Annual Report 2011 - PGS

Notes to the financial Statements of PGS ASA
NOTES TO THE FINANCIAL STATEMENTS OF PGS ASA
Note 6 - Property and Equipment
Property and equipment consists of fixtures, furniture and fittings and are summarized as follows:
(In thousands of NOK) 2011 2010
Purchase costs:
Purchase costs as of January 1, 90,974 90,974
Additions --- ---
Purchase costs as of December 31, 90,974 90,974
Accumulated depreciation:
Accumulated depreciation as of January 1, 88,940 86,806
Depreciation 533 2,134
Accumulated depreciation as of December 31, 89,473 88,940
Balance as of December 31, 1,501 2,034
Property and equipment is depreciated over 3 to 5 years.
Note 7 - Shares in Subsidiaries
Shares in subsidiaries are recognized in PGS ASA’ balance sheet at cost less any impairment:
Shareholding
(a)
Book value as of
December 31, 2011
(In thousands
of NOK)
Registered
office
Number of
shares
Total
share capital
Par value
PGS Geophysical AS Oslo 1,396,805 NOK 139,680,500 100% NOK 100 2,502,650
PGS Exploration (Nigeria) Ltd. Nigeria 2,000,000 USD 2,000,000 100% USD 1 320
Petroleum Geo-Services, Inc. Houston 1,000 USD 1,000 100% USD 1 23,699
Petroleum Geo-Services (UK) Ltd. London 222,731,726 GBP 222,731,726 100% GBP 1 1,214,593
Seahouse Insurance Ltd. Bermuda 120,000 USD 120,000 100% USD 1 8,165
Multiklient Invest AS Oslo 100,000 NOK 10,000,000 100% NOK 100 989,727
PGS Shipping AS Oslo 4,733,975 NOK 9,467,950 100% NOK 2 1,140,992
Petroleum Geo-Services Asia Pacific
Pte. Ltd. Singapore 100,000 SGD 100,000 100% SGD 1 2,569,207
PGS Investigacào Petrolifera Ltda. Brazil --- BRL 5,000 99% BRL --- ---
Hara Skip AS Oslo 1,066,016 NOK 106,601,600 100% NOK 100 304,866
Oslo Seismic Services Ltd. Isle of Man 1 USD 1 100% USD 1 33,570
PGS Australia Pty. Ltd. Perth --- --- --- 100% --- --- 49,633
PGS Venezuela de C.A. Venezuela 5,015,000 VEB 5,015,000,000 100% VEB 1,000 ---
PGS Overseas AS Oslo 100 NOK 100,000 100% NOK 1,000 100
PGS Suporte Logistico e Servicos
Ltda.( b) Brazil 12,088,000 BRL 12,088,000 1% BRL 1 369
PGS Japan K.K. Japan 10,000,000 JPY 10,000,000 100% JPY 1 563
PGS Exploration (Norway) AS Oslo 501,000 NOK 501,000 100% NOK 1 11,175
PT PGS Nusantara Indonesia 4,675 IDR 4,675,000,000 99.6% IDR 1,000,000 ---
Arrow Seismic ASA Bergen 23,500,000 NOK 282,000,000 100% NOK 12 1,602,815
MTEM Ltd Scotland 270,000 GBP 270,000 100% GBP 1 312,316
PGS Falcon AS Oslo 43,195 NOK 734,315,000 100% NOK 17,000 1,254,485
PGS Ventures AS Oslo 100 NOK 100,000 100% NOK 1,000 100
PGS Servicos de Mexico SA de CV Mexico 500 MXN 50,000 99.8% MXN 100 23
Total 12,019,368
(a) Voting rights are equivalent to shareholding for all companies.
(b) The remaining 99% shareholding is held by PGS Overseas AS.
In 2003, PGS ASA sold its Atlantis oil and gas activities to Sinochem. In 2010 PGS ASA received $1.0 million (NOK 5.9 million)
in additional proceeds.
In 2009, PGS ASA entered into an agreement to sell its Onshore business (“Onshore”) to Geokinetics Inc (“Geokinetics”), see
Note 4 in the consolidated statement. In 2010 PGS ASA converted long term debt to equity in some of the sold entities to fulfil
the agreement. PGS ASA recognized a gain of NOK 176.5 million in 2010, mainly due to reversal of previous recognized
impairments of receivables towards the sold companies. In 2011, PGS ASA recognized additional gain of NOK 6.8 million on
the sale of Onshore due to derecognition of previous accruals related to the sale.
In 2011 PGS ASA recognized a NOK 421.3 million net impairment charge on shares in subsidiaries, mainly related to reduced
equity in Petroleum Geo-Services Inc and other US subsidiaries. In 2010, PGS ASA recognized a NOK 607 million impairment
charge on the shares in Arrow ASA (NOK 700 million in 2009). The main reason for this impairment charge was the cancellation
of the new build contracts and impairment charges in the subsidiaries of Arrow ASA (see Note 18 to the consolidated financial
statement). In 2009, PGS ASA also recognized a NOK 500 million impairment on shares in MTEM Ltd, due to the restructuring
of the EM business in MTEM Ltd in 2008 and 2009 and NOK 1.4 billion in reversal of previous recognized impairment charges,
PGS ANNUAL REPORT 2011 58
126 PGS Annual Report 2011