November 15, 2018; Oslo, Norway: PGS has as part of a tender process offered to
sell the Ramform Sterling to the Japan Oil, Gas and Metals National Corporation
("JOGMEC") an incorporated administrative agency of Ministry of Economy Trade
and Industry.
PGS has now been informed that the Company is the preferred tenderer, and
negotiations will be initiated with the aim of concluding necessary contracts. A
final award to PGS will only take place if and when all contracts have been
concluded. PGS anticipates that this will happen during the first quarter of
2019.
The tender process also includes up to 10 year service agreement with annual
renewals. For this part of the tender PGS has formed a joint venture with Nippon
Yusen Kabushiki Kaisha ("NYK") and Hitachi, Ltd ("Hitachi"). The joint venture
will establish a Special Purpose Company ("SPC") which will aim to conclude
final contracts with JOGMEC. NYK will be responsible for vessel operation,
Hitachi for data processing and PGS will provide technical and operational
services, support and training.
The vessel sale excludes the seismic streamer package. SPC will conclude a
separate lease contract with PGS on behalf of JOGMEC. Subject to final
agreements, JOGMEC is scheduled to take delivery of Ramform Sterling at the
start of the second quarter of 2019.
PGS intends to maintain the same operated fleet size in 2019 as the Company
currently has. If the Ramform Sterling is sold to JOGMEC, PGS will reintroduce
the Ramform Vanguard from the summer of 2019. CAPEX to reintroduce the vessel
primarily relates to in sea equipment and is estimated not to exceed USD 25
million. If concluded, the sale of Ramform Sterling is not expected to result in
any material gain in the financial statements.
For details, contact:
Bård Stenberg, SVP IR & Communication
Mobile: +47 992 45 235
Petroleum Geo-Services ASA and it's subsidiaries ("PGS" or the "Company") is a
focused marine geophysical company that provides a broad range of seismic and
reservoir services, including acquisition, imaging, interpretation, and field
evaluation. The Company MultiClient data library is among the largest in the
seismic industry, with modern 3D coverage in all significant offshore
hydrocarbon provinces of the world. The Company operates on a worldwide basis
with headquarters in Oslo, Norway and the PGS share is listed on the Oslo stock
exchange (OSE: PGS). For more information on Petroleum Geo-Services
visit www.pgs.com.
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The information included herein contains certain forward-looking statements that
address activities, events or developments that the Company expects, projects,
believes or anticipates will or may occur in the future. These statements are
based on various assumptions made by the Company, which are beyond its control
and are subject to certain additional risks and uncertainties. The Company is
subject to a large number of risk factors including but not limited to the
demand for seismic services, the demand for data from our multi-client data
library, the attractiveness of our technology, unpredictable changes in
governmental regulations affecting our markets and extreme weather conditions.
For a further description of other relevant risk factors we refer to our Annual
Report for 2017. As a result of these and other risk factors, actual events and
our actual results may differ materially from those indicated in or implied by
such forward-looking statements. The reservation is also made that inaccuracies
or mistakes may occur in the information given above about current status of the
Company or its business. Any reliance on the information above is at the risk of
the reader, and PGS disclaims any and all liability in this respect.
This information is subject to the disclosure requirements pursuant to section
5 -12 of the Norwegian Securities Trading Act.