Petroleum Geo-Services ASA -- PGS Form 20-F for 2005 Filed

OSLO, NORWAY


OSLO, Norway, April 6, 2006 (PRIMEZONE) -- Petroleum Geo-Services ASA ("PGS" or the "Company") (OSE:PGS)(NYSE:PGS) announced today that it has filed its Annual Report on Form 20-F for the year ended December 31, 2005 containing audited consolidated financial statements prepared in accordance with U.S. GAAP.

In the process of completing the audited U.S. GAAP financial statements, the Company recorded a change in the reporting of pension cost and adjusted certain items relating to deferred taxes. The change relating to pension cost amounted to $6.1 million and represents a deferral of a gain from a partial pension plan settlement. The gain will instead be recognized over future years. The adjustments relating to deferred taxes related primarily to the estimate of use, in 2005, of tax assets which existed when the Company adopted fresh-start reporting in 2003. Due to the fresh-start reporting, these adjustments also impacted amortization cost for the multi-client library. In total the adjustments increased multi-client amortization by $1.6 million and increased income tax expense by $0.9 million.

Compared to the preliminary full year 2005 results released on February 21, 2006, the combined effect of the changes was a reduction of the Company's net income by $8.6 million to $112.6 million.

A copy of the Company's Form 20-F is on file with the U.S. Securities and Exchange Commission (SEC) and is available for viewing and/or downloading at www.sec.gov or at the Company's web site at www.pgs.com (select the link to "Investor Relations", "Financial Reports" then "SEC Filings").

Petroleum Geo-Services is a technologically focused oilfield service company principally involved in geophysical and floating production services. PGS provides a broad range of seismic and reservoir services, including acquisition, processing, interpretation, and field evaluation. PGS owns and operates four floating production, storage and offloading units (FPSOs). PGS operates on a worldwide basis with headquarters at Lysaker, Norway.

For more information on Petroleum Geo-Services visit www.pgs.com.

The information included herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on various assumptions made by the Company which are beyond its control and are subject to certain additional risks and uncertainties as disclosed by the Company in its filings with the Securities and Exchange Commission including the Company's most recent Annual Report on Form 20- F for the year ended December 31, 2004. As a result of these factors, actual events may differ materially from those indicated in or implied by such forward-looking statements.



        

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