Seismic data companies TGS and CGG said this week they were successful in their respective bids in the auction process conducted in relation to their rival's ION Geophysical Corporation’s (ION) Chapter 11 bankruptcy case pending in the United States Bankruptcy Court for the Southern District of Texas.
TGS will acquire certain assets related to ION’s multi-client and processing businesses (referred to as the E&P Technology and Services (EPTS) business), including all of ION’s global offshore multi-client data library and ION’s data processing and imaging capabilities and intellectual property.
ION’s data library consists of over 637,000 km of 2D and over 317,000 sq km of 3D multi-client seismic data in major offshore petroleum provinces globally. The revenues associated with the acquired assets were in excess of USD 86M in 2021.
"TGS intends to employ a number of the ION employees associated with the acquired businesses. The transaction is subject to the approval of the United States Bankruptcy Court for the Southern District of Texas at a hearing currently scheduled for 18 July 2022, as well as other customary closing conditions," TGS said.
Assuming court approval is received as anticipated, TGS expects to close the transaction early in the third quarter of 2022.
Kristian Johansen, CEO at TGS, said: “We are pleased to be selected as a successful bidder in this auction process and look forward to the conclusion of the transaction. With the recently announced offer for Magseis Fairfield’s OBN business and a further strengthening of our data library and processing capabilities from the acquisition of the ION EPTS businesses, TGS is taking active steps to consolidate the geophysical industry in line with our strategy to create a stronger and more viable industry.
"As a result, we are now uniquely positioned in the traditional multi-client business, converted contracts, production seismic and 4D – all supported by a strengthened data processing business.”
CGG's Sercel, its Sensing & Monitoring division, was selected as the successful bidder for the acquisition of ION's software business.
"Sercel intends to keep all employees associated with this business. The acquisition is in connection with ION’s recently announced U.S. chapter 11 bankruptcy process," CGG said.
The closing of the transaction is subject to approval by the bankruptcy court and other customary conditions, including regulatory approvals. The acquisition is expected to close in the third or fourth quarter of 2022.
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