Petroleum Geo-Services ASA announced that it has now moved into to the final stages of negotiation with China National Chemicals Import and Export Corporation ("Sinochem"), to sell its Atlantis subsidiary. In the second quarter of 2001, PGS received a non-binding offer from Sinochem to purchase all of the shares of Atlantis. PGS and Sinochem at that time entered into exclusive negotiations, and following a series of meetings this week among PGS, Sinochem and various governmental authorities in the United Arab Emirates, PGS now believes that it is in the final stages of negotiating a binding agreement for the sale. Consummation of such an agreement is expected to be subject to certain conditions including receipt of consents and waivers from governmental authorities and partners. While PGS is confident that the sale of Atlantis will be completed, there is no assurance that a definitive agreement will be reached.
Chairman and Chief Executive Officer of Petroleum Geo-Services Reidar Michaelsen said, "Atlantis has accumulated a valuable package of exploration and production properties which are not core to PGS' ongoing oilfield service activities. The finalization of this transaction will complete the non-core asset sales that I described in late 2000. We have great respect for Sinochem and their team. We believe they will benefit greatly from the assets that Atlantis has only begun to develop."