Petroleum Geo-Services is Awarded 10,000 sqkm Exclusive MC3D Contract in Deepwater Brunei

Houston, Texas; Oslo, Norway; July 31, 2000: Petroleum Geo-Services ASA (NYSE: PGO; OSE: PGS) announced today that it has been awarded a 10,000 square kilometer exclusive MC3D contract in deepwater E.E.Z. in Brunei Darussalam. The multi-client 3D (“MC3D”) is part of the deepwater licensing round that the Petroleum Unit of the Prime Ministers Department in Brunei Darussalam will announce on October 9th, 2000. The closing date for the bid round will be November 1st, 2001.

The survey will commence early August 2000 using the Ramform Challenger towing 10 streamers, each 6,000 meters long. This is the biggest streamer spread ever deployed in Asia Pacific and full onboard processing will be utilized with proprietary PGS technology. Final data will be ready for delivery to the client nine months after first shot point and will ensure that oil and gas companies bidding for the acreage in the licensing round will have sufficient time to make full use of the 3D in their bid.

Bjarte Bruheim, President and Chief Operating Officer of Petroleum Geo-Services stated, "We are very pleased that the Petroleum Unit in Brunei awarded this large MC3D contract to PGS. This is the first time in the Asia Pacific market that the authorities have awarded a pre-licensing 3D contract to one contractor, in which the data will become an integral part of the licensing round. Once again this demonstrates the value 3D seismic information has gained worldwide and the strong relationship PGS has developed with host governments around the world in promoting the value of pre-licensing MC3D."

Pangerun Haji Harun Bin Pangerun Haji ABD Rahman Head of Exploration of the Petroleum Unit, Prime Minister's Department of Brunei Darussalam stated, "The Petroleum Unit is convinced of the value pre-licensing 3D will have in attracting International Oil Companies to invest in deepwater Brunei, and that it will accelerate the exploration cycle. Technology and fast turnaround from the commencement of acquisition to final data delivery were key factors in choosing PGS as the contractor for this work."

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.