TGS, a leading global provider of energy data and intelligence, released its Q4 2024 operational update on January 9, 2025. The report highlighted strong Ocean Bottom Node (OBN) crew utilization and an increase in multi-client investment during the quarter. This article will delve into the key drivers behind these trends and their impact on TGS's operational capacity and strategy.

OBN Crew Utilization: A Quarter of Growth

In Q4 2024, TGS's normalized OBN crew count reached 3.8, marking a significant increase from the previous quarter's count of 3.2. This growth can be attributed to several factors:

1. US Gulf of Mexico activity: Most of the OBN crew activity in Q4 2024 was focused on acquiring 4D production data in the US Gulf of Mexico. This region's substantial oil and gas reserves drove demand for seismic data, contributing to the increased OBN crew utilization.
2. Project delays: Although project delays from late 2024 and into 2025 impacted multi-client investment, they did not significantly affect OBN crew utilization in Q4 2024. The strong activity in the US Gulf of Mexico offset any potential negative effects from project delays.
3. Streamer contract awards: During the quarter, TGS announced four significant streamer contract awards. These contracts enhanced visibility and vessel utilization for the first half of 2025, which may have contributed to the increased OBN crew utilization in Q4 2024.



Multi-Client Investment: Key Drivers and Impact on Vessel Utilization

The key drivers behind the increase in multi-client investment in Q4 2024 were:

1. Strong pre-commitments for new investments: TGS reported a combination of solid pre-commitments for new investments and increased sales of existing data supported by material transfer fees. This indicates that clients were willing to invest in new multi-client projects, driving up the overall investment in this segment.
2. Increased sales of existing data: The company saw a rise in sales of its existing data library, which contributed to the growth in multi-client investment. This could be attributed to the growing demand for data-driven decision-making in the energy sector.

The increase in multi-client investment had a positive impact on vessel utilization, particularly for OBN crews. Here's how:

1. OBN crew utilization: In Q4 2024, TGS had strong utilization of its OBN crews, with most of the activity focused on acquiring 4D production data in the US Gulf of Mexico. This high demand for OBN services contributed to the increase in multi-client investment.
2. Streamer contract awards: During the quarter, TGS announced four significant streamer contract awards. These new contracts enhanced visibility and vessel utilization for the first half of 2025, further supporting the growth in multi-client investment.



The Impact of the Ramform Vanguard Conversion

The conversion of the Ramform Vanguard to a dual-purpose seismic and offshore wind vessel in Q2 2024 had an impact on TGS's operational capacity and strategy. This conversion excluded the vessel from the statistics of active seismic 3D vessels, which are used for New Energy Solutions projects. As a result, the number of active seismic 3D vessels decreased, affecting the overall operational capacity of TGS. The conversion also indicates a shift in TGS's strategy towards diversifying its business into the offshore wind sector, which is a growing market. This strategic move allows TGS to expand its service offerings and potentially tap into new revenue streams. However, it is important to note that the conversion of the Ramform Vanguard to a dual-purpose vessel may have led to a temporary reduction in TGS's seismic vessel capacity, which could have affected the company's ability to meet demand for seismic services during the quarter.

In conclusion, TGS's Q4 2024 operational update demonstrated strong OBN crew utilization and an increase in multi-client investment, driven by factors such as US Gulf of Mexico activity, project delays, and streamer contract awards. The conversion of the Ramform Vanguard to a dual-purpose vessel had an impact on TGS's operational capacity and strategy, but the company's focus on diversifying its business into the offshore wind sector presents opportunities for growth in the future. As TGS continues to navigate the energy sector, investors should keep an eye on the company's operational updates to assess its performance and potential.