Magseis to provide seismic equipment to BGP Offshore

Magseis, a Norwegian geophysical company, has signed a letter of intent (LOI) with BGP Offshore, a subsidiary of China National Petroleum Company (CNPC), for the sale of seismic equipment.

Magseis said on Monday that the sale would include 17,000 MASS I ocean bottom seismic nodes and four MASS Modular handling systems.

According to the company, the seismic equipment will be delivered in several batches beginning in 1Q of 2019 through 4Q 2019.

The LOI is conditional to obtaining necessary export licenses and a signed sales agreement between Magseis and BGP Offshore appointed company.

Per Christian Grytnes, CEO of Magseis, said: “We are delighted to be selected as the seismic node technology provider to BGP Offshore. The selection is yet another confirmation of the attractiveness of the Magseis technology and demonstrates the competitiveness of Magseis nodes in a wide range of seismic markets including shallow water/transition zones.

“The sales agreement for the MASS I ocean bottom seismic nodes add further flexibility and diversification to the Magseis business model which includes full-scale operations of seismic node surveys, lease of nodes and sale of nodes. Magseis continues its program to build node capacity for expanded operations in 2019 and 2020.”

Magseis added that it maintained its revenue guidance for 2018 of $100 million and issued its revenue guidance range for 2019 of $190 to 210 million.

In related news, Magseis received a letter of intent for an ocean bottom seismic survey in the Americas last month while BGP was awarded a contract for work on the world’s largest continuous 3D onshore and offshore seismic survey by ADNOC back in July.