Norway-based seismic-survey rivals and merger partners TGS-Nopec and Wavefield Inseis have 30 days to settle a dispute out of arbitration that has buried their approved merger in recrimination and shareholder hurt.

Wavefield reportedly called off its vessels bound for a joint Gulf of Mexico survey with TGS, compelling the latter into a cost- and profit-sharing alliance with Schlumberger’s WesternGeco.

The conflict appears to centre on a profit-warning issued by TGS that cost Wavefield shareholders a 1.2 billion kroner in the days after their merger was approved, newspaper Dagens Næringsliv reported.

“Wavefield has made material misstatements concerning TGS` position and the facts surrounding (an) independent review (of the contested earnings statement),” TGS said on Monday.

“TGS is fully prepared to let the arbitration process address any disagreement with respect to the closing of the merger,” the statement continued, before signalling negotiations were underway aimed at getting the merger on-again.

The merger partners are together worth some NOK12 million ($2.2 billion) in the market, and both have launched fleet expansion drives in-line with the entire seismic survey industry.

ws@scandoil.com

Tags: TGS-NOPEC Geophysical Company, Wavefield InSeis ASA