PGS Says Refinancing Completed

Petroleum Geo-Services ASA, on June 29, 2007, completed the process to establish a new Senior Secured Credit Facility. The total facility amount of $950 million consists of an eight-year $600 million Term Loan B and a five-year $350 million Revolving Credit facility. The Term Loan B, which has no financial maintenance covenants, has a floating interest rate of LIBOR + 175 basis points. The Company expects to enter into interest rate derivatives agreements for a portion of the loan to change all or parts of its interest rate exposure from floating to fixed interest rate.

The proceeds together with available cash have been used to repay and cancel the Company's previous Senior Secured Credit Facility, which consisted of a $244 million Term Loan B and a $150 million Revolving Credit Facility and to pay the purchase consideration for the acquisition of MTEM Limited. It will further be used to fund the payment of approximately $300 million of special dividend approved by the Annual General Meeting held June 15, 2007 and for general corporate purposes.

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.