TGS snaps up Polarcus library

Norway-based geoscience firm TGS has agreed to buy seismic firm Polarcus' multiclient library, excluding Australia, for US$ 27.5 million and future share on library late sales.

The move was described as enabling Polarcus to "navigate the current challenging market environment." Oil prices fell from more than $100/bbl last year to around $50/bbl and have remained at about $60/bbl. The drop has meant significant cuts in spending by oil majors, not least in exploration. It was recently reported that about 150,000 jobs had been cut in the industry, as operators and contractors look to make savings, with more expected. 

Polarcus' multiclient library in Northwest Europe and West Africa consists of 22 3D seismic surveys, comprising a total area of 40,000sq km and one 2D survey comprising 5000 line km. The data covers locations within the established hydrocarbon provinces of six countries along the western Atlantic margin corridor since 2011.

Rod Starr, Polarcus' CEO, said: "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."

"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," stated Robert Hobbs, CEO, TGS.