PGS Unaudited Fourth Quarter and Preliminary Full Year 2007

Record year - Strong 2008 outlook

February 21, 2008: OSLO, NORWAY - Petroleum Geo-Services ASA ("PGS" or the "Company") today announced its unaudited fourth quarter and preliminary full year 2007 results under IFRS.

2007 - Best year ever: Operating profit of $494.5 million, up $135.0 million (38%) compared to 2006. Revenues of $1,519.9 million, up $211.5 million (16%). Marine revenue increased by 22% to $1,273.8 million. Onshore performed weaker than in 2006 due to weaker project continuity, some specific scheduling issues and bad weather conditions in second half. Onshore revenue decreased by 6% to $246.4 million

Record strong order backlog: Backlog going into 2008 at all time high both in terms of size and prices, giving PGS superior visibility

Further progress in delivering our strategy of growth and technology differentiation:

- Strategic acquisition completed: Arrow Seismic provides an attractive high-end supplement to our state-of-the-art multi streamer fleet

- Completed offering of $400 million convertible notes in December: Proceeds used to secure permanent financing for the Arrow acquisition at favorable terms while increasing financial flexibility for the future

- Successful North Sea EM campaign: PGS completed a campaign in the North Sea to acquire marine electromagnetic data with the MTEM technology, providing a stepping stone for commercialization in 2008

- Continued multi-client momentum with Crystal II: The acquisition phase of the Crystal I wide-azimuth survey in Gulf of Mexico was completed two months ahead of schedule in October. Crystal II has commenced and data will be ready for final delivery late 2008

- Ramform Sovereign on schedule for early March delivery: Unlike any other new-build or conversion project in the industry the PGS project team and Aker Yards is set to deliver the worlds most advanced seismic vessel on time and budget

- Ramform Victory delivered to METI: Ramform Victory successfully delivered to the Japanese Ministry of Economy, Trade and Industry ("METI") in January 2008 and renamed Shigen, representing the start of an important long-term operations, service and support agreement for PGS

Q4 2007 - Impacted by scheduled yard stays: Operating profit of $76.5 million, up 2.3 million (3%) compared to Q4 2006. Revenues of $372.5 million, up $11.5 million (3%). Record high multi-client revenues, but, as guided, temporary lower revenues and EBIT margin in the marine contract segment due to scheduled yard maintenance, upgrade and 10-year classing of three Ramform vessels

Marine: Operating profit of $101.2 million in Q4 2007, up $22.2 million (28%) from Q4 2006

Onshore: Disappointing operating loss of $3.2 million in Q4 2007 compared to a profit of $2.3 million in Q4 2006, negatively impacted by weak project continuity and increased multi-client amortization

FOR DETAILS, CONTACT:
Gottfred Langseth Phone: +47 67 51 44 10 Mobile: +47 93 05 55 80 Bård Stenberg Phone: +47 67 51 43 16 Mobile: +47 99 24 52 35 US Investor Services Katrina Green Phone: +1 281 509 8000

PGS Unaudited Fourth Quarter and Preliminary Full Year 2007 Results

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