TGS, provider of multi-client geoscience data for exploration and production (E&P) companies, has commenced the Malvinas 3D program in Argentina. This survey was first announced to the market on August 4, 2020. The BGP vessel Prospector will acquire approximately 5,000 square kilometres, which will bring the total coverage in the area to 18,000 square kilometres. The survey is supported by industry funding and expected to be completed in Q1 2021.
In addition, the company announces two new projects offshore Brazil.
TGS will mobilise the COSL vessel HYSY720 to commence acquisition of the Espirito Santo 3D survey by year-end. This is a Dual Azimuth (DAZ) survey covering a 1,400 square kilometres area in the Espirito Santo Basin. The vessel is currently in transit to Brazil and acquisition is expected to be completed by the end of Q1 2021. The survey is supported by industry funding and carried out in partnership with COSL.
Furthermore, TGS plans to commence a 7,000 km 2D Survey in the Pelotas Basin during Q1 2021. The Pelotas 2D program will have depth imaged products available in early Q3 2021, in time for the 17th Brazil license round. The new data set will complement the existing TGS 2D data coverage in the area and allow for better prospect mapping. The survey will be acquired in partnership with BGP, using its vessel Pioneer.
The delayed start of these three projects leads TGS to revise its annual investment guidance for 2020 down from USD 325 million to an expected USD 300 million.
Revised 2020 financial targets are:
- Multi-client investments of approximately USD 300 million.
- Continued sector outperformance on cashflow and ROACE.
- Industry-leading distribution to shareholders.
Kristian Johansen, CEO at TGS, comments, “We are pleased to announce three new projects and strong visibility for our Q1 2021 multi-client investments. Latin America is one of our key focus areas and despite the challenging market conditions, our clients are continuing to support our projects in this region. Strong, long-term partnerships with our suppliers allow us to share risk and reduce cash investments, which provides a unique opportunity to continue our counter-cyclical investment philosophy.”