Petroleum Geo-Services Establishes Exploration and Production Data Bank for Brazil

Houston, Texas; Oslo, Norway; July 7, 2000: Petroleum Geo-Services ASA (NYSE:PGO; OSE:PGS) through its affiliate, PGS do Brasil, has signed a five year contract with the country's Geological Survey (“CPRM”) to establish the Brazilian Petroleum Agency ("ANP") exploration and production data bank for Brazil. The data bank will be named Banco de Dados E&P (“BDEP”) and will further strengthen PGS’ market position in Brazil.

The agreement calls for PGS to apply its PetroBankTM technology to consolidate, archive and deliver seismic, well, production and cultural data to companies engaged in the exploration for and the development of hydrocarbon reserves in Brazil. More than 20 operators and service companies will be involved with the data bank and will be able to connect online for individual access to Brazilian E&P information.

BDEP held its opening ceremonies on May 29, 2000 in Rio de Janeiro, Brazil and was attended by the Brazilian Minister of Energy, the general director of ANP, as well as other top ranking officials from the oil industry.

“PGS is pleased to be chosen to develop this strategically important E&P data bank for Brazil," said Bjarte Bruheim, President and Chief Operating Officer of Petroleum Geo-Services. "As our clients are faced with the challenges of utilizing large volumes of E&P information to improve their decision processes, the combination of PGS’ worldwide experience and our superior PetroBank technology provides an efficient solution to meet their needs."

"Brazil is one of the world's most prospective regions for developing oil and gas reserves," said ANP Board Member, Giovani Toniatti. "We are confident that our decision to utilize the proven PGS PetroBank technology will allow the industry to make swift business decisions necessary in our rapidly developing exploration and production environment."

"We are happy to have PGS, with its operational expertise and state-of-the-art data management technology, as a partner in this operation," said Umberto Costa, President of CPRM. "We believe the project will ultimately translate to significant value for current and future operators in Brazil."

Bruheim went on to say, "This facility complements our expansion of the data management business in this region, where we have been active since 1997. Through our contract with Petrobras, where we have cleaned and re-mastered more than 280,000 tapes of E&P data of various vintages, we have prepared much of the Brazilian E&P data for management by BDEP. These types of arrangements demonstrate PGS' ability to apply its vast knowledge of E&P information and state-of-the-art technology to provide efficiency and cost savings to the E&P industry. PGS has long been the dominant player in Norway and with our recent agreement in Russia, we are well on our way to securing strategic data management positions for many of the most prospective hydrocarbon basins in the world.”

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.