PGS ASA — M&A Activity 2010

Feb 15, 2010

PGS CLOSES SALE OF ONSHORE SEISMIC BUSINESS TO GEOKINETICS

OSLO, NORWAY- Petroleum Geo-Services ASA announced today that it had closed the

sale of PGS' Onshore seismic data acquisition business and related MultiClient

library to Geokinetics. The consideration in the transaction consisted of a

combination of approximately USD 184 million in cash and 2.15 million shares of

Geokinetics common stock.

The 2.15 million shares issued to PGS represent approximately 12% of the current

outstanding common shares of Geokinetics.  Following the closing of the

transaction, PGS is expected to be the second largest shareholder of

Geokinetics.

The combination of Geokinetics and the onshore business of PGS will create the

second largest onshore seismic acquisition company in the world in terms of crew

count and the largest based in the Western Hemisphere. The company will have the

assets and technical capabilities for up to 38 crews and carry in excess of

207,000 equipment channels, more than 150 vibroseis units and possess in excess

of 6,240 square miles of MultiClient library data upon completion of current

projects in progress.

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

FORWARD-LOOKING STATEMENTS

The information included herein contains certain forward-looking statements that

address activities, events or developments that PGS expects, projects, believes

or anticipates will or may occur in the future. These statements are based on

various assumptions made by PGS, many of which are beyond its control and are

subject to certain additional risks and uncertainties. PGS 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

2008. 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 PGS 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#1384287]