Houston, Texas; Oslo, Norway; February 24, 2000: Petroleum Geo-Services ASA (NYSE: PGO; OSE: PGS) announced today that it successfully demonstrated, in direct competition with Schlumberger, the success of its proprietary seafloor multi-component seismic acquisition system. After various field tests, PGS was awarded the largest multi-component seismic contract in the seismic industry to acquire and process a data set for Phillips Petroleum Company. The project will start in the spring of 2000 and continue for several months.
This multi-component data set will be acquired over the PL 19-3 field in China’s Bohai Bay. Phillips recently announced this field as a major discovery, with the northern portion of the field estimated to contain 400 million barrels of potentially recoverable reserves. PGS’ multi-component technology will allow Phillips to better image the structure of the reservoir and thus help maximize the value of this significant asset.
Bjarte Bruheim, President and Chief Operating Officer of PGS commented, This contract will utilize breakthrough technology that is now being recognized by the industry. It should eventually be deployed on many major fields around the world, allowing our customers to minimize reservoir uncertainty, maximize hydrocarbon recovery, and exploit and produce reserves faster in a cost-effective manner. PGS is excited to have won this contract with our superior technology in competition with a company that is widely viewed as a technology leader within the industry. We look forward to working with the skilled geophysical organization at Phillips on a successful project.