CGG Veritas has entered into a strategic operating alliance with Offshore Hydrocarbon Mapping plc (OHM) under which both companies will jointly develop the global market for Controlled Source Electromagnetic imaging (CSEM) and capitalize on seismic and CSEM integration opportunities.
In addition, CGG Veritas has entered into an agreement to acquire 15% of OHM’s share capital.
These agreements are conditional on OHM’s shareholders approval.
Both companies will benefit from this operating alliance as it will provide CGG Veritas with access to the CSEM technology and OHM with an immediate access to the marketing and operational network of a world leader of the seismic industry. Research has shown that there is potentially highly valuable information to be gained from the combination of seismic and CSEM datasets as these technologies make complementary measurements which, when properly combined, can lead to quantitative measurement of important rock and fluid properties such as permeability and hydrocarbon saturation. CGG Veritas believes the combination of seismic and CSEM data will be of significant value to oil companies in managing their reservoirs and in enhancing recovery from their subsurface reserves.
Robert Brunck, Chairman and chief executive officer of CGG Veritas, commented, “CGG Veritas has recognized the potential of EM technology since its early days and has been very interested by OHM’s rapid technological developments and industrial track record. We believe that EM technology will continue to develop in the coming years as a recognized hydrocarbon presence confirmation tool and become a natural complement to seismic technology. We are confident that this strategic alliance will allow our two companies to strengthen our complementary activities and better serve our customers through our wide range of imaging technologies.”
Dave Pratt, chief executive officer of OHM, commented, “I am particularly delighted to work jointly with CGG Veritas in a cooperation that will accelerate our market penetration and further develop our business while improving the E&P performance of our clients as seismic and EM imaging will be increasingly combined.”
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