Times may be tough for seismic companies, but not all companies are waiting for the current storm to pass.
Spectrum ASA recently moved to gain a greater global footprint by purchasing Fugro’s 2-D seismic library - a move Spectrum CEO Rune Eng called a “game changer” for the multi-client seismic imaging company.
The new library exceeds three million kilometers of 2-D multi-client seismic data.
“Strategically, this was important for (our) growth with increased geographical footprint of data coverage and greater interaction with oil companies,” Eng said.
The transaction “ranks us as number 5 in the world in terms of the size of our 3-D seismic library,” he said, “with a strong presence in Australia and Norway.
“Spectrum is now a natural speaking partner in most sedimentary basins around the world.”
The purchase price was $115 million on a cash and debt-free basis, and was funded by a combination of bank debt and a guaranteed share issue, according to a company statement.
Spectrum agreed to acquire three subsidiaries of Fugro holding the Fugro multi-client data library, as well as certain U.S. multi-client library assets.
The scope of the transaction includes the entire Fugro multi-client library, with the exception of certain non-transferrable items. No employees from Fugro will be transferred to Spectrum as part of the deal.
Eng said the two libraries “entirely complement each other” with minimal overlap, and the data is accessible immediately.
Data quality is of ever-increasing importance in the industry, he said.
“Many believe that our industry is currently experiencing one of the worst downturns in its history, if not the worst,” Eng said. “This is especially evident if you reflect on the overcapacity of vessels in the industry and the anticipated period of lower demand for seismic services.
“We, as a whole, must adapt through ever-higher efficiencies and lower unit costs,” he said.
For Spectrum, the new position “facilitates unique volume deals with key clients, attracts more interest with global exploration super majors and provides unique opportunities to national oil companies who are seeking investments abroad,” Eng said.
And the Spectrum CEO sees more expansion ahead.
“It is our goal to continue to expand its global reach and the volume of data that we can offer to our clients,” he said. “We will continue to work with them to help them develop the next generation exploration hot spots.”