Seismic data firms TGS and CGG said this week they won their respective bids in the auction process in the Chapter 11 bankruptcy case of rival ION Geophysical Corporation (ION) pending in the United States Bankruptcy Court for the Southern District of Texas.
TGS will acquire certain assets related to ION’s multi-client and processing businesses (referred to as the E&P Technology and Services (EPTS) business), including ION’s entire global offshore multi-client data library and data processing and imaging and intellectual property of ION.
ION’s data library includes over 637,000 km of 2D seismic data and over 317,000 km2 of 3D multi-client seismic data in the world’s major offshore oil provinces. Revenues associated with acquired assets exceeded $86 million in 2021.
“TGS intends to employ a number of ION employees associated with the acquired businesses. The transaction is subject to the approval of the United States Bankruptcy Court for the Southern District of Texas at a hearing currently scheduled for July 18, 2022, along with other customary closing conditions,” TGS said.
Assuming court approval is received as expected, TGS expects to close the transaction early in the third quarter of 2022.
Christian Johansen, CEO of TGS, said, “We are delighted to have been selected as the successful bidder in this auction process and look forward to closing the transaction. With the recently announced offer for Magseis FairfieldOBN business and a further strengthening of our data library and processing capabilities following the acquisition of the ION EPTS business, TGS is taking active steps to consolidate the geophysical industry in line with our strategy to create a stronger and more viable industry.
“As a result, we are now uniquely positioned in traditional multi-client business, converted contracts, production seismic and 4D – all supported by a strengthened data processing business.”
CGG takes over ION’s software business
CGG’s Sercel, its Sensing & Monitoring division, has been selected as the successful bidder for the acquisition of ION’s software business.
“Sercel intends to retain all employees associated with this business. The acquisition is under ION’s recently announced U.S. Chapter 11 bankruptcy filing,” CGG said.
Closing of the transaction is subject to bankruptcy court approval and other customary conditions, including regulatory approvals. The acquisition is expected to close in the third or fourth quarter of 2022.