PGS Awarded $58 Million in New Onshore and Transition Zone Contracts.

Business/Energy Editors

HOUSTON & OSLO, Norway--(BUSINESS WIRE)--Jan. 17, 2002

Petroleum Geo-Services ASA (NYSE:PGO)(OSE:PGS) announced today that its onshore division has secured new seismic acquisition contracts in the United States, Ecuador, India and Bangladesh valued at $58 million, boosting the Company's backlog of 2002 onshore work to more than $110 million.

In the United States, PGS has been selected to acquire two separate 3D surveys in the Hugoton Field in Kansas. PGS will employ its High Density 3D (HD3D(TM)) technology, featuring 55 ft. X 55 ft. bins, and very high trace density 3D coverage that exceeds 440,000 traces per square mile. Two crews, each equipped with 7,000 channels of Sercel 408 recording equipment, will record these surveys. These crews will begin in January and work through the winter to complete the surveys prior to the start of the winter wheat season.

Richard Degner, president of PGS' Onshore division, stated, "Our premium HD3D(TM) technology played a major role in PGS being selected to perform these contracts over very aggressive competition."

Additionally, PGS will shoot a 102 square mile, multi-client 3D survey in the prolific Anadarko Basin in Dewey County, Okla. The survey will be recorded with a deep hole high energy dynamite source to image productive Red Fork formation channel sands in an area where conventional vibroseis recording has been ineffective.

On the Alaskan arctic North Slope, PGS is re-deploying two highly sophisticated "soft footprint" seismic crews to acquire both proprietary 3D and multi-client 2D seismic data. Degner commented, "Our Alaskan 3D project will utilize more than 7,000 channels of Sercel 408 equipment, purpose built to withstand the 40 degree below zero temperatures experienced during the harsh arctic winters. This crew is by far the largest channel count crew operating on the North Slope and will continue acquiring the highest trace density 3D ever recorded in the Alaskan Arctic."

Degner went on to say, "This job will employ several other PGS Onshore innovations, including specialized QuadraTrak prime movers and vibrators, all equipped with specialized articulating rubber tracked systems for maximum efficiency and minimum environmental impact. PGS tested this new, purpose built equipment last season, and it proved to provide unparalleled efficiency in challenging heavy snow and foothills terrain. PGS will continue to test and develop automated cable handling systems to improve efficiency and limit crew exposure to the harsh environment."

PGS' 2D multi-client crew in Alaska will acquire a data set targeting the Foothills gas play and extending the proven Southern Turbidite oil play. The Foothills portion of the program will be shot in rough terrain, over a lightly explored gas prone region high on the flanks of Alaska's Brooks Range. This exploration 2D project will provide high-resolution data with 144 fold and 27 1/2 foot CDP spacing to image the steeply anticlinal structures. The Pre-Stack Time Migrated (PSTM) data will be available in time for Alaska's 2002 Spring and Fall lease sales.

Internationally, PetroEcuador has awarded PGS the 325 square kilometer Libertador 3D project in Ecuador's Oriente Basin. PGS' technical offering was selected by PetroEcuador as the best for the project to revitalize one of the Ecuador's most important producing fields. Their choice was based on both the high technology Sercel 408 gear and the experienced personnel to execute the work plan without impacting the surrounding dense rain forest and nearby indigenous populations. All equipment will be transported in by helicopter as part of a PGS designed work plan to further reduce environmental impact. The plan also includes measures to ensure that cultural and other tribal routines are undisturbed.

In India, PGS has secured a contract from ONGC for 330 square kilometers of 3D transition zone seismic on the coast of the Andhra Pradesh. The area surveyed will extend from the beach out to approximately 30 meters of water depth along India's central eastern coastline. PGS will employ dual sensor equipped Sercel 408 gear with PGS' proprietary modifications for shallow marine application. PGS will utilize a specially designed, composite hulled catamaran shallow draft gun boat to work in water depths less than one meter near shore.

In Bangladesh, PGS has been awarded a contract to acquire a 457 square kilometer HD3D(TM) seismic survey in the Dhaka area. Degner commented, "We particularly value the extensive experience of our country manager, Terry Visser, and all key members of the field crew with respect to land operating conditions in Bangladesh. This is of extreme value on a job with a tight deadline in such a densely populated area."

Diz Mackewn, president of PGS Geophysical, stated, "It is important to emphasize that almost all of PGS Onshore's recent job completions and awards for 2002 have been based upon our premium HD3D(TM) technology, including almost 100% of the United States work during the past six months."

Mackewn went on to comment, "We continue to see client's choosing HD3D for their 3D surveys despite the recent downturn in North American drilling activity due to lower oil and gas prices. The tighter spatial sampling and higher trace density leads directly to improved data quality."

Degner added, "PGS recently completed two large 3D surveys in south central Wyoming, recording over 600 square miles of 3D data with trace densities exceeding 800,000 traces per square mile. This is eight to 12 times denser than previous surveys in the area. Due to the complexities, time delays, costs of permitting and the added quality of the tighter spatial sampling and higher trace density product, we strongly believe that HD3D(TM) will be our industry's future."

Petroleum Geo-Services is a technologically focused oilfield service company principally involved in two businesses: Geophysical Operations and Production Operations. PGS acquires, processes and markets 3D, time-lapse and multi-component seismic data. These data are used by oil and gas companies in the exploration for new reserves, the development of existing reservoirs, and the management of producing oil and gas fields. PGS' advanced geophysical technologies allow oil and gas companies to better characterize and monitor their reservoirs in order to enhance production and ultimate recovery of hydrocarbons. In its Production Operations business, PGS owns four floating production, storage and offloading systems ("FPSOs") and operates numerous offshore production facilities for oil and gas companies. FPSOs permit oil and gas companies to produce from offshore fields more quickly and cost effectively. PGS operates on a worldwide basis with headquarters in Oslo, Norway and Houston, Texas.

The information included herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical and future trends, on general economic and business conditions and on numerous other factors, including expected future developments, many of which are beyond the control of the Company. Such forward-looking statements are also subject to certain risks and uncertainties as disclosed by the Company in its filings with the Securities and Exchange Commission. As a result of these factors, the Company's actual results may differ materially from those indicated in or implied by such forward-looking statements.