Implementation of 2017 Employee Long-term Incentive Plan

June 21, 2017: Oslo, Norway, Petroleum Geo-Services ASA ("PGS" or the "Company") announces that the 2017 long term incentive plan, as approved by the Annual General Meeting on May 10, 2017, has now been implemented by allocating 839 480 Performance based Restricted Stock Units ("PRSUs") and 456 320 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 2017 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:

Gottfred Langseth, Executive Vice President & CFO, has been awarded 36 000 PRSUs and 9 000 RSUs in the Company. Following the award, Langseth holds 150 106 shares in PGS, 90 000 PRSUs and 66 600 RSUs.

Guillaume Cambois, Executive Vice President Imaging & Engineering, has been awarded 36 000 PRSUs and 9 000 RSUs in the Company. Following the award, Cambois holds 162 817 shares in PGS, 90 000 PRSUs and 66 600 RSUs.

Sverre Strandenes, Executive Vice President MultiClient, has been awarded 36 000 PRSUs and 9 000 RSUs in the Company. Following the award, Strandenes holds 64 583 shares in PGS, 90 000 PRSUs and 66 600 RSUs.

Per Arild Reksnes, Executive Vice President Operations, has been awarded 36 000 PRSUs and 9 000 RSUs in the Company. Following the award, Reksnes holds 59 263 shares in PGS, 90 000 PRSUs and 66 600 RSUs.

Magne A. Reiersgard, Executive Vice President Marine Contract, has been awarded 36 000 PRSUs and 9 000 RSUs in the Company. Following the award, Reiersgard holds 61 189 shares in PGS, 90 000 PRSUs and 66 600 RSUs.

Rune Olav Pedersen, Executive Vice President & General Counsel, has been awarded 36 000 PRSUs and 9 000 RSUs in the Company. Following the award, Pedersen holds 32 617 shares in PGS, 90 000 PRSUs and 79 600 RSUs.

Terje Bjølseth, Senior Vice President Global Human Resources, has been awarded 16 000 PRSUs and 4 000 RSUs in the Company. Following the award, Bjølseth holds 47 088 shares in PGS, 40 000 PRSUs and 29 600 RSUs.

Joanna Oustad, Senior Vice President HSEQ, has been awarded 16 000 PRSUs and 4 000 RSUs in the Company. Following the award, Oustad holds 56 034 shares in PGS, 40 000 PRSUs and 29 600 RSUs.

Berit Osnes, Senior Vice President MultiClient Strategic Sales Unit, has been awarded 6 000 PRSUs and 4 000 RSUs in the Company. Following the award, Osnes holds 21 186 shares in PGS, 16 000 PRSUs and 20 000 RSUs.

David J. Dakin, Chief Accounting Officer, has been awarded 3 600 PRSUs and 2 400 RSUs in the Company. Following the award, Dakin holds 7 753 shares in PGS, 9 600 PRSUs and 11 400 RSUs.

Anette Valbø, Business Controller Marine Contract, has been awarded 3 000 PRSUs and 2 000 RSUs in the Company. Following the award, Valbø holds 7 142 shares in PGS, 8 000 PRSUs and 9 700 RSUs.

Christin Steen-Nilsen, Vice President Corporate Controller, has been awarded 3 000 PRSUs and 2 000 RSUs in the Company. Following the award, Steen-Nilsen holds 7 012 shares in PGS, 8 000 PRSUs and 9 700 RSUs.

Bård Stenberg, Vice President IR & Corporate Communications, has been awarded 4 800 PRSUs and 3 200 RSUs in the Company. Following the award, Stenberg holds 6 936 shares in PGS, 11 800 PRSUs and 15 050 RSUs.

Kai Reith, Vice President Corporate Development, has been awarded 4 800 PRSUs and 3 200 RSUs in the Company. Following the award, Reith holds 9 341 shares in PGS, 11 800 PRSUs and 12 350 RSUs.

Hege Renshus, Senior Navigation Specialist, has been awarded 1 320 PRSUs and 880 RSUs in the Company. Following the award, Renshus holds 1 918 shares in PGS, 3 520 PRSUs and 4 280 RSUs.

Espen Grimstad, Senior Navigation Specialist, has been awarded 1 320 PRSUs and 880 RSUs in the Company. Following the award, Grimstad holds 917 shares in PGS, 3 520 PRSUs and 3 080 RSUs.

Further details on remuneration of management are described in the annual report for 2016.

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