A Commercialization & New Ventures group is expected to be established within Data Processing & Technology in early 2007. The group will have the overall responsibility for introducing new technology products to the market.

Data Processing
Data Processing is an integrated part of our business, and provides seismic data processing as part of our multi-client services. Before the multi-client data is delivered to our clients, the acquired seismic data is processed to provide a clear image of the subsurface for reservoir interpretation.

The processing services add value to our multi-client business through timely delivery of high-quality end-products for our clients. Data Processing also provides proprietary seismic data processing services to clients. Improvements in processing hardware and software technology lead to continuous improvements of the final seismic image, and thus reprocessing of older vintage data is a key step in maximizing value of seismic data. Accordingly, PGS rejuvenates its vintage multi-client library through re-processing to increase late-sales potential.

Some of the processing services are performed offshore onboard the seismic vessels, but the majority is performed in our land-based data processing centers. Our data processing services had as of December 31st 2006, 17 land based centers. The processing software R&D group is organized within the Geoscience & Engineering group. The major data processing computer capacity is organized within Data Processing as a Global Computer Resources operation. Our largest computer centers are located in Houston Texas, London UK, Rio de Janeiro Brazil, and Perth Australia. The four centers: Houston, London, Perth, and Lysaker, are interconnected through high capacity network links.

Through our seismic data processing operations we provide:

• 2D and 3D Time and Depth Imaging services for land and marine seismic surveys.
• Onboard (vessel) seismic data processing for reduced delivery times and enhanced real-time quality control for data that we acquire;
• Multi-component and time-lapse seismic data processing;
• Wide-Azimuth and Multi-azimuth seismic processing;
• HD3D® seismic processing; and
• Specialized signal enhancement techniques.

MegaSurvey
The unique MegaSurvey product from PGS consists of huge volumes of seismic data and is a method to conduct detailed prospectivity studies on a regional scale. PGS has MegaSurveys in the North Sea, offshore Australia and offshore West Africa.

Geoscience & Engineering
The R&D activity includes development and implementation of advanced and efficient software to be used by the Data Processing division, where the main focus is on applications like seismic imaging, multiple attenuation and processing of data from non-conventional survey geometries like multi- and wide azimuth projects. The R&D activity also includes development and implementation of state-of-the-art high-end 3D visualization, seismic modeling and survey design systems. Finally, we have significant R&D activity within marine technology including streamer systems, seismic source systems and towing systems for large streamer spreads. This activity is a key factor in maintaining our industry leadership in efficient acquisition of marine seismic data.

PGS Reservoir is a leading international provider of sub-surface technical and commercial expertise. ?We are internationally recognized for ultra large-scale regional interpretation projects – PGS MegaSurveys – and for our ability to evaluate and manage exploration and production assets. All of the technical staff draws upon many years of relevant experience within the oil industry, mostly from international oil companies.? Much of the work is carried out in integrated multi-disciplinary teams tailored to meet the client requirements.? The teams are comprised of professional geoscientists, petrophysicists and reservoir engineers. We work for a client base that includes independent and major oil companies, governments and financial institutions. Through these projects, we have gained a depth of sub-surface knowledge of petroleum basins around the globe. ?

Intellectual Property
Our patents, trademarks, service marks, copyrights and licenses protect our proprietary technology, including our Ramform seismic vessels and HD3D® seismic solution software. Our intellectual property rights collectively represent a material asset to our business. However, no single patent, trademark, copyright, license or piece of technical information is of material importance to our business when taken as a whole. As of December 31, 2006, we held 170 patents under the laws of the US, the UK and Norway. The duration of these patents varies from 7 to 19 years, depending upon the date filed and the duration of protection granted by each country.