Schlumberger, TSG in Strategic Ocean Oil Deal

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Schlumberger and TGS-NOPEC Geophysical Company (TSG) have sealed a strategic deal for Ocean-Bottom Node projects in the United States and the Gulf of Mexico.

TGS provides multi-client geoscience data to oil and gas Exploration and Production companies worldwide. In addition to extensive global geophysical and geological data libraries that include multi-client seismic data, magnetic and gravity data, digital well logs, production data and directional surveys,

TGS also offers advanced processing and imaging services, interpretation products, and data integration solutions. For more information, visit www.tgs.com.

Schlumberger on the other hand, is the world’s leading provider of technology for reservoir characterisation, drilling, production, and processing to the oil and gas industry. With product sales and services in more than 120 countries including Nigeria, and employing approximately 100,000 people who represent over 140 nationalities,

Schlumberger supplies the industry’s most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance.

Their collaboration includes the previously-announced 2,350 km2 Amendment Phase 1 project in the Mississippi Canyon and Atwater Valley protraction areas. Supported by industry prefunding, Amendment Phase 1 commenced in early 2019 and data acquisition is expected to complete in Q3 2019.

Under the collaboration deal, TGS and WesternGeco®, the geophysical services product line of Schlumberger, will work together to develop opportunities to co-invest in additional multiclient ocean-bottom node projects in the US Gulf of Mexico.

Both TGS and WesternGeco have extensive, high-quality multiclient libraries of seismic and other geoscience data in the U.S Gulf of Mexico. The combination of ocean-bottom node data, the associated velocity model improvement, full-waveform inversion and other data processing techniques will significantly improve imaging of complex subsalt structures.

By collaborating and using the available underlying data, WesternGeco and TGS will be able to produce a higher-quality product for clients than would otherwise be available over the areas of interest.

E&P companies are increasingly looking to ocean-bottom nodes, combined with advanced processing, as the next-generation technology to support both exploration and development activities in the Gulf of Mexico. Ocean-bottom node technology has traditionally been focused on development and time-lapse 4D seismic applications, but multiclient node projects will also have significant impact on near-field and greenfield activities.

“TGS and WesternGeco have a strong track record of investing together, using the latest technology so that our clients can benefit from large-scale, high-quality data in the U.S. Gulf of Mexico. Both companies are at the forefront of ocean-bottom node technology with Amendment Phase 1 being the world’s first large-scale, multiclient sparse node program. We are working closely with our clients to plan future phases and are excited by the potential growth in exploration and production activity that this could drive in the U.S Gulf of Mexico and beyond,” said Kristian Johansen, CEO, TGS.

Maurice Nessim, president, WesternGeco, added, “In line with our asset-light strategy and global technology leadership, we are looking at opportunities to deploy and accelerate the use of advanced technologies, including ocean-bottom node technology. Our goal is to help our clients mitigate subsurface risks and accelerate their exploration and development programs. WesternGeco and TGS are leading the industry in the application of ocean-bottom nodes on multiclient seismic projects. Our geophysical, geological and technology expertise position us well for this next phase of activity in the U.S. Gulf of Mexico.”

However, the new deal contains forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate.

These risks and other factors include the parties’ reliance on a cyclical industry and principal customers, their respective ability to continue to expand markets for licensing of data, and the ability to acquire and process data products at costs commensurate with profitability, and other risks and uncertainties detailed in the parties’ most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the US Securities and Exchange Commission.

Actual results may differ materially from those expected or projected in the forward-looking statements. The forward-looking statements speak only as of the date of this press release, and neither TGS nor Schlumberger undertake any responsibility or obligation to update or alter forward-looking statements for any reason.

TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO:TGS).

TGS sponsored American Depositary Shares trade on the U.S. over-the-counter market under the symbol “TGSGY”.

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