MARINE PGS BUSINESS UNIT MARINE acquires, processes, interprets, markets and sells seismic data worldwide that is used by oil and natural gas companies to help find oil and natural gas, to determine the size and structure of the reservoirs, and to help them manage the production of reservoirs.   Marine Market Leadership Fleet Expansion Operational Performance Multi-Client Library PGS Equity

PGS’ Marine Streamer Fleet Consists of:

The PGS fleet is growing and the new Ramform Sovereign was delivered in March 2008. It is a state of the art purpose build seismic vessel capable of towing 22 streamers. The second vessel in the Ramform S-class series, Ramform Sterling, is currently ahead of schedule and is expected to be delivered on time in Q2 2009.

After the acquisition of Arrow Seismic in second half of 2007 PGS will gain access to three 2D/source vessels and two new high-end 3D vessels. The new-builds are scheduled to be delivered in Q2 and Q4 2009.

PGS are among the world’s largest companies acquiring marine seismic data and own the largest international marine multi-client library. The Company also has
extensive data processing activities.

Seismic marine aquisition conducted by a PGS Ramform vessel.

2007 Operational Performance
Marine had revenues of USD 1 273.8 million in 2007, an increase of 22% compared to 2006. Revenues from contract seismic acquisition increased by 9% to USD 691.8 million. Despite less capacity allocated to contract seismic in 2007, revenues increased compared to 2006, primarily due to improvement in the market for marine contract seismic and strong operating performance. Multi-client revenues were USD 503.9 million, up 43% compared to 2007. Gulf of Mexico, Europe and Brazil were the main contributors to multi-client revenues in 2007.

Pre-funding as a percentage of cash investments in multi-client data decreased to 140% in 2007 compared to 149% in 2006, at the same time, capitalized cash investments increased from USD 88.3 million to 218.6 million. In 2007, PGS used 74% of active vessel time to acquire contract seismic, and 36% to acquire multi-client seismic. This compares to approximately 83% and 17% respectively in 2006. Given the strong demand
for vessel capacity, the Company expects to utilize approximately 15% of the active vessel time for multi-client acquisition in 2008.

At December 31, 2007, the order backlog in Marine was USD 807 million, compared to USD 512 million as of December 31, 2006.

2007 HSE Performance
Marine had a Lost Time Incidents Frequency (LTIF) of 0.63 per million man hours in 2007, compared to a LTIF of 0.49 in 2006, and a Total Recordable Case Frequency (TRCF) of 2.20 per million man hours, compared to
a 1.48 in 2006.

Market and Market Position
PGS Marine has a market share of approximately 28%, measured by acquired square kilometers of 3D seismic. The main competitors are WesternGeco and CGGVeritas.

Multi-Client Library
PGS own a substantial 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. The marine multi-client data library comprises 373 000 square kilometers of 3D and 98 000 line kilo-meters of recent 2D seismic.

PGS Equity
PGS Equity has the objective to capture additional value from the existing multi-client library. The Company intend to build a portfolio of minority stakes in smaller E&P companies and manage those investments actively. It will also be a vehicle for attractive use of PGS re-sources such as vessels, data processing and technology. The ultimate intention is to monetize these investments at an appro-priate point in the value growth curve. In this context it is important to emphasize that the investments will be non-competitive with respect to our client base.

HD3D®
HD3D® seismic is a premium seismic data product. HD3D® delivers the highest resolution, highest quality 3D data pro-ducts to address a broad range of chalenges, related both to exploration and time-lapse reservoir monitoring (4D).

PGS intends to grow and consolidate its 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 PGS aims to capture value from the Company’s strong operating platform and expected market upturn by using its productivity leadership, increasing streamer count and maximizing capacity utilization.

PGS will focus on value-added products and services such as HD3D®, wide-azimuth, multi-azimuth and MegaSurveys, while increasing multi-client investments, including new investments in the Gulf of Mexico.

In the long-term, PGS aims to grow its market share.

Outlook 2008
In Marine PGS expects contract revenues to grow substantially in 2008 compared to 2007 and the Company expects the towed streamer contract EBIT margin to increase. The main driver behind the margin increase is further price increases, which more than offsets industry wide cost inflation and substantially increase in investments in organization and tech-nology.

PGS expects to use somewhat less of the 3D fleet capacity for multi-client acquisition in 2008 compared to 2007. The change is a result of significant contract awards in 2007. Multi-client investments are expected to be marginally lower than 2007. Substantially more reprocessing, 2D and more chartered in vessels is expected to offset most of the impact of using a smaller part of our 3D fleet for multi-client. Multi-client late sales are expected to be higher than in 2007.

Marine capital expenditures are expected to increase substantially, primarily as a result of the Company’s new-build and conversion programs.