DATA PROCESSING AND TECHNOLOGY PGS DATA PROCESSING AND TECHNOLOGY 2007 has seen further growth of this group which complements our data processing business and reservoir-related consulting activities with new acquisitions in the areas of electro-magnetic surveying and specialist depth imaging.   Technology Differentiation Data Processing Reservoir Services Geoscience & Engineering Commercialization & New Ventures

In November 2006 PGS formed a new global entity called PGS Data Processing & Technology. The group includes the Data Processing unit and the Geoscience
& Engineering organization.

Technology development and deployment is conducted by the Geoscience & Engineering organization with a global responsibility for research and development, as well as geophysical support for the seismic operations. The Commercialization & New Ventures Group is also a part of PGS Data Processing & Technology and it was formed early 2007, with the overall responsibility for introducing new technology products to the market.

Data Processing
Data Processing is an integrated part of PGS’ business and provides full seismic data processing services to the global E&P customer base, from national oil companies, international oil companies through to small independents. With 20 land based data processing centers, as of December 31, 2007, PGS has experience in every major sedimentary basin around the globe and is truly able to leverage global presence with local power.

Through global seismic data processing operations PGS can provide:

PGS’ stated ambition is to be a top tier data processing service provider. The high technology depth imaging segment is a key focus area for growth, and an important contribution to reaching the goal was realized through the acquisition of Applied Geophysical Services (AGS). The company specializes in delivering depth imaging services to the oil and gas industry using proprietary, fast 3D beam migration technology. This compliments and widens PGS’ technology portfolio delivering industry differentiating, near real-time, velocity depth modeling capability.

New MegaCenter The Kuala Lumpur MegaCenter in Cyberjaya achieved MSC Malaysia status on opening. Sverre Strandenes, Group President Data Processing and Technology (right) receives the certificate from Matthew Barsing (Multimedia Development Corporation) during the opening tour.

The data processing compute capacity is organized within Data Processing as a global computer resources operation. The largest computer centers, MegaCenters, are located in Houston Texas, London UK and Kuala Lumpur Malaysia, the latter newly opened in 2007. The Kuala Lumpur MegaCenter is already the second largest compute facility and is designed for 350% growth. These major compute hubs are connected through high capacity bandwidth to form a ‘virtual’ on demand compute resource for PGS’ geophysicists located around the globe. This allows the Company to better serve our customers, to provide local presence and leverage a world wide compute resource.

Data Processing also represents a significant component part of the multiclient services value chain, providing timely delivery of clearer images of the subsurface for reservoir interpretation to the customers for all new data. Additionally, continual advancements in geophysical processing technology lead to continuous improvements of the final seismic image.

Reprocessing of existing library data is a key step in maximizing investments in the multi-client library. As such PGS rejuvenates its asset base by regularly applying new technology to existing datasets to increase the late sale potential and to enhance the value to the customers.

Reservoir Services
PGS Reservoir is a leading team of sub-surface technical and commercial interpretation experts, providing skills that are integral to PGS multi-client, MegaSurvey, electromagnetic and equity businesses and also interpretation services for key PGS clients. The team is internationally recognized for ultra large-scale regional interpretation projects, for its ability to evaluate and manage explor-ation and production assets and for
providing services to governments in managing exploration licensing rounds.

Located in eight countries, the technical staff of professional geoscientists, petrophysicists and reservoir engineers work in integrated multi-disciplinary teams tailored to meet the client requirements. The clients are national, independent and major oil companies, governments and financial institutions. Through these projects, PGS has gained a depth of knowledge of petroleum basins around the globe and an ability to assess the variety of sub-surface risks the company faces.

Geoscience & Engineering
The R&D activity in PGS is focused on seismic data acquisition and processing as well as electromagnetic (EM) technology. The R&D teams support a worldwide network of data processing centers with leading edge technology. This includes the development and the implementation of seismic processing and imaging methods for advanced acquisition techniques like Geo-Streamer and multi- and wide-azimuth surveys.

PGS develops and maintains its proprietary state-of-the-art 3D-visualization system holoSeis and the comprehensive seismic modeling and survey planning software package Nucleus. A significant R&D effort is dedicated to advanced and efficient marine acquisition technology. This includes streamer systems, seismic source technology as well as towing systems for large streamer spreads. Research into the feasibility of towed EM surveying is proving positive with a system now under development. PGS has larger R&D departments in the US, UK, Norway, and Australia. Additional R&D groups have recently been established in The Netherlands, Sweden, and Singapore.

Innovation
Early 2007 Commercialization & New Ventures was established to strengthen PGS innovation value chain from idea generation to commercial launch. Ideas can be captured both internally and external to PGS. PGS is investing in a significant portfolio of technology R&D projects which need to be supported with sufficient resources and expertise in commercialization.

Life of Field Seismic
PGS has a unique fiber-optical technology for deep water permanent seismic monitoring systems named OptoSeis®. Fiber-optical systems will be more cost-beneficial over the lifetime of the deployment than an electrical system, and the technology has created strong interest amongst oil companies. Seismic monitoring of the fields will improve recovery, and can give the field-owners a very high return on investment. Our customer surveys estimates a significant emerging market to be established in what is called Life-of-Field-Seismic (LoFS). As of December 31, 2007 PGS is engaged in two different pilot projects of permanent deployment of fiber-optical on the seabed deepwater Gulf of Mexico, and the North Sea respectively.

Intellectual Property
PGS’ patents, trademarks, service marks, copyrights and licenses protect the Com-pany’s proprietary technology, including the Ramform seismic vessels, Multi-Transient Electro Magnetic (MTEM), GeoStreamer® , OptoSeis® and HD3D® seismic solution software. PGS’ intellectual property rights collectively represent a material asset to the business. As of December 31, 2007, PGS held 131 different patents under the laws of the US, the UK and Norway. PGS has significantly increased the number of patents filed the last year in alignment with the increased focus on competitive advantage through technological differentiators. PGS was granted 49 patents last year.