Green Energy Group secures nine-month 2D seismic survey campaign in Eastern Hemisphere

Why has Green Energy Group secured a new 2D seismic survey campaign in the Eastern Hemisphere?

Green Energy Group, also known as SeaBird Exploration Plc, has announced that it has received a Letter of Award for a major geophysical contract in the Eastern Hemisphere. The mandate covers a nine-month 2D seismic acquisition campaign, scheduled to commence in September 2022. The development marks another significant step in the operational resurgence of the Cyprus-based marine data acquisition and surveying specialist, which has steadily been rebuilding its contract backlog in the post-pandemic energy market.

According to Green Energy Group, the campaign is expected to strengthen visibility for its fleet and field crews, while further diversifying geographic exposure across core oil and gas exploration hubs. The project reinforces the importance of 2D seismic surveys as the first stage in hydrocarbon prospecting, providing essential geological insight before operators move toward costlier 3D or 4D work.

What is the scope and financial impact of the new Eastern Hemisphere contract?

The newly awarded project is set to last approximately nine months, giving Green Energy Group one of its longest running assignments in recent years. While the company has not disclosed the identity of the client or the specific regional location, industry participants point to continuing demand in Asia, the Middle East, and Africa, where exploration acreage licensing rounds remain active.

Green Energy Group has indicated that the seismic campaign will contribute meaningfully to its revenue stream over the next year. As of late July 2022, the geophysical contractor’s forward backlog stood at the equivalent of 23 months of combined projects to be executed within the next 14 months. This reflects overlapping and concurrent contracts, a strong signal of utilization for its vessel fleet.

The Cyprus-based group also projected that the projects currently secured would deliver an EBITDA contribution of around $18 million, offering a clearer earnings trajectory following several years of volatility. This guidance underscores the importance of contract continuity and the role long-term awards play in stabilizing balance sheets across the seismic services sector.

How does this contract strengthen Green Energy Group’s backlog and visibility?

Backlog has emerged as a key indicator of resilience for offshore service companies, particularly following the sharp downturn of 2020 when capital expenditures by oil and gas producers were slashed. For Green Energy Group, the 23-month backlog demonstrates that demand for 2D surveys is not only recovering but also sustaining a positive trajectory in the Eastern Hemisphere.

The nine-month project provides operating certainty that ensures a baseline of fleet activity into mid-2023. With vessels and crew committed, the group can optimize cost allocation and pursue additional tenders with greater confidence. For investors and stakeholders, backlog visibility has become a proxy for sector recovery and a measure of confidence in long-term utilization levels.

Why is demand for 2D seismic surveys increasing in global exploration markets?

2D seismic campaigns are considered the foundation of offshore exploration. They provide a cost-effective way for oil and gas operators to map subsurface structures and delineate large prospects. While 3D surveys are often required to move toward drilling, 2D remains the essential screening tool for early-stage exploration, especially in under-explored basins.

Across the Eastern Hemisphere, several factors are fueling renewed demand for such surveys. Governments in Asia and Africa are licensing new offshore blocks to international and national oil companies, often requiring baseline seismic data as part of bidding terms. Energy security concerns have also driven state and private operators to accelerate exploration in domestic basins, adding to the momentum.

By aligning itself with this demand, Green Energy Group positions its vessels at the forefront of renewed exploration spending. The firm’s ability to mobilize quickly, supported by technical know-how in geophysical acquisition, makes it an attractive partner for upstream operators under tight bidding deadlines.

What role does Green Energy Group play in the seismic services industry?

Green Energy Group, headquartered in Limassol, Cyprus, has built a reputation as a specialized player in the niche of marine seismic data acquisition. Historically, the group operated under the name SeaBird Exploration Plc and focused primarily on 2D and source vessel operations, rather than competing directly with larger integrated players in 3D acquisition.

This focus has given the geophysical contractor flexibility in addressing mid-sized projects, often overlooked by larger seismic giants. Its operations support exploration companies ranging from independent oil and gas firms to major national oil companies. By concentrating on 2D work, Green Energy Group avoids heavy capital expenditure on complex 3D fleets while maintaining steady engagement with the market.

The company has also marketed itself as a responsive and cost-efficient provider, capable of deploying specialized vessels to emerging exploration regions where agility and speed are valued more than scale. This strategy has kept the group competitive in a sector that often experiences cyclical downturns tied to oil price volatility.

How does the market backdrop influence Green Energy Group’s outlook?

The award comes at a moment when global oil prices remain elevated, encouraging exploration companies to secure new reserves. The first half of 2022 witnessed renewed optimism in offshore exploration, particularly in Africa, the Middle East, and Asia Pacific, where several licensing rounds have been launched. This macro environment has opened opportunities for seismic contractors to rebuild order books.

For Green Energy Group, higher utilization levels across its fleet translate into stronger cash flow potential. With an EBITDA contribution projection of $18 million tied to its current backlog, the company is clearly signaling that the seismic services sector is regaining momentum. The forward-looking guidance further suggests that the group is prioritizing longer-term contracts to reduce exposure to short-cycle volatility.

What does this mean for investors monitoring the seismic services sector?

Investor sentiment around seismic services companies has historically been tied to the health of offshore exploration budgets. Following several lean years, Green Energy Group’s ability to secure a nine-month contract provides reassurance that its vessels will remain active. Analysts tracking the sector point to backlog stability and EBITDA visibility as important catalysts for valuation recovery.

At the same time, the contract underscores the gradual normalization of activity in the Eastern Hemisphere. For investors, this raises the possibility that specialized seismic firms may enjoy renewed relevance in a landscape increasingly shaped by energy security concerns and the search for new offshore reserves. While the long-term demand outlook remains linked to oil price stability, the immediate trajectory suggests a constructive phase for backlog growth.

How does this deal reflect industry-wide shifts in exploration spending?

Beyond the company’s immediate financial uplift, the nine-month contract reflects broader patterns in exploration spending. National oil companies in Asia and Africa have been actively commissioning new surveys to better understand subsurface potential before committing to drilling. International oil majors, meanwhile, are pursuing selective exploration opportunities to balance their reserves portfolios.

Seismic services providers such as Green Energy Group are direct beneficiaries of this trend. By catering to early-stage data acquisition needs, they position themselves as indispensable enablers of exploration campaigns. The nine-month duration also reflects growing confidence among clients, as shorter survey windows of just a few weeks or months have typically dominated in years of market uncertainty.

Does the new 2D seismic contract solidify Green Energy Group’s turnaround story?

The Letter of Award for a nine-month 2D seismic survey campaign in the Eastern Hemisphere positions Green Energy Group on firmer operational ground heading into 2023. With a backlog of 23 months to be executed within the next 14 months and an expected EBITDA contribution of $18 million, the Cyprus-based geophysical contractor demonstrates that it is regaining market relevance after a turbulent period for seismic services.

While the company has not disclosed the client or precise location of the project, the scale and duration of the award underline the rising importance of 2D seismic campaigns in shaping exploration strategies across the Eastern Hemisphere. For stakeholders and investors, the award not only enhances earnings visibility but also signals a broader recovery in offshore exploration spending.

As exploration activity gathers momentum, Green Energy Group’s focus on cost-efficient, specialized seismic services appears aligned with industry demand. The contract reinforces confidence that seismic contractors can secure multi-month campaigns even in a cautious exploration climate, ensuring that the group remains a competitive force in a strategically vital segment of the global energy sector.