Spectrum announces a major Multi-Client transaction with CGGVeritas priced at USD40mill. Spectrum will acquire the 2D Marine Multi-Client library from CGGVeritas encompassing more than 500,000 km of seismic data.
This transaction is in line with the growth strategy of Spectrum to become a leading MultiClient company. The new combined Spectrum library will exceed 1.000.000 km of 2D Multi-Client seismic data covering all major sedimentary basins worldwide. There is strong synergy in the combination of the original Spectrum library with the CGGVeritas 2D library, particularly in areas like Gulf of Mexico, Africa, South America, Mediterranean Sea and the North Sea. The combined library is ideally suited for planning of new projects and there are already several ongoing reprocessing projects, both by CGGVeritas and Spectrum.
This transaction fast tracks Spectrum into new key areas and business opportunities that otherwise would have taken years to establish and enhances the quality of the overall library through access to the high-end 2D processing and imaging technology of CGGVeritas.
CGGVeritas will become a major shareholder in Spectrum holding a 25% stake and will have one board member on the Spectrum board of Directors. Following the Transaction, CGGVeritas will focus its 2D multi-client activity mainly through its shareholding in Spectrum.
CEO of Spectrum, Rune Eng states:
“This transaction is a very good strategic fit. For Spectrum it more than doubles the library overnight and broadens the footprint of our business with exciting new opportunities to offer to our clients. CGGVeritas gains a strategic partner in Spectrum who brings industry recognized expertise and commercial focus to the development of successful 2D libraries. Spectrum is proud to have CGGVeritas as a major shareholder and we believe this will create further value with the high-end technology and long-term relationships that CGGVeritas have in their business portfolio.”
[mappress] Source: Spectrum, August 1, 2011; Image: CGGVeritas