Two New Modern Seismic Vessels for CGGVeritas in 2010

CGGVeritas and Eidesvik Offshore ASA have entered into an agreement for the supply of two large seismic vessels to be newly built, with a total contract value of approximately $420m. The two vessels will be of an extremely advanced specification, incorporating many unique features, based on the most recent X-BOWdesign of Ulstein Design AS, and will be delivered in 2010 under 12-year time charter agreements.

These two high-capacity vessels are components of CGGVeritas' strategy of progressive fleet renewal, involving the staged retirement of the former generation of lower capacity vessels in conjunction with the introduction of these new platforms. The new vessels are purpose-designed for the efficient deployment of industry-leading Sercel solid streamer technology and configured for spreads of up to 16 long streamers, or 20 shorter streamers in high-density applications. With the introduction of these two new-build vessels, CGGVeritas will operate the most versatile and capable worldwide fleet in the industry. CGGVeritas and Arrow Seismic ASA also announced that they have agreed to cancel the negotiation for a 12 year Bare Boat charter as outlined in the LOI dated December 2006.