It's the veritable truth, CGGVeritas works by land and by sea to provide seismographic services and equipment for oil companies worldwide. Its geophysical services units provide land-based seismic surveying, including borehole services, and marine seismic surveying. The company can mobilize an average of 19 land and transition zone crews, and it operates a fleet of about 20 marine vessels. It also processes the seismic data it collects. Its Sercel unit makes geophysical equipment, including land and marine seismic acquisition systems. CGGVeritas' land unit uses vibroseismic vehicles (as well as explosives and airguns) to generate acoustical waves, which are captured by geophones and converted into digital data.
The offshore unit handles marine seismic acquisition and is active offshore Brazil and West Africa and in the Gulf of Mexico. Other activities include data processing with CGGVeritas' cutting-edge software, borehole and airborne surveying, and researching reservoir techniques.
The company, which operates in every major oil patch worldwide, has a global network of 43 seismic data processing centers including 13 client-dedicated centers.
CGGVeritas' revenues were essentially flat in 2011 mainly due to marine overcapacity and political unrest in some North Africa and Middle-East countries. However, its net loss situation improved from $72.3 million in 2010 to $24.7 million in 2011 thanks to significantly lower general and administrative expenses (due to cost saving measures) and a lower spend on research and development and on marketing and selling activities. The moratorium on drilling in the Gulf of Mexico in the wake of BP's Macondo well disaster dragged down the marine segment's (and the company's overall) revenues and net income in 2010, and continued to hamper 2011 results.
Diversifying into the artificial lift segment of the well intervention market, in 2012 the company's Sercel unit acquired Oklahoma-based Geophysical Research Company. Strengthening its reservoir services portfolio, in 2011 the company acquired Moscow-based Petrodata Consulting LLC, which provides static and dynamic reservoir modeling, reserve estimation and risking, and field development services to the global oil and gas industry. It is also modernizing its fleet to increase its seismic data collection capacity.
In 2007 Générale de Géophysique (CGG) acquired rival Veritas DGC for $3.1 billion, and became CGGVeritas. The acquisition created the world's largest international pure-play geophysical company, capable of delivering a wide range of technologies, services, and equipment.