TGS disputes fine ordered due to violations in seismic data sale

March 3, 2017

TGS, a provider of multi-client geoscience data to oil and gas companies, has challenged a fine ordered by a Norwegian unit against economic and environmental crimes.

Namely, on March 2, 2017, Økokrim, the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime, issued a corporate fine of NOK 85 million (approximately $10 million) against TGS-NOPEC Geophysical Company (TGS).

The fine is based on alleged violations of the Tax Assessment Act related to a contract for the purchase of seismic data entered into in 2009 with Skeie Energy (later known as E&P Holding). Økokrim dismissed the charges against TGS for market manipulation in violation of the Securities Trading Act due to insufficient evidence. TGS has previously disclosed both charges from Økokrim in an announcement on May 6, 2014.

TGS said on Friday it firmly believes that Økokrim’s accusations lack merit. The sales of seismic data and services to Skeie Energy were legitimate transactions between two independent companies at market prices, the company said.

TGS added it will challenge the corporate fine and believes that a full court hearing will show that the company did nothing wrong and acted diligently in connection with the transactions.