Petroleum Geo-Services Expects Second Quarter Earnings to Modestly Exceed Consensus Estimates

Houston, Texas; Oslo, Norway; July 20, 2000: Petroleum Geo-Services ASA (NYSE: PGO; OSE: PGS) announced today that it expects to report second quarter revenues of $236 million, a 19% increase as compared with the second quarter of 1999, yielding slightly higher than expected quarterly earnings ranging between $0.13 and $0.14 per share. The Company's full quarterly and year to date financial results will be released on Wednesday, July 26, 2000. As previously announced, management will host a conference call at 9:30 am Eastern Standard time to discuss the quarterly results and the market outlook.

Bjarte Bruheim, President and Chief Operating Officer of PGS, stated, "While the seismic market has been slower to recover than the general oilfield service sector, the growth in revenue experienced this quarter represents an upward trend that we believe will continue for the next several years."

Reidar Michaelsen, PGS Chairman and Chief Executive Officer, added, "Despite some very difficult times, we have managed to retain a strong nucleus of management that is focused on developing advanced reservoir technology which is expected to be in high demand going forward. The need to find and produce more oil and gas is becoming more and more evident as each day passes. PGS, with its PetroTracTM suite of advanced geophysical technologies, has positioned itself as the leading reservoir imaging company and we look forward to accelerated seismic activity in the coming years."

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 and provides associated data management solutions. 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 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.