PGS’ Marine streamer fleet consists of:

• 6 Ramform vessels capable of towing up to
• 20 streamers
• 5 Classic streamer vessels capable of towing
• 4 to 8 streamers
• 1 2D vessel

We are among the world’s largest companies acquiring marine seismic data and own the most exstensive marine 3D multi-client library. We also have considerable data processing activity.

2006 Operational performance
Marine had revenues of USD 1 044.5 million in 2006, an increase of 44% compared with 2005. Revenues from contract seismic acquisition increased by 50% to USD 635.6 million, primarily due to improvement in the market for marine contract seismic and strong operating performance. Multi-client revenues were USD 353.2 million, up 37% compared to 2005. Europe, Brazil and Gulf of Mexico, contributed the most to multi-client revenues in 2006.

Pre-funding as a percentage of cash investments in multi-client data increased to 162% in 2006 compared to 87% in 2005. In 2006, we used 83% of our active vessel time acquiring contract seismic, and 17% acquiring multi-client seismic, compared to approximately 91% and 9%, respectively, in 2005. We expect to utilize approximateley 30% of our active vessel time for multi-client acquisition in 2007.

At December 31, 2006, our order backlog in Marine was USD 512 million, compared with USD 365 million at December 31, 2005.

2006 HSE Performance
Marine had a Lost Time Incidents Frequency (LTIF) of 0.49 per million man hours in 2006, compared to a LTIF of 0.33 in 2005, and a Total Recordable Case Frequency (TRCF) of 1.48 per million man hours, compared to a 1.32 in 2005.

Revenues in USD million (US GAAP)

Adjusted EBITDA in USD million (US GAAP)

Market and market position
PGS Marine has a market share of approximately 28%, measured in acquired square kilometer 3D seismic. Our main competitors are WesternGeco and CGGVeritas.

Multi-client library
We own a significant library of marine multi-client seismic data in most of the major oil and gas basins of the world, including the Gulf of Mexico, the North Sea, West Africa, Brazil and the Asia Pacific region.

HD3D®
HD3D® seismic is a premium seismic data product. HD3D® will deliver the highest resolution, highest quality 3D data product to address a broad range of problems and challenges, both related to exploration and time-lapse reservoir monitoring (“4D”).

We intend to grow and consolidate our HD3D® strengths by developing new technologies that further improve efficiencies and that fully exploit the potential value of properly sampled seismic data.

Goals and strategies
In Marine we aim to capture the value from our strong operating platform and expected market upturn by using our productivity leadership, increasing our streamer count and maximizing our capacity utilization.

We will focus on value-added products and services such as HD3D®, MultiAzimuth and MegaSurveys, while increasing our multi-client investments, including new multi-client investments in Gulf of Mexico.
In the long-term, we aim to sustain our market share.

Outlook
We expect Marine to improve its streamer contract operating profit margin to around 50-55% in 2007, compared to approximately 40% in 2006. Multi-client revenues are expected to be higher in 2007 than the level at 2006 of USD 353 million. The multi-client investments in 2007 are expected to be approximately USD 170-190 million, compared to USD 81 million in 2006. The capital expenditure in Marine in 2007, excluding multi-client investments, is expected to be approximately USD 200 million, up from USD 146 million in 2006.