CGG cuts seismic vessel charter costs

French geophysical company CGG has decided to reduce vessel charter cash costs for the seismic vessel Oceanic Champion while under strict cost and cash management. 

The geophysical company said on Tuesday that, in line with the agreements announced in January regarding three vessels, the Viking Vanquish, the Pacific Finder, and the Oceanic Phoenix, CGG and CGG’s Norwegian subsidiary Exploration Investment Resources II have entered into an agreement to substantially reduce the cash burden of the charter agreement, guaranteed by CGG, in respect of the Oceanic Champion, an active seismic vessel, in exchange for agreed settlement amount.

As part of the agreement to settle this amount on a non-cash basis, CGG on March 13 issued $12.1 million in aggregate principal amount of its 6.50% senior notes due 2021 to the relevant charter counterparty.

The Oceanic Champion is operated by CGG Veritas Eidesvik Ship Management, a joint venture between CGG and Eidesvik.

The vessel was originally built in 1994 and upgraded in 2007. It is 106.3m long and 22.4m wide with a gross tonnage of 9405.