PGS stacking seismic vessels

As Petroleum Geo-Services looks to further streamline its operations and cut costs, the company is stacking and considering scrapping or selling two vessels, and selling its PGS Khazar joint venture.

PGS says the cuts, along with other initiatives, will help reduce the firm's CAPEX by about US$50 million for 2014 and $100 million for 2015. 

The two vessels stacked are the Pacific Explorer and Nordic Explorer. In addition, the seismic vessel Atlantic Explorer, which is currently conducting a 2D survey, will be taken permanently down to 2D mode and is planned to be used as a combined 2D, source and EM acquisition vessel.

The cut backs come as PGS has suffered delays in its new build program. The firm's two last Ramform Titan class new builds have been delayed by two and four months, according to ship builder Mitsubishi Heavy Industries. The vessel's new delivery dates, according to MHI, are 31 August 2015 and 31 January 2016.

PGS' revised CAPEX estimate for 2014 is $375 million. In 3Q 2014, PGS says it expects to report one off cost of about $3 million relating to de-rigging of vessels, and impairments of about $20 million to write down the carrying value of retired vessels and the investment in PGS Khazar to expected sales value.

Image: Ramform Titan / PGS

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