Petroleum Geo-Services (PGS) is poised to sell seismic vessel Ramform Sterling to Japan Oil, Gas and Metals National Corporation (JOGMEC) under a proposed deal that would entail a leaseback of the vessel through a new joint venture.

PGS said it was now the “preferred tenderer” and talks would be initiated to finalise necessary contracts, which is expected in the first quarter of next year.

The Oslo-listed contractor is offering the vessel in return for a 10-year service contract with annual renewals for which it has formed a joint venture with Nippon Yusen Kabushiki Kaisha (NYK) and Hitachi that will set up a special-purpose company to finalise contracts with JOGMEC.

NYK would be responsible for vessel operation and Hitachi for data processing, while PGS would provide technical and operational services, support and training.

The special-purpose outfit would also arrange a separate lease contract with PGS on behalf of JOGMEC under the sale, which excludes a seismic streamer package for the vessel that is due for delivery to the latter in the second quarter of next year subject to contracts being finalised.

PGS said though it would maintain the same eight-vessel operating fleet after the sale, with the presently stacked Ramform Vanguard to be reactivated from the summer of 2019 at a maximum estimated cost of $25 million.

The company presently has six seismic survey vessels laid-up as a market slump has hit utilisation and dayrates.

While PGS did not disclose the value of the vessel sale, the company said it is not expected to result in any material financial gain.

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PGS to offload vessel