PGS cuts fleet to reduce cost and capex

Petroleum Geo-Services ASA announced today that it has implemented further steps to streamline operations, reduce cost and capital expenditures (“CAPEX”), and improve cash flow.

PGS has stacked, and will consider selling or scrapping, the seismic vessels Pacific Explorer and Nordic Explorer. The seismic vessel Atlantic Explorer which is currently conducting a 2D survey will be taken permanently down to 2D mode and is planned to be used as a combined 2D, source and EM acquisition vessel.

Titans late

PGS has received notification from Mitsubishi Heavy Industries Ltd. (“MHI”) that delivery of the Company’s two last Ramform Titan class new builds will be delayed by 2 and 4 months.

New delivery dates provided by MHI are August 31, 2015 and January 31, 2016. PGS has taken steps to adjust timing of equipment and similar deliveries, also catering for further possible delay of vessel delivery dates.

PGS has taken the decision to sell the PGS Khazar joint venture. Following these and other initiatives PGS expects to reduce its CAPEX plan by approximately USD 50 million for 2014 and USD 100 million for 2015. The revised CAPEX estimate for 2014 is USD 375 million.

Operational cash cost savings, primarily the effect of vessel retirement, is estimated to amount to approximately USD 10 million per quarter from and including Q4 2014. This is in addition to the quality and cost improvement programs already announced by the Company.

In Q3 2014 PGS expects to report one off cost of approximately USD 3 million relating to de-rigging of vessels, and impairments of approximately USD 20 million to write down the carrying value of retired vessels and the investment in PGS Khazar to expected sales value.

 

Press Release, September 09, 2014

 

Share this article

Follow Offshore Energy Today

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply