TGS sets up New Energy Solutions division

Oslo-listed seismic player TGS is launching a new energy-transition-focused business unit – New Energy Solutions (NES).

In a statement on Thursday, TGS said it aims to establish itself as the leading provider of data and insights directed towards industries actively contributing to the reduction of greenhouse gas emissions, such as carbon capture and storage (CCS), deep sea mining, geothermal energy, wind energy and solar energy.

The starting point is the company’s subsurface data library, in combination with core skills in geoscience, data processing, data management, data analytics and AI. This will be complemented by relevant additional data types and subject matter expertise, TGS added.

“Over the past few years, we have seen an increasing interest for our data and insights from other industries besides the oil and gas industry. By establishing the NES business unit, we are preparing our non-oil & gas offering for further growth.

“Many of the investments required in renewable energy and CCS have long pay-back times. It is therefore critical to make well-informed and precise investment decisions. Our aim is to be the leading provider of data and insights that help de-risk investments and reduce the time-to-market.

We have been helping our oil and gas customers to de-risk investment decisions for 40 years. With New Energy Solutions we will use our experience, global presence and core strengths to help new and existing customers with the energy transition.”

The company said it has launched several partnerships with established industry players where TGS leverages its core strengths to generate business opportunities outside the traditional oil and gas markets. In addition to partnerships, the company said it will pursue both organic and inorganic opportunities to build a database and insight within these new markets.

TGS reported net loss of $205 million for 2020, on revenues of $319 million against net profit of $319 million in 2019 and revenues of $585 million.

The company’s backlog amounted to $88.9 million at the end of Q4 2020, down 13.0 per cent compared to $102.1 million at the end of Q3 2020. Backlog at the end of the quarter decreased 50.9 per cent from backlog of USD 181 million at the end of Q4 2019.