Petroleum Geo-Services Deploys Record Streamer Spread for MC3D Marine Seismic Survey in Deepwater Mid-Norway

Houston, Texas; Oslo, Norway; June 29, 2000: Petroleum Geo-Services ASA (NYSE:PGO; OSE:PGS) announced today the recent closing of a major multi-client 3D (“MC3D”) marine seismic survey agreement over the Western part of the Dønna Terrace in deepwater mid-Norway.

Petroleum Geo-Services will use one of its industry leading Ramform seismic vessels, Ramform Valiant, towing a record 12-streamers, each 5,100m long for this survey, which is scheduled to begin at the end of June 2000. Totaling 61.2 kilometers of in-sea streamers, this survey is the largest spread towed in the marine seismic industry. Recently, a similar spread was successfully deployed on a contract seismic survey performed by PGS for BP Amoco in mid-Norway. Onboard data processing will be carried out using the Company’s massively parallel onboard processing supercomputers and proprietary software. This survey is expected to be completed in September 2000.

The high-definition survey comprises at least 2,300 square kilometers of 3D seismic data to be acquired using PGS’ Ramform technology to tow 12-streamers, using closely spaced streamers and a single acoustic source. This configuration offers a high multiplicity of data points from each subsurface reflector, resulting in significantly higher data quality than conventional 3D seismic data acquisition using standard configurations. The survey data is expected to allow much improved evaluation of the prolific Jurassic and Cretaceous sandstone reservoirs of the area, which have been proved by earlier discoveries such as the Norne and Skarv fields. Detailed modeling has shown that high-definition surveying will be more successful than previous surveying efforts where seismic imaging is hampered by complex overburden geology.

A part of this survey will cover acreage previously surveyed using dual source technology. Part of the survey also covers two existing exploration leases, PL261 and PL259, held by groups operated by BP Amoco and Chevron respectively. These two license groups are both substantially prefunding the survey.

PGS believes that premium high-definition surveying services will grow as increasing utilization of Ramform’s maximum 20-streamer capacity reduces costs of large-scale single source surveys. Much of the increase in utilization is predicted to be on acreage previously surveyed by lower technology dual-source surveys, in an effort to improve reservoir understanding of existing fields and producing
fairways.

Petroleum Geo-Services is a technologically focused oilfield service company principally involved in two businesses: geophysical seismic services and production services. PGS acquires, processes, manages and markets 3D, 4D and 4C marine seismic data. Such data is 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. In its production services business, PGS owns four floating production, storage and offloading systems and operates numerous offshore production facilities for oil and gas companies. FPSOs permit oil and gas companies to produce oil and gas from offshore oil and gas fields more cost effectively. The Company also provides data management solutions, 4D reservoir monitoring and characterization studies and other specialized geophysical services. PGS operates on a worldwide basis with headquarters in Oslo, Norway and Houston, Texas.