Geospace Technologies Corporation has received and signed a Letter of Award from Statoil awarding Geospace Engineering Resources International the contract to provide 660 kilometers of seabed seismic reservoir monitoring systems for the Snorre and Grane fields on the Norwegian continental shelf. The company estimates the final contract value to be approximately $160 million.
By receipt of the Letter of Award, the company understands that Statoil has received the necessary approvals from its partners to proceed with the project. Although a firm date for the formal execution of the contract is not established in the Letter of Award, the company expects the formal signing of the contract to occur in November 2012. It is the company’s understanding that according to Norwegian law the Letter of Award represents a binding agreement between Statoil and the company to perform the work described in the contract.
Geospace Technologies Corporation designs and manufactures instruments and equipment used by the oil and gas industry in the acquisition and processing of seismic data as well as in reservoir characterization and monitoring activities. The company also designs and manufactures non-seismic products, including industrial products, offshore cables, thermal printing equipment and film.
[mappress] Press Release, November 14, 2012