March 21 (Bloomberg) -- Electromagnetic GeoServices ASA, a Norwegian oil and gas surveyor, said it’s confident of increasing its order backlog after signing an agreement that expands its coverage of the waters off Brazil.
“Towards the end of the year we will have at least one longer-term contract communicated,” Chief Financial Officer Svein Knudsen said in an interview in Oslo today. “We’re promising improved backlog and we’re sticking to that promise.”
EMGS, based in Trondheim, plans to almost double its order backlog to at least $100 million by the end of the first half, Knudsen said in a presentation today. Shares in the company have fallen more than 30 percent since the start of the year amid concerns that the company’s backlog is shrinking. That’s even after EMGS signed a three-year agreement with Royal Dutch Shell Plc for the provision of 3D electromagnetic services globally.
EMGS, which uses electromagnetic technology to search for oil and gas under the seabed, signed a deal with Spectrum ASA to access its multi-client 2D survey library in order to plan a multi-client 3D survey in the Foz de Amazonas basin off Brazil, it said in a statement today. The survey will cover blocks that are included in the 11th licensing round, it said.
EMGS expects to agree on similar collaborations elsewhere in the world with potential partners including Petroleum Geo-Services ASA and TGS Nopec Geophysical ASA, Norway’s two-largest seismic companies, Knudsen said.
EMGS uses a method of mapping the seabed that competes with the seismic technology employed by companies such as Schlumberger Ltd., TGS and PGS.
Shares in EMGS gained as much as 3.3 percent and closed unchanged at 9 kroner in Oslo.
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