Thorunn Howatt
Northern News Services

Inuvik (Oct 28/02) - WesternGeco, a huge seismic force in the Mackenzie Delta area, is closing all of its land seismic operations. The move means layoffs for the company's Inuvik employees.

"I have people that do marine work, multi-client work, data-processing -- but our land crews are closing down," said WesternGeco's marketing manager, Richard Drake. He added that the other operations will remain open.

WesternGeco is a joint venture between Schlumberger and Baker Hughes. Schlumberger has a Northern joint venture with the Inuvialuit in Inuvialuit Oilfield Services (IOFS). That means the WesternGeco part of the Inuvik office will cease operations but the office will support the Schlumberger-IOFS side.

Projects like the Mackenzie River surveying project scheduled for next summer will continue.

As for the Beaufort Sea seismic, "There isn't anything planned for the summer but if there was work up there we would bid that stuff," said Drake.

WesternGeco's land operations have been losing money.

The company has four seismic sectors, including land, marine, multi-client and database-collection. The company is closing only the land operations in most of North America.

The other three seismic sectors will continue normal operations.

About 1,200 people will be laid off throughout North America with less than 10 in Inuvik.

WesternGeco has a few seismic contracts left in the Delta and will try to finish them or negotiate exits out of those.

"We would not have had as much as we had last year anyway," said Drake, who explained this is not a busy seismic year in the North. "People are going into a drilling cycle. They shoot it. They look for it. They go drill it."

Energy companies usually start to contract seismic work during the winter. WesternGeco's move could open the doors for smaller seismic companies to get in on future land contracts.