Norway's TGS has proposed a conditional offer of $600 million for the multi-client data library of compatriot seismic rival PGS as tough market conditions encourage consolidation moves.

TGS has also proposed that, should the deal close, the pair should collaborate for future PGS multi-client projects.

TGS said its offer is valid until 16 August and would be financed by a combination of cash, a new term loan facility of $200 million and fresh equity.

Commenting on the Offer, TGS chief executive Kristian Johansen said:“We see a strong complement between our existing business and the PGS data library and the opportunity to leverage our expertise and scale to improve returns.