TGS seeks to acquire PGS’s multi-client data library that includes all existing data and work-in-process
TGS seeks to acquire PGS’s multi-client data library. (Credit: C Morrison from Pixabay)
Norwegian oil and gas seismic service provider TGS-NOPEC Geophysical Company (TGS) has submitted a conditional and non-binding offer to purchase rival company PGS’s multi-client data library, for a cash consideration of $600m.
TGS seeks to acquire PGS’s multi-client data library including all existing data and work-in-process, as well as the contractual arrangements associated with the foregoing.
The offer also includes a proposal for singing post-closing collaboration agreement for future PGS multi-client projects. It would also include certain preferential rights for PGS to offer 3D-fleet for future TGS data acquisition.
TGS expects the multi-client library of PGS to significantly broaden its worldwide geophysical data offering in all major mature and frontier basins.
Responding to the proposal, PGS’s board said it would its views before the expiration of the offer, which is valid until 16 August 2020.
In a press statement, TGS said: “The proposed transaction presents an opportunity for PGS and its stakeholders to monetize its multi-client data library in excess of its full reported value, delivering substantial funds to PGS in what are challenging times for the entire seismic industry.”
The transaction would deliver increased efficiencies in seismic industry
TGS also expects the combination of the TGS and PGS multi-client businesses to improve the industry’s ability to deliver services as well as deliver increased efficiencies in the seismic industry.
TGS CEO Kristian Johansen said: “We see a strong complement between our existing business and the PGS data library and the opportunity to leverage our expertise and scale to improve returns.
“Concurrently, a refocused and refinanced PGS will be a world-leading and highly innovative provider of acquisition technology and marine acquisition capacity, providing a strong platform for creating long-term value for the company´s stakeholders.
“The proposed transaction is thus aimed at safeguarding customers’ access to leading acquisition technology, high-quality data acquisition capacity and top tier data processing capabilities, whether they choose to purchase data through the contract model or the multi-client model.”
In April 2020, TGS said it has commenced a new 3D seismic survey in the offshore The Gambia, West Africa.