MOSCOW, July 6, 2010—Integra Group (LSE: INTE), a leading FSU-based onshore oilfield services provider, and WesternGeco, the seismic business segment of Schlumberger, today announced agreement on the principal terms of an exclusive seismic joint venture company to be known as IG Seismic Services Limited.
The joint venture will provide land seismic acquisition services as well as interpretation and data processing in Russia, Kazakhstan, Uzbekistan, and Turkmenistan and their respective transition zone waters. WesternGeco will become a minority shareholder in the venture with a 25% stake through the contribution of its land and transition zone seismic and data processing business in the aforementioned countries together with cash and access to certain proprietary Q* technology and Omega* data processing software. Day-to-day management of the venture is expected to be performed by Integra while key strategic and investment decisions will be made by the board of the joint venture with input from WesternGeco.
The new company will benefit from the synergies created by combining the partners’ experience, technology, operational expertise and marketing skills. IG Seismic Services Limited will continue to pursue the existing Integra strategy of undertaking land seismic projects outside the CIS and as part of the transaction the parties also agree to cooperate in such services in other areas. The venture will operate a combined capacity of more than 40 seismic crews and nearly 900 CPUs of computer processing power with best-in-class software for data processing and interpretation.
Commenting on the transaction, Antonio Campo, Integra’s Chief Executive Officer said:
“We are very excited about expanding our capabilities by joining forces with WesternGeco. The agreement will boost the service range and expand the market presence of our core seismic segment. With the introduction of WesternGeco personnel and technology, the new venture will ensure efficient development of our joint seismic operations while the combination of our processing centers in Russia and Kazakhstan will substantially increase our data processing capabilities. We believe this move is in line with our strategy to increase our presence in businesses with higher added value and further improve our technology.”
Carl Trowell, president WesternGeco said:
“This new venture enhances the competitive strength and geographical footprint of its partners while providing additional business opportunities and expansion of the client base. In addition, the synergy created will bring significant value to customers as they expand their operations throughout the area”.
Schlumberger is the world’s leading supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide. Schlumberger employs approximately 83,000 people representing over 140 nationalities and working in more than 80 countries. Schlumberger provides the industry’s widest range of products and services from exploration through production.
Schlumberger Limited has principal offices in Paris, Houston and The Hague and reported revenues of $22.7 billion in 2009. Currently Schlumberger operates in all oil production regions of the Russian Federation and has 50 production bases, research centers, plants and representative offices across Russia. Since 1991 Schlumberger’s contribution in the Russian economy (GDP) has amounted to over $2.3 billion.
For more information, visit www.slb.com.
Integra Group is a leading FSU-based independent provider of onshore oilfield services and is also a manufacturer of cementing equipment and certain specialized equipment used in the exploration, development and production of oil and gas. Integra has oilfield services operations in all major oil and gas producing regions in Russia and in many other CIS countries. The company’s customer base includes major Russian and international oil and gas companies operating in Russia and CIS.
Established in March 2004, Integra Group has, through 17 strategic acquisitions, become one of the leading companies in the oilfield services and equipment manufacturing sectors of the Russian market and employs more than 17 000 people.
Since February 27, 2007 Integra Group has been traded on the London Stock Exchange (symbol: INTE).
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Forward looking statements: Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Integra Group. You can identify forward-looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might,” or the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. Integra Group does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in Integra Group’s projections or forward-looking statements, including, among others, general economic and market conditions, Integra Group’s competitive environment, risks associated with operating in Russia, rapid technological and market change, and other factors specifically related to Integra Group and its operations.
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