AUGUST 19, 2004: OSLO, NORWAY - Petroleum Geo-Services ASA ("PGS" or the "Company") (OSE: PGS; OTC: PGEOY) announced today that its floating production, storage and offloading unit (FPSO) Petrojarl I producing on the Glitne field on the Norwegian Continental Shelf (NCS) has been selected by the Norwegian Shipowners Association to be included in a general employee lockout affecting several NCS installations. Industry-wide, approximately 300 OFS union members are affected by this lockout, which will commence September 2, 2004.
If no resolution to this lockout is reached by September 2, 2004, production on the FPSO Petrojarl I would be expected to be shut down sometime thereafter. According to the force majure provision of the Petrojarl I contract, PGS will continue to be compensated, but at reduced levels. Compensation would be reduced up to approximately $77,000 per day for the first week and approximately $91,000 per day for the first month. PGS could receive a portion of this lost compensation from the Norwegian Shipowners Association's labor conflict compensation program.
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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) and owns a small oil and gas company. PGS operates on a worldwide basis with headquarters in Oslo, Norway. For more information on Petroleum Geo-Services visit www.pgs.com.
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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 certain additional risks and uncertainties as disclosed by the Company in its filings with the Securities and Exchange Commission. 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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