PGS ASA

Investor Presentation • May 22, 2018

Barclays High Yield Conference 2018

Colorado Springs, May 21-22

Gottfred Langseth EVP & CFO

Disclaimer

By viewing or receiving this presentation, you are agreeing to be bound by the following limitations. The information contained in this presentation has been prepared by Petroleum Geo-Services ASA ("PGS" or the "Company") and has not been independently verified and will not be updated. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein and nothing in this Presentation is, or shall be relied upon as, a promise or representation. None of the Company nor any of its affiliates, nor their respective employees, officers, directors, advisers, representatives or agents shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, in contract, tort or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information and opinions in this presentation is provided as at the date hereof and subject to change without notice. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company's financial or trading position or prospects. This presentation does not constitute investment, legal, accounting, regulatory, taxation or other advice and does not take into account your investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Company. You are solely responsible for seeking independent professional advice in relation to the Company. No responsibility or liability is accepted by any person for any of the information or for any action taken by you or any of your officers, employees, agents or associates on the basis of such information. This presentation contains financial information regarding the businesses and assets of the Company. Such financial information may not have been audited, reviewed or verified by any independent accounting firm. The inclusion of such financial information in this presentation or any related presentation should not be regarded as a representation or warranty by the Company, its affiliates, advisors or representatives or any other person as to the accuracy or completeness of such information's portrayal of the financial condition or results of operations by the Company and should not be relied upon when making an investment decision. This presentation includes certain non-IFRS financial measures and other metrics which have not been subject to a financial audit for any period.

Certain financial and statistical information in this presentation has been subject to rounding off adjustments. Accordingly, the sum of certain data may not conform to the expressed total.

Certain statements in this presentation are forward-looking. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These include, among other factors, changing economic, business or other market conditions, changing political conditions and the prospects for growth anticipated by the Company's management. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation.

The market and industry data and forecasts included in this presentation were obtained from internal surveys, estimates, experts and studies, where appropriate as well as external market research, publicly available information and industry publications. The Company, it affiliates, directors, officers, advisors and employees have not independently verified the accuracy of any such market and industry data and forecasts and make no representations or warranties in relation thereto. Such data and forecasts are included herein for information purposes only. Accordingly, undue reliance should not be placed on any of the industry or market data contained in this presentation.

The Company and its subsidiaries have implemented the new revenue recognition standard, IFRS 15, as the Company's external financing reporting method. This change impacts the timing of revenue recognition for MultiClient pre-funding revenues and related amortization. PGS will for internal management purposes continue to use the revenue recogniation principles applied in previous periods, which are based on percentage of completion, and use this for numbers disclosed as Segment Reporting. See Note 15 of the Q1 2018 earnings release for definitions of terms. See Note 16 of the Q1 2018 earnings release for a description of the change in revenue recognition resulting from the implementation of IFRS 15. PGS will not restate prior periods.

THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR SOLICITATION OF ANY OFFER TO BUY ANY SECURITIES

Agenda

• PGS in Brief
• Market Overview
• Company Highlights
• Financial Review

• Q&A

PGS in Brief A Leading and Fully Integrated Marine Seismic Player

Revenues**: USD 885.3m

EBITDA**: USD 436.3m

Market Cap**: USD 1,741m

Employees**: 1,298

* Based on number of active streamers.

** Revenues and EBITDA are in USD and are based on the LTM as of Q1 2018. Market capitalization as of May 17, 2018 and USDNOK rate of 8.110; number of employees as of March 31, 2018.

*** Operates 8 active vessels during the summer season and plan to operate 6 during the winter season.

PGS in Brief The World of PGS

Diversified Revenue Streams*

by geography by business

• Marine Contract
• MultiClient Pre-funding
• MultiClient late sales
• Imaging

• Other

• Europe

• Africa
• Asia Pacific
• Canada
• Brazil
• Other
• Americas (ex. Brazil and Canada)

Diversified MultiClient Library in major offshore hydrocarbon basins

PGS in Brief Strategic Focus – Marine Seismic Market Leadership

• Market is trending towards more MC and 4D
• Improved imaging of subsurface will be increasingly important for customers
• Premium data and service quality key as "easy oil" has been found
• Cost focus will always be important, our fleet provides efficiency benefits and superior technology

	A full service offering is the best way to take benefit of the market going forward
	Business Model Flexibility	• Focusing on client needs – Flexible offering of MC and contract services or a combination – Tailored survey design and imaging
	Meet Client Needs	• Meet needs on all aspects of marine seismic – 2D, 3D, 4D, reprocessing, processing, timing, survey design etc
	Continued Technology Development	• Capacity for continued technology development to improve subsurface understanding • Production seismic requires high resolution
	Value Chain	• Control all aspects of seismic value chain and offering

Full Service Offering

Acquisition - MultiClient - Imaging Solutions - Interpretation - R&D

Market Overview

Market Overview Energy Demand will Increase – Fossil Fuels Remain the Dominant Energy Source

• Energy demand will continue to grow owing to increased world GDP
• Driven by emerging markets
• Projected 1.2% annual growth 2020-2040
• Renewables are the fastest growing energy source, but fossil fuels remain the dominant source of global energy supplies
• Decline rates from producing field is significant and increased shale production is in the Company's view not enough to compensate
• Offshore exploration and production has to increase

Market Overview At the Same Time, Discovery of Fossil Fuels Continues to Decline

• Discoveries of 7.8 billion boe in 2017 (versus 30 billion boe in 2012)
• The 2017-level is the lowest level seen since 1947
• Exploration spending and drilling have been significantly reduced
• Oil discovery levels are in the Company's view unsustainable to meet future demand

Market Overview Integrated Oil Companies are Cash Flow Positive and Improving

• Integrated oil companies became cash flow positive after capex and dividend in 2017
• With oil price above USD 50 per barrel they are generating significant cash flow
• Brent Blend currently trading between USD70-80 per barrel
• Integrated oil companies are well positioned to increase spending

• Seismic spending increased by 9% in 2017 compared to 2016, while offshore spending declined by 8%

• Historically seismic has been an early cycle indicator

^* Seismic spending are actual revenues from PGS, CGG, WesternGeco, Polarcus, Spectrum and TGS. ** According to IHS.

Market Overview Marine Seismic Supply Outlook

• Company estimates that average streamer capacity in 2018 is close to 50% lower than average streamer capacity in 2013
• All major seismic vessel operators have reduced capacity through retiring and cold-stacking vessels
• Schlumberger's planned exit from the seismic acquisition market may reduce supply further in the short term

Lower supply should benefit market balance in 2018

Market Overview Summary

• Higher oil price, improved cash flow among oil companies and unsustainable reserve replacement ratios are expected to benefit marine 3D seismic market fundamentals going forward
• Continued strong MultiClient sales in Q1 indicates an improving market sentiment in 2018
• Continued risk related to timing and strength of recovery in the contract market
• PGS plans for a flat market
• A centralized, simplified and streamlined PGS is well positioned to achieve positive cash flow in 2018

PGS is uniquely positioned to capitalize on future market opportunities

Company Highlights

Company Highlights

PGS Fleet: A Differentiated Market Leader 1

• A market leader with market share of ~35% in 2018
• The only fleet fully equipped with the latest technologies
• Multicomponent streamers
• Source steering
• Streamer steering
• 12+ steamer count
• Operates an active fleet of eight 3D vessels, of which two are used selectively
• Address seasonal demand swings
• On average, active vessel capacity in 2018 will be newer and more efficient than 2017

Maintaining a strong market position

PGS Active Fleet Is the Youngest 1

• Ramform Titan-class and Ramform S-class vessels are:
• Superior for large exploration surveys
• Superior for any survey with high streamer count
• Competitive on all 4D surveys and conventional 3D surveys
• The conventional vessels in the PGS fleet are competitive for both exploration 3D and 4D
• Lowest average age of active fleet in the industry

A world class fleet:

Average active vessel age of 5 years (Dec. 2017) and average streamer count 14.5

Competitive Advantage

2

GeoStreamer and Enhanced Imaging Capabilities

GeoStreamer – PGS Business and Technology Platform

• Enhanced resolution, better depth imaging and improved operational efficiency
• Enables the best sub-surface image for reservoir understanding and well placement

Robust MultiClient Operations 3

• 2017 MultiClient cash investments of USD 213.4 million with a pre-funding level of 140%

• Pre-funding (*) has historically tended to be in the high end or above the targeted 80-120% range due to incremental sales in the processing phase

A Leading MultiClient Library Generating Relatively High Revenues

Peer Group (**) Net Book Value

* Calculated by dividing the MultiClient pre-funding revenues by the cash investment in MultiClient library. ** Peer Group – WG, TGS (consensus), CGG (consensus), PGS.

3 Industry Leading MultiClient Performance

Industry Leading MultiClient Performance 3

Revenues / Full Capitalized Cost (**)

1.0 1.5 2.0 2.5 3.0 Revenues / Cash Investments (*)

• The highest sales to investment ratio
• Both measured on capitalized cash investments and full capitalized costs
• Conclusion: Stable, strong performance

* PGS estimates, limited to three largest peers. Reported / consensus revenues and MC investments. No consistent industry definition of MultiClient (cash) investments Revenues / cash investments: Can not be compared in absolute terms - relative variations from year to year for each player.

** PGS estimates, limited to three largest peers. Cost capitalized to library less interest. Revenues / full capitalized cost: Can be compared in absolute terms.

A Flexible Fleet – Throughout the Cycle 4

RAMFORM Hyperion RAMFORM Tethys RAMFORM Atlas RAMFORM Titan

RAMFORM Sterling RAMFORM Sovereign PGS Apollo SANCO Swift

• PGS will have eight 3D vessels ("the active fleet") fully equipped at all times, but during the low season we plan only to run six of these vessels
• The cost base of the fleet is adjusted to six vessels as contract/part time crew will be used for the additional two vessels, providing a flexible element to the base cost
• Six cold-stacked vessels position PGS well to take advantage of the next up cycle

Maintaining Industry Leading Performance 4

Sharp focus on planning and risk mitigation

Continuous effort to reduce unproductive time

PGS "Best in Class" fleet performance ensures consistent operating strength at every point in the cycle

Performance = actual production of seismic in % of available production time

A Proactive Approach to Managing Financial Risks 5

• PGS is continuously looking for measures to pro-actively manage debt maturities and maintain tight control on costs
• Track record of successful balance sheet and cashflow management in a challenging market backdrop

Steps taken resulted in improved balance sheet flexibility and increased long term financial visibility

A Focus on Cashflows 5

* Overview from PGS Capital Markets Day based on prior guiding on cost

Financial Review

Financial Review Q1 2018: A Good Start for Achieving Positive 2018 Cash Flow

• Segment Revenues of USD 197.8 million, ahead of plan
• Segment EBITDA USD 92.3 million
• Strong Segment MultiClient performance:
• Total MultiClient revenues of USD 142.0 million
• Strong late sales of USD 83.5 million
• Sales-to-investment of 2.6 times
• Pre-funding level of 109%
• Marine contract market still challenging with a weak winter season
• Total Leverage Ratio below 3.0:1
• First quarter operating under the new organizational structure
• 2018 gross cash cost estimate adjusted upwards to reflect higher activity, FX changes and higher fuel prices

Financial Review Q1 2018 Operational Highlights

• Total Segment MultiClient revenues of USD 142.0 million, driven by higher MultiClient activity
• Pre-funding revenues of USD 58.6 million
• Pre-funding level of 109% on USD 53.7 million of MultiClient cash investment
• Late sales revenues of USD 83.5 million
• Marine contract revenues of USD 44.5 million

Financial Review Financial Summary

* EBITDA, when used by the Company, means EBIT excluding Other charges, impairment and loss/gain on sale of long-term assets and depreciation and amortization as defined in Note 15 of the Q1 2018 earnings release . ** Excluding impairments and Other charges. 30

Financial Review Order Book

• Order book of USD 211 million by end Q1 2018
• 3D vessel booking for 2018 of 45 vessel months*
• Q2: 24 vessel months
• Q3: 19 vessel months
• Q4: 2 vessel months
• Plan to operate eight vessels during summer season - Ramform Sovereign mobilized early March

Order book estimates are based on a number of assumptions and estimates (including in relation to foreign exchange rates, proportionate performance of contracts, valuation of assets, amounts to be received as payment under certain agreements and timing of performance for day rate contracts). * As of April 20, 2018. 31

Financial Review Summary of Debt and Drawing Facilities

Long-term Credit Lines and Interest Bearing Debt	Nominal Amount	Total Credit Line	Financial Covenants
USD 400.0m TLB, due 2021 Libor (minimum 0.75%) + 250 bps	USD 384.0m		None, but incurrence test: total leverage ratio ≤ 3.00x*
Revolving credit facility ("RCF"), due 2020 Libor + margin of 325-625 bps (linked to TLR) + utilization fee	USD 205.0m	USD 400.0m**	Maintenance covenant: total leverage ratio 4.75x Q4-17; 4.25x Q1-18, thereafter reduced by 0.25x each quarter to 2.75x by Q3-19
Japanese ECF, 12 year with semi-annual instalments. 50% fixed/ 50% floating interest rate	USD 404.5m		None, but incurrence test for loan 3&4: Total leverage ratio ≤ 3.00x and Interest coverage ratio ≥ 2.0x
December 2020 Senior Notes, coupon of 7.375%	USD 212.0m		None, but incurrence test: Interest coverage ratio ≥ 2.0x*
December 2018 Senior Notes, coupon of 7.375%	USD 26.0m		None

Rating Agency	Rating	Outlook
Moody's	B3	Stable
S&P	CCC+	Positive
Fitch	B -	Positive

* Carve out for drawings under ECF and RCF.

** Reducing to USD 350 million in September 2018.

Financial Review Rapid Deleveraging with Good Headroom to Maintenance Covenant

• Substantial reduction of Total Leverage Ratio ("TLR") during 2017 and Q1 2018
• Significant headroom to required level
• Total leverage ratio of 2.99:1 as of March 31, 2018, compared to 3.67 as of December 31, 2017
• Company expects to be in compliance going forward

Financial Review Key Financial Policies

• Policy of refinancing debt at least 12-18 months before maturity
• Net debt / EBITDA target of 1x-2x*
• MultiClient pre-funding levels targeted at 80-120% of MC cash investments
• Minimum liquidity target of USD 200m, including Revolving Credit Facility
• Dividend intended over time to be 25-50% of Net Income
• BUT, priority will going forward be given to debt reduction to reach target level before resuming dividend payments.

Concluding Remarks Solid MultiClient Performance – Good Start to Achieve Positive 2018 Cash Flow

• Delivered the first quarter with new organization
• Solid MultiClient revenues from continued market recovery
• Still uncertainty regarding strength and timing for contract market recovery
• Encouraging bid pipeline for 2018
• Improving visibility

Positive 2018 cash flow after debt service remains key financial target

• Following the Company's reorganization with effect from Q1 2018, PGS now has only one operating segment. Because the previous segments, Marine Contract and MultiClient, satisfied the aggregation criteria under IFRS 8 operating segments, this change in segments does not result in a change to the segment reporting for previous periods
• Following the implementation of the new accounting standard for revenues, IFRS 15, MultiClient pre-funding revenues are no longer recognized under the previously applied percentage of completion method. Instead, all such revenues are recognized at delivery of the final processed data, which is typically significantly later than the acquisition of the seismic data
• PGS management has, for the purpose of its internal reporting, continued to report according to the principle applied in 2017 and earlier years, where MultiClient pre-funding revenue is recognized on a percentage of completion basis, and the related amortization of MultiClient library based upon the ratio of aggregate capitalized survey cost to forecasted sales. Reference is made to Note 16 of the Q1 2018 earnings release for further information
• The quarterly numbers in this presentation relates to both as reported in accordance with IFRS and Segment Reporting unless otherwise stated

Appendix Our Organization

Project Planning & Bidding

Focus on efficiency & delivery

Project Delivery

Focus on efficiency & delivery

Seismic Acquisition & Support

Continuous efficiency improvements

Geoscience & Engineering

Develops differentiating technology

Delivery Imaging

• Prioritizes profitability, service and quality
• Lean structure with focused contact points for responsive service
• Flexible vessel and imaging capacity
• Efficient project planning and delivery
• Subsurface expertise directs data library expansion
• Technology development aligned with client needs

39

40