CGGVeritas Rises After Winning $375 Million Contracts
(Corrects name of joint-venture partner in third paragraph of story originally published Jan. 11.)
CGGVeritas (GA), the world’s largest seismic surveyor, rose to a 15-month high in Paris trading after its Saudi Arabian joint venture won two contracts.
CGGVeritas climbed 5.9 percent to close at 18.355 euros, the highest price since Oct. 3, 2008. The company is valued at 2.77 billion euros ($4.03 billion).
The joint venture, a partnership with Industrialization & Energy Services Co., won two contracts from Saudi Aramco for three-dimensional data acquisition, CGGVeritas said today in a statement. The first is scheduled to start in June and operate for 18 months and the second will run from October for 24 months. Both have optional extension periods and are valued at about $375 million combined, the company said.
CGGVeritas, created in 2006 when Massy, France-based Cie Generale de Geophysique SA bought Houston-based Veritas DGC Inc., has 65 percent of the global market for seismic equipment and about a third of the market for services, Chief Executive Officer Robert Brunck said last month in an interview at the company’s headquarters in Paris.
The French Institute of Petroleum expects the market for seismic equipment and studies to expand by 3 percent this year to more than $10 billion, recovering from a 22 percent contraction in 2009.
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