GC Rieber Shipping: Shearwater GeoServices completes strategic vessel transaction and long-term marine acquisition service agreement with CGG

Stock Exchange Notice
Date: 8 January 2020

GC Rieber Shipping: Shearwater GeoServices completes strategic vessel transaction and long-term marine acquisition service agreement with CGG

Reference is made to the stock exchange notice on 4 June 2019, where it was announced that Shearwater GeoServices Holding AS (Shearwater) had signed a binding term sheet with CGG S.A. (CGG).

Today, Shearwater completed the strategic vessel transaction with CGG, including the takeover of five high-end seismic vessels. Furthermore, the five-year capacity agreement for marine seismic acquisition services between Shearwater and CGG became effective.

The transaction includes the five streamer vessels, and two legacy vessels, previously owned by CGG Marine Resources Norge AS and Eidesvik Offshore ASA, five complete streamer sets previously owned by CGG and a long-term capacity agreement granting Shearwater a guaranteed cash flow and activity level for a period of five years. 

The capacity agreement includes a minimum commitment of two vessel-years annually over the agreed five-year period. This yields an attractive cash flow and activity level for Shearwater and ensures CGG access to strategic capacity for its future multiclient projects through Shearwater’s global fleet of high-end 3D vessels.

Following the transaction, GC Rieber Shipping owns approximately 19% of the shares in Shearwater.  

“Completing the transaction further increases Shearwater’s scale and capabilities in line with the company’s strategy” Einar Ytredal, CEO of GC Rieber Shipping, commented. “The capacity agreement represents significant long-term backlog for Shearwater and strengthens the company’s financial and operational visibility.”

This transaction is a pure asset transfer and Shearwater has at closing assumed the net liabilities associated with the vessels taken over. Following the transaction, Shearwater has a fleet of 23 vessels, including three OBS MPVs and two dedicated source vessels.

Preparations for the joint creation of a new streamer technology company continues with expected completion in the first half of 2020. The completion of this transaction is subject to approvals by the competent authorities and other customary conditions.

For further information, please contact:

Einar Ytredal, CEO, GC Rieber Shipping, phone: +47 975 20 184
Øystein Kvåle, CFO, GC Rieber Shipping, phone: +47 479 02 919

About GC Rieber Shipping:

GC Rieber Shipping's business within offshore/shipping includes ownership in specialized vessels, high quality marine ship management and project development within the segments subsea, ice/support and marine seismic.

The group has a specialized competence in offshore operations in harsh environments as well as design, development and maritime operation of offshore vessels. GC Rieber Shipping currently operates 13 and has direct and indirect ownership in 29 advanced special purpose vessels for defined markets within the subsea, ice/support and marine seismic segments.

The company has its headquarter and a ship management office in Bergen, and an additional 50% ship management company in Yuzhno-Sakhalinsk (Russia). The Company is listed on Oslo Børs with ticker RISH.

Further information is available on the company's website www.gcrieber-shipping.com.

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.