Electromagnetic Geoservices ASA (EMGS) has been awarded a multi-year contract worth a minimum of $150 million by one of the world's largest oil companies. The 3D EM campaign will employ one of EMGS's purpose-built 3D EM vessels continuously throughout the duration of the contract period, providing substantially improved vessel utilization levels.
Formal finalization of contract and contract signature is expected in approximately two weeks, with vessel mobilization towards the end of August. EMGS anticipates that the contract will generate 2010 revenues in the range of USD 20 - 25 million, and that the remaining contract value will be recognized in 2011 and 2012.
Roar Bekker, EMGS chief executive officer, commented, "This award, by far the largest ever within marine EM, is a giant step forward for EMGS. A long-term project such as this provides us with a solid platform for future growth and allows us to manage our vessel utilization far more efficiently.
"EMGS has previously provided services for this customer, and this significant award is a major statement of confidence in our advanced 3D products and high-capacity vessels. More importantly, it is a sign that EM technology is entering the mainstream of exploration and production workflows. We are confident that our 3D EM data will continue to reduce this customer's exploration risk and finding costs, and we look forward to building on this relationship over the period of the project."
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