Norway's Shearwater GeoServices and French group CGG have suspended talks on a new technology partnership, due to Covid-19 effects on the oil and gas sector.
The seismic survey companies had agreed to explore a partnership in June last year.
Shipowner Shearwater — 19% owned by Oslo-listed GC Rieber Shipping — wanted to set up a marine streamer technology partnership with CGG.
"Due to the downturn in the oil and gas industry, triggered by the Covid-19 pandemic, Shearwater and CGG have jointly agreed to suspend negotiations regarding the partnership," GC Rieber said in a filing.
The two sides had aimed to launch the venture by the end of last year, but talks had continued this year as the pandemic hit.
The joint company was to be known as Sercel and cover research and development, manufacturing, commercialisation and support of marine streamer seismic acquisition.
In January, Shearwater completed its acquisition of CGG's seismic vessel fleet, however.
Five-year capacity deal
Shearwater grabbed five high-end streamer vessels and two additional "legacy ships" that were owned by Global Seismic Shipping (GSS), a joint venture between CGG Marine Resources Norge and Eidesvik Offshore of Norway.
The transaction itself was a pure asset transfer in which Shearwater assumed all liabilities associated with the ex-CGG vessels.
The deal also included a five-year capacity agreement for marine seismic acquisition services.
After closing the transaction, Shearwater had a fleet of 23 ships, including three ocean bottom seismic multipurpose vessels and two dedicated source units.
At the time of the deal, Norwegian shipowner Eidesvik Offshore said it had received consideration shares in Shearwater as compensation for the sale of its 50% stake in GSS.
CGG and Eidesvik agreed a put option for Eidesvik at $30m for the stock, which was exercisable for up to 36 months after closing of the transaction.
