Chevron Teams Up With TGS on Three-Year Seismic Services Deal

Chevron Corporation CVX has entered into a three-year capacity agreement with TGS, a global leader in geophysical services, in a significant move to enhance its seismic acquisition capabilities. This deal focuses on the provision of marine streamer and Ocean Bottom Node (“OBN”) acquisition services, marking a new chapter in the Houston, TX-based integrated oil and gas company’s exploration and development strategies.As part of this agreement, both companies will collaborate on seismic acquisition projects, utilizing TGS' state-of-the-art streamer and OBN technologies. This collaboration is set to redefine the way geophysical data is collected and interpreted, bringing advanced technology and innovative solutions to the forefront of offshore energy exploration.Strategic Partnership for the Future of Seismic AcquisitionChevron's decision to forge a deeper relationship with TGS is a testament to the growing importance of high-resolution seismic data in the energy sector. The collaboration between the two industry giants will see TGS' streamer and OBN crews deployed for a range of exploration and development projects across Chevron's global operations. The minimum firm commitment under this agreement guarantees that Chevron will utilize TGS' services for at least 18 months, ensuring consistent, high-quality data acquisition over the next few years.The partnership not only strengthens Chevron's ability to gain a deeper understanding of the subsurface but also aligns with its commitment to cutting-edge technology and data-driven decision-making. Seismic surveys are crucial for identifying hydrocarbon deposits, evaluating reservoir potential and monitoring changes in the subsurface environment. By leveraging TGS' expertise and advanced acquisition techniques, Chevron aims to enhance the accuracy and efficiency of its exploration efforts, particularly in complex offshore environments.Harnessing the Power of OBN and Streamer TechnologyAt the core of this partnership are OBN and marine streamer technologies. These two advanced seismic acquisition methods offer unique advantages for offshore surveys. OBN technology involves placing sensors on the ocean floor to capture high-quality seismic data, providing a more precise image of subsurface structures. This is especially valuable for deepwater exploration, where traditional seismic methods may fall short.On the other hand, marine streamer surveys involve deploying cables with hydrophones towed behind survey vessels, capturing seismic waves as they travel through the water and the earth’s subsurface. This method is highly effective in mapping large-scale offshore areas and particularly useful for exploring vast hydrocarbon fields.The combination of these two technologies in Chevron's seismic acquisition efforts promises to offer unprecedented levels of data resolution, enabling more informed decision-making in the early stages of exploration and throughout the life of a field. This integrated approach will not only enhance the accuracy of Chevron’s seismic data but also allow it to assess the dynamic behavior of reservoirs over time, improving the ability to optimize production and recovery rates.Expanding Collaboration on Technology DevelopmentThe three-year capacity agreement is not just about seismic data acquisition. It also represents a strategic effort to drive technology development and innovation in geophysical areas ranging from survey design to data integration. By collaborating closely on the design and execution of seismic surveys, Chevron and TGS aim to push the boundaries of what iss possible in the world of data collection and interpretation.One of the most significant projects under this agreement is the St Malo 4D OBN reservoir monitoring contract in the Gulf of Mexico. This project will serve as the launchpad for the expanded collaboration between Chevron and TGS, utilizing OBN technology to monitor the reservoir over time. The 4D monitoring capability will provide Chevron with a continuous stream of real-time data, offering valuable insights into reservoir behavior and allowing for more accurate forecasts regarding production and reservoir performance.This forward-thinking approach to real-time monitoring will not only improve operational efficiency but also play a pivotal role in Chevron’s sustainability efforts, as it will help optimize energy production while minimizing the environmental impact of offshore operations.Partnership That Reinforces Chevron's Commitment to InnovationChevron's collaboration with TGS is a clear reflection of its ongoing commitment to innovative technologies and strategic partnerships that drive the exploration and development efforts. By integrating advanced seismic acquisition methods into operations, Chevron is positioning itself at the cutting edge of energy exploration, with the ability to uncover new hydrocarbon reserves and enhance the recovery of existing fields.This agreement highlights the importance of collaboration between industry leaders to tackle the challenges of modern energy exploration. As both companies work together to improve survey design, data quality and data integration, they will set new benchmarks for the industry, ensuring that energy companies can continue to meet the world’s growing demand for cleaner, more efficient energy sources.ConclusionThe three-year capacity agreement between Chevron and TGS marks an exciting phase in the evolution of seismic acquisition technology. By leveraging OBN and marine streamer technologies, both companies are poised to make significant strides in exploration, development and reservoir monitoring. With a strong focus on technology development and collaborative innovation, this partnership is set to shape the future of energy exploration and bring about new efficiencies in offshore operations.CVX's Zacks Rank & Key PicksCurrently, CVX has a Zacks Rank #4 (Sell).Investors interested in the energy sector might look at some better-ranked stocks like USA Compression Partners USAC,Oceaneering International OII and Canadian Natural Resources Limited CNQ, which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.USA Compression Partners is valued at $2.92 billion. The company is a leading provider of natural gas compression services in the United States. USA Compression Partners specializes in the design, operation and maintenance of compression equipment for the energy sector, focusing on helping customers optimize their natural gas infrastructure.Oceaneering International is valued at $2.39 billion. The company is a global provider of engineered services and products to the offshore energy, aerospace and defense industries. Oceaneering International specializes in underwater robotics, remotely operated vehicles and subsea engineering solutions for offshore oil and gas exploration and production.Canadian Natural Resources is valued at $69.93 billion. The company is one of Canada's largest independent oil and gas exploration and production companies. With a diverse portfolio of assets spanning oil sands, conventional oil and natural gas, Canadian Natural Resources is focused on sustainable energy development and long-term growth.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report USA Compression Partners, LP (USAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks