TGS Announces New Projects and Updates Annual Investment Guidance
OSLO, NORWAY (18 November 2020) - TGS, a leading provider of multi-client geoscience data for exploration & production (E&P) companies, today commenced the Malvinas 3D program in Argentina. This survey was first announced to the market on . The BGP vessel Prospector will acquire approximately 5,000 square kilometers, which will bring the total coverage in the area to 18,000 square kilometers. The survey is supported by industry funding and expected to be completed in Q1 2021.
In addition, the company announces two new projects offshore Brazil.
TGS will mobilize the COSL vessel HYSY720 to commence acquisition of the Espirito Santo 3D survey by year-end. This is a Dual Azimuth (DAZ) survey covering a 1,400 square kilometers area in the Espirito Santo Basin. The vessel is currently in transit to Brazil and acquisition is expected to be completed by the end of Q1 2021. The survey is supported by industry funding and carried out in partnership with COSL.
Furthermore, TGS plans to commence a 7,000 km 2D Survey in the Pelotas Basin during Q1 2021. The Pelotas 2D program will have depth imaged products available in early Q3 2021, in time for the 17th Brazil license round. The new data set will complement the existing TGS 2D data coverage in the area and allow for better prospect mapping. The survey will be acquired in partnership with BGP, using its vessel Pioneer.
The delayed start of these three projects leads TGS to revise its annual investment guidance for 2020 down from USD 325 million to an expected USD 300 million.
Revised 2020 financial targets are:
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- Multi-client investments of approximately USD 300 million
- Continued sector outperformance on cashflow and ROACE
- Industry-leading distribution to shareholders
Kristian Johansen, CEO at TGS, commented, "We are pleased to announce three new projects and strong visibility for our Q1 2021 multi-client investments. Latin America is one of our key focus areas and despite the challenging market conditions, our clients are continuing to support our projects in this region. Strong, long-term partnerships with our suppliers allow us to share risk and reduce cash investments, which provides a unique opportunity to continue our counter-cyclical investment philosophy.”
About TGS
TGS provides multi-client geoscience data to oil and gas Exploration and Production companies worldwide. In addition to extensive global geophysical and geological data libraries that include multi-client seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, TGS also offers advanced processing and imaging services, interpretation products, and data integration solutions.
Forward Looking Statement
All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on a cyclical industry and principal customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data product at costs commensurate with profitability, as well as volatile market conditions, which have been exacerbated by the COVID-19 pandemic and the severe drop in oil prices. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.
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Fredrik Amundsen
Chief Financial Officer
