TGS-Nopec Geophysical Company, the Norwegian mapper of oil reservoirs, has said that it will buy the privately held A2D LP for $22 million in cash and stock to expand the range of services that it offers to oil companies.
TGS will pay $15.5 million in cash and $6.5 million in stock for the Houston based company, which sells software used to analyze data from oil and gas wells. A2D has information from more than 474,000 US wells, and adds data from about 60,000 new wells a month, TGS said in a statement to the Oslo exchange.
“We see significant synergies that can be achieved through the bundling and delivery of our current products and services as well as the creation of new integrated products,” said Hank Hamilton, chief executive officer at TGS, in the statement.
TGS's clients, such as Exxon Mobil and BP, have bought rivals to cut costs and reduce the risk of exploring for oil. At the same time they want subcontractors to diversify services. By buying A2D, TGS is adding data on exciting oil wells to its library maps of potential oil reservoirs. Visit to