Shearwater wraps up seismic fleet expansion through CGG deal

Marine geophysical services provider Shearwater GeoServices has completed a transaction with CGG including the takeover of five seismic vessels and the five-year capacity agreement for marine seismic acquisition services.

Image courtesy of CGG

Shearwater initially signed a binding term-sheet with CGG for a strategic partnership for marine seismic acquisition services and the creation of a new streamer technology company back in June 2019.

Shearwater said on Wednesday that the transaction included five streamer vessels and two legacy vessels previously owned by CGG and Eidesvik Offshore.

The deal also included five complete streamer sets previously owned by CGG and a long-term capacity agreement granting Shearwater a guaranteed cash flow and activity level for a period of five years.

The company added that preparations for the joint creation of a new streamer technology company were underway with expected completion in the first half of 2020.

The capacity agreement includes a minimum commitment of two vessel-years annually over the agreed five-year period which yields an attractive cash flow and activity level for Shearwater and ensures CGG access to strategic capacity for its future multiclient projects through Shearwater’s global fleet of 3D vessels.

Irene Waage Basili, CEO of Shearwater, said: “We aim to be the preferred long-term industrial partner to our customers worldwide. This transaction signals the start of a strategic partnership with CGG both on acquisition and streamer technologies.

“For Shearwater, the guaranteed cash flow and activity level from the capacity agreement give vastly improved visibility and debt management capabilities in a market historically known for its spot nature.”

Shearwater also stated that this transaction was a pure asset transfer and the company had at closing assumed the net liabilities associated with the vessels taken over. Following the transaction, Shearwater has a fleet of 23 vessels, including three OBS MPVs and two dedicated source vessels.

 

Acquisition of Global Seismic Shipping

 

Offshore vessel provider Eidesvik said in a separate statement on Wednesday that Shearwater acquired Global Seismic Shipping (GSS), a JV company owned 50/50 by Eidesvik and CGG.

The sale of GSS to Shearwater was also completed on Wednesday. As consideration for Eidesvik’s shares in GSS, Eidesvik received shares in Shearwater.

It is worth noting that CGG and Eidesvik previously agreed on a put option for Eidesvik at $30 million for the consideration shares exercisable in a period of up to 36 months after the closing of the transaction.


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