Norway´s energy data provider TGS ASA and marine geophysics firm PGS ASA announced on Monday a merger of the two companies to create a strong full-service energy data company.
The two Oslo-listed firms have agreed on the principal terms, and is supported by the board of directors of both companies.
Following the completion of the transaction, TGS and PGS shareholders will own approximately 2/3 and 1/3 of the combined company, respectively, on the basis of the share capital of each of the companies as of 15 September 2023.
Kristian Johansen and Sven Børre Larsen will continue as CEO and CFO post transaction, as the two firms reveal.
The closing of the transaction is expected during the first half of 2024, but is subject to satisfaction of conditions for completion.
The transaction establishes the combined company as a full-service geophysical data company with a strong offering in all segments, as the two partners claim, including Multi-Client data, streamer data acquisition, ocean bottom node (OBN) data acquisition, imaging and new energy data.
For streamer acquisition, it will hold an operational fleet of seven 3D data acquisition vessels, and for ocean bottom node (OBN) acquisition, the combined company will benefit from around 30,000 mid and deepwater nodes.
In addition, the combined company “sees significant growth opportunities in new energy with complementary technology offerings for Carbon Capture and Storage (CCS) and offshore wind.”
Rune Olav Pedersen, president and chief executive officer of PGS said “The seismic industry is changing whereby production seismic is becoming increasingly important alongside the traditional exploration seismic. By combining TGS and PGS’ complementary resources, we create a fully integrated geophysical service provider well positioned to generate significant value for all stakeholders.”
“The transaction continues TGS’ strategic development from a pure Multi-Client seismic company to the leading acquirer and provider of geophysical data to both the oil and gas and new energy industries” stated Chris Finlayson, chair of the board of TGS.
The transaction remains subject to certain conditions which have to be fulfilled, and also subject to approval by extraordinary general meetings in both TGS and PGS with at least two-thirds majority.
