Norwegian geophysical services company Electromagnetic Geoservices (EMGS) has received a contract for data licensing from compatriot oil major Equinor following a previously awarded letter of intent.
Namely, EMGS received a letter of intent on February 22 for data licensing from, at the time, an undisclosed customer.
EMGS said on Monday that approximate value of the final awarded contract by Equinor was $8 million.
The final contracts are in accordance with the terms of the letter of intent and includes both licensing of Barents Sea, Norwegian Sea, and North Sea data from the company’s existing multi-client library, as well as prefunding for a new multi-client acquisition in the North Sea.
The company added that it expected to recognize around $7 million of revenue in the first quarter of 2019.
“With these contracts, the company’s liquidity situation is materially improved. The company is continuing its efforts to secure other material late sales opportunities,” EMGS stated.
CEO of EMGS Bjørn Petter Lindhom said: “EMGS is very proud of the confidence vote these multi-client contracts represents and exited that Equinor chooses to license data from the North Sea and the Norwegian Sea as well as committing to prefunding a new multi-client survey in the North Sea.”