PGS Changes MultiClient library amortization from 1 January 2016

OSLO, NORWAY (4 December 2015) - Due to an amendment to IAS 38 Intangible assets, the amortization method for the seismic MultiClient libraries will have to change with effect from 1 January 2016.

After an extensive process involving industry participants, TGS and PGS have decided to adopt the following changes to the amortization policy:

  • During the work in progress (WIP) phase, amortization will continue to be based on total cost versus forecasted total revenues of the project.
  • After a project is completed, a straight-line amortization is applied. The straight-line amortization will be assigned over a remaining useful life, which for most projects is expected to be 4 years. The straight-line amortization will be distributed evenly through the financial year independently of sales during the quarters.

Today's minimum amortization policy will no longer be relevant.

The changes to MultiClient library amortization will be applied prospectively as from 1 January 2016.

FOR DETAILS, CONTACT:
 

Bård Stenberg, VP IR & Corporate Communications
Mobile:  +47 99 24 52 35
  

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.