CGG and Baker Atlas Team Up

Compagnie Generale de Geophysique has signed a letter of intent with Baker Atlas, a division of Baker Hughes Incorporated, to sell CGG's borehole seismic data acquisition business and to form a venture with Baker Atlas for the processing and interpretation of borehole seismic data. This transaction would bring together the businesses of two leading providers of borehole seismic services.

CGG's borehole seismic acquisition capability would be positioned within Baker Atlas' existing product portfolio, complementing Baker Atlas' acquisition capability with CGG's wide portfolio of downhole borehole seismic acquisition instrumentation. This portfolio includes project specific instrumentation, such as high data rate and high frequency multi level tools (CGG's SST 500(TM)), and slim-hole multi level receivers (CGG's MSR-600), which would be offered in conjunction with Baker Atlas' current general use Multi Level Receiver (MLR) technology.

Borehole seismic data acquisition services are a natural fit within a traditional wireline company because of the associated wellsite logistics and wireline instrument conveyance, and because of the fact that borehole seismic services are often tendered as part of general formation evaluation requirements.

CGG and Baker Atlas expect their venture in borehole seismic data processing and interpretation to offer an improvement to currently available processing and analysis of borehole seismic data by providing specialty, "boutique"-style processing. This approach is dedicated to processing, development and interpretation applications with a closer link to the end user -- the geophysical industry. The venture's two primary processing centers would be located in London and in Houston within CGG's existing processing facilities. These locations would be supported by Baker Atlas' worldwide network of local geoscience centers

The transaction is anticipated to be closed before year-end.