CGG and TAQA Sign Definitive Shareholder Agreement

Compagnie Generale de Geophysique (CGG) said that it has closed the transaction with Industrialization & Energy Services Co. (TAQA), related to CGG Ardiseis, which follows the memorandum of understanding that both parties signed in Bahrain in March.

Effective June 24, 2006, TAQA0—CGG's long-term Saudi partner in ARGAS—owns 49% of the capital of CGG Ardiseis, a newly formed CGG subsidiary dedicated to land and shallow water seismic data acquisition in the Middle East. CGG holds the remaining 51%.

Dubai-based CGG Ardiseis provides its clients with CGG land and shallow water acquisition services in the Middle East region, where sustained high activity is expected through the next decade.

Conceived by the Saudi Ministry of Petroleum and Mineral Resources, TAQA is tasked with establishing a wide range of industries and services in support of the energy sector. The company's major objective is to localize such industries and services. It has majority ownership in two subsidiaries with activities in exploration and drilling: Arabian Drilling Co. (ADC) and ARGAS. With several projects currently under planning and development, TAQA is in a growth mode and has embarked on a regional expansion strategy.

CGG is a global participant in the oilfield services industry, providing a wide range of seismic data acquisition, processing, and reservoir services and software to clients in the oil and gas exploration and production business. It is also a global manufacturer of geophysical equipment through its Sercel subsidiary.