Fugro announced on Monday it has entered into an agreement to acquire CGG’s 40% shareholding in Seabed Geosolutions and to terminate the Seabed Geosolutions’ joint venture agreement effective December 30, 2019 in exchange for a cash consideration of $35 million, paid by CGG before year-end 2019.
Fugro said it remains fully committed to divest the Seabed Geosolutions business which is a non-core asset held for sale. It is expected that this transaction, which will result in Fugro becoming the sole owner of Seabed Geosolutions, will facilitate the divestment process.
In line with CGG's strategy to exit the data acquisition business, CGG has agreed to transfer its 40% shareholding in Seabed Geosolutions to Fugro before the end of the first quarter of 2020 and to conclude before year-end 2019 remaining matters regarding Seabed Geosolutions by paying $35 million to Fugro.
The proceeds will be used to lower Fugro’s outstanding debt position and strengthen Seabed Geosolutions’ balance sheet, Fugro said.
Seabed Geosolutions collects geophysical data on the seabed through an array of ocean bottom nodes (OBN) technologies for oil and gas companies, focused on the development and production phases of their fields.
In November, the firm announced it sold its last cable-based system to transform Seabed Geosolutions into a pure OBN firm.