NYK Enters Geophysical Survey Business

Apr. 01, 2019

Today, Ocean Geo-Frontier Co. Ltd (OGF),* which is jointly owned by NYK and others, signed a consignment service agreement with Japan Oil, Gas and Metals National Corporation (JOGMEC) for geophysical surveys to be conducted by a three-dimensional geophysical survey vessel (seismic vessel).

1. Background
In 2018, Japan’s Cabinet Office approved the Third Basic Plan on Ocean Policy for the development of domestic resources in sea areas around Japan, and surveys leading to the discovery of new oil and gas fields are thus expected to be in greater demand.

To meet this new demand, NYK teamed with Hitachi Ltd. (Hitachi) and PGS Geophysical AS (PGS) to submit a tender to JOGMEC in February 2018 and establish OGF in December 2018.

2. About the Service
OGF will use JOGMEC’s seismic vessel for a wide range of business activities, including basic geophysical surveys (for domestic petroleum and natural gas), vessel operation and management, geophysical data acquisition, data processing, and the supply of related equipment. This business is based on the Cabinet Office’s Basic Plan on Ocean Policy for Japan, with the aim to acquire detailed geological information in sea areas around Japan for the development of domestic resources. The service agreement will continue for up to 10 years through annual renewals.

About Geophysical Surveys
To detect oil and gas fields a few kilometers below the seafloor, seismic waves are artificially produced through a sound source known as an air gun, and by receiving the seismic reflection from the sea bottom on the over 8 kilometers of streamer-cable and analyzing the acquired data, a detailed picture of the crustal structure below the seafloor may be obtained.



Courtesy of PGS

Year of Built: 2009
Length Overall: 102.2 meters
Breadth: 40 meters
Draft: 7.4 meters
Gross Tonnage: 13,721 tons
Crew Capacity: 70
Maximum Speed: 18 knots

3. Future
Through OGF, NYK is entering the geophysical survey business at the most upstream part of the energy value chain** and making efforts to accumulate experience and technical expertise in new fields, as well as expanding the business by concluding contracts for surveys.

In accordance with its medium-term management plan “Staying Ahead 2022 with Digitalization and Green,” the NYK Group will continue to provide a wide range of services to the entire energy value chain in response to changes in energy demand and to secure a stable-freight-rate business offshore.



Reference

Hitachi Ltd. (Kabushiki Kaisha Hitachi Seisakusho)
Head office: Tokyo
Representative Executive Officer, President & CEO: Toshiaki Higashihara
An electronics manufacturer that has data processing and data management technologies, etc.

PGS Geophysical AS
Head office: Oslo, Norway
CEO: Rune Olav Pedersen
A focused marine geophysical company providing a broad range of seismic and reservoir services.

NYK Group, press release