Fugro has signed an agreement to divest its multi-client data library to Spectrum ASA, a Norwegian multi-client seismic data specialist, for a cash consideration of US$ 115 million (approximately EUR 100 million).
The multi-client library business has been non-strategic since the divestment of the majority of Fugro’s geoscience activities in 2013, and this transaction is consistent with Fugro’s strategy to focus on its geotechnical and survey activities going forward.
The multi-client library consists of seismic data in support of oil and gas exploration. The database contains about 1.6 million kilometres of 2D and over 140,000 square kilometres of 3D seismic data, with a focus on Australia and Norway.
Paul van Riel, CEO, said: “We are pleased with the agreement reached with Spectrum. This divestment is a logical consequence of our strategic decision, as communicated in February this year, to focus on our core activities, where we have market leading positions. The proceeds of the transaction will be applied to debt reduction.”
The transaction will result in a non-cash impairment of approximately EUR 40 million. As part of its multi-client activities in Australia, Fugro has built up value by taking indirect interests in certain exploration projects, through a profit sharing agreement with Finder Exploration Pty. Fugro retains these interests, including its 10% indirect stake in the WA-435-P exploration permit in Australia, where oil was discovered at the Phoenix South-1 well in 2014.
Furthermore, Spectrum will, after the transaction, increase its 2D library by 115% in line km and increase its market position within 3D Multi-Client market. The new combined Spectrum library will exceed 3.0 million km of 2D Multi-Client seismic data.
CEO of Spectrum, Rune Eng, added: “This is a strategic game changer for Spectrum. It significantly strengthens our position both within MC2D and MC3D in key offshore O&G basins with high hydrocarbon prospectivity, regular license rounds and political stability. The Fugro library complements Spectrum’s library with minimal overlap and increased scale will yield material synergies.”
Closing of the transaction is expected June 30, 2015.