Electromagnetic Geoservices ASA (EMGS) is pleased to announce that it has been awarded a contract worth USD 90 million by Petrobras to perform a range of electromagnetic (EM) surveys in frontier and mature basins offshore Brazil. Data acquisition will be performed using the vessel BOA Galatea and is expected to take approximately one year. Petrobras has requested start-up as soon as practically possible.
"This contract, which is the second largest ever for marine EM services, represents a major milestone for us and underpins the growing demand we are witnessing for our unique technology. We are delighted that yet another national oil company has chosen to use EM data as an integral part of its exploration strategy," said Roar Bekker, EMGS Chief Executive Officer. "This long-term contract demonstrates our leadership position in the EM market segment and provides us with a solid foundation for future expansions of our capabilities."
EMGS has recently strengthened its Rio de Janeiro office, which is headed by Country Manager Ricardo Perrone, with further EM expertise and processing capabilities to address the Petrobras contract and the growing market opportunities in South America. Bjørn Petter Lindhom, VP Business Development Latin America, also recently re-located from Houston to the new office, and he will be working closely with EMGS's multi-client team to capitalize on the substantial market potential in Brazil.
Commenting on the significance of this award, Carl Hutchins, EMGS President multi-client group, said: "Brazil is a strategically important market for us, and this contract provides us with a strong foothold in one of the world's most prolific oil regions."
It is the second time EMGS returns to Brazil, and the company looks forward to working with Petrobras again as they embark on this campaign to de-risk a portfolio of hydrocarbon prospects across the Brazilian continental shelf.
The net value of the contract after direct taxes is estimated at USD 77 million.
Roar Bekker, EMGS chief executive officer, +47 22 01 14 00
Svein Knudsen, EMGS chief financial officer, +47 22 01 14 00
Chris Guldberg, EMGS PR/IR manager, +47 92 81 07 07
EMGS, the marine EM market leader, uses its proprietary electromagnetic (EM) technology to support oil and gas companies in their search for offshore hydrocarbons. EMGS supports each stage in the workflow, from survey design and data acquisition to processing and interpretation. The company's services enable integration of EM data with seismic and other geophysical and geological information to give explorationists a clearer and more complete understanding of the subsurface. This improves exploration efficiency, and reduces risks and the finding costs per barrel.
EMGS has conducted more than 500 surveys to improve drilling success rates across the world's mature and frontier offshore basins. The company operates on a worldwide basis with main offices in Trondheim and Stavanger, Norway; Houston, USA; and Kuala Lumpur, Malaysia. Please visit www.emgs.com for more information.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.