Houston, Texas; Oslo, Norway; January 2, 2001: Petroleum Geo-Services ASA (NYSE: PGO; OSE: PGS) announced today that it has signed a definitive agreement with Halliburton and Landmark Graphics to sell its global Petrobank Data Management business and related software for gross proceeds of $179 million. In addition, PGS will enter into a strategic data management and distribution alliance agreement with Halliburton, through Landmark Graphics, which will leave PGS well positioned to gain maximum value from this technology and ongoing business developments. The agreement is subject to various regulatory, board and other approvals and the finalization of certain ancillary agreements.
Chairman and Chief Executive Officer of Petroleum Geo-Services, Reidar Michaelsen, said, “With the rapid development of technology, the manner in which PGS and Halliburton extract the maximum value from our combined global information database will continue to evolve. This business alliance will allow additional outlets for PGS to deliver its technology, services and information to the market place through the established network already functioning at Halliburton via Landmark Graphics. The Petrobank solution has proven to be one of the best electronic data storage and distribution systems in the industry and will be an excellent tool for Halliburton to expand upon as they gain market share in the exploding market for online realtime information management in the oilfield business. Through this business arrangement, I look forward to a continued relationship with Halliburton that will benefit each company and our shareholders through enhanced exposure to a broader base of customers.”
Michaelsen went on to say, “For PGS stakeholders, this transaction represents another step in PGS’ program to free up cash from the sale of non-core assets. As previously communicated, I have committed to our stakeholders that I will reduce our debt level and enhance our liquidity position by delivering the sale of non-core assets. This transaction not only secures the desired objective of debt reduction, but establishes a very beneficial relationship with the world’s largest and most technologically advanced oilfield service company. Combined with the sale of our Spinnaker shares in December 2000 for $150 million, we are on track to strengthen our balance sheet through non-core asset sales and debt reduction as we communicated just five months ago. We remain committed to that program and look forward to the completion of the remaining non-core asset sales.”