Veritas-PGS merger (December 2001)
Seismic companies Veritas DGC and Petroleum Geo Services are to merge, creating the second largest seismic contractor in the world.Houston-based geophysical acquisition and processing specialist Veritas is merging with Norwegian Petroleum Geo-Services (PGS) in what is seen as a merger of equals. The as yet unnamed new entity, with annual sales of around $1.5 billion, will be headquartered in Houston.
27 seismic centers
The combined companies will have 21 marine crews, 8 visualization centers and 27 seismic processing centers throughout the world and a 400,000 square kilometer library of modern 3D seismics. Annual cost savings of $35 million are anticipated from increased operational efficiencies and consolidated research and development. Dave Robson (Veritas CEO) and Reidar Michaelsen (PGS CEO) argue that growing global demand for seismic data, and ongoing industry consolidation, justified the merger.
60/40 split
The deal will be a paper swap, with a 60/40 split for PGS and Veritas shareholders. The new company will be the second largest seismic outfit after Western Geco. The deal is dependent on shareholder and regulatory approvals.
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