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CGG Announces the Contribution of its North America Land Contract Business to Geokinetics
PARIS, Aug. 1, 2014 (GLOBE NEWSWIRE) --
CGG announced today that it has signed a binding agreement with Geokinetics, one of the largest independent international land and shallow water seismic companies, for the contribution by CGG of its North American Land Contract assets and activities (excluding its land multi-client and monitoring businesses) against a minority equity stake in Geokinetics.
This combination is expected to secure Geokinetics' position as a market leader in the North America Contract business.
The agreement establishes technology cooperation between the two companies, giving access to CGG Land technologies to the combined entity in North America. It also provides for a privileged relationship between Geokinetics and CGG Land Multi-Client Group in North America.
This transaction is expected to be finalized by end of October 2014.
Jean-Georges Malcor, CEO of CGG, said, "
The transfer of our North America Land Contract business to Geokinetics is in line with our strategy to refocus and reconfigure the worldwide perimeter directly operated by our Land Business Line.
This combination will offer our North America customers an unprecedented opportunity to meet their expectations for performance, technology and flexibility. As for CGG, I am convinced Land, in its new configuration, will be able to better seize future opportunities and to contribute strongly to the Group's continuing success."About CGGCGG (www.cgg.com) is a fully integrated Geoscience company providing leading geological, geophysical and reservoir capabilities to its broad base of customers primarily from the global oil and gas industry. Through its three complementary business divisions of Equipment, Acquisition and Geology, Geophysics & Reservoir (GGR), CGG brings value across all aspects of natural resource exploration and exploitation. CGG employs over 9,500 people around the world, all with a Passion for Geoscience and working together to deliver the best solutions to its customers.CGG is listed on the Euronext Paris SA (ISIN: 0000120164) and the New York Stock Exchange (in the form of American Depositary Shares. NYSE: CGG).