PARIS – CGG and Industrialization & Energy Services Co. (TAQA) have signed a framework agreement that strengthens and extends their partnership in the Middle East. The new agreement will enable the companies to better address the growing industry demand for seismic solutions throughout the region.
CGG and TAQA currently have two joint ventures in the Middle East: ARGAS, a Saudi company covering geophysical activities in the Kingdom of Saudi Arabia and ARDISEIS, a company in Dubai, covering land and shallow-water data acquisition.
Through the framework agreement, ARGAS will become the sole shareholder of ARDISEIS, with ARGAS and ARDISEIS pooling their resources to create a combined ARGAS Group, which will be 51% owned by TAQA and 49% owned by CGG.
CGG and TAQA are also extending their partnership to Seabed Geosolutions, the joint venture addressing seabed data acquisition. It is owned 60% by FUGRO and 40% by CGG. In the same way as CGG will support the new ARGAS Group on land matters, SBGS will support seabed data acquisition.
In addition, the framework agreement formalizes a strategic supplier agreement between SERCEL, CGG’s seismic equipment division, and the new ARGAS Group, aimed at mutually reinforcing the competitiveness of SERCEL and ARGAS and their respective positions in Middle East markets.