Fugro has agreed to acquire CGG’s 40% shareholding in Seabed Geosolutions
The transaction will result in Fugro becoming the sole owner of Seabed Geosolutions. CGG has agreed to transfer its 40% shareholding in Seabed Geosolutions to Fugro before the end of Q1 2020.
The move is part of CGGs strategy to exit the data acquisition business.
Seabed Geosolutions collects geophysical data on the seabed through ocean bottom nodes technologies for oil and gas companies, focusing on the development and production phases of their fields.
Fugro also terminated the Seabed Geosolutions’ joint venture agreement effective 30 December 2019 in exchange for a cash consideration of US$35M paid by CGG.
The proceeds will be used to lower Fugro’s outstanding debt position and strengthen Seabed Geosolutions’ balance sheet.
Fugro had earlier stated it was open to reducing its stake in Seabed Geosolutions when revenue was hit by a downturn in the offshore market in 2017. The company said it remained fully committed to divesting the Seabed Geosolutions business which is a non-core asset held for sale.
This transaction is expected to facilitate the divestment process.
Meanwhile CGG closed its strategic partnership transaction for marine seismic acquisition services with Shearwater Geoservices.
CGG’s assets will be transferred to Shearwater Geoservices who will purchase five high-end seismic vessels through the acquisition of Global Seismic Shipping, jointly owned by CGG and Eidesvik Offshore.
Shearwater Geoservices will also acquire all the asset’s liabilities.
This joint venture was created under the Sercel brand for the research and development, manufacturing, commercialisation and support of marine streamer seismic acquisition equipment. The companies expect it to be finalised during H1 2020.
CGG’s chief executive Sophie Zurquiyah said “In 2019, we executed key milestones of our 2021 strategy: the exit from marine and seabed acquisition businesses and the wind down of land acquisition operations. We are delighted to enter into this strategic partnership with Shearwater for our multi-client projects and look forward to finalising the creation of our marine streamer equipment JV under the Sercel brand.”
With the completion of the vessel transaction, CGG has now exited the marine data acquisition business.