Preferred tenderer for vessel sale and long-term cooperation with JOGMEC in Japan

November 15, 2018; Oslo, Norway: PGS has, as part of a tender process, offered to sell the Ramform Sterling to the Japan Oil, Gas and Metals National Corporation ("JOGMEC") an incorporated administrative agency of Ministry of Economy Trade and Industry.

PGS has now been informed that the Company is the preferred tenderer, and negotiations will be initiated with the aim of concluding necessary contracts. A final award to PGS will only take place if and when all contracts have been concluded. PGS anticipates that this will happen during the first quarter of 2019. 

The tender process also includes up to 10 year service agreement with annual renewals. For this part of the tender PGS has formed a joint venture with Nippon Yusen Kabushiki Kaisha ("NYK") and Hitachi, Ltd ("Hitachi"). The joint venture will establish a Special Purpose Company ("SPC") which will aim to conclude final contracts with JOGMEC.  NYK will be responsible for vessel operation, Hitachi for data processing and PGS will provide technical and operational services, support and training.

The vessel sale excludes the seismic streamer package. SPC will conclude a separate lease contract with PGS on behalf of JOGMEC. Subject to final agreements, JOGMEC is scheduled to take delivery of Ramform Sterling at the start of the second quarter of 2019.

PGS intends to maintain the same operated fleet size in 2019 as the Company currently has. If the Ramform Sterling is sold to JOGMEC, PGS will reintroduce the Ramform Vanguard from the summer of 2019. CAPEX to reintroduce the vessel primarily relates to in sea equipment and is estimated not to exceed USD 25 million. If concluded, the sale of Ramform Sterling is not expected to result in any material gain in the financial statements.

For details, contact:
Bård Stenberg, SVP IR & Communication
Mobile: +47 992 45 235

Petroleum Geo-Services ASA and it's subsidiaries ("PGS" or the "Company") is a focused marine geophysical company that provides a broad range of seismic and reservoir services, including acquisition, imaging, interpretation, and field evaluation. The Company MultiClient data library is among the largest in the seismic industry, with modern 3D coverage in all significant offshore hydrocarbon provinces of the world. The Company operates on a worldwide basis with headquarters in Oslo, Norway and the PGS share is listed on the Oslo stock exchange (OSE: PGS). For more information on Petroleum Geo-Services visit www.pgs.com.

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The information included herein contains certain forward-looking statements that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future. These statements are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties. The Company is subject to a large number of risk factors including but not limited to the demand for seismic services, the demand for data from our multi-client data library, the attractiveness of our technology, unpredictable changes in governmental regulations affecting our markets and extreme weather conditions. For a further description of other relevant risk factors we refer to our Annual Report for 2017. As a result of these and other risk factors, actual events and our actual results may differ materially from those indicated in or implied by such forward-looking statements. The reservation is also made that inaccuracies or mistakes may occur in the information given above about current status of the Company or its business. Any reliance on the information above is at the risk of the reader, and PGS disclaims any and all liability in this respect.

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