PARIS – CGG expects market conditions for geophysical contractors to remain favorable, with E&P expenditure continuing to rise, sustained by new frontier programs in areas of complex geology.
However, demand for seismic data is changing, the company says, as clients are looking at geoscience information in new ways and expect higher technological content as well as more precise information.
They are looking to optimize field appraisal, extract very early in the cycle detailed reservoir properties to be able to predict stress and fractures, and to ensure safe and predictable drilling and completion operations.
Geology, geophysics, and reservoir markets are growing, driven by higher volumes of data acquired, increasing resolution, improved technological content, and more sophisticated algorithms allowing better understanding and characterization of complex geologies.
CGG says this should drive more reservoir services and solutions as well as more intelligent data storage.
The marine acquisition market remains solid, with increasing demand for broadband technologies.
Multi-client surveys will be driven increasingly by new frontier exploration and high licensing activity worldwide, but especially offshore Brazil, where new licensing rounds have been announced.
Overall, CGG expects demand for seismic and geosciences to remain solid, spurred by exploration of areas such as the Barents Sea, Arctic, Angola, Gulf of Bengal, and East Africa, while tendering activity for marine contracts is increasing.