CGG announced Thursday that it has entered into a sale and purchase agreement with Xcalibur Group for the sale of its multi-physics business.
The agreement is for the sale of CGG’s entire multi-physics business, except its multi-client library, and is subject to approval by the competent regulatory authorities, CGG noted. The company outlined that the closing of the transaction is expected in the fourth quarter of this year. The value of the deal was not disclosed by CGG or Xcalibur Group.
CGG describes itself as a global geoscience technology leader. The company, which traces its roots back to 1931, employs around 4,600 people worldwide, according to its website. Last week, the business reported a revenue of $239 million and a net loss of $147 million in the second quarter of this year.
Commenting on the results, CGG’s chief executive officer (CEO), Sophie Zurquiyah, said in a statement posted on the company’s website on July 29, “The geoscience market continued to deteriorate this quarter as clients reprioritized portfolios to factor in reductions in exploration and production spending”.
“We are swiftly taking actions necessary to align our cost structure with the new baseline, while maintaining focus on our differentiated technologies and key multi‐client investments,” the CEO added in the statement.
Xcalibur Group is an airborne geophysics company that was established in 2002. The company has undertaken work for various governments as well as major and junior mining and oil companies, according to its website. The business - which is based in Madrid, Spain, and Pretoria, South Africa - has operational experience in most African countries, the Middle East, Asia and Canada, its website shows.
To contact the author, email andreas.exarheas@rigzone.com
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