Dutch engineering company Fugro, which is in a partnership with Guyanese firm Ground Structures Engineering Consultants Inc., has entered into an agreement to acquire geoscience company, CGG’s 40% shareholding in Seabed Geosolutions and to terminate the Seabed Geosolutions’ joint venture agreement effective December 30, 2019.
This is in exchange for a cash consideration of USD 35 million, paid by CGG before year-end 2019. The proceeds will be used to lower Fugro’s outstanding debt position and strengthen Seabed Geosolutions’ balance sheet.
Fugro said on Monday it remains fully committed to divest the Seabed Geosolutions business which is a non-core asset held for sale. It is expected that this transaction, which will result in Fugro becoming the sole owner of Seabed Geosolutions, will facilitate the divestment process.
In line with CGGs strategy to exit the data acquisition business, CGG has agreed to transfer its 40% shareholding in Seabed Geosolutions to Fugro before the end of the first quarter of 2020 and to conclude before year-end 2019 remaining matters regarding Seabed Geosolutions by paying USD 35 million to Fugro.
Seabed Geosolutions collects geophysical data on the seabed through an array of ocean bottom nodes technologies for oil and gas companies, focused on the development and production phases of their fields.
Fugro entered a major agreement with Ground Structures Engineering Consultants Inc. (GSEC) in 2017 for the provision of a range of services covering the life cycle of projects in Guyana, where US oil major ExxonMobil started oil production this month.