PGS Reservoir Consultant's new energy transaction Business Unit successfully manages sale of producing properties

Six of the fields were sold to ATP Oil & Gas Corporation and three were sold to other industry parties. As of January 2001, the properties sold to ATP produced approximately 7 million cubic feet of natural gas per day and 340 barrels of oil per day, with a monthly net cash flow of approximately $1.4 million.

Reidar Michaelsen, Chairman and Chief Executive Officer, commented, "With the high volume of oil and gas property transactions continuing to accelerate, this new business unit is expected to generate multiple opportunities over the coming years. We are excited that PGS can add value to this growing market."

PGS Reservoir Consultants recently formed the Energy Transaction Business Unit as an extension of Petroleum Geo-Services existing businesses. PGS Reservoir has a highly experienced team in production operations, reservoir engineering, geology, geophysics, finance, land, and market analysis. PGS Reservoir's staffing exceeds 150 worldwide.

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, time-lapse and multi-component seismic data. This 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. PGS' PetroTracTM suite of advanced geophysical technologies allows oil and gas companies to better characterize and monitor their reservoirs in order to enhance production and ultimate recovery of hydrocarbons. In its production services 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 cost effectively. PGS operates on a worldwide basis with headquarters in Oslo, Norway and Houston, Texas.

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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 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.