Shearwater Geoservices has completed the refinancing of its long-term secured debt portfolio.Shearwater Geoservices had issued a five-year US$300 million senior secured first lien bond and then executed a new $US300 million five-year bank term loan with net proceeds used to repay previous secured debt facilities. The bonds rank pari passu with the term loan. Shearwater has also established a US$50 million revolving credit facility (RCF) and a US$50 million guarantee facility.“Shearwater has established a strong foundation for growth and value creation as a global leader within the marine seismic industry in terms of capabilities, capacity and financial standing.
Company Updates
Sercel Announces First Commercial Sale of its New 528 Land Acquisition System
CGG has announced the first major sale - by Sercel - of the Sensing & Monitoring business line of its next-generation 528™ cable-based land acquisition system to the Turkish Petroleum International Corporation (TPIC).
CGG said the client would deploy the system, representing a total of 8,000 channels, on a 3D seismic survey in Turkey, across challenging, semi-arid terrain.
Delivery of the system commenced at the end of March, with the survey expected to start in Q3 2024.
The sale follows the recent launch of Sercel’s new 528 and VE564 land seismic solutions, designed to maximize client return on investment by reducing downtime and boosting productivity even in the harshest of terrains.
Geopolitical tensions come to the boil with oil prices in sharp focus
Iran's launch of over 300 drones and missiles on Israel in the first ever direct attack on the Israeli soil from Iranian territory has increased geopoliticsl risk in the oil market, according to Rystad Energy's oil market update in reaction to the accelerating conflict.
Rystad Energy Senior Vice President Jorge Leon said that although the vast majority of drones and missiles were intercepted, no Israeli fatalities were reported and only minor damage at an Israeli military base was inflicted, the hostilities markedd an unprecedented and dangerous development in an already volatile region.
"As mentioned in our recent commentary, the likely Iranian retaliation increased the geopolitical risk in the oil market.Rystad Energy’s Geopolitical Risk Index increased to 1.22 during the first week of April," Leon said.
The white gold rush and the pursuit of natural hydrogen
The buzz around natural hydrogen – dubbed white or gold hydrogen – is gaining global momentum as a potential gamechanger in the hunt for cost-effective, low-carbon energy sources. Rystad Energy research shows that at the end of last year, 40 companies were searching for natural hydrogen deposits, up from just 10 in 2020. Currently, exploratory efforts are underway in Australia, the US, Spain, France, Albania, Colombia, South Korea and Canada.
One of the most promising elements of white hydrogen is its cost advantage over other forms of hydrogen due to its natural occurrence.
Developing Seismic Energy and Emission Reporting Standard
Shearwater, PGS and DNV launched a new Joint Industry Project (JIP) in August 2023 with the ambition of defining Key Performance Indicators (KPIs) for energy and emission reporting for the Seismic sector.
The JIP aims to establish a standardized reporting framework based on currently gathered data and operating modes enabled by the DNV reporting tool. In 2023 the basis for work has been carried out mapping needs and available information and getting ready for data tests.
The work is expected to be concluded in the first quarter of 2024.
Developing common KPIs and standardizing reporting for seismic offshore companies enables greater transparency and consistency on seismic energy and emission reporting.
Notification of Airborne Gravity Survey Operations in Victoria
The 2024 airborne gravity survey across southern and eastern Victoria is about to recommence operations over the Gippsland and Hume regions including offshore, having previously completed survey areas in the Colac-Otway, Gippsland and Hume regions.The airborne survey is being collaboratively organised through Surveyor-General Victoria within the Department of Transport and Planning (DTP), Geological Survey of Victoria within the Department of Energy, Environment and Climate Action (DEECA) and Geoscience Australia (Commonwealth Government).
The objective of the project is to collect consistent and evenly distributed gravity measurements.
PGS to Commence 3D Seismic in Asia Pacific
PGS has been awarded a 3D exploration contract in Asia Pacific. The company has not revealed which country this is in.
PGS and TGS Shareholders Approve Merger Plan
TGS and PGS jointly announced that their respective boards of directors have unanimously approved and decided upon a definitive merger agreement in line with terms previously announced.
Petrobras and Shearwater Enter Collaborative Agreement to Reshape Seismic Exploration and Field Developments
This multi-year strategic partnership is set to evolve the seismic industry to new levels of performance.
Tamboran Starts Stimulation at SS-1H
Tamboran has commenced stimulation activities at the Shenandoah South 1H (SS-1H) well pad within its 38.75 per cent owned and operated EP 117 permit.
The program, which is planned to include 10 stimulation stages over a 500-metre (1,640-foot),horizontal section within the Mid-Velkerri B Shale, is expected to be completed in December.
The campaign is being conducted by Condor Energy Services.
On completion of the stimulation campaign, production tubing will be installed ahead of the flowback of stimulation fluid and gas breakthrough.
Tamboran expects to release 30-day initial production (IP30) flow rates in the first quarter of 2024, subject to weather conditions and the timing to flow back stimulation fluid to achieve gas breakthrough.