PGS Sells Petrojarl Shares

Petroleum Geo-Services has sold 6,467,440 shares in Petrojarl ASA for NOK 60 per share. This represents 8.6% of the share capital in Petrojarl ASA. Subsequent to the sale, PGS owns no shares in Petrojarl ASA.

PGS will be further compensated with the difference in the event the buyer in a period of three months after August 23, 2006 acquires Petrojarl shares at a higher price than NOK 60 or sells Petrojarl shares at a higher price than NOK 60.

In conjunction with the agreement to sell the 6,467,440 Petrojarl ASA shares held by PGS, the representatives of the managers in the Petrojarl IPO have given consent to such sale, as required by the lock-up agreement, subject to the buyer assuming the continuing obligations related to this lock-up.

Petroleum Geo-Services is a focused geophysical company providing a broad range of seismic and reservoir services, including acquisition, processing, interpretation, and field evaluation. The company also possesses the world's most extensive multi-client data library. PGS operates on a worldwide basis with headquarters at Lysaker, Norway.