CGG and Shearwater put off streamer tech joint venture
CGG and Shearwater have agreed to suspend negotiations around creating a marine streamer equipment JV until visibility in the streamer replacement cycle improves.
The companies said that decision comes due to the downturn in the oil and gas industry, triggered by the Covid-19 pandemic.
Both parties will continue the marine acquisition partnership, but also with commitment to establishment technology component in the future.
In June last year, Shearwater and CGG entered a strategic partnership for marine seismic acquisition services and creation of a new streamer technology company.
The deal covered the purchase of five streamer vessels jointly owned by CGG Marine Resources Norge and Eidesvik Offshore by Shearwater, with mutual commitments of securing CGG access to strategic vessel capacity for future multi-client projects while securing Shearwater a commitment of cashflow and activity for multiple years.
In addition, the deal covered the creation of a technology partnership, under the Sercel brand name and CGG’s majority ownership, for the development, manufacturing, commercialization and support of marine streamer seismic acquisition systems.
“Since the announcement of the CGG transaction in June 2019, Shearwater shared their intent to form a joint technology partnership for future marine streamer seismic acquisition systems with Sercel. The Vessel and Capacity part of the transaction with CGG was successfully completed in January this year and has resulted in a very close working relationship between CGG and Shearwater.
“Due to the downturn in the oil & gas industry, triggered by the COVID-19 pandemic, CGG and Shearwater have jointly agreed to suspend negotiations around creating a marine streamer equipment JV. Both Shearwater and CGG confirm their commitment to the technology advancements needed in the industry and remain open to explore future cooperation on technology in the years to come,” said Irene Waage Basili, the CEO of Shearwater GeoServices.