Implementation of 2016 Employee Long-term Incentive Plan

June 14, 2016: Oslo, Norway, Petroleum Geo-Services ASA ("PGS" or the "Company")announces that the 2016 long term incentive plan, as approved by the Annual General Meeting on May 11, 2016, has now been implemented by allocating 762 150 Performance based Restricted Stock Units ("PRSUs") and 647 150
Restricted Stock Units ("RSUs").

The awards are based on amongst other considerations the position in the Company and a review on the individual participant's performance prior to award. Any PRSU and RSU awarded will, subject to the participant's continued employment with the Company (or a subsidiary), be settled three years after grant. The complete terms and conditions of the award are described in the calling notice for the 2016 Annual General Meeting.

Delivery of shares will take place from the Company's pool of treasury shares or, if an insufficient number of treasury shares exist, it will be settled by cash payment of an equivalent value.

The purpose of the long term incentive plan is to further the interests of PGS, its subsidiaries and its shareholders to employees who can contribute materially to the success and profitability of PGS. Such awards will recognize and reward performance and individual contributions and give participants in the plan an interest in the Company parallel to that of the shareholders, thus enhancing the proprietary and personal interest in PGS' continued success and progress.

The Board of Directors has allocated PRSUs and RSUs according to the plan to the following primary insiders in PGS:

Jon Erik Reinhardsen, President & CEO, has been awarded 79 000 PRSUs and 26 000 RSUs in the Company. Following the award, Reinhardsen holds 228 889 shares in PGS, 158 000 PRSUs and 88 000 RSUs.

Sverre Strandenes, Executive Vice President MultiClient, has been awarded 27 000 PRSUs and 18 000 RSUs in the Company. Following the award, Strandenes holds 39 518 shares in PGS, 54 000 PRSUs and 57 600 RSUs.

Per Arild Reksnes, Executive Vice President Operations, has been awarded 27 000 PRSUs and 18 000 RSUs in the Company. Following the award, Reksnes holds 35 757 shares in PGS, 54 000 PRSUs and 57 600 RSUs.

Magne A. Reiersgard, Executive Vice President Marine Contract, has been awarded 27 000 PRSUs and 18 000 RSUs in the Company. Following the award, Reiersgard holds 34 169 shares in PGS, 54 000 PRSUs and 57 600 RSUs.

Gottfred Langseth, Executive Vice President & CFO, has been awarded 27 000 PRSUs and 18 000 RSUs in the Company. Following the award, Langseth holds 94 707 shares in PGS, 54 000 PRSUs and 57 600 RSUs.

Guillaume Cambois, Executive Vice President Imaging & Engineering, has been awarded 27 000 PRSUs and 18 000 RSUs in the Company. Following the award, Cambois holds 58 555 shares in PGS, 54 000 PRSUs and 57 600 RSUs.

Rune Olav Pedersen, Executive Vice President & General Counsel, has been awarded 27 000 PRSUs and 18 000 RSUs in the Company. Following the award, Pedersen holds 16 963 shares in PGS, 54 000 PRSUs and 70 600 RSUs.

Kai Reith, Vice President Corporate Development, has been awarded 4 000 PRSUs and 4 000 RSUs in the Company. Following the award, Reith holds 4 000 shares in PGS, 7 000 PRSUs and 11 650 RSUs.

Terje Bjølseth, Senior Vice President Global Human Resources, has been awarded 12 000 PRSUs and 8 000 RSUs in the Company. Following the award, Bjølseth holds 27 628 shares in PGS, 24 000 PRSUs and 25 600 RSUs.

Joanna Oustad, Senior Vice President HSEQ, has been awarded 12 000 PRSUs and 8 000 RSUs in the Company. Following the award, Oustad holds 34 221 shares in PGS, 24 000 PRSUs and 25 600 RSUs.

Berit Osnes, Senior Vice President MultiClient Special Sales, has been awarded 5 000 PRSUs and 5 000 RSUs in the Company. Following the award, Osnes holds 12 943 shares in PGS, 10 000 PRSUs and 16 000 RSUs.

Espen Grimstad, Senior Navigation Specialist, has been awarded 1 100 PRSUs and 1 100 RSUs in the Company. Following the award, Grimstad holds 783 shares in PGS, 2 200 PRSUs and 2 200 RSUs.

David J. Dakin, Chief Accounting Officer, has been awarded 3 000 PRSUs and 3 000 RSUs in the Company. Following the award, Dakin holds 6 972 shares in PGS, 6 000 PRSUs and 9 000 RSUs.

Christin Steen-Nilsen, Vice President Corporate Controller, has been awarded 2 500 PRSUs and 2 500 RSUs in the Company. Following the award, Steen-Nilsen holds 5 592 shares in PGS, 5 000 PRSUs and 7 700 RSUs.

Anette Valbø, Business Controller Marine Contract, has been awarded 2 500 PRSUs and 2 500 RSUs in the Company. Following the award, Valbø holds 5 722 shares in PGS, 5 000 PRSUs and 7 700 RSUs.

Bård Stenberg, Vice President IR & Corporate Communications, has been awarded 4 000 PRSUs and 4 000 RSUs in the Company. Following the award, Stenberg holds 3 909 shares in PGS, 7 000 PRSUs and 11 850 RSUs.

Further details on remuneration of management are described in the annual report for 2015.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.