PGS to invest in fleet expansion

The company expects that the new vessels will cost approximately $250 million each, including construction follow-up, commissioning and a comprehensive seismic package. PGS expects that the yard contract will include the option for two further identical vessels and is currently in discussions with several qualified yards and expects to enter into a final contract early 2011. Delivery of the first vessel is expected in Q1 2013 with the second vessel expected to be delivered one year later.

PGS President and CEO, Jon Erik Reinhardsen commented: “Our decision to renew and expand our fleet comes at a time when we expect growth in seismic demand. We are electing to raise equity to preserve our financial strength and strategic flexibility.”

These fifth generation Ramform vessels will further enhance PGS’ position as a leader in 3D seismic acquisition productivity and efficiency. The vessels are designed to utilize and extract the full potential from the flagship GeoStreamer technology and PGS expects that all of its 3D fleet will be equipped with GeoStreamer by end 2013.

The vessel design is based on the demonstrated strengths of the current Ramform fleet, while improving capabilities along a number of key parameters. The new vessels will include a significantly upgraded GeoStreamer based seismic package and are designed to take the full benefits of the GeoStreamer towing efficiency. The vessels will further strengthen PGS’ position in the fast growing ‘high density’ segment of the market, where large spreads, long streamers and towing efficiency are the key success factors. The high density segments are driven by deep water exploration and production in geologically complex areas such as Brazil, West Africa and the Gulf of Mexico. PGS’ GeoStreamer technology is also opening up new markets in mature basins, such as the North Sea, where the higher fidelity data can reveal new geological plays.