PGS Sells Production Services Division

Petroleum Geo-Services has signed a share sale agreement with Petrofac Limited to sell PGS Production Group, Ltd., the company's production services division headquartered in Aberdeen for a total consideration of approximately $50 million, including the assumption of approximately $5 million in debt. This agreement is subject inter alia to due diligence.

Following PGS' recent statements regarding corporate restructuring and the continuing disposal of non-core assets, this transaction is in line with the company's strategy of consolidating its business in the core areas of geophysics and floating production.