Polarcus inked an agreement with TGS-NOPEC Geophysical Co. for the sale of its multi-client projects in Northwest Europe and West Africa for US$27.5 million.
Polarcus' 22,130sq km Capreolus 3D survey offshore Australia does not form part of the transaction and will continue to be owned by the Dubai-based firm.
The agreement includes an upfront cash payment; a tiered revenue share from future sales of projects; and contains cash payments for costs deferred under existing contractual agreements. The transaction will result in a non-cash impairment of the multi-client library of approximately $65 million.
“The decision to sell a portion of the library provides Polarcus with additional liquidity to navigate the current challenging market environment by monetizing a portion of the asset value, while retaining revenue upside from future late sales achieved by TGS,” said Polarcus CEO, Rod Starr.
Earlier this month, Polarcus signed a 2016 vessel charter agreement with TGS. This will see TGS offer Polarcus the Right of First Refusal (ROFR) for the charter of 3D vessel capacity to acquire projects of up to 10,000sq km.
Revenues decreased by 33% to $81.1 million in 1Q 2015 compared to $121.4 million in Q1 2014, mainly due to a decrease in contract revenue, announced Polarcus in a statement. Contract revenue decreased by 62% to $44.4 million in 1Q 2015, while it was $116.2 million in 1Q 2014.
Multi-client revenue, however, was $36.7 million in 1Q 2015 and $4.8 million in 1Q 2014. Fleet allocation for multi-client projects in 1Q 2015 increased to 36% in 1Q 2015 compared to 10% in 1Q 2014. Multi-client cash investment was $43.0 million in 1Q 2015 compared to $9.9 million in 1Q 2014.
Image: Polarcus Asima survey vessel / Polarcus
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