Polarcus has signed a Letter of Intent (LOI) with TGS for the sale of its multi-client projects in Northwest Europe and West Africa in return for a cash consideration of USD 27.5 million and future revenue share on library late sales.
Polarcus’ 22,130 sq. km. Capreolus 3D survey offshore Australia does not form part of the transaction and will continue to be owned and marketed by Polarcus.
The multi-client library in Northwest Europe and West Africa consists of 22 3D seismic surveys comprising a total area of 40,000 sq. km and one 2D survey comprising 5,000 linear km. The data covers prime locations within the established hydrocarbon provinces of six countries along the western Atlantic margin corridor since 2011.
“We are pleased to announce a Letter of Intent to acquire a high-quality multi-client library in key areas of future growth for TGS. This acquisition significantly strengthens our 3D-position in established areas in UK, Norway and West Africa and is very complimentary to our existing database with minimal overlap,” stated Robert Hobbs, CEO, TGS.
Commenting on the transaction, Rod Starr, CEO Polarcus, said: “The decision to sell a portion of the library provides Polarcus with additional liquidity to navigate the current challenging market environment by monetizing a portion of the asset value while retaining revenue upside from future late sales achieved by TGS. It should be noted that Polarcus is fully committed to continue developing its multi-client business going forward with a disciplined approach.”