Below is a the SWOT analysis of Cairn India Ltd. We recommend to subscribe to Cairn India Ltd. IPO.

Strengths

* Company adhered to creating value for shareholders. Low cost producer with combined direct field operatonal expenditure of $1 per boe in H1FY06.
* Advanced application of EOR techniques to extend crude oil plateau periods,reduce water production, accelearate crude oil production.
* One of the largest onshore oil discovery at Mangla field and early production strategy from new findings.
* Significant reserves and contingency resources in Rajasthan block. Estimated net working interest in 2P oil and gas reserves of 472mmboe. Estimated to operate 20 % India’s crude oil production by 2010.
* Partnership with Government of India, State governments,regulators and key industry participants such as ONGC.
* Experienced Management with prudent reservoir management and having track record of increase the plateau rate of production from existing fields. 39 hydrocarbon discoveries in India.
* Ravva,Lakshmi and Gauri, currently, producing positive cash flow for the company.

Weaknesses

* Due to nature of industry good amount goes as sunk cost for unsuccessful discoveries.
* Tedious procedure of regulatory approvals can lead to delay in time to start production. Dependence on GOI to buy gas and oil.
* Dependence on GOI to take delivery of oil and gas from its field.

Opportunities

* Favourable Government policies to private players to bid through NELP rounds.
* Lack of expert and technologically sophisticated equipments and team available with other competitors.
* Increase in demand for oil and gas increasing in India. India is net importer of oil and crude oil consumption expected to increase further.
* Currently India is 6 largest consumer of oil.
* Global increase in price of crude oil. Huge volumes of oil and gas reserves in India awaiting to be explored.
* Major blocks won through NELP rounds.

Threats

* Any major changes in regulation by the Government.
* Major natural disaster in the blocks where it owns reserves