Axxis Geo Solutions still waiting for OBN survey award

Axxis Geo Solutions (AGS), a Norwegian ocean bottom node seismic company, has delayed the formalization of a letter of intent into a final contract for a large OBN survey. AGS was awarded the initial letter of intent on September 23, 2019.

Illustration. Source: Axxis Geo Solutions

AGS said on Tuesday that it was making “significant efforts” to finalize the final contract and begin operation. However, the final contract award is subject to the client obtaining a separate contract award from its partners.

The Oslo-listed company added the client and its partners were discussing a reduced initial scope of work compared to the initial scope of 28 vessel months and that the execution of their contract would be somewhat delayed.

Consequently, the contract award to AGS is also delayed and but the company is still confident that the contract will be awarded.

The company has mobilized four vessels to Malta in anticipation of the start of the contract. AGS is currently negotiating compensation, including stand-by rates, to compensate for further delays, it said.

The projected revenues from the first phase of the contract are expected to be approximately $35 million, with a potential for further upside.

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