PGS completes fleet adjustment

Petroleum Geo-Services ASA (PGS) has implemented further steps to streamline operations, reduce cost and capital expenditures (CAPEX), and improve cash flow.

Offshore staff

OSLO, NorwayPetroleum Geo-Services ASA (PGS) has implemented further steps to streamline operations, reduce cost and capital expenditures (CAPEX), and improve cash flow.

PGS has stacked, and will consider selling or scrapping, the seismicvesselsPacific Explorer and Nordic Explorer. The seismic vessel Atlantic Explorer, which is conducting a 2D survey, will be taken down to 2D mode, and is planned to be used as a combined 2D, source, and EM acquisition vessel.

PGS has received notification fromMitsubishi Heavy Industries Ltd. (MHI) that delivery of the company's two last Ramform Titan class newbuilds will be delayed by two and four months. New delivery dates provided by MHI are Aug. 31, 2015, and Jan. 31, 2016.

PGS has also decided to sell the PGS Khazar joint venture. Following these and other initiatives PGS expects to reduce its capex by $50 million for 2014 and $100 million for 2015. The revised CAPEX estimate for 2014 is $375 million.

09/09/2014

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