PGS ASA — Earnings Release 2010

Apr 30, 2010

First Quarter 2010 Results

GeoStreamer® Improves Margins

April 30, 2010: OSLO, NORWAY - Petroleum Geo-Services ASA ("PGS" or the

"Company") reported an EBITDA margin for the Group of 38 percent in Q1 2010 with

GeoStreamer® playing a key role. Net debt has more than halved in the past 12

months which has paved the way for the Company to be reorganized for growth.

§ Group performance: Q1 2010 earnings before interest, tax, depreciation and

amortization ("Adjusted EBITDA") were $99.3 million, compared to $206.3 million

in Q1 2009.

§ Marine: Q1 2010 revenues are lower than in the same period last year,

primarily driven by lower prices for Marine contract work. Depreciation and

amortization is higher in Q1 2010 than in Q1 2009, due to entry of Ramform

Sterling and higher MultiClient revenues.

§ Recovery in Marine contract EBIT margin: Marine contract EBIT margin improved

from 12 percent in Q4 2009 to 23 percent in Q1 2010, primarily due to strong

vessel utilization and performance, increasing share of GeoStreamer® in the mix

and low Marine cost.

§ Further net debt reduction: Cash proceeds from sale of the Onshore business

and refund guarantees from cancellation of New Build 532 as well as strong

working capital development resulted in net interest bearing debt of $537.4

million, compared to $1,141.5 million in Q1 2009.

§ Almost all 2010 GeoStreamer® capacity sold: Customer interest for GeoStreamer®

is gaining further momentum and the order book is building significantly faster

for GeoStreamer® capacity than conventional capacity. Ramform Valiant and

Ramform Explorer are scheduled for GeoStreamer® upgrades in Q2.

§ GeoStreamer® price uplifts: Both 2D and 6-streamer GeoStreamer® vessels

currently generate margins in line with high-end conventional 3D vessels.

§ Bidding activity and visibility is increasing: However, new global capacity

additions scheduled for 2010 put pressure on conventional streamer pricing.

§ PGS Apollo delivered: The new 3D 10-streamer vessel was delivered on March 26

and will commence operations early May.

§ Organizational changes for future growth: Following sale of the Onshore

business, PGS has simplified its operational model and is now organized in

product lines to improve focus and position the group for future growth.

§ Guidance maintained: No change to the 2010 guidance, as launched at the

capital markets day in December 2009, but currently with more EBITDA upside than

downside, due to GeoStreamer® and MultiClient activity. Second half 2010 is

expected to be stronger than first half.

Jon Erik Reinhardsen, Chief Executive Officer and President of PGS, commented:

"The increasing share of our new GeoStreamer® combined with lower Marine cost

and strong operating performance caused the Marine contract EBIT margin to be

significantly higher than in the previous quarter. We currently see increased

interest in pre-funding commitments, and bidding activity continues its positive

trend."

+--------------------------------+---------------------+-----------------------+

| |   |   |

|  | Quarter ended |Year ended December 31,|

|Key Financial Figures | March 31, | |

|(In millions of dollars, except +----------+----------+-----------------------+

|per share data) | 2010 | 2009 |   |

| |Unaudited |Unaudited | 2009 Audited (1)) |

+--------------------------------+----------+----------+-----------------------+

|Revenues from continuing |$  259.4  | $  390.8| $  1,350.2|

|operations | | | |

+--------------------------------+----------+----------+-----------------------+

|Adjusted EBITDA (as defined)( ) | 99.3| 206.3| 672.1|

+--------------------------------+----------+----------+-----------------------+

|EBIT excluding special items (2)| 34.8| 155.2| 386.9|

|) | | | |

+--------------------------------+----------+----------+-----------------------+

|EBIT | 34.2| 104.6| 233.3|

+--------------------------------+----------+----------+-----------------------+

|Income before income tax expense| 14.9| 89.7| 228.1|

|(benefit) | | | |

+--------------------------------+----------+----------+-----------------------+

|Net income to equity holders | 16.2| 54.2| 165.8|

+--------------------------------+----------+----------+-----------------------+

|Basic earnings per share ($ per | 0.08| 0.31| 0.88|

|share) | | | |

+--------------------------------+----------+----------+-----------------------+

|Diluted earnings per share ($ | 0.08| 0.31| 0.88|

|per share) | | | |

+--------------------------------+----------+----------+-----------------------+

|Net cash provided by operating | 115.5| 145.4| 676.1|

|activities | | | |

+--------------------------------+----------+----------+-----------------------+

|Cash investment in MultiClient | 52.1| 44.8| 183.1|

|library | | | |

+--------------------------------+----------+----------+-----------------------+

|Capital expenditures | 47.9| 93.7| 231.2|

+--------------------------------+----------+----------+-----------------------+

|Total assets (period end) | 2,843.4| 3,089.3| 2,929.4|

+--------------------------------+----------+----------+-----------------------+

|Cash and cash equivalents | 350.6| 101.7| 126.0|

|(period end) | | | |

+--------------------------------+----------+----------+-----------------------+

|Net interest bearing debt | $  537.4|$  1,141.5| $  774.0|

|(period end) | | | |

+--------------------------------+----------+----------+-----------------------+

()

(1)) Financial information for the full year 2009 is derived from the audited

financial statements as presented in the 2009 Annual Report.

(2)) Impairment charges of $0.5 million in Q1 2010, $50.6 million in Q1 2009 and

$153.6 million for full year 2009.

Complete Q1 2010 earnings release can be downloaded at www.newsweb.no

or www.pgs.com .

FOR DETAILS, CONTACT:

Tore Langballe, SVP Corporate Communications

Phone:   +47 67 51 43 75

Mobile: +47 90 77 78 41

Bård Stenberg, Investor Relations Manager

Phone: +47 67 51 43 16

Mobile: +47 99 24 52 35

US Investor Services

Phone: +1 281 509 8712

****

Petroleum Geo-Services is a focused geophysical company providing a broad range

of seismic and reservoir services, including acquisition, processing,

interpretation, and field evaluation. The company also possesses the world's

most extensive MultiClient data library. PGS operates on a worldwide basis with

headquarters at Lysaker, Norway.

For more information on Petroleum Geo-Services 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 MultiClient 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 2009. 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 acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1410356]