PGS Inks Letter of Award for 2 Ramforms with Mitsubishi

Petroleum Geo-Services ASA (PGS) has signed a Letter of Award with Mitsubishi Heavy Industries for the delivery of two Ramform W-class vessels, with the option for another two ships. The vessels are the first in the new, fifth generation Ramform series. Planned deliveries of the two first vessels are in 2013.

PGS President and CEO, Jon Erik Reinhardsen stated, "The new generation Ramforms will strengthen PGS' unique position in the seismic industry. Our decision to renew and expand our fleet comes at a time when we expect growth in seismic demand."

The Letter of Award is a part of the program to renew and expand PGS' industry leading fleet of seismic vessels by building two fifth generation Ramform vessels, with an option for another two vessels. The new generation Ramforms' total cost will be approximately USD 250 million each, including construction follow-up, commissioning and a comprehensive seismic package. The agreement with Mitsubishi Heavy Industries Ltd includes the option for delivery of further two identical vessels.

The Ramform W-class vessels have a planned delivery schedule as follows:

  • Vessel no. 1 1st half 2013
  • Vessel no. 2 2nd half 2013
  • Vessel no. 3 1st half 2015 (optional)
  • Vessel no. 4 2nd half2015 (optional)

The options must be declared within one year from signing of the final contract for the two first vessels.

These fifth generation Ramform vessels will further enhance PGS' position as a leader in 3D seismic acquisition productivity and efficiency. The vessels are designed to utilize and extract the full potential from the flagship GeoStreamer® technology. PGS expects that all of its 3D fleet will be equipped with GeoStreamer® by end 2013.

The vessel design is based on the demonstrated strengths of the current Ramform fleet, while improving capabilities along a number of key parameters. The new vessels will include a significantly upgraded GeoStreamer® based seismic package and are designed to take the full benefits of the GeoStreamer® towing efficiency. The vessels will further strengthen PGS' leading position in the fast growing High Density segment of the market, where large spreads, long streamers and towing efficiency are the key success factors. The High Density segments are driven by deep water exploration and production in geologically complex areas such as Brazil, West Africa and the Gulf of Mexico. Our GeoStreamer® technology is also opening up new markets in mature basins, such as the North Sea, where the higher fidelity data can reveal new geological plays.