PGS: Market Weakness to Continue

The market for seismic vessels will probably remain weak for an extended period, Petroleum Geo-Services Chief Executive Jon Erik Reinhardsen told an oil conference in Oslo on Wednesday.

"We expect this (market situation) to last well into 2016," he said. "Problem number one is too many vessels operating. The market has not collapsed. It has come down significantly."

Earlier in the day PGS announced that it would mothball yet another of its vessels in order to save costs, the third ship to go out of service.

"We manage the company on a cash basis during the downturn. We count the money every week," Reinhardsen said. "In today's contract market there is not much cash to be generated."

Using seismic equipment, PGS' vessels scan the seabed for potential oil reserves, while energy companies buy the data to help them decide where to drill.

Reporting by Stine Jacobsen