Repositioning Geoscience for a Digital Future: Viridien

Q: Viridien recently rebranded from CGG, a historic name in the geoscience industry. What was the strategic rationale behind this change, and how does the new name better reflect the company's global vision?

A: We launched our new company name and brand, Viridien, in June 2024. The company, founded in 1931, has a long history as a leader in geoscience. The name change was a recognition of our transformation into an asset-light company. We exited the asset-heavy and commodity side of our business, which involved seismic acquisition with vessels and land crews, and focused on our digital technology and differentiated businesses. Our three core business lines are now Geoscience, Earth Data, and Sensing and Monitoring. The rebranding was a way to acknowledge this shift towards a focus on technology, data, and digital solutions and the growth opportunities this can bring to the company.

Q: How is Viridien positioning itself as an "advanced technology, digital, and Earth data company" for the future, particularly in a world that is diversifying its energy mix?

A: It is important to state that oil and gas will be required for the long term. In this scenario, we must find new resources to offset the natural decline of existing reserves. While new resource additions may come from wind, solar, and other sources, oil and gas remains at our core and will continue to be for the foreseeable future. Today, it represents 90% of our revenue.

However, recognizing that this sector might not provide the necessary growth for the next 90 years, we began an exercise in 2020 to understand how we could leverage our expertise in other areas. We selected three key areas:

Low Carbon: This includes carbon sequestration and minerals and mining. In minerals and mining, our geoscience expertise helps in characterizing ore bodies and developing mines. In carbon sequestration, our knowledge of the subsurface helps to screen storage sites and monitor CO2 injection.

Digital: We leverage our expertise in data science and machine learning to transform subsurface data, making it ready for AI analysis and extracting valuable insights. This addresses a major client challenge: accessing, understanding, and extracting information from their data. Our high-performance computing centers, with 600 petaflops of computing power, are also a significant asset we offer to clients in industries such as geoscience, materials science and biotechnology.

Infrastructure Monitoring: This leverages our Sercel brand, known for its sensors and monitoring solutions. We have repurposed these systems to support the monitoring of infrastructure such as railways, bridges, dams, and tunnels for stability and structural integrity.

We are developing these new revenue streams in markets that are growing faster than oil and gas, which is a relatively flat sector.

Q: Viridien operates in over 40 countries. How does Mexico, as your fourth-largest market, fit into your company’s global strategic plan for the next five years?

A: Mexico has always been a very important country for us. We have extensive expertise, especially offshore, both in the US and Mexican waters. Over our 37 years in Mexico, we have worked closely with PEMEX as our anchor client, but also with all other companies operating here. The country presents complex technical challenges, particularly in deepwater and areas with salt structures, where a deep understanding of the subsurface is critical for successful oil production.

Q: What is the latest innovation that has brought value to Mexico's energy market?

A: The most significant innovation is our imaging technology, particularly elastic full-waveform inversion. This is a complex data-driven process of imaging the subsurface to create a clearer view of its structure and properties. We are continuously advancing and refining this technology, which is akin to having a zoom or a much sharper image. This enables clients, particularly PEMEX and others like Woodside (formerly BHP), to optimize well placement, increase drilling success rates, and avoid drilling hazards. We have made substantial advancements in the last three to four years, for example, enabling our clients to clearly see the targets hidden below salt layers, which was previously impossible. 

Additionally, we are developing technologies that use AI to extract more insights from these images, identifying subsurface structures and patterns. Our Sercel equipment, such as the 85,000 land nodes currently in operation in Mexico, features best-in-class sensors, providing the highest-quality data in the industry.

I would also like to mention a Sercel technology not yet used in Mexico that has great potential: Tuned Pulse Source (TPS™). This low-frequency source is particularly useful for imaging complex salt structures, helping to improve the clarity of images. We have been using it in the US and in Malaysia, and it is something to consider for future offshore acquisitions in Mexico.

Q: Karim Lassel noted in a past interview that it is a challenge to get some clients to understand the importance of upgrading from "archaic technology" to modern solutions. How do you overcome this resistance and demonstrate the long-term value of a short-term cost?

A: We find the most success when we work in a close partnership model with our clients, where there is a high level of trust and open sharing of information. This allows us to fully understand their challenges and co-develop solutions. We can then test these innovations with the client to demonstrate their value, especially when they come with a higher short-term cost. The discussion then becomes: is the long-term value in terms of reduced risk and increased success worth the additional investment?

Our goal is never to push an innovation that does not provide sufficient value, as it won't be adopted. However, when a solution clearly demonstrates value, it is usually embraced. The pace of adoption can vary among clients. I find that in more technically complex environments, clients tend to adopt technology more quickly. For example, offshore, where hydrocarbon deposits are larger and more productive, the market can better afford advanced technology, as the value gained from a clearer subsurface image is greater. This contrasts with, say, US onshore, where wells are cheaper, and such detailed imaging may not be as valuable.

Q: What are Viridien's key strategic priorities for the Mexican oil and gas market for the remainder of 2025 and into 2026?

A: There is a general industry consensus that oil prices will soften towards the end of this year and into next, before improving again in late 2026 and 2027. We are planning for a flattish market in 2026.

Our strategy is to continue participating and working with all our clients, particularly in complex subsurface areas. This includes offshore deepwater and complex land settings in Mexico, as well as in the Middle East and North Africa. I expect our activity level to remain stable next year. We anticipate a return to growth in 2027-2028 when the supply-demand balance shifts.

We will also continue to invest in innovation and new equipment. For example, we recently launched the new generation of our land node for land seismic acquisition, known as Accel, which is a much more efficient system. Our continued focus is on innovating to ensure we support our clients in finding new oil and developing their fields.

Viridien, formerly CGG, is an advanced technology, digital, and Earth data company that pushes the boundaries of science for a more prosperous and sustainable future. With its ingenuity, drive and deep curiosity Viridien discovers new insights, innovations, and solutions that efficiently and responsibly resolve complex natural resources, digital, energy transition and infrastructure challenges.