The Norwegian offshore survey company EMGS has signed an $8 million multi-client contract with an undisclosed company. EMGS has also received a final verdict related to a Municipal Services Tax claim in Brazil.
EMGS said on Monday that the customer would license certain data from EMGS’ existing EM multi-client library in Norway and settled future potential uplift obligations towards the company for certain multi-client data already licensed by the client.
According to the company, the contract also includes several user licenses to EMGS’ proprietary EMU and SBLwiz software and prepayment for consulting services.
The company expects that the full contract value will be recognized in the fourth quarter of 2019.
In a separate statement on Monday, EMGS stated that it was involved in litigation related to a municipal services tax claim in Brazil.
Namely, EMGS was involved in a tax dispute with the City of Rio de Janeiro. The case involved the applicability of ISS (a municipal service tax). The entire claim amount of 3 008 had been placed in a judicial deposit to avoid interest and penalties.
The company said on Monday that it had previously deposited the disputed amount into a judicial escrow account in Brazil.
The Brazilian courts issued a final verdict in EMGS’ favor, and the escrowed amount, including accrued interest, has been released to the company.
The release will, following payment of legal fees and certain tax costs related to the released amount, increase the company’s free cash position by $3.7 million.
At the same time, the non-current restricted cash position will be reduced to zero.
Offshore Energy Today Staff
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