1. Global Opportunities for Energy Security Presentation By R S Butola MD ONGC Videsh Limited

2. Energy Security The Umbrella Term Source; CERA

3. Dimensions of the Energy Security 1970s: -Arab Embargo and the Iranian Revolution 1990s: -Environmental problem: Climate change -Liberal Democracy and Market Capitalism 2000…..-Nationalist fervor / Extremist threat emerging Parallelly -Unparallel demand growth -Sustainable Development - Alternate fuels/resources are in embryonic stage Energy enters domain of Geo-politics & Security becomes the concern

4. Energy Issue Map Source; World Economic Forum 2006

5. The Impact Source; IMF & CERA Oil Price Spikes & Global Economic Growth

6. The Opportunity Source; IMF & CERA Oil Intensity of Global Economy

7. The case of energy: World primary energy demand by fuel (source: IEA) 0 1000 2000 3000 4000 5000 6000 7000 1970198019902000201020202030 Mtoe CoalOilGasNuclearHydroOther Fossil Fuels; Coal, Oil & Gas to remain the main sources of Energy Share of Gas would increase in the future Source; IEA 34% 22 % 10% 7% 3% 35% 27 % 21% 11% 5% 2%

8. The Changes Demand Centre Supply Centre Geo-Politics Resource as a Tool The New Engagements

9. Refined Products Demand Changes by region 2005-2015 Source; CERA

10. The World Population Source; EXXON From 6.53 billion in 2006 to 8.0 billion in 2030

11. Structural Changes Oil Production Capacities Increases 15 Countries dominate long term Oil Supply Growth In million barrels per day Source; CERA

12. Supply Corridors (Mostly West wards)

13. International LNG Trade: Connecting Markets

14. Surplus Capacities are Decreasing Source; IMF & BP

15. Future Oil Consumption India: Oil Consumption BP Stats data for past oil consumption; EIA, International Energy Outlook 2003 CAGR 2001-2025 ~ 4.1% Past Oil Consumption CAGR 1995-2004 ~ 6.1 %

16. Widening Oil Demand in India Source: PPAC & IHV 2025 (MMT) Consumption Production Widening Gap Year Ending March 31 ProductionConsumptionGap% Self S. 199833.869056.737.4 199932.7297.164.333.7 200031.9510068.131.9 200132.43100.467.632.4 200232.03104.171.930.7 200333.04108.175.130.6 200534.0011985.029.0 2007173.00 2012240.00 2025364.00

17. Troubled Middle East Unapproachable Middle East North & South America South East Asia Russia & FSU Africa Areas not Available for Business Possible Indian Pie INTERNATIONAL INDUSTRY PLAYERS INTERNATIONAL PETROLEUM INDUSTRY ENVIRONMENT Unexplored /Frontier Areas Geo-Politics Cartels & Trade Blocks Imbalances Market Structure & Dynamics HOW BIG COULD BE AN INDIAN PIE (Opportunities)

18. Vietnam 3 Myanmar 2 Sudan 3 Nigeria 1 in JDZ Libya 3 Egypt 1 Syria 1+1 Iraq 1 Russia 1 Iran 1 Our International Presence Producing AssetsDevelopment Exploration Cuba 2 Qatar 1 OVL has 24 Projects (36 Blocks) in 14 Countries Operator Iran, Farsi Iraq, Bl 8 Qatar, Na Nj Vietnam 127 Vietnam 128 Cuba 34 Cuba 35 Libya 81-1 Joint Operator Sudan GNOP Egypt Bl. 6 Brazil By 27 th July OVL has contracted 21 Projects (32 Blocks) Nigeria 2

19. The Issues Energy Security and its Forms Government -Role & Influence Compete or Collaborate Harnessing Interdependencies –Cris-cross Investments –Buyer-Seller Engagements Technology Alliances –NOC and IOC –Up-gradation Securing the flow of Energy –Collaborative Energy Corridors Alternate Energy Sources Market - The ultimate Arbiter Promoting Investments

20. The Approach Pursue an Integrated Energy Policy –Harness vast Coal, Hydel resources to generate power –Realize Nuclear power potential Accept the reality that despite growth of alternate fuels, oil would continue to be main transportation fuel Access to hydrocarbon resources is a key ingredient of Energy Security Promote investments by Indian Companies –Proactive role of Government –Empowerment and enabling framework for companies Explore and Develop Interdependencies –Economic Packaging –Leveraging Market Access Strengthen the flow; Pipelines - Infrastructure

21. Thank You