PGS ASA

Regulatory Filings • Nov 15, 2018

PGS: Preferred tenderer for vessel sale and long-term cooperation with JOGMEC in Japan

PGS: Preferred tenderer for vessel sale and long-term cooperation with JOGMEC in Japan

November 15, 2018; Oslo, Norway: PGS has as part of a tender process offered to

sell the Ramform Sterling to the Japan Oil, Gas and Metals National Corporation

("JOGMEC") an incorporated administrative agency of Ministry of Economy Trade

and Industry.

PGS has now been informed that the Company is the preferred tenderer, and

negotiations will be initiated with the aim of concluding necessary contracts. A

final award to PGS will only take place if and when all contracts have been

concluded. PGS anticipates that this will happen during the first quarter of

The tender process also includes up to 10 year service agreement with annual

renewals. For this part of the tender PGS has formed a joint venture with Nippon

Yusen Kabushiki Kaisha ("NYK") and Hitachi, Ltd ("Hitachi"). The joint venture

will establish a Special Purpose Company ("SPC") which will aim to conclude

final contracts with JOGMEC.  NYK will be responsible for vessel operation,

Hitachi for data processing and PGS will provide technical and operational

services, support and training.

The vessel sale excludes the seismic streamer package. SPC will conclude a

separate lease contract with PGS on behalf of JOGMEC. Subject to final

agreements, JOGMEC is scheduled to take delivery of Ramform Sterling at the

start of the second quarter of 2019.

PGS intends to maintain the same operated fleet size in 2019 as the Company

currently has. If the Ramform Sterling is sold to JOGMEC, PGS will reintroduce

the Ramform Vanguard from the summer of 2019. CAPEX to reintroduce the vessel

primarily relates to in sea equipment and is estimated not to exceed USD 25

million. If concluded, the sale of Ramform Sterling is not expected to result in

any material gain in the financial statements.

For details, contact:

Bård Stenberg, SVP IR & Communication

Mobile: +47 992 45 235

Petroleum Geo-Services ASA and it's subsidiaries ("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 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 and the PGS share is listed on the Oslo stock

exchange (OSE: PGS). 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 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 2017. 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 to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.