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TGS-NOPEC signs charter deal with Russian Sevmorneftegeofizika Trust.

NORDIC BUSINESS REPORT-12 September 2002-TGS-NOPEC signs charter deal with Russian Sevmorneftegeofizika Trust (C)1994-2002 M2 COMMUNICATIONS LTD

The Norwegian geoscience data and services provider TGS-NOPEC Geophysical Company announced today (12 September) that it had entered into an agreement to charter 2D seismic vessel capacity from Polar Trade Group Ltd and the Russian Sevmorneftegeofizika Trust (SMNG).

Under the agreement TGS-NOPEC would contract a minimum of 12 vessel-months per year from SMNG's 2D seismic vessel fleet beginning in January 2003.

TGS-NOPEC said that the arrangement was part of a restructuring of its long-term vessel capacity which would also see the termination of the company's current arrangement with Baltic Tugs.

According to Hank Hamilton, CEO of TGS-NOPEC, the benefits of the new arrangements were three-fold: "First of all, the agreement allows us to lock in lower acquisition costs for up to five years. Secondly, the opportunity to select from a fleet of vessels increases our flexibility with respect to geographical and seasonal factors. Thirdly, we can now more fully concentrate our efforts on our core business of developing and selling multi-client projects as opposed to managing and operating vessels."

The restructuring is expected to have a net cash effect of some USD9m over five years.

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Publication:Nordic Business Report
Article Type:Brief Article
Geographic Code:4EXNO
Date:Sep 12, 2002
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