Geotech Holding and Rusgeology Signed an Agreement on Foundation of a Joint VentureGeotech Holding, the leading pure play land and tranzition zone seismic company in Russia and the CIS, announces that JSC GEOTECH Holding and OJSC Rusgeology agreed to found a joint venture.
Andrei Tretyakov, acting general director for OJSC Rusgeology, and Nikolai Levitsky, President of CJSC Geotech Holding, signed a memorandum of intent to found a joint venture. Under the agreement, the parties plan to jointly perform works on geophysical exploration of Russian subsurface resources in fulfilling public contracts, as well as projects within the framework of public-private partnerships. For this purpose, by late August LLC Rusgeophysics will be established with an authorized capital to be formed using cash contributions from the founders in a ratio of 50% Rusgeology and 50% Geotech. The JV plans to focus on hydrocarbons geologic explorations, specifically land geophysical surveys, processing and interpretation of geological and geophysical data, as well as development and introduction of cutting-edge equipment and technologies for geologic explorations.
For OJSC Rusgeology, which is a Russian geological exploration holding a strategic enterprise status, the pursuit of new opportunities in geological and geophysical exploration is critical. 100% state-owned Rusgeology sees as its main objective implementation of public contracts related to geophysical surveys of the territory of the Russian Federation on a high technological level.
As Andrei Tretyakov points out “The cooperation with GEOTECH Holding is going to streamline and improve the efficiency of both field geological surveys and data processing and interpretation works. Our joint efforts will be instrumental in creating a modern high-tech national geological service.”
For Nikolai Levitsky, “The creation of the joint venture is going to support the cooperation between our companies in the area of implementation of public contracts by providing the best available professional expertise and logistical support to our operations. We hope that by concluding the said agreement we are laying the foundation for our further cooperation.” The parties to the agreement stressed their common interest in ensuring stable growth in the number and quality of geological survey projects in Russia.