CGG and Trinidad-Tobago Sign Multi-Client Reimaging Program Agreement
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From a geoscientific perspective, the reimaging of vintage 3D seismic data using CGG's proprietary TL-FWI imaging technology represents a significant advancement in subsurface exploration. TL-FWI, or Time-Lag Full Waveform Inversion, is a sophisticated algorithm that enhances the resolution of seismic images beyond conventional methods. By applying this technology to the eastern Columbus Basin, CGG aims to uncover finer details of the geological structures, which could lead to the identification of new hydrocarbon prospects.
The improved seismic images are crucial for energy companies looking to invest in exploration and production. High-resolution data can reduce the risks associated with drilling and increase the chances of successful hydrocarbon discovery. In the context of Trinidad and Tobago, a clearer understanding of the subsurface could attract more industry investment, potentially leading to increased oil and gas production, which is vital for a country whose economy is heavily reliant on the energy sector.
From an energy market standpoint, the agreement between CGG and the Ministry of Energy and Energy Industries of Trinidad and Tobago is strategically significant. Trinidad and Tobago is a key player in the global energy market, particularly in the liquefied natural gas (LNG) sector. Enhancing the country's ability to meet its energy needs and goals through improved seismic data can have implications for both local and international energy markets.
The early commitment from industry stakeholders suggests there is considerable interest in the region's potential. This project could lead to the discovery of new reserves, impacting the supply dynamics of hydrocarbons. For investors and companies in the energy sector, the delivery of early products and geological insights could provide a competitive edge in decision-making regarding asset acquisition and development strategies.
Examining the financial implications, the multi-client nature of the agreement implies a shared cost and risk model, which is often appealing to stakeholders in the energy sector. This collaborative approach can lead to economies of scale and make high-cost seismic acquisition projects more viable. For CGG, leveraging its GeoWells platform to deliver well and geological products could represent a steady stream of revenue, diversifying its business model beyond just data acquisition.
Investors should note that the success of such projects can have a positive impact on CGG's financial performance, especially if the improved seismic data leads to new discoveries and, subsequently, more exploration and development activities in the region. However, the inherent risks of exploration should not be overlooked and the long-term return on investment will be contingent upon the actual hydrocarbon potential uncovered by the reprocessed seismic data.
Paris, France – January 24, 2024
CGG has announced the signature of an agreement with the Ministry of Energy and Energy Industries of Trinidad and Tobago to reimage vintage 3D seismic data from blocks 25a, 25b, 26, and 27 offshore Trinidad. Located in the country’s deep waters, the project has received firm industry commitments and will deliver early products in late February 2024. The agreement also includes the generation of well and geological products that will be delivered through CGG’s industry-leading platform GeoWells.
CGG has committed to reimaging over 5500 km2 of 3D seismic data in the complex eastern Columbus Basin, using its proprietary TL-FWI imaging technology, which will deliver significantly improved seismic images and provide a better understanding of the geological systems in this underexplored part of the basin.
Dechun Lin, EVP, Earth Data, CGG, said: “We are pleased to have reached this multi-client agreement with the Republic of Trinidad and Tobago. We will use our established leadership in geoscience solutions and cutting-edge imaging technology to support this Caribbean Island nation’s ability to effectively address its energy needs and goals.”
About CGG
CGG (www.cgg.com) is a global technology and HPC leader that provides data, products, services and solutions in Earth science, data science, sensing and monitoring. Our unique portfolio supports our clients in efficiently and responsibly solving complex digital, energy transition, natural resource, environmental, and infrastructure challenges for a more sustainable future. CGG employs around 3,400 people worldwide and is listed on the Euronext Paris SA (ISIN: 0013181864).
Contacts
| Group Communications & Investor Relations Christophe Barnini Tel: + 33 1 64 47 38 11 E-Mail: christophe.barnini@cgg.com |
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