PGS firms up vessel sale agreement with JOGMEC

Norwegian seismic services provider PGS has signed a vessel sale agreement for the Ramform Sterling with the Japan Oil, Gas and Metals National Corporation (JOGMEC).

PGS said on Wednesday that JOGMEC, an incorporated administrative agency of Ministry of Economy Trade and Industry in Japan, would take delivery of the Ramform Sterling in late April 2019.

The company added that the sales price was approximately $100 million. PGS will receive about 75% of the cash proceeds at delivery while the remaining amount will be paid in FY2020.

According to the agreement, the sale of the Ramform Sterling does not include seismic streamers.

PGS initially offered to sell the Ramform Sterling vessel to JOGMEC via a tender process back in November 2018.

The tender process included up to a 10-year service agreement with annual renewals. For this part of the tender PGS has formed a joint venture with Nippon Yusen Kabushiki Kaisha (NYK) and Hitachi.

The joint venture will establish a special purpose company (SPC) which will aim to conclude final contracts with JOGMEC. NYK will be responsible for vessel operation, Hitachi for data processing, and PGS will provide technical and operational services, support and training. SPC will conclude a separate lease contract with PGS on behalf of JOGMEC.

The company said in November that it would maintain the same operated fleet size in 2019. Therefore, following the sale of the Ramform Sterling, PGS will reintroduce the 1999-built Ramform Vanguard vessel from the summer of 2019.