HOUSTON (September 23, 2013) – Baker Hughes Incorporated (NYSE: BHI) and CGG (NYSE/Euronext: CGG) announced today the signing of a Letter of Intent to realign the firms’ VSFusion joint venture to focus on microseismic monitoring, processing, visualization, and interpretation as well as microseismic permanent monitoring. The joint venture, now called Magnitude, strengthens the capabilities of Baker Hughes and CGG in unconventional resource plays and other emerging markets.
The two firms initially formed the VSFusion joint venture in 2003 to provide borehole seismic services. The growth in unconventionals and evidence that reservoir characterization is paramount to maximizing recovery from fractured zones indicates a greater need to include microseismic for a more integrated approach. In addition to borehole microseismic monitoring, Magnitude will work more closely with CGG and their microseismic team to provide a more complete reservoir monitoring solution for its customers. VSP Services, now structured under the Baker Hughes Reservoir Development Services group, will continue to provide their customers with superior borehole seismic data processing results.
“Combining the reservoir understanding services of Baker Hughes and the seismic data acquisition capabilities of CGG will offer clients unparalleled understanding of how to optimize the development of the reservoir,” commented Derek Mathieson, President of Baker Hughes’ Western Hemisphere operations.
“Magnitude integrates the latest innovative technologies from Baker Hughes and CGG, combining downhole and surface data to help oil and gas operators reduce risk in their reservoir development investments,” commented Lionel Lhommet, Executive Vice President of Strategy, Integration and Partnerships for CGG.
The realignment of the joint venture further strengthens the business partnership between Baker Hughes and CGG. Last year, the firms announced the formation of a collaborative relationship to improve shale reservoir exploration.
This shale science alliance uses reservoir models that integrate log-derived, near-wellbore geomechanical and petrophysical properties from Baker Hughes with calibrated seismic data from CGG to help operators optimize well placement and completion design earlier in the asset lifecycle for more efficient well construction and more productive wells. Magnitude’s microseismic capabilities add critical microseismic data to the reservoir models.
Fernando Lopez has been named President of Magnitude. He was formerly Director of Strategic Marketing for Baker Hughes. During his 8-year tenure with Baker Hughes, Lopez held a variety of other leadership roles. Prior to joining Baker Hughes, Lopez worked in lead management positions for other service sector providers.
Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company’s 59,000-plus employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information on Baker Hughes’ century-long history, visit: www.bakerhughes.com
CGG (www.cgg.com) is a fully integrated Geoscience company providing leading geological, geophysical and reservoir capabilities to its broad base of customers primarily from the global oil and gas industry. Through its three complementary business divisions of Equipment, Acquisition and Geology, Geophysics & Reservoir (GGR), CGG brings value across all aspects of natural resource exploration and exploitation. CGG employs over 9,800 people around the world, all with a Passion for Geoscience and working together to deliver the best solutions to its customers. CGG is listed on the Euronext Paris SA (ISIN: 0000120164) and the New York Stock Exchange (in the form of American Depositary Shares. NYSE: CGG).
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