PGS rejects $600 mln seismic files provide from rival TGS

PGS rejects $600 mln seismic files provide from rival TGS

OSLO, Aug 13 (Reuters) – Seismic surveyor PGS stated on Thursday it had rejected a $600 million present for its geophysical information library from rival TGS, arguing that the present undervalued the sources and {that a} sale would wound its strategy.

Oil business suppliers equal to Oslo-listed TGS and PGS had been disturbing hit by primitive mistaken prices for the size of the coronavirus pandemic as power firms rein in exploration and thus use a lot much less on the seismic information desired to detect reserves.

TGS on Aug. 6 introduced an unsolicited money present for PGS’s so-called multi-client library, looking for to mix it with its bear identical business and originate a worldwide seismic providing with decrease unit prices and higher economies of scale.

Nonetheless PGS stated its board and administration had been unanimous of their rejection.

“Having consulted with its monetary and upright advisers, the board of PGS has concluded that the proposal is not within the remaining discover pursuits of the company and its stakeholders,” it stated.

Whereas TGS’s strategy has been one in every of renting the ocean-going vessels outmoded to bear seismic information, PGS has had an constructed-in technique of proudly proudly owning its bear ships – leaving the company extra uncovered at a time of primitive oil prices.

“PGS stays devoted to its constructed-in provider strategy,” it stated.

TGS had argued that its proposal would give PGS ample money to repay a $135 million debt facility due subsequent month.

PGS final month stated it turned looking for to withhold liquidity whereas chatting with collectors to look an extension to the September reimbursement deadline and amend debt covenants.

“PGS stays interested in its ongoing discussions with its lenders, as beforehand introduced,” the company stated on Thursday. (Reporting by Terje Solsvik; enhancing by Jonathan Oatis)

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Author: UNC Charlotte

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