Essar Oil Limited

AltAnalyst PttiPresentation July 27, 2010 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 supersite

Capitalise on India’s rapidly growing energy demand

1 Essar Oil - E&P Highlights

Rajmahal block awarded by MoPNG. 3 more blocks from CBM-IV round with in-place resource of 733 1 mmboe also awarded to EOL, execution of contracts expected shortly

2 Total Reserve Portfolio increased to 2132 mmboe from 1400 mmboe

3 Gas production from 15 test wells drilled under Phase – I, being ramped up with progressive dewatering

4 Test production of gas from Raniganj to commence by Q2 FY2011 & Commercial Production to start by Q3 FY 2011

5 Drilling activities for Raniganj (phase – II ) commenced with 8 pilot wells & 36 surface holes drilled

6 Development Plan envisaging drilling of 500 wells submitted to DGH, under review

7 Term Loan of Rs. 575 crore tied up with Bank for phase – I of Raniganj Project Essar Oil – Refining Operation, Expansion Project & Retail Business Highlights

1 Achieved highest throughput of 3.68 MMTPA for Q1 FY2011 against 2.76 MMTPA for Q1FY 2010

2 76% of products slate comprises light & middle distillates & processed 66 % of Heavy or Ultra Heavy crude

3 Supply of Mangala Crude from begun with 25000 bpd through heated pipeline at Refinery

4 Refinery Expansion Phase I to increase capacity to 18 mmtpa largely on track, scheduled to start the commercial production on time - Overall progress of 62%

5 Supporting Infrastructures including the pipeline completed to avail the Natural Gas at Refinery Project Site

6 Deregulation of Motor Spirit price by the Govt of India to provide level playing field

7 Strategy to increase the Retail outlets to 1700 by March, 2011 to increase retail sales & profitability

8 CltdCompleted Agreement with GAIL gas f or setti ng up CNG outl et s on all I ndi a B asi s at our ret ail outl et s Essar Oil – Financial Highlights ( Q1 FY 2010 – 11)

1 GRGross Revenue ofRf Rs. 12048 crore; Domes tic & E xport R ati o : 70% & 30%

2 EBIDTA Rs. 407 crores against Rs 665 crore in corresponding quarter ended June -09

3 GRM 5.61 $/ bbl as against $ 6.74/bbl for corresponding quarter ended June -09

Essar Energy plc, holding company of Essar’s refinery, E&P and power businesses listed at London Stock 3 Exchange, raised USD 1.95 billion

4 Plc infused USD 225 million of Equity and USD 262 million through FCCBs in Essar Oil

5 Funds to be used for Refinery Phase – I Expansion, E&P activities and other corporate purpose

6 Essar Energy Plc included in FTSE – 100 within one month of its listing Essar Energy London Listing

5 Essar Energy London Listing

6 Essar Energy London Listing

7 Essar Energy London Listing

8 Industry Trends

Cracks on Products Global Oil Demand Gasoil FO Jet Gasoline 88 87.44 $15 87.2 $11.74 86.9 87 $7.42 $9.37 86.28 $10 $7.28 86.07 $7.33 $11.33 85.83 85.88 85.82 $7.03 $7.00 $9.81 86 85.33 85.28 $8.94 $5 $7.13 $6.98 $6.22 $7.37 85 84.47 84.1 $2.86 $- 84 $(3.01) 83 $(5) $(3.01) $(5.84) $(4.52) 82 $(6.69) $(10) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 April - Jun, 09 Jul - Sept, 09 Oct - Dec,09 Jan - Mar,10 April - Jun,10 Source :IEA Arab Light & Arab Heavy Difference Petro Product Growth in India 3.50 3.10 16.0 MS (% growth) HSD (% Growth) 3.00 2.80 14.0 2.50 13.9 12.0 11.3 2.00 2.05 9.0 1.95 1.95 10.0 1.70 1.60 1.75 11.1 1.55 7.4 9.0 1.50 1.50 1701.70 1.50 808.0 8.4 1.20 6.9 6.7 1.00 6.0 4.8 0.50 4.0 4.5 2.0 0000.00 1.4 0.0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Source :PPAC 9 CEO’ s Message

• Petroleum Products demand in India continue to demonstrate strong growth supported by growth in Indian economy, increase in per capita income, growth in vehicl es and GtGovt. focus on ifinfras truct ure spending • India will remain the anchor market for Essar’s expanded refinery capacity • Deregulation of Gasoline price with a clear roadmap for freeing up of Gasoil price, will create healthy competition among players and benefit the consumers • Essar will continue to expand its retail network to realise the deregulated market opportunities. • Focus on E&P business to transform the image of company from being a pure refiner to an integrated Oil & Gas ppylayer. • Refinery Phase – I Expansion, focus on Indian Retail Marketing & E&P business will deliver the growth & value for our stakeholders.

10 Exploration & Production

11 Essar Oil – Exploration & Production

High impact E&P platform Key highlights

2500 Reserves & resources (mmboe)(a) 1 Diverse portfolio of offshore and onshore oil & gas blocks 971 2132 Oil Gas 40 176 2000 Developing as a leading CBM player - lower risk and with 2 significant demand and exciting growth profile

931 Attractive economics for onshore CCMresourcesBM resources versus offshore 3 1500 gas in India - favourable fiscal terms and lower opex and capex

1012 Raniganj –2C and best estimate prospective resources: 993bcf CSG; 49 4 commercial production by end 2010; gross peak production: 1000 1957 3.5mmscm/d

5 Rajmahal – Best estimate prospective resources: 4.7tcf (CBM) 963 500 Sohagpur, Talcher & IB valley CBM blocks- 4.4 tcf inplace resources 6 150 as per DGH estimates

87 0 63 International and other domestic – Unrisked/in-place resources of 7 2P & 2C Best Estimate Unrisked / Total Resources over 238 mmboe Contingent Prospective Inplace Resources Resources Resouces „ Total investment to date c.US$160mm

(a) Subject to necessary approvals. Please refer to next slide for further details Source: Company information, ARI, RPS Energy, NSAI

12 A high impact , Indian -led E&P platform

Mehsana(a) Rajmahal(b) Vietnam(e) „ 70% interest (ESU) „ 100% interest in „ 100% interest in „ 2P reserves: 2mmbbl (oil) CBM block block 114 „ Potentially significant „ Best estimate prospective „ Unrisked/undiscovered CBM play resources: 4.7tcf CBM gas in-place resources: 1.0tcf (787mmboe) gas (167mmboe) „ 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 SP(()NE)-CBM-2008/IV(b) prospective resources (based on OhOther Assets 63% interest): 126mmboe (f) „ 100% interest in „ Assam (e) (100% interest): (48% oil) CPR by NSAI (2010) block Unrisked/undiscovered in-place resources: 10mmboe (oil) TL-CBM-2008/IV(b) Ratna /R Series(d) IB-CBM-2008/IV(b) „ Mumbai Offshore (e) (50% interest): „ 100% interest Uikd/diUnrisked/undiscovere did in-place „ 50% interest resources: 186bcf (31mmboe) „ 2C resources: 81mmboe in these 2 (e) (92% oil, 8% gas) blocks Raniganj(c) „ Indonesia (49.5% interest): „ Unrisked/undiscovered in-place Commercial production: Q4 „ 100% interest (d) resources: 30mmbl (oil) CY2013 „ 2C and best estimate „ Expectedkd gross peak prospective resources: 993bcf „ Madagascar()(e) production: 35kbbl/d CBM gas (165mmboe) „ Australia(e) „ Trial production: Q2 CY2010 Note: Reserves and resources data is working interest, adjusted to reflect Essar Oil’s interest „ (a) Signed PSC for Oil; CBM rights subject to government approval and modification in government policy „ Expected gross peak SP(NE)-CBM-2008/IV, (g) (b) (b) Awarded by GOI under CBM IV round production: 3.5mmscm/d TL-CBM-2008/IV, IB-CBM-2008/IV (c) Signed PSC „ CPR by NSAI (2010) (d) PSC expected to be signed shortly, which is subject to a government approval process 2P reserves/ 2C and prospective resources (e) Subject to necessary approval for transfer to Essar Oil Unrisked Rresources (f) c.22mmboe (2C) of gas classified as development not viable (g) Relates to 2C and best estimate prospective resources Source: Company information 13 Details of Major E&P blocks with reserves and resource estimates

Best estimate ppprospective 2P/ 2C resources Capex CtComments resources Assets Ownership Oil Gas Total Oil Gas Total (US$ mn) Opex Peak Prodn.

mmbbl Bcf mmboe mmbbl Bcf mmboe

Test production commenced. $0.43/ Raniganj (CBM) 100% - 201 33 792 132 439 3.5 mmscm/d Moving to commercial - mmbtu development

Large acreage. Situated in rich Rajmahal (CBM) 100% - 4,723 787 4 --- coal belt

Potentially significant Mehsana 70% (b) 2 - 2 - - - 4 - - CBM play

Discovered fields. Ratna/ R-Series 50% (a) 74 40 81 - 568 $5.3/bbl 35k bbl/d Development to commence - post signing of PSC

Located in proven Nigerian Nigeria 63% (c)11 136 33 49 264 93 16 petroliferous basin

Total 87 377 149 49 5779 1012

(a) For Ratna / R-Series, balance 50% is held by ONGC (40%) and Premier Oil (10%) (b) For Mehsana (ESU oil field), balance 30% ownership is held by ONGC (c) In discussion with local partner to farm down to 63%

14 CBM Projects – location & resources

Rajmahal CBM Block JAMMU AND KASHMIRJAMMU AND KASHMIR

SRINAGAR SRINAGAR

r r e e rd SHIMLA SHIMLA rd o CHANDIGARHo CHANDIGARHUttarkashi Uttarkashi B B l l a PUNJABa PUNJAB n n DEHRADUN DEHRADUN o io ti t a a n UTTARANCHAL UTTARANCHAL rn r Haridwar Haridwar te te In In Almora Pithoragarh Almora Pithoragarh Naini Tal Naini Tal HARYANA HARYANA ARUNACHAL PRADESH ARUNACHAL PRADESH

DELHI DELHI I I nte nt Gurgaon Gurgaon rn er a na tio ti Bikaner Bikaner Faridabad Faridabad na on l B al or B de or r de ITANAGAR ITANAGAR Shanjahenpur Shanjahenpur r GANGTOK GANGTOK

Maharajganj MaharajganjDarjiling Darjiling D D Jaisalmer Jaisalmer Nagaur Nagaur UTTAR PRADESH UTTAR PRADESH ASSAM N ASSAM N A A JAIPUR JAIPUR LUCKNOW LUCKNOW L L DISPUR A DISPUR A RAJASTHAN RAJASTHAN Kanpur Kanpur Madhubani Madhubani G G A KOHIMA A KOHIMA N N Jodhpur Jodhpur Jagdishpur Jagdishpur SHILLONG SHILLONG MEGHALAYA MEGHALAYA MANIPUR MANIPUR PATNA PATNA IMPHAL IMPHAL Amla Amla Banda Banda Gaya Gaya A A Udaipur Udaipur GUNA (VIJAIPUR) GUNA (VIJAIPUR) BIHAR BIHAR R R CB ON1 CB ON1 (HBJ INTERCONNECT) (HBJ INTERCONNECT)Rewa Rewa AGARTALA U AIZWAL AGARTALA U AIZWAL P

Palanpur Palanpur Bina Bina P I M Mandsaur Mandsaur I M

Dhanbad DhanbadR R A

GK ON90/2GK ON90/2 Damoh Damoh Bokaro Bokaro T T A R

Dungarpur Dungarpur R O

Bhuj Bhuj GANDHINAGAR GANDHINAGARRatlam Ratlam RANCHI RANCHI O Z

BHOPAL MADHYABHOPAL PRADESH MADHYA PRADESH Z I

Kndla Kndla AHMEDABAD AHMEDABADUjjain Ujjain Ambikapur WESTAmbikapur BENGAL WEST BENGAL I Raniganj CBM Block M Mundra Mundra Devas Devas Jabalpur Jabalpur Jamshedpur Jamshedpur M JHARKHAND KOLKOTAJHARKHAND KOLKOTA Kheda GodhraKhedaJhabua Godhra Jhabua Hoshangabad Hoshangabad Dhar INDORE DharINDORE Medinipur Medinipur JAMNAGARJAMNAGAR Vadodara Vadodara Rajkot Rajkot Bilaspur Bilaspur Baripada Baripada GUJARATGUJARAT Betul Betul Bhavnagar BhavnagarHAZIRA (HBJ INTERCONNECT)HAZIRA (HBJ INTERCONNECT) Baleshwar Baleshwar CHHATISGARH SambalpurCHHATISGARH Sambalpur Nagpur RAIPURNagpur ORISSARAIPUR ORISSA

Kendrapara Kendrapara WARDHA WARDHA CUTTACK PARADEEP CUTTACK PARADEEP SILVASSA SILVASSA Khurda BHUBANESHWAR Khurda BHUBANESHWAR Yavatmal GarhchiroliYavatmal Garhchiroli Puri Puri Nashik MAHARASHTRANashik MAHARASHTRA Bhawanipatna Bhawanipatna Chandrapur Chandrapur Adilabad Adilabad

TROMBAYThane TROMBAYThane URAN URAN Bid Bid Alibag Alibag Nizamabad Nizamabad Pune Pune Vizianagaram Vizianagaram Osmanbad OsmanbadBidar Bidar Dundigal Dundigal VISHAKHAPATNAM VISHAKHAPATNAM Zahirabad Zahirabad DABHOL DABHOL HYDERABAD Khammam HYDERABADUppada Khammam Uppada Ratnagiri Ratnagiri KAKINADA KAKINADA Sangli BijapurSangli Bijapur Rajahmundry Rajahmundry KOLHAPUR KOLHAPUR Mahbubnagar KondapalleMahbubnagarEluru YanamKondapalle Eluru Yanam Gokak Gokak VIJAYAWADA VIJAYAWADA Sohagpur CBM Block Raichur RaichurGuntur Guntur Kudal Kudal Kurnool Kurnool Ongole Ongole ANDHRA PRADESHANDHRA PRADESH GOA GOA Bellary Bellary Karwar KARNATAKAKarwar KARNATAKAAnantapur Anantapur Talchir CBM Block Nellore Nellore

KK08 KK08 ENNORE ENNORE Kolar Chittoor Kolar Chittoor SURATHKAL SURATHKALHassan Hassan Mangalore Mangalore BANGALORE Vellore KanchipuramBANGALORE Vellore Kanchipuram Kasargod MadikeriKasargod Madikeri

Villupuram Villupuram PONDICHERRY PONDICHERRY Cuddalore Cuddalore

K Udhagamandalam K Udhagamandalam E E R TAMILNADUR TAMILNADU A Coimbatore A ThanjavurCoimbatore Thanjavur L TiruchirappalliL Tiruchirappalli IB Valley CBM Block A A Nagapattinam Nagapattinam Ernakulam Ernakulam

Alappuzha Alappuzha Ramanathapuram Ramanathapuram KAYANKULAM KAYANKULAM Kollam Kollam TiruneveliTUTICORIN TiruneveliTUTICORIN

Emerging as a significant player in CBM segment in the country 15

15 Leading CBM gas player in India

Best estimate 2P/ 2C Unrisked in- prospective Total Details of CBM Block Place Ownership Acreage resources place resource Remarks resources Bcf Bcf Bcf Bcf Raniganj Calcutta 100% 500 Sq km 201 792 - 993 CPR by NSAI (2010)

RjRajma hlhal Jharkh and 100% 1128 sq. k m- 4,723 - 4,723 CPR by ARI (2010) M.P. & Sohagpur 100% 339 sq. km 600 600 As per DGH Chhattisgarh Talche Orissa 100% 557 sq. km 2,600 2,600 As per DGH

IB Valley Orissa 100% 209 sq. km - - 1,200 1,200 As per DGH 500 sq. km Total 2733 sq km 201 5,515 4,400 10,116

ƒ Leading CBM player in the country with 2733 sq km of acreage & more than 10 TCF of reserve and resources in place under five blocks. ƒ Presence in major key market having deficit of unconventional gases ƒ Experience Team of 100 engineers & technical staffs with avg. experience of more than 8 years in the field of execution & operation of CBM project. ƒ Deployment of innovative industry standard technologies for drilling & production from CBM Wells ƒ Essar owns a versatile fleet of oil well rigs, core hole rings, air drilling rigs & other critical equipment

16 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 FY2010 „ 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 dldevelopment – capex figure reflects estimated expenditure for 3.0 both 2C and prospective resources 2.5 Opex guidance „ US$0.43/mmbtu 2.0 (mmscm/d)

nn 151.5 Capex guidance and „ CY 2010 : c. US$97mn (net share) 1.0 phasing „ CY 2011 : c.US$131mn (net share)

0.5 „ Cost/well: US$0.63mn

Productio Other 0.0 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2

00 11 11 11 11 11 11 11 11 11 11 22 22 22 22 22 22 22 22 22 22 33 33 33 33 33 33 33 33 33 33 44 44 44 Evacuation „ Pipeline being built (48 KM) FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY

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

17 Pictorial progress … Raniganj (From Well to Market)

Air Drilling Rig For CBM PC Pumps running at test wells Separators installed at test wells

Pipe line Construction Plantation at test well site Gas flare

18 Refining & Marketing

19 Operational Performance

Crude Throughput Crude Mix

120% 14 13.50 Ultra Heavy Heavy Light 100% 12 22% 19% 25% 28% 10 80%

8 60% 47% 51% 6 52% 46% 40% 3.68 4 3.60 2.76 20% 2 34% 24% 27% 26%

- 0% QE0609 Full Year-10 QE0310 QE0610 QE0609 Full Year-10 QE0310 QE0610

ƒ Processed 3.68 Million ton of crude, highest ƒ Processed more than 20 types of crudes throughput for any quarter as against 2.76 during the Quarter including ultra heavy & million ton in corresponding previous quarter tough crudes like Ras Gharib, Merey etc. ( due to shut down) ƒ Avg. API (Density) – 32.4 , Avg. Sulphur % – ƒ Continuous to optimise the capacity utilization 1.70 and Avg. TAN – 0.30 with annualized capacityutilizati on more than ƒ Beginning the processing of Mangla crude 14 mmtpa) 20 Operational Performance

Product Slate Sales Mix

Light Middle Heavy 100%

23% 24% 25% 28% 80%

60% 44% 52% 49% 46% 40%

20% 26% 27% 31% 26%

0% QE0609 FY 2010 QE0310 QE0610

ƒ Continue to focus on domestic market due to ƒ Optimised production of middle & light distillates – High margin segment better price realization of petro products

ƒ Heavy Distillates includes positive margin ƒ Captured 14% share of bitumen market in India Bitumen converted from low margin FO. ƒ Reduction in retail sales due to increase in petro product prices in international market

21 Retail Marketing : Pan India Presence with Flexible business model

First private company in India to enter petro retailing sector (2003) through a franchisee model 1 ( Capex investment by Dealers)

2 Deregulation of MS prices by GOI to provide level playing field, expecting freeing up of HSD prices shortly

3 Expansion of Retail outlets to 1700 by March , 2011 from existing 1344 Retail outlets .

4 Existinggpp( Indian PSUs sales per retail outlet per month : 153 KL ( MS : 37 KL and HSD : 116 KL)

Avg. sales of Petro Products at our Retail outlet to increase to 100 KL perm month per outlet from existing 40 5 KL subject to deregulation of HSD prices by GOI

6 Focus on Gujarat & Western India Market due to Sales Tax benefit & logistic advantage

Focus on Non Fuel Retail services like Lubricants, Batteries, Ticket Booking, ATM, Food Parlor, Agro Products 7 etc to generate additional revenue stream for both the Company & the franchisee Refinery Expansion

23 Essar Ene rgy – Reegfining

Increasing capacity and complexity Key highlights

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

2 Strategically located on the west coast of India

18 14 Increasing complexity from 6.1 to 11.8 following Phase 3 1, enhancing crude and product flexibility

Post Post Today Phase I Phase II Crude slate geared towards heavy crudes (89% of crude mix TtlTotal cumul ltiative 4 capex( US$2.7bn US$4.4bn US$9.15bn comprises of heavy and ultra-heavy crude) post phase - I Total incremental capex – US$1.7bn US$4.75bn Vadinar currentlyyg one of India’s largest refineries: will be 5 Complexity: 6.1 11.8 12.8 amongst the top 5 globally at 750k bbl/d post Phase 2 API (density) avg.: 31.3 24.8 24.0

Sulphur % avg.: 1.6% 3.0% 3.0% Timing for Phase 2 to be determined based on a review of 6 Product grade: Euro III/IV Euro IV/V Euro V/ markdiidiket conditions and attainment of ffiill financial closure US Spec/ CARB Expansion at competitive capex cost; cost/complexity/bbl of 7 $1011 and $962 post Phase I & Phase II respectively

24 Expan si on at hig hly co mpet it ive cape x

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

60,000 30,000

50,000 25,000

40, 000 20, 000 /bpd)

/bpd) 30,000 15,000 $$ $$ Capex ( Capex Capex ( 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

25 Top quartile cost performer globally

4 3.65

3.5

3

2.5 2.25

2 US$/bbl) (( Cost 1.5 1.33 1.15 1.06 1 0740.74 0.70 0.64 0.45 0.5 0.39 0.39 0.30 0.31 0.26 0.31 0.15 0.20 0.19

0 y y y y y y Average Average Average Average Average Average Laggards Laggards Laggards Laggards Laggards Laggards Essar Energ Essar Energ Essar Energ Essar Energ Essar Energ Essar Energ

Asset management Manpower costs Purchased energy Other overhead Operations variable Total costs (US$/bbl) costs (US$/bbl) (US$/bbl) costs (US$/bbl) costs(a) (US$/bbl) costs (US$/bbl)

(a) In addition to the above refinery operating costs, additional costs of US$0.96/bbl were incurred for product handling charges and other corporate and marketing expenses during FY09 Note: Categorisation of average and Laggard refineries as per KBC analysis. Laggards representative of fourth quartile performance. Essar Energy costs relate to 2009/10 operational costs as estimated by KBC. Asset management costs comprise costs of shutdown, turnaround, equipment maintenance and repair, and other routine maintenance. Operations costs relate to costs associated with catalysts, chemicals and demurrages

Source: KBC

26 Competitive gross refining margin

Indian Complex Refinery Singapore Complex Margin

16.00 15.00 Average premium: US$5.23/bbl 14.00 11.60 12.00 10.30 12. 20 US$ 7.34/bbl 10.00 (US$/bbl)

MM 8008.00

GR 6.60 6.00 7.66 6.48 6.11 5.79 4.00 3.49 2.00

- 2006 2007 2008 2009 2010

GRMs expected to improve with increased complexity and capacity

Utilization of Mangg,la Crude, Natural Gas & Coal to further boost the GRM

27 Global refining margin outlook

Benchmark refining margins

16

14

12 US$/bbl) (( 10

8 ining margins margins ining ff 6

Gross re 4

2

0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

North West European Brent Singapore-Dubai US Gulf Coast WT I Indian margin (a)

Refining margins expected to recover from 2011 onwards

(a) Forecast made prior to Union Budget Source: KBC, Reliance Industries 28 Expansion to provide crude as well as product flexibility

Ultra- Light Light heavy 11% 6% 20% Light 28% Heavy Heavy 31% 25% e mix Ultra- Ultra- heavy heavy Crud 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% dis tilla tes 22% distillates 22% 29%

Fuel loss 6% VGO Propylene ct yield 3% uu 10% Middle Middle Middle distillates distillates distillates 48% Fuel loss Prod 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: 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 29 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 „ Buildinggg higher flexibility between lig ht and middle distillates „ Flexibility to produce petrochemical feed stock „ Euro IV & V grade at 87% in Gasoline pool and 78.4% in Diesel pool

151.5 Gasoline: 8.8 MT Euro III LPG/Naptha 13.0%

8.8 Gasoline Euro V 49.9% Euro IV Diesel 37.0%

Diesel: 13.6 MT Jet/Kero Euro III 21.5%

13.6 Fuel Oil Euro IV 1.4 ` 47.2% 2.5 Coke 0.7 Euro V 2.3 31.2% Propylene 7.7 3.9

565.6 060.6 Others 1.2 4.1 1.0 0.6 1.8 2.7 1.0 Fuel& Loss / Residue 2.0 0.5 0.9 191.9 0.8 0.7 14 MT 18MT 36 MT Note: Others include bitumen, sulphur and HDT VGO Source: Company information 30 Phase 1 – Refinery Expansion Project Status : 62%

Basic Detailed Procurement Construction EiEngineeri ng EiEngineeri ng

y All Basic Engineering y Model reviews y All long lead items ordered y OSBL pipe racks are in CldCompleted completed y Balance items to be advanced stage of completion ordered by July-10. & piping erection progressing in various fronts. y Short / Long Lead y Drawings released for all y 87 % Piping Bulk material y ISBL Pipe rack , Technological items’ Datasheets major civil ordering Completed & 41 structures & Heater works are issued Structure, Heater, Piping %fi% of pipes mater ilials progressing in full swing. for procurement & Tankages works received at site. y Total 579 out of 1523 Nos y Structural Steel fabricated & of Mechanical Tagged 5458 MT erected y Schedule A package y Drawings for E & I works Equipment received at y 22673 MT of Tankages for all Units received. are in Progress. site. Fabrication & 19317 MT Erection Completed.

31 Heavyyp Lift erection in the operational area (CDU/VDU/SGU)- 153 MT

32 OVERALL VIEW – PROCESS UNITS (REFINERY EXPANSION PROJECT)

33 DELAYED COKER UNIT- CIVIL WORKS FOR COKE DRUM STRUCTURE

34 1st Heavy Lift for Expansion Project - 342 MT & CHIMNEY WORKS AT 325 MW POWER PLANT - 62 MTR . OUT OF 220 MTR .

35 MAIN INTERCONNECTING PIPERACK ‘C’

36 REFORMER & EQUIPMENT ERECTION WORKS AT HYDROGEN MFG. UNIT

37 TANKAGE & PIPING WORKS FOR BS III

38 PIPING WORKS AT PIPERACK ‘K’

39 Vadinar Power Plant Expansion : Bird eye view of GTG 1 & 2 Area

HRSG 1 HRSG 2

GTG-1

GTG-2 Supporting Infrastructure : Port / Jetty (Earlier)

41 Simultaneous loading operations ongoing at Berths A&BA & B a tVt Va dinar (pos t expans ion)

42 Financial Highlights

43 Financial Results

QE FY QE QE Particulars Jun-092009-10 Mar-10 Jun-10 Throughput - Million Tones 2.76 13.50 3.60 3.68 INCOME Income from operation 7,876 42,303 11,886 12,024 Less : Excise duty & Taxes 1,334 5,897 1,489 1,517 Net Income from operation 6,542 36,406 10,397 10,507 Other Income 39 200 92 24 Total Income 6,580 36,606 10,489 10,531 EXPENDITURE Cost of Goods Sold 5,825 34,263 9,781 9,834 Operating Expenditure 256 1,077 285 281 Forex Loss/( Gain) (166) (661) (246) 9 Total Expenditure 5,915 34,679 9,819 10,124

EBITDA 665 1,927 670 407

Interest & Finance Charges 282 1,170 310 299 Operational Cash Profit 383 757 359 108 Depreciation 179 728 182 181 PBT 203 29 178 (73) Tax 34 (1)- (3) PAT 170 29 178 (70) GRM (USD/bbl) $ 6.74 $ 4.38 $ 5.12 $ 5.61 44 Comparative GRM

45 • Health Safety Environment

• Corpppyorate Social Responsibility

46 Safe and efficient operations

„ The Refinery achieved 14.34+ Million Man Hours of Safe Operation with out any Lost Time Incident. „ 820 Lost Time Incident free da ys on 30 th Ju ne, 2010, No fatalities at refiner y since start of commercial production from 1 May 2008 „ Refinery received GREENTECH Safety Gold Award in Petroleum Refining Sector for outstanding achievement Safety in Safety Management „ Refinery received ISO 9001 and 14001 and OHSAS 18001 certification & Won British Safety Council International Award for 2009 „ Compliant with all the concerned environmental regulations

„ RidReceived 2nd pri ze i n th e “F urnace/B oil er I nsul ati on Eff ecti veness” cat egory of th e MOPNG’ s(a) Oil & „ Gas Conservation Awards (2008) in its very first year of operation „ The refinery’s laboratory has participated in an international Inter Laboratory Cross Check Programme Reliability (ILCP) conducted by ASTM committee, to benchmark to international standards „ Planning and execution of major shutdowns on schedule „ Received ‘Golden Peacock Award” for Occupational Health & Safety for the year 2010’ by the Golden Peacock Jury „ On-stream factor of c100% in fiscal year ended March 2009

„ Laboratory is ISO certified „ Refinery capable of consistently operating at 14MT with simultaneous operation of all secondary ppgprocessing plants at more than 100% cap pyacity Efficiency „ Fuel and losses reduced from c7% in FY08 to c6% currently „ High quality, bespoke MIS system – the Essar Refinery Integrated Management Systems (ERIMS) „ Kitchen waste bio gas plant was inaugurated on 24th June’10 generating about 20kg of LPG per day.

(a) Ministry of Petroleum and Natural Gas 47 CSR - Community Development Program at Vadinar

ƒ Operate 24hrs operative Essar Community Health Center, Mobile Clinic, Mother & Child C are and OPD Centers.

ƒ Eye diagnosis and surgery camp orggjyanized jointly with District Blindness Eradication committee and Shivand Mission, Virnagar

48 Key Value Drivers

CBM – Raniganj to Significant potential Execution of PSC for Ratna E&P start commercial of other CBM and Oil production by Q4 & Gas blocks & R-series CY2010

Refinery Optimization started with processing of Phase – I Expansion Phase – II expansion to Refining 25000 bpd Mangla Crude & to increase the increase throughput to 36 utilization of Natural Gas throughput to 18 MMTPA to begin in Q3 CY, 2010 MMTPA

Expansion of Retail Deregulation of Build on International Dis tr ibuti on Outlets to 1700 by MSdllliS, created level playing distribution capability field for private sector March, 2011

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