CGG cuts rates for two more seismic vessels

Following dayrate reduction for an Eidesvik-owned seismic vessel, the French-based geophysical company CGG has slashed the dayrates for two more seismic vessels. 

Earlier on Monday, Offshore Energy Today reported that CGG had agreed with Eidesvik Offshore to reduce the dayrate for the seismic vessel Viking Vanquish, effective from January 2017.

CGG later informed that, as part of its focus on strict cost and cash management, CGG and CGG’s Norwegian subsidiary Exploration Investment Resources II have entered into agreements to substantially reduce the cash burden of the charter agreements, guaranteed by CGG, in respect of three cold-stacked seismic vessels, namely the Viking Vanquish, the Pacific Finder, and the Oceanic Phoenix, in exchange for agreed settlement amounts.

As part of the agreements to settle those amounts on a non-cash basis, CGG said the company on January 20 issued $58.6 million in aggregate principal amount of its 6.50% senior notes due 2021 to the relevant charter counterparties.

Earlier in January, the geophysical company announced plans to undertake financial restructuring to improve its balance sheet due to high debt levels. The objective of this restructuring would be to provide the company with a level of indebtedness and cost of debt that is substantially reduced and sustainably adapted to its revenues.

The Pacific Finder is owned by Swire Pacific Offshore’s seismic specialist, Swire Survey Services Division. The seismic vessel was built in 2011 by ST Marine, Singapore.

Operational since August 2007 and having undergone a major refit in 2011, the Oceanic Phoenix is a high-capacity 3D vessel, capable of towing 12 x 8100 meter or 14 x 6000 meter streamers. The vessel, owned by Master and Commander AS, is designed for large-scale exploration 3D projects and high-resolution development 3D and 4D surveys.

Offshore Energy Today Staff

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