CGG makes claim for damages against Arrow SeismicNews // July 9, 2008
Petroleum Geo-Services (PGS) has announced that its subsidiary Arrow Seismic has received a writ of summons from CGGVeritas, in which CGGVeritas claims compensation from Arrow of approximately US$70 million.
In the writ, CGGVeritas claims to have a binding agreement with Arrow for a charter and ultimately the purchase of NB 534, a newbuild seismic vessel that Arrow'ss subsidiary Arrow Seismic V Limited is building in Spain.
CGGVeritas claims to have a binding agreement to this effect even though no agreement has been signed between CGGVeritas and Arrow or any subsidiary of Arrow.
CGGVeritas claims that Arrow discontinued the negotiations with CGGVeritas as a consequence of PGS' purchase of Arrow at a stage where, considering the nature of the negotiations, a binding agreement had in fact been entered into.
PGS said it views the CGGVeritas claim against Arrow as "totally unfounded."
"PGS' position is that neither Arrow nor any subsidiary of Arrow was bound by any agreement with CGGVeritas at the time PGS purchased Arrow," said the company in a statement. "The availability of NB 534 was a clearly communicated and accepted condition of PGS' bid for GC Rieber Shipping's shares in Arrow."