Norwegian offshore seismic specialist PGS is making some dramatic moves as it prepares for its business to be affected by both the coronavirus and sustained low oil prices.
While the company has been able to continue vessel operations without interruption, it expects low oil prices to have an impact on demand for its services.
The situation has led to PGS deciding to cold stack two of the eight 3D vessels currently operating. The vessels will be stacked after completing their current projects, in the second quarter of this year.
PGS says it is also facing logistical challenges due to travel restrictions and quarantine provisions impacting crew changes, which has seen it cancel all crew changes since March 18. Crews are currently on a second full rotation, which are coming to an end late April.
“To date PGS has not received contract cancellations. However, most processes to conclude contract negotiations have since early March been substantially delayed or resulted in postponement of projects,” the company added in an announcement on Oslo Bors.
PGS completed a refinancing earlier in the year and says it currently has a substantial liquidity reserve, although if current market conditions continue it may look to seek extensions of the revolving credit facility reduction scheduled for September.