METI Agreement
– Innovative Business Model
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| Ramform Victory has been renamed Shigen and was delivered to METI in January 2008. |
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In March 2007 PGS entered into a Head of Agreement with the Japanese Ministry of Economy Trade and Industry (METI). The final agreement was signed in May 2007 and it included a sale and flag change of the 3D vessel Ramform Victory and the continued provision by PGS of intellectual property and technical and operational services.
The vessel will be used by METI in a planned 10 year seismic campaign to carry out numerous surveys mainly on the Japanese Continental Shelf. The sales price of the vessel including support and start up fees is USD 225 million. Out of this 10% was received when the contract was signed, 50% upon completion of modifications in December 2007, and 40% after 30 days of the vessel delivery in January 2008. The vessel has now been renamed “Shigen” which means natural resources. The sale is preconditioned on a service agreement between PGS and the Japan Oil, Gas and Metals National Corporation (JOGMEC), which has been appointed by METI in agreement with PGS, for technical and operational support providing PGS with an exclusive right to provide such services relating to the Shigen during the survey period. The commercial terms of the agreement will be fixed for four years. The service agreement consists of technical support, operation consulting and training, in addition to licensing of various advanced PGS seismic technology products.
With this project PGS is assisting METI in opening up for seismic surveying in a very interesting area, and at the same time securing both a consistent financial return and an excellent position to develop further business.
