GC Rieber Shipping: Shearwater signs binding term-sheet with CGG for high-end seismic vessels and creation of global leader in streamer technology

GC Rieber Shipping ASA’s 20% owned geoservices company Shearwater GeoServices Holding AS (“Shearwater”) signed a binding term-sheet with CGG S.A. (CGG) for a strategic partnership for marine seismic acquisition services and creation of a new streamer technology company.

The term-sheet covers the purchase of five high-end streamer vessels jointly owned by CGG marine Resources Norge AS and Eidesvik Offshore ASA by Shearwater, with mutual commitments of securing CGG access to strategic vessel capacity for future multiclient projects while securing Shearwater a commitment of cashflow and activity for multiple years. Additionally, the term-sheet covers the creation of a technology partnership, under the Sercel brand name and CGG’s majority ownership, for the development, manufacturing, commercialisation and support of marine streamer seismic acquisition systems.

“We are very pleased to see Shearwater execute on its strategy as an industry-leading, full service marine geophysical company with a solid financial and strategic platform”, said Einar Ytredal, the CEO of GC Rieber Shipping. “The transaction will provide additional scale and critical mass to support Shearwater’s global operations and continued investment in technology development to deliver the highest possible data quality to its customers.”

The term-sheet includes agreements for a five-year utilization commitment for an annual minimum of two vessel-years over the period. The agreement for vessel capacity will ensure CGG access to strategic capacity for its future multiclient projects through Shearwater’s global fleet of 16 high-end 3D vessels. Following this transaction Shearwater will have a fleet of 23 vessels, including three OBS MPVs and two dedicated source vessels.

At the same time, it will provide Shearwater with a guaranteed cash flow and activity level, resulting in a greatly improved visibility and more robust business models for both companies. The vessel acquisition will be a pure asset transfer, which will include the five high-end two additional legacy vessels. Shearwater will assume the net liabilities associated with the vessels at time of completion. Shearwater will also take over five complete streamer sets owned by CGG.

It is the intention of both companies to execute final transaction agreements before the end of June with closing planned before year-end. The final transaction agreements are subject to approval by lenders of Global Seismic Shipping AS (GSS), the ship-owning company jointly held by CGG and Eidesvik Offshore ASA, and a final agreement between CGG and Eidesvik Offshore ASA.

The completion of the transaction is subject to approvals by the competent authorities and other customary conditions in relevant countries, including work council consultation.

Enclosed, please find a separate press release from Shearwater.
Source: GC Rieber Shipping