PGS Sells Seismic Vessel Geo Atlantic to GC Rieber Shipping

Petroleum Geo-Services ASA

PGS announced that its subsidiary Arrow Seimic Invest I Ltd. has entered into an agreement to sell the seismic vessel Geo Atlantic to GC Rieber Shipping for US $58 million in cash. The sale is a part of the previously announced plans for asset sales, which are targeting proceeds of US $200 million in 2009.

Jon Erik Reinhardsen, President and CEO of PGS, commented, "The purpose of the sale is to reduce debt and strengthen our balance sheet."

The asset sale will result in an accounting loss in Q2 2009, estimated at approximately US $45-50 million. The proceeds will be used to repay debt, primarily the Arrow facilities which were established to finance Geo Atlantic and Arrow's two first new builds in Spain (New build 532 and 533).