The agreement, including the assumption of about $5 million in debt is subject 'inter alia' to due diligence.

This transaction is in line with the company's strategy of consolidating its business in the core areas of geophysics and floating production, and follows PGS' recent statements regarding corporate restructuring and the continuing disposal of non-core assets.

The sale comes on the back of a failed merger with Veritas, plummeting share price and resignation of its chairman and CEO of petroleum Geo-services, Reidar Michaelson.

The market capitalisation of the company is a fraction of what it was at the start of the year. The share price has been steadily falling all year.