PGS streamlines operations, stacks vessels, confirms delay with Ramform Titan vessels

Petroleum Geo-Services (PGS) says it has implemented further steps to streamline operations, reduce cost and capital expenditures and improve cash flow. The company has stacked, and will consider selling or scrapping, the seismic vessels Pacific Explorer and Nordic Explorer. The seismic vessel Atlantic Explorer, which is currently conducting a 2D survey, will be taken permanently down to 2D mode and will be used as a combined 2D, source and EM acquisition vessel.

PGS has received notification from Mitsubishi Heavy Industries Ltd (MHI) that delivery of the company’s two last Ramform Titan class newbuilds will be delayed by two and four months. The new delivery dates provided by MHI for the vessels are 31 August 2015 and 31 January 2016. PGS has taken steps to adjust timing of equipment and similar deliveries, also catering for further possible delay of vessel delivery dates. PGS has also taken the decision to sell its PGS Khazar joint venture.

In the third quarter of 2014, PGS expects to report one-off costs of approximately US$3 million relating to de-rigging of vessels and impairments of approximately US$20 million to write down the carrying value of retired vessels and costs associated with PGS Khazar. OSJ