TGS Offers $600 Million to Buy PGS' Multi-Client Library, Form Partnership

Updated 1 year 1 month ago

TGS-NOPEC Geophysical has submitted a conditional offer to purchase the multi-client data library of PGS for $600 million. The proposal suggests that the companies entered into a collaboration agreement for future PGS multi-client projects which includes preference to use the PGS 3D acquisition fleet for future TGS projects. The offer assumes an effective date of July 1, 2020. PGS reported a $565 million book value for their multi-client library in the second quarter.

TGS plans to finance the deal with a new $200 million term loan facility and an equity offering. The offer is valid until August 16, 2020. ABG Sundal Collier acted as financial advisor to TGS.

Kristian Johansen, TGS CEO

We see a strong complement between our existing business and the PGS data library and the opportunity to leverage our expertise and scale to improve returns.