Petroleum Geo-Services Prices $225 Million Floating Rate Senior Notes


Houston, Texas; Oslo, Norway; March 14, 2000: Petroleum Geo-Services ASA (NYSE: PGO; OSE: PGS) announced today that it priced an offering of $225 million of floating rate senior notes due 2002. Proceeds from the offering will be used to repay bank debt. The notes will be callable at par after one year, will be issued at a price of 99.90% and will have a floating interest rate equal to 0.65% over three month LIBOR.

The offering is being made through underwriters lead managed by Merrill Lynch & Co. and Prudential Securities and co-managed by Chase Securities Inc., Salomon Smith Barney and Warburg Dillon Read LLC. All of the notes are being offered by the Company. The notes are not being offered in the Kingdom of Norway.

Petroleum Geo-Services is a technologically focused oilfield service company principally involved in two businesses -- geophysical services and production services. PGS acquires, processes, manages and markets 3D, 4D and multi-component marine seismic data. Such 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. In its production services business, PGS owns four floating production, storage and offloading systems and operates numerous offshore production facilities for oil and gas companies. FPSOs permit oil and gas companies to produce oil and gas from offshore oil and gas fields more cost effectively. The Company also provides data management solutions, 4D reservoir monitoring, interpretation and characterization studies and other specialized geophysical services. PGS operates on a worldwide basis with headquarters in Oslo, Norway and Houston, Texas.