Marine seismic data firms that supply data to offshore oil explorers are typically the first among oil industry contractors to bear the brunt of price drops, as their customers, the oil companies, slash expenses and wind down exploration activities while waiting for oil prices to rise again.
In the past few months, we've seen the seismic players try to diversify, and dip their toes in other sectors in order to make their future more sustainable and less susceptible to oil price cycles. For example, Seabird Exploration is looking at mineral exploration, and offshore wind, CGG is offering maritime pollution monitoring services, and TGS is looking at, well, several other options.
TGS, a Norwegian firm that traditionally provides marine seismic data to oil and gas companies, announced in February that its New Energy Solutions ("NES") business unit would become a leading provider of data and insights aimed at industries actively contributing to the reduction of GHG emissions, such as carbon capture and storage (CCS), deep-sea mining (DSM), geothermal energy, and other renewable energy sources, including solar and wind.
Come Wednesday, May 12, TGS said it had acquired 4C Offshore Ltd. market intelligence and consultancy firm, providing research and insights to the offshore wind industry.
"4C Offshore offers a broad suite of data, analytics and services for the offshore wind industry. With its digital platform, the company provides developers, operators, asset managers, equipment providers and construction companies with key data and insights for the development and operations of offshore wind farms. Among 4C Offshore’s customers are some of the most active players in the offshore wind industry," TGS said.
4C Offshore, based in Lowestoft, UK, employs 29 people and provides data on over 2,000 offshore wind projects.
"The company has recurring revenue streams from a diversified base of almost 350 clients, serving 2,200 users. In 2020, subscription payments for the company’s data services account for almost 80% of revenues," TGS added.
"We are pleased to announce 4C Offshore as the first acquisition following the launch of our New Energy Solutions business earlier this year. The company carries a strong reputation within the industry for its quality data that is highly trusted for asset-level decisions. The strengths of 4C Offshore fit perfectly with TGS' ambition to become the leading global provider of energy data and insights to support decision-making processes across the energy value chain," commented Kristian Johansen, CEO at TGS.
"I continue to be extremely proud of what we have achieved at 4C Offshore in establishing ourselves as a leading provider of market intelligence and insight to the offshore wind industry and offshore electricity grid sector.
"We look forward to working with TGS and the New Energy Solutions team to enhance our common platform in the renewable energy industry. Last year renewable electricity sources grew at their fastest rate in two decades, despite the pandemic.
"Together with TGS, we expect to grow and improve upon our services and capitalize on the expected increase in demand for high-quality data and insights on offshore wind,” said Chris Anderson, Chairman and CEO at 4C Offshore.
TGS did not share the financial details of the transaction.