Houston, Texas; Oslo, Norway; January 11, 2000: Petroleum Geo-Services ASA (NYSE:PGO; OSE:PGS) announced today that it has entered into an agreement, subject to regulatory approvals, with Ranger Oil (U.K.) Limited to perform an Extended Well Test (“EWT”) for the continuing appraisal of the Kyle field in the North Sea. The EWT will be performed by PGS’ floating production, storage and offloading (“FPSO”) vessel, Petrojarl I. The EWT will commence in May or June 2000 and is expected to last 4 to 5 months.
At the conclusion of the EWT contract, Petrojarl I, is scheduled to undergo a standard five-year class survey (regulatory inspection) and a life extension upgrade. Upon the completion of the survey and upgrade, the Petrojarl I is expected to continue operating in the harsh and severe weather conditions of the North Sea for an additional 15 years or more.
Reidar Michaelsen, Chairman and Chief Executive Officer of PGS commented, “While other opportunities exist for the Petrojarl I, this contract will allow Ranger Oil and their partners to obtain immediate cash flow from the EWT while allowing PGS an excellent weather window to complete the tie-in of the Kyle field to PGS’ Ramform Banff FPSO.” He went on to say, “Following the upgrade, I believe that various contract opportunities will keep this FPSO utilized for several years.”