Annual Report 2011 - PGS

Letter from the CEO
contributes to improve the fundamentals of the
marine seismic industry and bring us closer to
a tight market.
Turmoil in Egypt and Libya slowed down, and
in some cases halted, seismic activity in the
Mediterranean. Activity is gradually picking up
in the region, and contributes to improve the
supply/demand balance in the seismic market
further.
Increased activities in the Gulf of Mexico,
Angola, and Mediterranean along with
expectations of another busy North Atlantic
season with higher prices are all positive
factors in our market outlook. Another good
sign is a tapering off of capacity additions in the
coming couple of years. PGS is well positioned
to take advantage of a stronger market. Our
services are competitive, we offer leading edge
technologies, and our financing is robust.
The long-term prospects for our industry are
good. Energy companies continue their search
for new hydrocarbon resources in regions
with deeper waters, harsher environments,
extreme reservoir depths, and complex
geologies. Further seismic is increasingly used
over producing fields to facilitate improved oil
recovery. These factors are likely to intensify
the use of seismic as a risk mitigating tool for
expensive drilling campaigns and promote
deployment of high-density seismic. Demand
is also growing for seismic work to monitor
and manage producing reservoirs. Production
seismic, typically funded from oil and gas
companies’ production budgets, is less
exposed to industry-wide investment cycles.
Our advanced fleet and data processing
technology uniquely position PGS to compete
effectively and earn good margins in the years
to come.
Jon Erik Reinhardsen
President and CEO
PGS Annual Report 2011 11