To build and maintain the MultiClient data library, PGS makes significant investments in developing, acquiring and processing new MultiClient surveys. In this way, PGS positions itself in both frontier and mature geo-markets.

MultiClient is the dominant acquisition business model for PGS, where the ability to identify and initiate new MultiClient programs with solid economics over the life of the survey is the key to success. PGS derisks new programs by securing prefunding commitments from oil companies, with a targeted prefunding level for the portfolio as a whole in the range of 80-120% of the capitalized MultiClient cash investment.

How PGS Initiates MultiClient Surveys

PGS initiates attractive new MultiClient projects by capitalizing on its existing data library, applying in-house imaging and reservoir expertise, and through feedback from the sales force. The MultiClient data library provides information about geology in all major hydrocarbon basins. By analyzing these datasets and open file data available around the world, PGS imaging and reservoir experts are able to propose both extensions to the existing library and new areas of hydrocarbon resource potential that are likely to be of interest to oil and gas companies. These findings are assessed against feedback from the sales force, as to where customers would like to explore. These resources are combined with an overall risk analysis of the area and the likelihood of future license rounds or other triggering events.

A key part of the MultiClient business is to assist governments to explore and promote their resource potential in the best way possible, noting that every country and basin requires a slightly different approach. Currently, PGS is proud to be supporting several governments through the provision of high-quality data and bespoke advice on how to optimize the outcome.

Exploiting a Fully Integrated Business Model

Following the decisions by WesternGeco and CGG to exit the marine seismic acquisition market, PGS is the only company offering the full range of seismic services and business models. Being in full control of acquisition and imaging technology makes PGS uniquely positioned to deliver the best and most flexible solutions.

Full vertical integration allows PGS to control all aspects of the process of identifying new projects, building the relationships that enable those projects to proceed, through to supplying the vessels and the financial backing to ensure that projects go ahead on the optimal timeline without the need to balance the commercial drivers of third-party suppliers. This is particularly important when making commitments on optimum time and quality to host governments.

Consistent quality of services and data is also highly valued by end users. There are other advantages for a vessel-owning company in the MultiClient market. Easy access to capacity at cost is an obvious one, whereas pure MultiClient companies are subject to the going charter rate in the market. Commercial flexibility is another. In mature areas, contract jobs can be included in larger MultiClient surveys, an opportunity that is not available to the asset-light competitors.