Cairn India signs NCA with parent
In a bid to avoid competition with its parent company Edinburgh-based Cairn Energy in India, Cairn India (CIL) has entered into a non-compete agreement (NCA) with Cairn Energy and Capricorn Energy.
By Piyush Pandey, TNN |
MUMBAI: In a bid to avoid competition with its parent company Edinburgh-based Cairn Energy in India, Cairn India (CIL) has entered into a non-compete agreement (NCA) with Cairn Energy and Capricorn Energy.
Under the NCA, Cairn India will exclusively be entitled to seek, explore for and develop hydrocarbon resources within the geographical area of India, including Indian territorial waters.
During the agreement period, no member of the Cairn Energy Group will be entitled to acquire, bid, apply or seek to acquire any interest that is located within Cairn India’s primary area.
Similarly, Cairn Energy Group will exclusively be entitled to seek, explore and develop hydrocarbon resources within the geographical areas of Nepal and Bangladesh, including Bangladeshi territorial waters.
The agreement will come into effect from the day Cairn Energy shares will be listed on the Indian stock exchanges and the NCA will terminate when the Cairn Energy shareholding in the company (Cairn India) directly or indirectly amounts to less than 20% of the issued equity share capital, or for three years from the commencement of the agreement.
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The NCA is governed and applied in accordance with the laws of England. Cairn India’s official spokesperson while confirming the development said, “We have entered into an NCA with Cairn Energy, but we will continue to seek technical and expertise help of our parent company.”Start a SIP with as low as ₹500 with ET Money App!
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