>OIL INDIA LIMITED (EDELWEISS)

ISSUE HIGHLIGHTS

• Issue opens: Monday, September 7, 2009
• Issue closes: Thursday, September 10, 2009
• Price Band: Rs. 950 - Rs. 1050
• Bid Lot: 6 Equity Shares

BUSINESS OVERVIEW
Oil India Limited is the second largest national oil and gas company in India as measured by total proved plus probable oil and natural gas reserves and production (Source: DGH). The company is primarily engaged in the exploration, development, production and transportation of crude oil and natural gas onshore in India. The company also process produced natural gas to extract LPG. They are present internationally through the exploration of crude oil and natural gas in Egypt, Gabon, Iran, Libya, Nigeria, Timor Leste and Yemen. They primarily conduct activities with respect to domestic producing blocks and exploration activities in their nomination blocks independently. They also conduct exploration activity, both in India and overseas, through joint venture arrangements and PSCs with other oil companies.

The company was incorporated as a private limited company in 1959. As of March 31, 2009, all of their estimated independent proved plus probable oil reserves, as well as 93.66% of their estimated independent natural gas reserves is located onshore in the Upper Assam basin in the states of Assam and Arunachal Pradesh. Additionally, they have independent natural gas reserves in the Jaisalmer basin in the state of Rajasthan. In addition to their independent reserves, they also have a 40% participating interest in crude oil reserves in the Kharsang fields in the Assam-Arakan basin in the state of Arunachal Pradesh. They own and operate, as a common carrier for them, ONGC and BRPL, a 1,157 kilometer cross-country crude oil pipeline.

The pipeline has the capacity to transport over 44 million barrels of crude oil annually. They transported approximately 45 million barrels of crude oil in fiscal 2009 to four public sector refineries in the North East region of India located in Digboi, Numaligarh, Guwahati and Bongaigaon. They own ten crude oil pumping stations and 17 repeater stations, spread across the states of Assam, West Bengal and Bihar. They also own and operate a 660 kilometer petroleum product pipeline connecting NRL to Siliguri in West Bengal, which was commissioned in August 2008.

The Company has interests in downstream activities through a 26% equity stake in NRL, a 10% equity stake in BCPL and a 23% equity stake in DNP Limited. They also hold a 10% equity stake in a 741 kilometer pipeline construction project in Sudan that was completed in 2005. They have the ability to provide various exploration and production-related services to the oil and gas industry, both domestically and internationally, including pipeline construction, pipeline consultancy services, drilling and well work-over services, research and development services and logging services.

As a public sector undertaking, they have been accorded "Mini Ratna Category I" status since 1997 by the GoI for their operational efficiency and financial strength. In recognition of their performance and consistent achievement of targets negotiated under the memoranda of understanding that they enter into with the GoI on an annual basis, the GoI has rated their performance as "Excellent" for fiscal 2005 and 2006 and "Very Good" for fiscal 2007 and fiscal 2008. They were also ranked as the best public sector undertaking by the Department of Public Enterprises in its annual survey for fiscal 2006.

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