PGS - Teekay Petrojarl Offshore Agreement Signed


OSLO, Norway, June 15, 2006 (PRIMEZONE) -- June 15, 2006: OSLO, NORWAY - Petroleum Geo-Services ASA ("PGS" or the "Company") (OSE and NYSE: PGS) announced today that its wholly owned subsidiary Petrojarl (PGS Production) has finalized and signed the agreement with Teekay Shipping Corporation (Teekay) governing the joint venture company called Teekay Petrojarl Offshore.

As previously announced the joint venture will focus on pursuing opportunities in the rapidly growing global market for Mobile Production Solutions with emphasis on developing solutions through Floating Production Storage and Offloading (FPSO) units. The joint venture will only encompass new projects. Existing assets of both companies are excluded from the joint venture, amongst them all PGS' current FPSO and redeployment of those assets.



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                  This press release shall not constitute an offer to
 sell or a solicitation of an offer to buy securities nor shall there
 be any sale of such securities in any state or jurisdiction in which
 such offer, solicitation or sale would be unlawful prior to
 registration or qualification under the securities laws of any such
 state or jurisdiction.  No securities have been registered under the
 U.S. Securities Act of 1933 in connection with the matters described
 in this press release and no such securities may be offered or sold
 in the United States absent registration or an applicable exemption
 from registration under the Securities Act and applicable state
 securities laws.


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        Petroleum Geo-Services is a technologically focused oilfield
 service company principally involved in geophysical and floating
 production services. PGS provides a broad range of seismic and
 reservoir services, including acquisition, processing,
 interpretation, and field evaluation. PGS owns and operates four
 harsh environment floating production, storage and offloading units
 (FPSOs). PGS operates on a worldwide basis with headquarters at
 Lysaker, Norway. For more information on Petroleum Geo-Services visit
 www.pgs.com.
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       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 various assumptions made by
 the Company, which are beyond its control and are subject to certain
 additional risks and uncertainties as disclosed by the Company in its
 filings with the Securities and Exchange Commission including the
 Company's most recent Annual Report on Form 20-F for the year ended
 December 31, 2005.  As a result of these factors, actual events may
 differ materially from those indicated in or implied by such
 forward-looking statements.


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FOR DETAILS, CONTACT: Ola Boesterud Phone: +47 67 52 64 00 Cellular: +47 90 95 47 43

Christopher Moellerloekken Phone: +47 67 52 64 00 Cellular: +47 90 27 63 55

US Investor Services, Renee Sixkiller, Phone: +1 281 509 8548



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