SeaBird Faces Delays in Seismic Surveys

SeaBird Exploration, a global provider of marine 2D and 3D seismic data and associated products and services to the oil and gas industry, has estimated that its ongoing seismic surveys in West Africa and Americas will both be completed about two months later than originally planned.

The the ongoing niche 3D survey in West Africa utilizing the “Nordic Explorer” and a 2D survey in the Americas employing the “Harrier Explorer” are rigged with the ”Digistreamer” technology and both surveys are affected by difficulties with availability and lead-time of select seismic streamer equipment parts relating to this technology.

This includes a significant increase in the repair period for streamer sections compared to historic experience caused by the service offering, repair facilities and inventory level for certain technology components included in the “Digistreamer” all being significantly downscaled post the 2014 downturn.

The company placed orders for repair of streamer and for new streamer related equipment shortly after the contract awards. However, the combined effect of worse than expected condition of the “Nordic Explorer” streamer pool equipment (included in the charter-in agreement for the vessel), increased repair period and logistical lead times exceeded the equipment related contingency included in the project plans for the 2D and 3D surveys.  

SeaBird will after completion of the projects have a significant pool of repaired and tested “Digistreamer” ready for use. In addition comes a larger pool of Sercel Sentinel streamer.  The current “Digistreamer” related problems are therefore not expected to have any effects on future 2D and niche 3D projects.

The ongoing 3D survey in West Africa is estimated to be completed by mid September 2019, more than two months later than the original survey plan, predominantly due to the survey being acquired with two streamers versus four streamers as originally planned. The extended survey duration will result in increased operating expenses and generate an estimated project margin of negative USD 1.4 million.

The ongoing 2D survey in the Americas is estimated to be completed ultimo September 2019 which is about two months later than the original plan. The extended survey duration will result in increased operating expenses and generate an estimated project margin of close to zero.

Further, with reference to the press release of 29 July 2019, the Osprey Explorer is currently transiting to the NCS for a two-month source project with estimated completion late September/early October. This represents a new contract award and is also the first contract with the relevant OBN contractor.