Energy Valley Member TGS to Merger with PGS

Chief Executive Officer of TGS, Kristian Johansen is exited to announce that TGS and PGS will merger during the first half of 2024. Photo: TGS.

Energy Valley member TGS has announced that TGS and PGS will combine to create a strong full-service energy data company.

“We are excited to announce a merger with PGS, completing a major milestone of building a fully integrated and robust global energy data provider. Our clients will benefit from scale, a unique technology portfolio and premier service quality. Bringing together two distinct, yet complementary, companies position us even better for a continued upcycle in the energy sector,” says Chief Executive Officer of TGS, Kristian Johansen.

Following the completion of the transaction, TGS and PGS shareholders will own approximately 2/3 and 1/3 of the combined company, respectively, on the basis of the share capital of each of the companies as of 15 September 2023. 
The transaction is supported by the Board of Directors of both companies. Kristian Johansen and Sven Børre Larsen will continue as CEO and CFO post transaction.

“The seismic industry is changing whereby production seismic is becoming increasingly important alongside the traditional exploration seismic. By combining TGS and PGS’ complementary resources, we create a fully integrated geophysical service provider well positioned to generate significant value for all stakeholders” stated Rune Olav Pedersen, President & Chief Executive Officer of PGS.

The combined company will be a full-service geophysical data company with a strong offering in segments including Multi-Client data, streamer data acquisition, ocean bottom node (‘OBN’) data acquisition, imaging and new energy data. Moreover, the transaction helps mitigate supply chain risks and will add further to economies of scale and efficiency, enhancing the value offered to clients.

Definitive merger agreements are expected to be entered into in October 2023, with closing of the transaction expected during the first half of 2024.