Norwegian offshore survey service provider PGS has rejected a proposal by counterpart TGS for the acquisition of its multi-client library.
PGS reviewed and assessed the proposal and reckons that the value of the company’s multi-client data library is significantly greater to PGS than that represented by the TGS proposal, and that the timing of the proposal is opportunistic given the current market backdrop and macro-economic environment.
“Having consulted with its financial and legal advisers, the board of PGS has concluded that the proposal is not in the best interests of the Company and its stakeholders,” PGS said in a release.
PGS has implemented a series of cost reduction measures of about $400m through staff reductions, re-organisation, consolidation of offices, re-negotiation of service agreements this year. It has also cold-stacked two of the eight 3D vessels in its fleet.