Corrupt and Dangerous PGS ASA Completes Another GeoStreamer X Program

What If Members Break the Society of Exploration Geophysicists (SEG) Code of Ethics?

Falsely Accused Professionals Should not Remain Silent and Victims of Crimes should be Listened to and their Claims Fully Investigated!

(US FBI / UK ActionFraud)

PGS ASA denied a foreign-worker victim of crimes and whistleblower his right under UK law and contract to raise a workplace grievance. PGS ASA bribed legal firms Watson Farley & Williams and victim’s counsel, LZW/Landau Law to illegally use a termination settlement contract and send the victim out of the country so that the complaints would not be presented in the English court system. PGS ASA, Watson Farley & Williams and LZW/Landau illegally terminated the work visa to thwart SDKs ability to use the court system. The financial damage awards for breaches in the Equality Act 2010 and/or the Health and Safety Act are unbounded. The illegal settlement contract would pay a pittance and also allow the perpetrators to avoid prison.

PGS ASA does not even dispute accusations of board of directors and executive unethical behavior and crimes? PGS ASA not honoring employment contract terms and conditions means they do not abide by the SEG Code of Ethics.

PGS ASA Inaction on Contractual Confidentiality terms and conditions damages the Society of Exploration Geophysicists (SEG) and its Members Reputations. This should be enough to warrant PGS ASA expulsion from the SEG. SEG Members should Demand Action!

PGS ASA has four contracts prohibiting the publication of content that disparages PGS and its stakeholders. Former PGS ASA General Counsel, Rune O. Pedersen, is an accused criminal who has used non-disclosure agreements fraudulently to escape accountability for his own as well as others crimes. Demand accountability. The publications disparages PGS, customers, shareholders, and employees. The purpose of Confidentiality terms and conditions are intended to protect company reputation and value, not keep criminals out of prison!

Why would an innocent person allow themselves to be publicly accused of a crime and remain silent? Isn’t it Fiduciary Negligence to NOT invoke the terms and conditions of Non-Disclosure / Confidentiality Agreements?

PGS ASA does not take legal action for breach of contract? PGS ASA is processing illegal forged and defamatory personnel records which were used to support the illegal termination of a US foreign worker victim of crimes and whistleblower. Demand that PGS ASA uphold their employment contracts and produce the report which they cite. There is no such report because PGS ASA is an organized crime organization.

London Employment Lawyer Philip Landau accepted bribes from PGS ASA & Watson Farley & Williams to defame and defraud his client SDK. Landau and assistant Holly Hobson participated in a confidence fraud denying SDK his right of due process under English law and contract to receive answers for his grievances accusing PGS executives of illegal discrimination and harassment. Landau participated in defrauding immigration and data protection agencies globally.  This is why criminal fuckhead Landau stays silent.

PGS ASA extorting whistleblower into silence through paying Thai law firm Duensing – Kippen to file bogus “criminal” defamation claims citing Thai law to avoid the fraudulent termination contract formed by PGS bribed legal firms Watson Farley & Williams, and LZW Law (Landau Law) governed by the laws of England!

PGS ASA processes inaccurate and unsigned data subject personnel records as personal data because corrupt lawyers from London Landau Law and Watson Farley & Williams, as well as Thailand’s Duensing – Kippen have been bribed to obstruct due process while defrauding and extorting / blackmailing their victim of crimes. Corrupt Data Protection Officer Daphne Bjerke has also been bribed to assist in this human rights abuse and fraud.

London Employment Lawyers Philip Landau (Landau Law) & Holly Hobson (BDBF) advised SDK to sign an illegal termination settlement contract. This placed SDK and his family’s health and safety in danger in a foreign country. Landau & Hobson participated in a confidence fraud to allow PGS ASA criminals to escape accountability. Why aren’t all of these criminal peices of shit in prison?

Narcissists, sociopaths, and psychopaths can cause long-lasting damage to the lives of their victims. One of the most common ways narcissists express their rage at anyone who “dares” to defy them is through retaliation. PGS ASA used the issuing of damaging actions on dates of significant importance to their victim, such as mocking the 9-11 tragedy or ruining special days, such as a wedding anniversary.

Corrupt and Negligent PGS ASA Board of Directors remain silent and have never taken any actions to protect company reputation and value. Inaction also harms the reputation of the industry professionals. It’s a disgrace.

PGS ASA Corruption Trio Pedersen, Omreng, and Langseth breach SEG Code of Ethics by Processing Defamatory Forged Documents in Personnel File of Crime Victim and Whistleblower to Blacklist Professionally

PGS ASA Berit Osnes has violated the SEG Code of Ethics and should be expelled from the organization. Osnes aids and abets in the fraud, harassment, and blacklisting of a victim of crimes and whistleblower.

PGS ASA Nathan Oliver should be expelled from the SEG for violating the Code of Ethics. Oliver has obstructed justice and aided and abetted PGS ASA, Watson Farley & Williams, Landau Law and Thailand’s Duensing – Kippen fraud, harassment, and professional blacklisting of a victim of crimes and whistleblower.

PGS ASA Rob Adams should be expelled from the SEG for violating the Code of Ethics. Adams has obstructed justice and aided and abetted PGS ASA, Watson Farley & Williams, Landau Law and Thailand’s Duensing – Kippen fraud, harassment, and professional blacklisting of a victim of crimes and whistleblower.

PGS ASA, Watson Farley & Williams, and LZW/Landau law have conspired to obstruct justice and defame, defraud, and professionally blacklist a US citizen victim of crimes and whistleblower. Because they impede the legal avenues of resolution, they have allowed the geophysical service industry professionals to be disparaged so that they can remain unaccountable for their crimes. DEMAND THAT THEY END THEIR SILENCE!

PGS ASA Joshua May participated in the illegal harassment and mobbing, defrauding and defaming of a USA citizen and co-worker. May has been bribed to obstruct justice and conceal the truth to protect corrupt PGS executives and lawyers from Watson Farley & Williams and Landau Law. May should be in prison with the rest of the criminals who pay him to hurt my USA-Thai children.

PGS ASA Andrew Long should be expelled from the SEG for violating the Code of Ethics. Long has remained silent to help obstruct justice and aid and abet PGS ASA, Watson Farley & Williams, Landau Law and Thailands Duensing – Kippen fraud, harassment, and professional blacklisting of a victim of crimes and whistleblower.

PGS ASA John Barnard (former) violated the SEG Code of Ethics. PGS ASA Joshua May and Sarah Murphy should be expelled from the SEG. These individuals debase the profession. They have obstructed justice and aided and abetted PGS ASA, Watson Farley & Williams, Landau Law and Thailand’s Duensing – Kippen fraud, harassment, and professional blacklisting of a victim of crimes and whistleblower.

Named PGS ASA personnel, past and present, have a legal and professional duty to speak out and address allegations of crimes and corruption. Such provisions form a part of their employment contracts. They remain silent out of evil greed. They debase the profession. The cabal are allowed to breach the letter of their contracts and the law to aid and abet voilence against a USA citizen and victim of crimes along with his family.

PGS Compliance has ignored complaints since 2015. The first report of fraud was submitted 24 Aug 2015. PGS was aware of this report as well as additional ones filed after that. In 2018, PGS ASA cited the report which was posted online as criminal defamation under the laws of Thailand. However, PGS ASA has no offices in Thaialnd and never cited a breach of contract governed by the laws of England.

PGS ASA bribed law firms Watson Farley & Williams and LZW Law to process a termination settlement agreement supported by defamatory forged documents to deny SDK the ability to use the English legal system to address illegal harassment, discrimination and defamation claims in the UK tribunal system. The false records were shared by the PGS ASA Houston office to illegally professionally blacklist victim of fraud and whistleblower SDK.

No one from PGS ASA, Watson Farley & Williams, and LZW/Landau Law finds publications claiming that they are criminal peices of shit disparaging and a breach of contractual confidentiality terms and conditions? PGS ASA, Watson Farley & Williams, and SDKs advising counsel, LZW/Landau Law, engaged in a criminal conspiracy to obstruct SDKs legal and contractual right to raise a grievance and receive a conclusion to contest in the UK court system. PGS ASA, Watson Farley & Williams, and LZW/Landau Law created forged and defamatory personnel records to support the fraudulent termination settlement contract proffered to absolve PGS ASA criminals of any accountability. SEG must demand that PGS ASA take action and stop damaging the reputation of the industry and profession.

An Open Letter was published accusing the PGS ASA Board of Directors of wrong doing 18 June 2017. There was never a response. However, in September 2018, PGS ASA officers sponsored “criminal defamation” litigation against author SDK citing Thai law even though PGS has no business entity in Thailand and SDK and PGS ASA had signed two contracts governed by the laws of England. The claims forwarded by Thai law firm Duensing – Kippen cited the unanswered Open Letter as defamatory to a criminal level, but not a breach in the non-disparagement clauses?

No one from PGS ASA, Watson Farley & Williams, or LZW/Landau Law have never denied accusations that they are evil criminal scum. What PGS ASA, Watson Farley & Williams, and LZW/Landau Law have done is lied to LinkedIn and Twitter to get the accusations taken off social media. PGS ASA, Watson Farley & Williams, and LZW/Landau Law also hired Thai law firm Duensing-Kippen to steal and destroy evidence. PGS ASA is a criminal organizstion. PGS ASA uses the money they steal from their crime victims, shareholders, and business partners to do more criminal acts. BOYCOTT PGS ASA if you care about the integrity of the industry and professionals who work in it. Demand that PGS prove my published accusations are false.

BDBF: What can employers do to support whistleblowers? Not hire criminals?


PGS ASA would put an honest whistleblower in jail before telling the truth

What is the Responsibility of PGS ASA Owners for Corrupt Business Practices?

Bård Stenberg – PGS ASA VP IR & Corporate Communication

PGS ASA Chairman of the Board Walter Qvam

PGS ASA Executive Management

Rune Olav Pedersen – PGS ASA President & CEO

Gottfred Langseth – PGS ASA Executive Vice President & CFO

Berit Osnes – PGS ASA Executive Vice President

Nathan Oliver – PGS ASA Executive Vice President

Rob Adams – PGS ASA Executive Vice President


PGS ASA Nathan Oliver Part of Global Criminal Conspiracy?

PGS ASA EVP Nathan Oliver remains silent and participates in the crimes and human rights abuses perpetrated against a USA citizen and his Thai-USA family to protect corruption.


Open Letter to Petroleum Geo-Services ASA Board of Directors (18 June 2017) p124-128

Evidence Philip Landau Law, London Employment Solicitor, Conspired and Accepted Bribes from PGS ASA to Defraud his Client SDK (20 May 2020)

Accused Criminal Rune Olav Pedersen PGS ASA CEO and President Reduces Company Value (8 August 2020)

Letter to Gareth Jones, PGS Exploration UK Ltd. and ICO Caseworkers (16-Sep-2018)

John Francas, PGS UK Head of Legal, Ignorance and the Fraud of Omission (4 October 2019)

Submitting Grievances and Whistleblowing as a Foreign Work (8 March 2019)

Why I believe the Criminal Defamation Claim brought forth by Carl Richards, former PGS Exploration UK Limited, England, KT13 0NY, Secretary, is Fraudulant (7 August 2019)

PGS ASA High Risk (Fraudulent & Defamatory?) Human Resources (HR) Data Processing (14 October 2019)

Submitting Grievances and Whistleblowing as a Foreign Worker -Part 2 (6 April 2019)

The Petroleum Geo-Services (PGS) Ambush Meeting and the Definition of Fraud (24-May-2016)

What #PhilipLandau, #London #EmploymentLaw Solicitor taught me about Settlement Contracts (30 April 2017) p128-129

The Society of Exploration Geophysicists (SEG) Should Expel Petroleum Geo-Services (PGS) CEO Jon Erik Reinhardsen (11-Oct-2015)

Institutional Betrayal, DARVO, Workplace Mobbing, Gaslighting, and the Geo-Services Professional (24 February 2019)

My Philip Landau and Watson, Farley & Williams (WFW) London Solicitors Testimonial ( 8 November 2016 updated 9 April 2017 )


Daphne Bjerke PGS ASA Global Personal Data Manipulator

Letter to Daphne Bjerke, Petroleum Geo-Services ASA (PGS) Data Protection Officer and ICO Caseworker (2-Sep-2018)

Second Open Letter to PGS Exploration UK Limited Directors Rune Olav Pedersen, Gottfred Langseth, Christin Steen-Nilsen, Carl Richards and UK Serious Fraud Office (16-October-2018)

Open Letter to PGS Exploration UK Limited Directors Rune Olav Pedersen, Gottfred Langseth, Christin Steen-Nilsen and UK Serious Fraud Office (9 October 2018)

Letter to UK Companies House and Petroleum Geo-Services ASA


John Francas, Arbitrary and Capricious, Head of Legal, PGS Exploration (UK) Limited (21-Jul-2018)

Letter to Gareth Jones, PGS Exploration UK Ltd. and ICO Caseworkers (16-Sep-2018)

Letter to Gareth Jones, PGS Exploration UK Ltd. and ICO Caseworkers


Second Open Letter to PGS Exploration UK Limited Directors Rune Olav Pedersen, Gottfred Langseth, Christin Steen-Nilsen, Carl Richards and UK Serious Fraud Office (16-October-2018)

Norwegian Geo-Services Compliance Team Stonewall Whistleblowing Claims – 2016 (22 October 2018)

Open Letter to Petroleum Geo-Services ASA Board of Directors (18-Jun-2017)

Institutional Betrayal, DARVO, Workplace Mobbing, Gaslighting, and the Geo-Services Professional (24 February 2019)

Submitting Grievances and Whistleblowing as a Foreign Worker -Part 2 (6 April 2019)

Letter to UK Companies House and Carl Richards, former PGS Exploration UK Limited Secretary (1-Oct-2018)

Landau Law Didn’t Like My Trustpilot Review? (8 June 2019)

Can PGS Exploration UK Limited Legally Bypass the Terms and Conditions of Previous Contracts Governed Under English Law and Prosecute Claims in Thailand? (3 July 2019)


PGS ASA Berit Osnes Never Answers Questions

Norway’s PGS ASA Legal Public Disclosure Images Q3 2021

The Petroleum Geo-Services (PGS) Ambush Meeting and the Definition of Fraud (24-May-2016)

Norway has a Corruption Problem Named Jon Erik Reinhardsen (5 July 2020)

Petroleum Geo-Services Inc. Houston, Texas and Jon Erik Reinhardsen’s Abusive Corruption (24 October 2020)

Petroleum Geo-Services #PGS #CEO #Pedersen and the Management of Gang Rape (24 October 2017) – Republish

Bård Stenberg – PGS ASA VP IR & Corporate Communication

Petroleum Geo-Services (PGS) Mob Values (14-Jun-2016)

Petroleum Geo-Services (PGS) Mob Values (14-Jun-2016)

When Human Resources is Corrupt (10-Aug-2015)

Holly Hobson London Employment Law BDBF Landau LZW

Petroleum Geo-Services (PGS) CEO Jon Erik Reinhardsen Should Resign (6-Sep-2015)

Petroleum Geo-Services (PGS) CEO Jon Erik Reinhardsen Should Resign (6-Sep-2015)

Petroleum Geo-Services (PGS) CEO Jon Erik Reinhardsen Should Resign 2 (20-Sep-2015)

My Philip Landau and Watson, Farley & Williams (WFW) London Solicitors Testimonial ( 8 November 2016 updated 9 April 2017 )

A Texan’s Run-in with Criminals in Weybridge, England (Republish 10 May 2021)

The Society of Exploration Geophysicist (SEG) Should Investigate the Petroleum Geo-Services (PGS) CEO Reinhardsen Cabal ( 17 October 2016 )

Petroleum Geo-Services (PGS) Mob Gaslighting (30-Jun-2016)

An American, the UK Data Protection Act, Petroleum Geo-Services (PGS) and the Tyranny of “Accurate Data” (3-Jul-2015)


Corrupt and Dangerous PGS ASA Post Q2 2021 Results

Corrupt and Dangerous PGS ASA Post Preliminary First Half 2021 Results

PGS ASA (PGSVY) CEO Rune Olav Pedersen on Q2 2021 Results – Earnings Call Transcript

PGS ASA (OTCPK:PGSVY) Q2 2021 Earnings Conference Call July 22, 2021 3:00 AM ET

Company Participants

Bard Stenberg – VP of IR & Corporate Communication

Rune Olav Pedersen – President & CEO

Gottfred Langseth – CFO & Executive VP

Bard Stenberg

Good morning, and welcome to this audiocast presenting PGS Second Quarter and Preliminary First Half 2021 Results. My name is Bard Stenberg, Vice President, Investor Relations and Communications in PGS. With us from management today are President and CEO, Rune Olav Pedersen; and CFO, Gottfred Langseth.

Before we start, I would like to give some practical information. Participants on this audiocast can submit their questions via the audiocast platform. I’d also like to draw your attention to the cautionary statement in today’s earnings release and presentation and the risk factors disclosed in our 2020 annual report and the Q2 2021 earnings release.

So with that, it’s my pleasure to give the word to Rune Olav.

Rune Olav Pedersen

Thank you, Bard.

In PGS, we have delivered a solid second quarter, considering the challenging market conditions we have been experiencing. We continue to leverage our integrated business models — model, where we operate vessels, and we have an in-house imaging business, and we operate both in the marine contract and the MultiClient market. We believe this positions us well in what we now are considering a recovering market.

In the quarter, we experienced strong MultiClient sales from mature regions in particular. In fact, we were the largest MultiClient player by revenues for the fifth quarter in a row. We experienced late sales of $65.5 million, and we had good client commitment for new projects, leading to strong prefunding.

We are now seeing increasing demand for new acquisition surveys and, I would say, in particular for new contract surveys. This is supported by a positive order book development and, as you will see, increasing bids and leads.

We continue to expect higher 2021 segment revenues versus 2020. And before I move on, I would just like to pause a little bit and comment that PGS is celebrating 30 years in 2021.

In 1991, a few visionary people got together to fund a 3D seismic company in a world which had not seen a lot, if any, 3D seismic. They got funding and they merged the 2 companies, Geoteam and Precision Seismic, and created Petroleum Geo Services. I won’t comment much more on this, except to say that it has been 30 eventful years. And in PGS, we believe the next 30 will also be quite eventful.

So back to the quarter and the financial summary, and I will be brief as Gottfred will go through these numbers in more detail.

On the revenue side, I will just comment that what we saw our largest — our lowest revenues post COVID-19 in the third quarter 2020, exactly as we predicted when we presented these numbers. After third quarter, we have seen a gradual increase for the seismic market.

Vessel booking stands at 17 vessel months in the third quarter; and in the fourth quarter, 8 vessel months; in the first quarter 2022, 3 vessel months. And I am also glad to say that our order book has now increased 4 quarters in a row.

So with that, I give the word for — to Gottfred to go through the financials.

Gottfred Langseth

Thank you. On the key financial numbers, segment revenues and other income, $151.8 million. In the quarter, that’s a 9% increase from Q2 last year; segment EBITDA, $84.4 million; segment EBIT, negative $4.2 million, both EBITDA and EBIT down compared to Q2 2020. And this is down to a primarily a mix change with more contract and less MultiClient and the fact that Q2 last year still benefited from pre-COVID contract pricing. Revenues and other income on the IFRS basis or as reported, $185.9 million in the second quarter, $351 million year-to-date. This is higher than the segment numbers quite significantly. This is down to timing and due to completing several surveys, some of them relatively large during first and second quarter this year.

Lastly, on this slide I will highlight, which is also stated there in the footnotes to the table, that our net financial items in Q2 includes a noncash gain on revaluation of the separate derivative financial instrument deriving from the convertible bond. In addition, also in net financial items, I wanted to mention that the gross interest expense that we are recording on a quarterly basis, of course, includes a significant noncash component, primarily deferred debt issuance costs and imputed interest from the debt rescheduling exercise. And to quantify, more details are in the release, in the second quarter, the gross interest expense amount was $25.3 million, whereas compared to actual cash interest of $20.1 million, so a difference of approximately $5 million.

Then the Q2 operational highlights. Contract revenues of $51.5 million, that’s up from $31 million in Q2 last year. We used more of our acquisition capacity for contracts. 69% of the active time was used for contract now in the second quarter. The total segment MultiClient revenues, $94.1 million, prefunding level of 111% and late sales of $65.5 million.

Then quickly looking at MultiClient revenues by region. North America dominated our prefunding revenues in the second quarter, while Europe had the lion’s share of our late sales.

Vessel allocation and utilization, 68% active vessel time in Q2. This is based on six 3D vessels, including Ramform Sovereign, which operated as a source vessel for approximately half of the second quarter. In Q3, we will have an overweight of contract work, and we will have relatively significant vessel relocations, i.e., steaming, but most likely slightly less than what we had in Q2.

On gross cash costs, we have a sequential cost increase from $92 million to $102 million in the second quarter. This is driven by more operated capacity. Cost will increase further in the third quarter due to higher project activity as well. We have increased our full year gross cash cost estimate to $425 million. The primary driver is increased activity, including Node acquisition and use of Sanco Swift as a source vessel on a combined node and streamer acquisition project. And also including operating Ramform Vanguard now expected to be through most of Q4, almost to year-end. There is also an impact of higher fuel prices as we’ve seen the oil price gradually increased so far this year.

Balance sheet, some quick comments. Cash and cash equivalents of $155.4 million, practically the same as at the start of the year. Net interest-bearing debt including leases, which is last line in the table, is slightly down from the start of the year. The book value of our MultiClient library is $512 million on IFRS basis and $504 million according to our segment reporting.

Then cash flow. We had positive free cash flow in Q2, $11.5 million, the third line from the bottom of the table. This, for avoidance of doubt, is say after everything, after interest and lease payments. Year-to-date, we have a balanced free cash flow or minutely negative, $1 million negative. And this is after payment of refinancing costs primarily in the first quarter.

Working capital and collections at end of Q2 were somewhat frustrating, still impacted by delay of block ratification formalities to the tune of approximately $20 million. These formalities are now sold late Q2 with collection early Q3.

That was my last slide, and I will then give the word back to you, Rune Olav.

Rune Olav Pedersen

Thank you. Fleet activity in July, as you can see, we have 3 vessels in Europe with Ramform Hyperion operating in the Barents Sea on the joint node and streamer project. We see Ramform Sovereign and Ramform Vanguard in the Norwegian Sea and North Sea, respectively. The 2 vessels in Canada, Ramform Atlas and Ramform Titan and Ramform Tethys, is operating outside of Angola.

And as the summer becomes winter in the Northern Hemisphere, we will, of course, move our vessels south. We expect to have a few vessels in the Americas, and you’ve seen us announce a project in Guyana, for example. We will have a few vessels or even maybe even more in Africa, West Africa and Northern Africa. We will have a vessel in the Asia Pacific region, as announced today. Ramform Sovereign will go to Malaysia. And Ramform Vanguard will move to the Black Sea, where she will stay most of the year, if not the entire year.

As I mentioned, we are seeing increasing contract bids and leads levels. And as you can see from the slide, the bids and leads levels are approaching pre COVID-19 levels. In fact, the leads are already there, and the contract bids are approaching that level. Based on this, we do expect quite healthy bidding activity also in the second half.

It is also positive to note that we have received the first 2022 North Sea bids already at this stage. And there are a few of them actually already at this early stage, which is positive news for the contract market.

On the supply side, we are continuing to see historically low supply, obviously. Moderate capacity increase for the 2021 summer season, part of that obviously our introduction of the Ramform Vanguard. And we do not expect any significant capacity increase going into the winter season ahead of us.

Changing gear a little bit. You will remember that we announced in the third quarter that we have started a new business unit in PGS called PGS New Energy. And this time, I thought I would focus on one of the more promising businesses that this new entity is focusing on, namely CCUS or Carbon Capture Utilization and Storage. Obviously, the focus for PGS New Energy will be on the storage side of it because seismic is at the heart of offshore storage. You need seismic to identify, to characterize and to monitoring carbon storage sites.

First of all, you need seismic, and here we can use MultiClient seismic to find the right structures where you can store and insert carbon or CO2. Then you need seismic to interpret that structure to see whether the structure has the right characteristics and is suitable for storing CO2. And finally, if you have found that both of those are in place and you start to insert CO2 into the structure, you need to monitor what’s going on in the subsurface while inserting carbon, and therefore, you need to monitor it.

And this is very similar to what we are currently doing in our 4D activity, in a 4D baseline and then you need to continuously monitoring what happens to the subsurface as you are inserting CO2. There may also be a need to monitor the structure after the insertion is done, but that is probably less intensive.

So as you understand, there is complex geophysical challenges at every stage of CCS, especially offshore storage. So that is one reason why this is an interesting area for PGS New Energy. The other reason, obviously, is that we see a promising near-term market and a potential for a significant business medium to long term.

Currently, there are not much CCS activity worldwide. But we are working with 2 concrete, 4 new projects for next year and also in dialogue around another 2 to 3, which may come next year or in 2023. So we expect to see some revenues coming out of this already next year.

And if you look a little bit ahead, we can see concrete plans for developments up to 2025, which is quadrupling the levels we saw in 2020. And from 2025 up to 2030, if we believe the net zero report, there is 10x as much CO2 storage needed in 2030. And if you go to 2050, you can go another quadrupling from that level again. So as you can see, there is a massive potential in this area, and it has seismic at its heart.

We believe PGS is well positioned to take advantage of this potentially very large market with our integrated approach. We have an existing data library, which is large. It’s in the right place, and it has the right quality. And I am very happy that we today announced the signing of an MOU for a cooperation with CGG to use our existing libraries and put together maybe a CO2 Atlas and try to take advantage of identification and characterization of sites for CO2 storage. So we have great hopes for this cooperation, and we believe we have a complementary both libraries and technical capabilities in the area.

Secondly, we obviously operate our vessels. We do 4D. We are the leading 4D player in the world. And as I explained, 4D will also be needed as we start to insert CO2 into structures offshore. So here, we see a potential for a large market going forward.

And finally, we are also looking into new solutions. As this is a new area, we need to be open for new solutions, how to acquire seismic. There could be more high-density seismic, different types of seismic that is needed. And we have recently also increased our ownership share in a company called Ocean Floor Geophysical, which are very technically advanced, for example, in the area of AUVs. So we look forward to both use our existing competence and explore new technologies, new opportunities when we are building this business. So here, we see a large and promising potential market driven by the energy transition.

So a different topic. We have decided to change our internal policy on announcement of contract awards and multiclient projects. This is done to increase the visibility of how our business is developing between these quarterly presentations. So we will send out stock exchange releases from now on when we receive contract award with an estimated value in excess of the $10 million to $15 million. We will do it when we have been awarded strategically important contracts or MultiClient projects. We will do it when we have been awarded MultiClient projects with a duration of more than 2 months. And we will typically do it when we have signed up to MultiClient projects in joint ventures or in cooperation with third parties. So this is to give you some visibility of when we will send out stock exchange releases.

Guidance. As mentioned by Gottfred, our group cash cost, we are now guiding at approximately $425 million. This is an increase due to higher activity and higher fuel prices. MultiClient cash investment still stands at approximately $150 million. And we expect to use approximately 45% of our active 3D vessel time in our — in MultiClient. CapEx, still at approximately $40 million for the year.

So in summary, as you can — as you hear, we believe we are in a recovering market. We are seeing an increased order book. We are seeing contract bids and sales lead approaching pre COVID-19 levels. So we are seeing an increasing demand for vessel activity, especially contract activity. And we’re seeing this in particularly deeper into the fourth quarter and into the first and second quarter of 2021, where we believe the main increase will come.

We are also experiencing in the first and in the second quarter strong MultiClient sales from our mature regions and, in particular, in the second quarter from Europe and Norway. And we continue to expect higher segment revenues in 2021 versus in 2020.

So all in all, we believe we are well positioned with our integrated model to take advantage of the recovery we see coming. And thank you.

Question-and-Answer Session

A – Bard Stenberg

Thank you, Rune. We will go over to the questions. We have a rather long questions set here from John Olaisen in ABG. Your MultiClient late sales in the first half were up an impressive 68%. The prefunding rate was above 100%. And you talk about improving contract prices. At the same time, your net interest-bearing debt is the same now as it was year-end 2020 and higher than it was a year ago. I’m somewhat puzzled. Why don’t you manage to generate free cash flow? Then he also adds, what is your forecast for the free cash flow in the second half?

Gottfred Langseth

In a way, the — comparing the net debt level to where it was a year back, this is obviously impacted by 2 things: an extremely challenging last 9 months of 2020; and then when it comes to development so far in 2021, which is in a way in line with our plans. We’re still at the — at very moderate levels in this period with respect to contract pricing. And we expect our cash flow generation to improve going forward. We will not provide a guidance or an estimate on free cash flow for the second half, but we expect it to be meaningfully positive.

Rune Olav Pedersen

Yes, when we talk about increasing [indiscernible] we haven’t mentioned contract pricing, but we also see increasing contract pricing, it is not really pricing we have realized much of so far. As you will remember, the first quarter this year was very low on contract pricing, and that also impacted pricing in the second quarter, which we have put behind us. But we are seeing an improvement, that is correct.

Bard Stenberg

Then the second part of his question, your MultiClient sales are impressive especially related to your peers. Why do you think you have been able to outperform your peers on MultiClient economics in the first half? And do you expect to see late sales up year-over-year in second half also?

Rune Olav Pedersen

I’m not going to comment too much on our peers, but I believe we have — in general, have our core MultiClient library sitting in rather mature regions. And it is, for example, the North Sea, which has been strong this first half; but also other places in the world where we have data and are more or less the only one with a significant data presence like Angola, Egypt, and other places, has favored us in this current market environment. We also — which is different from our peers, obviously, do not have a large presence in the Gulf of Mexico, which we have reason to believe that has been muted due to the regulatory changes we have seen there. So that could be part of the explanation. We also believe that the integrated model where we have over time played between the contract and MultiClient market has given us a library which is situated in mature basins where the oil companies are currently focusing.

Bard Stenberg

Yes. Then Mr. Olaisen also has a concluding comment, which you basically have addressed already. If you remember I can just read it out for the sake of good order. In short, I’m somewhat concerned about the sustainability of your MultiClient economics given that basically all of your peers are delivering rather poor MultiClient sales.

Rune Olav Pedersen

Yes, there’s not much for me to comment on that. He can be concerned.

Bard Stenberg

We have a next question from Mick Pickup in Barclays. Last year, you had $160 million of contract revenues for Q2 to Q4. You’ve done $50 million of contract revenues in Q2. Given bookings, this suggests a much stronger Q3 and higher realized pricing, can you comment?

Gottfred Langseth

I think it’s fair to say that we expect higher contract revenues in the third quarter. I think I will leave it with that. The improved pricing that we see in the market will gradually have an increase in impact on our numbers.

Bard Stenberg

Another question from Kim André Uggedal in SEB. With a cash position in line with what it was at the start of the year and the majority of your vessels capacity booked through the end of the year, do you remain as confident to repay the 2022 debt maturities with operating cash flow as you were 6 months ago?

Rune Olav Pedersen

The answer is clearly yes. This is going according to our model. And if anything, we have — we are more confident now than we were half a year ago because we have behind us half a year, which has been a very challenging market where we have delivered according to our plan. But it’s still a year ahead, so there can be no guarantees. But yes, we remain as confident as we have been.

Bard Stenberg

Then we don’t have any further questions at this time. We can pause for a minute to allow people to type in any last questions they may have. John Olaisen in ABG, another long question — not this one. When you say contract prices are up, how much are we talking about? For example, year-over-year, where do you expect contract day rates in second half relative to the daily cost — cash cost?

Rune Olav Pedersen

If we consider the rates we were bidding a year ago going into the second half of 2020 versus where we have currently bid and what’s sitting in our backlog, we are up more than 20% and probably with the margin. Where that is related to cash cost, I’m going to be very careful. But if you assume that we were bidding around cash cost last year, you can probably derive something from that.

Bard Stenberg

Yes. And then Mr. Olaisen has another question. You mentioned steaming in Q3. How much in percent terms should we expect?

Gottfred Langseth

Relatively high, but as of today, it looks like somewhat less than the 21% we had in Q2. This is — this could obviously be impacted by, in a way, the exact timing of completing the surveys in North Atlantic in a way if they extend or otherwise are executed fast or the opposite executed faster, then steaming will start later or earlier. So — but that is the estimate today, somewhat lower than the 21% we had in Q2.

Bard Stenberg

Then we have another question from Mick Pickup in Barclays. Looking at your bidding, how confident are you in further filling the fourth quarter?

Rune Olav Pedersen

Well, as I said, there is a fairly large demand out there. The issue and the problem or what we work with every year at this time is trying to match the jobs we win with the end of the North Sea Canada season. We will, as you see, have several vessels moving south at the same time around beginning of October, so the challenge is always to make sure that we are able to match the start-up dates of contracts and MultiClient programs in the Southern Hemisphere with the end of the Northern Hemisphere, that is going to be a challenge this year as well. There is no silver bullet here, but the way it looks now, it’s a healthy opportunity basket at least, and we are hopeful that we will be able to fill that without too much idle time in between jobs.

Bard Stenberg

Thank you, Rune. At this time, there is no further questions. We can pause for a moment to allow any last minute questions to come through.

A question from John Olaisen in ABG. Will your contract business generate free cash flow after steaming and CapEx in 2021?

Gottfred Langseth

That is our estimate, yes.

Bard Stenberg

And we don’t have any further questions at this time. We will pause for a moment to allow any last questions to come through.

Okay. It does not seem to be any last questions from the audience, so that concludes this audiocast of our Q2 earnings release. Thank you all for participating, and have a nice day.

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John Francas is Head of PGS ASA UK Legal?

PINTEREST Q3 2021 Blog Listing

Neeta Aulak
Director of Risk and Compliance, Watson Farley & Williams LLP

Contact PGS Investor Relations | PGS

RE: [External] Re: PGS Settlement Agreement and Notices

Wed, Jul 3, 2019, 9:41 AM
I emailed you on 11 June informing you that there remained disparaging and defamatory material on your website and informing you that until you removed them, we cannot discuss the matters.
Today I noted a renewed activity on your site, with posts on 29 June and 3 July:
It seems clear that you aren’t interested in discussing this issue.
As such I will now instruct our local firm to take appropriate steps as set out to you in previous correspondence.

Re: [External] Re: PGS Settlement Agreement and Notices

Wed, Jul 3, 2019, 1:28 PM
I am not in Thailand.

Re: [External] Re: PGS Settlement Agreement and Notices

Wed, Jul 3, 2019, 1:30 PM
I have been in contact with the Compliance Team.
As I mentioned, I do not believe that the litigation is compliant or legal and I asked you to explain,  You refused.
But, please explain now.

RE: [External] Re: PGS Settlement Agreement and Notices

Thu, Jul 4, 2019, 5:40 AM
It is disappointing that rather than comply with the terms of the agreements you signed, you persist in harassing and defaming PGS employees and former employees and disparaging PGS. It is clear that you are not interested in discussing these matters or refraining from your campaign of harassment and defamation.
What you believe about the litigation is not relevant. Further, I am under no obligation to explain anything to you. I am not your lawyer. You are free to instruct a lawyer to answer your legal queries.
The matter is now in the hands of our lawyers in the UK, the US and in Thailand.  You can raise you points about the validity of the litigation in the appropriate forum in due course.

RE: [External] Re: PGS Settlement Agreement and Notices

Thu, Jul 4, 2019, 9:36 AM
John Francas,
It has been disappointing to me that PGS has over the course of years never answered questions and engaged my concerns directly.  You are the only PGS agent who has even e-mailed me.
The agreement in Thailand is what I dispute.  I have asked for PGS to explain why they believe the [UK] Public Interest Disclosure Act 1998 or [Norway] Working Environment Act does not apply?  
Both the original employment contract that I signed with PGS Exploration UK Limited and the subsequent settlement contract Confidentiality clauses protect whistleblowing.  PGS has never complied with their own internal policy for grievance and whistleblowing.  This is why I regarded the contract in Thailand as unnecessary and likely a means to avoid addressing the whistleblowing allegations.
I have made the same base allegations since July 2015.  I have posted several unanswered e-mails to the PGS Compliance Team from 2016.  PGS should have clarified issues then.
But, I do not believe I have defamed PGS employees;  I have made accusations of non-compliant misconduct and criminal behavior supported by evidence, such as the 25 October 2013 Memo which resides in my personnel folder.  Please explain that document to me.
I have made reports to ActionFraud.  I obviously see a serious problem.  So, if there is an explanation why not share it?

RE: [External] Re: PGS Settlement Agreement and Notices

Thu, Jul 4, 2019, 9:36 AM
I don’t intend to engage with you further on this matter. I offered to discuss if you removed the material and instead you chose to post additional disparaging and defamatory material.
As per my last email, if you require clarification of legal issues, you are free to instruct a lawyer to advise you.
If you do instruct a lawyer, please have them write to me so that our lawyers can deal directly with your lawyers in respect to proceedings for breach of the Compromise Agreements and criminal proceedings under relevant criminal law.
In closing, PGS has given you many opportunities to row back from your position and move forward with your career and life abroad. You choose not to. The matter will now be dealt with by our lawyers.

Re: [External] Re: PGS Settlement Agreement and Notices

Jul 4, 2019, 9:49 AM
John Francas,
PGS has never addressed the salient issues behind my writing and only recently provided me with opportunities to remove all content, regardless of its truth in fact.
Again, I have made similar criminal claims with UK police.  PGS was never concerned about that or clarifying issues.
The documents which PGS is processing in my name within my personnel file are inaccurate and defamatory.  I have made this revelation directly to PGS in 2014 when I received the contents of my personnel file.
None of the documents bare a countersignature and are factually incorrect.  This has been the origin of all my postings.
You were not at PGS when I was terminated.  So, your decisions are based on the integrity and authenticity of the documents which PGS processed.  You never authenticated the documents and processes behind the termination settlement agreement when you wrote the SAR response in 2018 referencing the settlement contract.
PGS has unlimited resources compared to me.  All they need to do is explain the 25 October 2013 Memo.
Open Letter to Tina Bru, Norway Minister of Petroleum and Energy (13 June 2020)


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