WesternGeco is exiting the business of marine and land seismic acquisition. This was revealed by its parent company Schlumberger which said that WesternGeco did not meet return expectations going forward.
Schlumberger Chairman and CEO Paal Kibsgaard said:”With the significant changes seen in customer priorities and buying habits in recent years, we have also continued to evaluate the present and future return prospects for all of our product lines, as we look to maximize all aspects of the Company’s long-term financial performance.”
“Based on this in-depth analysis, the only product line that does not meet our return expectations going forward, even factoring in an eventual market recovery, is our seismic acquisition business.”
“We have therefore taken the difficult decision to exit the marine and land seismic acquisition market, and instead turn our WesternGeco product line into an asset-light business, built on our leading position within multiclient, data processing, and geophysical interpretation services.”
As a result of WesternGeco seismic restructuring, Schlumberger recorded $1,1 billion in pretax charges in the fourth quarter 2017.
WesternGeco backlog, which is based on signed contracts with customers, was $399 million at the end of the fourth quarter of 2017. It was $489 million at the end of the third quarter of 2017.
In its report, Schlumberger also said it had taken a $247 million charge in the fourth quarter. The company did not say how many workers have been cut, nor from which departments.
Offshore Energy Today has reached out to Schlumberger asking more details on the WesternGeco seismic restructuring. We will update the article if we get any response.