ESSAR ENERGY OVERSEAS LTD.

PARTNERING IN DEVELOPMENT OF HYDROCARBON

SECTOR IN AFRICA

Essar Group

The Essar Group is a leading Indian MNC (Multi National Companies) which, apart from

offices in India, is present in countries like USA, UK, U.A.E., China, Trinidad & Tobago,

Canada, Germany, Singapore, Nigeria, Costa Rica, Indonesia, Kenya, Madagascar,

Mozambique, Vietnam and Australia.

The parent company of the Essar Group is Essar Global Limited (EGL), which is a

diversified business corporation with a balanced portfolio of assets straddling the

manufacturing and services sectors: Steel, Energy, Power, Communication, Shipping

& Logistics, and Construction, with asset base of US$ 15 Billion and employs over

60,000 people across the world.

Among its recent global acquisitions are the US-based companies, Global Vantedge and

Minnesota Steel, acquisition of UCMS Group Ltd. (Australia) and CCN Group Ltd. (South

Africa) a leading BPO service, as well as the Ontario (Canada) based Algoma Steel apart

from acquisition of part stakes in Mombasa (Kenya) based KPRL.

2

Businesses

The Essar Group

Shipping Ports & Logistics

Steel Energy Power Projects

Essar Steel Ltd4.6 MTPA integratedsteel plant

Essar Steel (Hazira)4.9 MTPA integrated steel plant (under implementation)

Essar Steel Orissa8 MTPA pellet plant(under implementation)

Essar Steel Algoma, Canada4.0 MTPA integrated steel plant

Essar Steel Minnesota, USA1.4 billion tonne iron ore reserves

PT Essar Indonesia0.4 MTPA cold rolling complex

Essar Oil 12.5 MTPA refinery complex at Vadinar

Over 1,300 retail outlets

Refinery expansion to 34 MTPA in two phases

Kenya Mumbasa Refinery: 3.7 MMTPA Exploration & Production Assets Balanced Portfolio of Exploration & Production Assets in India and overseas

Coal Bed Methane

Essar ShippingFleet of 26 vessels, DWT of 1.49 mn

Vadinar Oil TerminalTerminal facility of 32 MTPA – Liquid Cargo

Bulk TerminalDry bulk port facilities

Essar Oilfields A drilling company with 13 rigs

Essar LogisticsOwns and operates transshipment assets

Essar Power / Bhander Power1,015 MW combined cycle Vadinar Power125 MW co-generation; expanding to 1250 MW

Essar Power MP1,200 MW coal based(under implementation)

Essar Power Gujarat1,200 MW coal based(under implementation)

Essar Power Jharkhand1,200 MW coal based(under implementation)

Essar Construction - Engineering - Procurement - Fabrication - Construction

Fully geared to execute turnkey EPC jobs in India and overseas

Essar Offshore SubseaExpertise in marine construction

Heavy Engineering Services

Project Management Consultants

Asia’s largest equipment Bank

Communications

Vodafone EssarOver 65 million subscribers

Essar Telecom Infrastructure3,500 telecom towers operational; 20,000 planned by 2010

The MobileStoreOver 1,300 outlets operational; 2,500 planned by 2010

Aegis - BPO30,000 people in offices in the Philippines, Costa Rica, USA and India

3

EnergyFrom rig to retail

EXPLORATION & PRODUCTIONOVERSEASVietnam: 1 offshore blockMadagascar: 2onshore blocksNigeria: 1 offshore blockAustralia: 2 offshore blocksIndonesia: 1 onshore block

INDIAAssam and Mehsana: 3 Onshore blocksMumbai Basin: 1 Offshore field (Ratna & R Series) and 1 Offshore blockCoal Bed Methane : 1 block

REFINING12.5 MTPA refinery, capacity being expanded to 16 MTPA. Second unit of 18 MTPA planned

Kenya Mumbasa Refinery: 3.7 MMTPA

MARKETINGRetail: Over 1,300 retail outlets operationalBulk Marketing

Essar Energy Group

Energy

Steel

Communications

Projects

Shipping, Ports &

Logistics

Power

4

Essar’s Group Global Presence

5

GERMANY

PHILIPPINESCOSTA RICA

SOUTH AFRICA

Flow of Presentation

Indian Downstream Sector - An Overview

Current Scenario - Hydrocarbons in East Africa

Growth Synergy

Essar Initiatives in Africa – KPRL Acquisition

Downstream - Refining & Marketing

Indian Petroleum Downstream Sector OverviewF

igs

in

Mil

lio

n M

T

Total Crude Processed: 156.98 MMT

Refinery wise Crude processing: Year 2008 –09

Refining capacity expected to increase to 249 MMTPA by the year 2012

Import & Export of Petroleum Products: 08 - 09

Fig in: 000, MT

Product Export Import

MS 5330 397

HSD 13679 2734

SKO 77 1449

ATF 3490 0

Naptha 7284 4988

FO 5932 2602

Bitumen 40 59

India – An Export hub for Petroleum Products

Outlook for 2010 - 2011 : MS & HSD

Figs in 000 MT’s

HSD MS

Demand Euro III 49500 9800

Euro IV 8400 3500

Total Demand 57900 13300

Supply Euro III 49100 14900

Euro IV 21200 10500Total Supply 70300 25400

Exportable Surplus 12400 12100

Exports by Essar Oil (Apr-Oct-09) 221 530

Substantial Exportable surplus from Indian Refineries

Refineries in Africa

48 Refineries have been built in Africa in last 50 years (31 in Sub-Saharan Africa)

21 Operating Refineries in Sub- Saharan Africa

11 Refineries in West & Central Africa, and 10 in Southern & Eastern Africa (of which 6 are in South Africa-including 2 synfuel plants)

Only one operating Refinery (KPRL- Mombasa, Kenya) in East Africa

Africa : Current Hydrocarbon Scenario

Downstream : Refining Sector

Most refineries are of small capacity with only 9 refineries having capacity over 5 MMTPA, simple refineries with only 9 refineries have cat-cracker, no coker

Several of these refineries are operating below capacity or intermittently due to technical and supply problems.12 Refineries have been closed permanently

Most refineries are under Govt. control and International Oil Majors are seen reducing their stakes in refining sector

Challenges in refining sector due to

Changes in product specifications

Market Liberalization

Product Imports from India & Middle East

Refining sector faces Challenge : Need for Investment for upgrade

Petroleum Products deficit in the entire Region

East Africa: Petroleum consumption Estimates: ‘07

CONSUMPTION Figs in '000 MTs

MS Jet (ATF) SKO HSD FO LPG Total

Kenya 511 1138 345 1370 680 74 4119

Tanzania 179 99 148 667 162 0 1255

Uganda 175 39 41 225 43 1 524

Rwanda 45 0 0 103 0 0 147

Burundi 45 0 0 51 0 0 96

Zambia 179 49 0 308 54 0 590

Malawi 90 0 0 154 0 0 244TOTAL

CONSUMPTION 1224 1326 535 2877 940 75 6976

PRODUCTION

Kenya 249 228 91 474 600 31 1673

Zambia 124 46 46 237 50 0 503

Total Prodn. 373 274 137 711 650 31 2176

BALANCE

Deficit 851 1052 398 2166 290 44 4800

Petroleum Products demand set to grow strongly

Growth in Petroleum Demand

Essar Group : Specialized Skills

Growth Synergy : Essar Group

Project Management, Refinery Operations & Maintenance

Technical Services & Consulting

Refinery Optimization & Scheduling

Supply & Logistics

Marketing & Retail Development

Construction

Procurement

Exploration & Production

Training

Essar Group : Creating Enduring Value

Energy Overseas Ltd.- New Initiatives in Africa

KPRL, Mombasa-Kenya

Essar Energy Overseas Ltd. acquired 50% equity from Shell, BP and Chevron in Kenya Petroleum Refineries Ltd., the remaining 50% stakes are with Government of Kenya.

KPRL operating at ~ 1.6 MMTPA against 3.7 MMTPA (70 kbpd) capacity.

A tolling refinery, processing fee inadequate to cover costs.

Very poor power supply resulting in around 60 disruptions last year and 50 disruptions in the current year so far, in refinery operations.

Contd…

Acquisition of 50% stakes in KPRL by Essar Energy Overseas Ltd.

Energy Overseas Ltd.- New Initiatives in Africa

KPRL, Mombasa-Kenya

As a first step after taking over the stakes, Essar Power is putting up captive power plant for KPRL; commissioning in next 6-8 months

Training of KPRL personnel at Vadinar refinery in batches

Commitment to upgrade the Refinery

Responses have been received from consultants to undertake Detailed Feasibility studies

Consultants being finalized for configuration studies

Estimated investment on the project estimated around US$400 Million

Proposal to improve the capacity utilisation at KPRL, improve feedstock & product yields for higher GRMs

Capability to produce AFRI-4 Standard fuels at KPRL

Reduce dependence on import of Products

Acquisition of 50% stakes in KPRL demonstrates long term vision of Essar Energy Overseas Ltd.

Energy Overseas Ltd.- New Initiatives in Africa

Essar Petroleum (East Africa) Limited

Incorporated a new company known as Essar Petroleum (East Africa) Ltd. in Kenya.

Riding on the expertise in Petroleum Business, Essar Petroleum (East Africa) will actively pursue marketing activities in East Africa to : 

Efficiently and effectively meet the growing demand of the Petroleum products

Improve POL & LPG supply, storage & distribution system for reliability & economics and environmental benefits throughout East Africa

Undertake transfer of knowledge and develop technically qualified human resources

Support the Region for energy security

Contribute to sustainable development of the Region

Contd….

Essar Energy : Partnering in growth of Petroleum sector in East Africa

Energy Overseas Ltd.- New Initiatives in Africa

Essar Petroleum (East Africa) Limited

Utilise the existing infrastructure to handle imports

Become a low cost supplier for the East African Countries leveraging product availability from Essar Oil Ltd. refinery at Vadinar in Gujarat, India, currently operating at 14 MMTPA and being augmented to 34 MMTPA by 2011.

Undertake Crude Processing at KPRL

Undertake Petroleum Imports, Wholesale, Retail & Exports

Develop Petroleum & LPG infrastructure

Essar Energy : Partnering in growth of Petroleum sector in East Africa

Exploration & Production

Nigeria 100% interest in OPL 226 Exploration block

Madagascar100% Interest in 2 Exploration blocks

Assam100% Interest in 2 Exploration Blocks

West Bengal100% Interest in RG(East)- CBM- 2001/1 block in Durgapur. Certified by DGH for 2.15 Tcf of Reserves

Gujarat• 70% operatorship interest in Mehsana as a Proven field.

Maharashtra• 50% joint operatorship interest in Ratna & R- series with inplace Reserves of 500 MMBL certified by Scott Pickford .• 50% interest in MB-OSN-2005/3 in Mumbai Offshore Basin

Australia100% interest in 2 Shallow Water Permits NT/P77 and NT/P78

Vietnam100% interest in offshore block in 114Indonesia

49.5% interest in onshore South East

Tungkal Block

19Exploration & Production : Portfolio

Energy Energy- Upstream Initiatives in Africa

Essar Exploration & Production Activities in Africa

Nigeria - OPL 226, Offshore Exploration Block in prospective in Niger Delta

Madagascar – On land exploration blocks Melaky 3103 & Morombe 3110

Actively pursuing other opportunities in East Africa

Essar Energy : Partnering in growth of Hydrocarbon sector in Africa

Essar Telecom in Africa

Yu Mobile• Green field GSM services from Essar Telecom

in Kenya. • With Africa being the next stop for telecom

growth, Essar Telecom has started its foot print with the just launched services of Yu Mobile.

• With 700K subscribers and over 400 sites on air, the services are a fast expansion mode.

Obopay Inc.• Essar holds a strategic stake in this US based

mobile payments service provider. Plans to offer services in Kenya facilitating customers to make P2P, B2B, bill payments, and airtime top ups through the mobile phone.

Mobile services in Congo and Uganda• Essar planning the entry in Congo and Uganda

with the Dhabi group Promoters of Warid telecom – Congo and Uganda).

21