRM (USD/bbl) Without Sales Tax Incentive $ 8.69 $ 0.13 $ 2.82 $ 4.89 $ 2.29 IEA Cracking Margin $ 0.92 $ (3.24) $ (0.63) $ 2.56 $ (1.90) 27 Comparative GRM

12.00

10.69 10. 33 10.00

8.90

8.00

6.74 6.00 5.51 5.12 IEA- Margin

4.00 4.00 EOL GRM 2.21 2.06 2.00 2.05 1771.77 0.92

0.00 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10

-1.82 -0.77 -2.00 -1.93 -3.24 -4.00 Refining Margins

28 Key Value Drivers

CBM – Raniganj to start Significant potential Execution of PSC for Ratna E&P trial sale of CBM Gas of CBM and Oil byyQ Q2 CY2010 & Gas blocks & R-series

Existing Refinery to optimize Phase – IEI Expansi on t o its profitability; increase the Phase – II expansion to • Refining Processing of Mangla Crude throughput to 18 increase throughput to 36 from Q1 2010 MMTPA & slated to MMTPA • Utilization of Natural Gas complete by from QQ,1, 2010 March, 2011

Expansion of Retail Deregulation of Petroleum Products International distribution Distribution Outlets to 1500 (MS/HSD) by Govt. capability

29 Lets Begin !

30