The multi-client library business has been non-strategic since the divestment of the majority of Fugro’s geoscience activities in 2013, and this transaction is consistent with Fugro’s strategy to focus on its geotechnical and survey activities going forward.
The multi-client library consists of high quality seismic data in support of oil and gas exploration. The database contains about 1.6 million kilometres of 2D and over 140,000 square kilometres of 3D seismic data, with a focus on Australia and Norway.
Paul van Riel, CEO: “We are pleased with the agreement reached with Spectrum. This divestment is a logical consequence of our strategic decision, as communicated in February this year, to focus on our core activities, where we have market leading positions. The proceeds of the transaction will be applied to debt reduction.”
The transaction will result in a non-cash impairment of approximately EUR 40 million. As part of its multi-client activities in Australia, Fugro has built up value by taking indirect interests in certain exploration projects, through a profit sharing agreement with Finder Exploration Pty. Fugro retains these interests, including its10% indirect stake in the WA-435-P exploration permit in Australia, where oil was discovered at the Phoenix South-1 well in 2014. The expected recoverable value of these indirect interests is well in excess of the book value.
Closing of the transaction is targeted per 30 June 2015.