The companies expect to enter definitive merger agreements next month and to close the transaction ring during the first half of 2024.
The combined company will offer multiclient data, streamer data acquisition, ocean-bottom node (OBN) data acquisition, imaging and new energy data. Its global seismic library will comprise data from all active basins in the western and eastern hemispheres.
For streamer acquisition, it will have a fleet of seven 3D data acquisition vessels and about 30,000 mid- and deepwater nodes for OBN acquisition.
As for imaging, the combined company will provide cloud-based “high-performing” computing services, with scope for growth in new energy via complementary technology offerings for carbon capture and storage (CCS), and offshore wind.
The combination should also benefit from cost synergies of more than $50 million annually.
“Bringing together two distinct, yet complementary companies positions us even better for a continued upcycle in the energy sector," said TGS CEO Kristian Johansen.
"The seismic industry is changing whereby production seismic is becoming increasingly important alongside the traditional exploration seismic. By combining TGS and PGS’ complementary resources, we create a fully integrated geophysical service provider,” said PGS President and CEO Rune Olav Pedersen.
The all-share deal is valued at 9.3 billion Norwegian crowns ($864 million), the two Oslo-listed companies said on Sept.18, according to a Reuters report.