PGS ASA

Legal Proceedings Report • Oct 23, 2023

PGS Arbitration Award

PGS Arbitration Award

October 23, 2023, Oslo, Norway: An English arbitration tribunal has over the

weekend provided a decision in PGS's favor regarding a dispute over transfer

fees under several data license agreements.

In 2022, PGS recorded revenues of approximately $30 million of transfer fees

relating to a change of control event under several data license agreements,

where the amount was still not agreed with the client. Given the inability to

timely conclude the negotiations, PGS initiated two separate arbitration

proceedings under the dispute resolution provisions in the agreements. The

tribunal in the first arbitration proceeding has now issued a decision in PGS's

favor. The award includes late payment interest and reasonable legal costs. The

amount due to PGS, net of any revenue share to third parties, is estimated to be

approximately $40 million. The detailed calculation of this amount for each of

the data license agreements is currently being undertaken.

The full and formal text of the decision will be released by the tribunal in due

course and PGS expects the amount to be paid during Q4 2023 or Q1 2024. The

second arbitration proceeding is expected to conclude during the second half of

2024, unless a settlement between the parties is reached earlier.

PGS is assessing the accounting consequences of the decision in the first

arbitration proceeding. The decision covers $18 million of the amounts already

recognized as revenues by PGS in 2022. PGS expects to recognize additional

revenues in Q3 2023 of approximately $15 million, but the amount is still not

concluded. Such revenues would be in addition to the estimated $168 million Q3

2023 revenues reported in the Company's pre-announcement to the market October

10, 2023. The company will in addition recognize a significant amount as

interest income.

FOR DETAILS, CONTACT:

Bård Stenberg, VP IR & Corporate Communication

Mobile: +47 992 45 235

***

PGS ASA and its subsidiaries ("PGS" or "the Company") is a fully integrated

marine geophysical company that provides a broad range of seismic and reservoir

services, including data acquisition, imaging, interpretation, and field

evaluation. Our services are provided to the oil and gas industry, as well as to

the broader and emerging new energy industries, including carbon storage and

offshore wind. 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 PGS visit www.pgs.com.

***

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 2022. 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.

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