French seismic contractor CGG has seen its vessel availability rate plunge to 74%, compared to a 84% availability rate in the first quarter of 2015 and a 94% rate in the second quarter of 2014.
According to CGG, this vessel availability rate this quarter is the result of a 10% high steaming rate to reposition vessels this quarter, from APAC and West Africa to NALA, for large tenders won recently and a 13% high fleet standby rate mainly due to delays in permitting in Latin America and a 3% yard time.
The company, however, recorded a 94% vessel production rate, compared to a 92% production rate in the first quarter of 2015 and a 92% rate in the second quarter of 2014.
During the second quarter of 2015, CGG vessels were allocated 42% to multi-client programs compared to 52% in Q2 2014 and 35% in the earlier quarter.
Following the recent award of a project in Latin America occupying two vessels until the end of the year, the fleet coverage as of July 1st stands at 91% in Q3 and 71% in Q4.
To remind, CGG announced additional cost reduction plans and further downsizing of its fleet as it fell victim to deterioration in market conditions. The reduction of its fleet from 18 to 13 vessels, between 2013 and 2014 has continued in 2015 to further cuts to 11 vessels.