PGS ASA

Capital/Financing Update • Sep 9, 2014

Petroleum Geo-Services ASA : Fleet Adjustment and CAPEX Reduction

Petroleum Geo-Services ASA : Fleet Adjustment and CAPEX Reduction

Petroleum Geo-Services ASA ("PGS" or "the Company") announced today that it has

implemented further steps to streamline operations, reduce cost and capital

expenditures ("CAPEX"), and improve cash flow.

PGS has stacked, and will consider selling or scrapping, the seismic vessels

Pacific Explorer and Nordic Explorer. The seismic vessel Atlantic Explorer which

is currently conducting a 2D survey will be taken permanently down to 2D mode

and is planned to be used as a combined 2D, source and EM acquisition vessel.

PGS has received notification from Mitsubishi Heavy Industries Ltd. ("MHI") that

delivery of the Company's two last Ramform Titan class new builds will be

delayed by 2 and 4 months. New delivery dates provided by MHI are August

31, 2015 and January 31, 2016. PGS has taken steps to adjust timing of equipment

and similar deliveries, also catering for further possible delay of vessel

delivery dates.

PGS has taken the decision to sell the PGS Khazar joint venture.

Following these and other initiatives PGS expects to reduce its CAPEX plan by

approximately USD 50 million for 2014 and USD 100 million for 2015. The revised

CAPEX estimate for 2014 is USD 375 million.  Operational cash cost savings,

primarily the effect of vessel retirement, is estimated to amount to

approximately USD 10 million per quarter from and including Q4 2014. This is in

addition to the quality and cost improvement programs already announced by the

Company.  In Q3 2014 PGS expects to report one off cost of approximately USD 3

million relating to de-rigging of vessels, and impairments of approximately USD

20 million to write down the carrying value of retired vessels and the

investment in PGS Khazar to expected sales value.

FOR DETAILS, CONTACT:

Bård Stenberg, VP Corporate Communications

Phone:   +47 67 51 43 16

Mobile:  +47 99 24 52 35

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Petroleum Geo-Services ("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's 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.

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 2013. 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 of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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