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Polarcus sells seismic projects to TGS

Oslo: TGS-NOPEC Geophysical Company (TGS) has signed a letter of intent with Oslo-listed seismic vessel operator Polarcus to acquire multi-client seismic projects in Northwest Europe and West Africa for a cash consideration of $27.5m, plus a future revenue share agreement.

Dubai-based Polarcus said the agreement includes an upfront cash payment, a tiered revenue share from future sales of the divested MC Projects and further cash payments for costs deferred under existing contractual agreements. The transaction will result in a non-cash impairment of the multi-client library of approximately $65.

Rod Starr, CEO of Polarcus, commented: “The decision to sell a portion of the library provides Polarcus with additional liquidity to navigate the current challenging market environment by monetizing a portion of the asset value while retaining revenue upside from future late sales achieved by TGS. It should be noted that Polarcus is fully committed to continue developing its multi-client business going forward with a disciplined approach.”

Robert Hobbs, CEO, of TGS, added: “We are pleased to announce a Letter of Intent to acquire a high-quality multi-client library in key areas of future growth for TGS. This acquisition significantly strengthens our 3D-position in established areas in UK, Norway and West Africa and is very complimentary to our existing database with minimal overlap.”

The deal is subject to due diligence with a target closing date before July 31.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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