In dip-moveout (DMO) processing, the seismic velocity is often assumed
to be constant. While several approximate techniques for handling ver
tical velocity variation have recently become available, here we propo
se a method for computing the kinematically exact DMO correction when
velocity is an arbitrary function of the depth. While not known in adv
ance, the raypath from source to receiver and the corresponding zero-o
ffset raypath satisfy several relationships, which are used to form a
system of nonlinear equations. By simultaneously solving the equations
via Newton-Raphson iteration, we determine the mapping that transform
s nonzero-offset data to zero-offset. Unlike previous schemes that app
roximately handle vertical velocity variation, this method makes no as
sumptions about the offset, dip, velocity function, or hyperbolic move
out. Tests using both synthetic and recorded seismic data demonstrate
the effectiveness of this variable-velocity DMO. These tests show this
method accurately handles vertical velocity variation, while use of c
onstant-velocity DMO can lead to significant errors. Comparing this te
chnique to a formulation that approximately handles velocity variation
, however, suggests that the improved accuracy of the exact technique
may not be justified because of uncertainty in the velocity model and
increased cost. While improved accuracy alone may not justify the use
of this method in 2-D, its flexibility may in other cases. Changes cou
ld be made to handle 3-D DMO, DMO for mode-converted waves, DMO in ani
sotropic media, or prestack divergence correction.