TGS proposes to acquire PGS multi-client data library for $600m
TGS-NOPEC Geophysical (TGS), a Norwegian geoscience data provider, has submitted a conditional offer to acquire the multi-client data library of its rival Petroleum Geo-Services (PGS) for $600 million.
Additionally, TGS has proposed to enter into a post-closing collaboration agreement with PGS for the latter’s multi-client projects. This would also cover certain preferential rights for PGS to supply its 3D-fleet for future TGS data acquisition.
PGS is a Norwegian geophysical company that is engaged in selling multiclient data and geoservices, which includes seismic data acquisition, imaging, interpretation, and evaluation of fields.
According to TGS, the proposed deals gives scope for PGS and its stakeholders to cash in on its multi-client data library in excess of its full reported value besides providing substantial funds to PGS in the prevailing challenging times for the entire seismic industry.
For TGS, the acquisition is expected to enlarge its offering as a multi-client geophysical data provider in all key mature and frontier basins across the world.
Kristian Johansen – CEO of TGS 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. We believe the consolidation and further partnership between our two companies carries a strong industry logic and we look forward to initiate the dialogue with the management and board of PGS.”
PGS said that its management and the board of directors will address the offer from TGS and expects to come up with an announcement before the expiry of the offer on 16 August 2020.