TGS offers to buy PGS’ multi-client data library

Aug. 6, 2020
Under the offer, PGS would receive a cash consideration of $600 million.

Offshore staff

OSLO, NorwayTGS has submitted a conditional offer to purchase PGS ASA’s multi-client data library. Under the offer, PGS would receive a cash consideration of $600 million.

In addition, TGS has proposed that the parties enter into a post-closing collaboration agreement for future PGS multi-client projects. This also would include certain preferential rights for PGS to offer its 3D fleet for future TGS data acquisition.

The offer comprises the entirety of PGS’ multi-client data library, including all existing data and work-in-process, as well as the contractual arrangements associated with the foregoing.

It is subject to a customary, limited scope, confirmatory due diligence and entering into definitive agreements for the transaction. Completion will be conditional upon any required approvals by an extraordinary general meeting in TGS in respect of the equity financing of the transaction, and other customary closing conditions, including relevant regulatory approvals.

The offer is valid until Aug. 16, 2020. TGS said a definitive agreement could be entered by the end of August. Closing of a transaction is subject to satisfaction of all relevant closing conditions, including the receipt of necessary regulatory approvals or expiration of statutory waiting periods.

TGS said it expects that completion of the transaction could take place in 60-90 days after the signing, subject to timing of regulatory approvals.