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TGS submits offer for PGS data library

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Oilfield Technology,

TGS has submitted a conditional offer for the purchase of the multi-client data library of PGS.

Under the offer, PGS would, upon consummation of the sale, receive a cash consideration of US$600 million. In addition, TGS has proposed that the parties enter into a post-closing collaboration agreement for future PGS multi-client projects, which also would include certain preferential rights for PGS to offer their 3D-fleet for future TGS data acquisition.

The offer will be financed by on-balance cash, a new term loan facility of US$200 million and new equity, and is valid until 16 August 2020.

Commenting on the offer, Kristian Johansen, CEO of TGS said:

“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. Concurrently, a refocused and refinanced PGS will be a world-leading and highly innovative provider of acquisition technology and marine acquisition capacity, providing a strong platform for creating long-term value for the company´s stakeholders. The proposed transaction is thus aimed at safeguarding customers’ access to leading acquisition technology, high-quality data acquisition capacity and top tier data processing capabilities, whether they choose to purchase data through the contract model or the multi-client model. We believe the consolidation and further partnership between our two companies carries a strong industry logic and we look forward to initiate the dialogue with the management and board of PGS.”

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