PGS ASA — Share Issue/Capital Change 2010

Nov 16, 2010

PGS private placement successfully completed

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART

DIRECTLY OR INDIRECTLY, IN AUSTRALIA, CANADA, HONG KONG, JAPAN OR THE UNITED

STATES

Oslo, Norway, November 16, 2010:

Petroleum Geo-Services ASA ("PGS" or the "Company") today announced its

successful   placement towards professional Norwegian and international

investors of 19,799,998 new shares at the price of NOK 83 per share. The share

issue represents approximately 9.99% of the shares outstanding prior to the

placement. Total gross proceeds from the private placement amounted to

approximately NOK 1.6 billion.

Jon Erik Reinhardsen, President and CEO of PGS, commented: "I am very pleased to

see the placement successfully completed. With the two new Ramform vessels, we

will take a unique position in the market for high density seismic. "

Mr. Reinhardsen continues: "The purpose of the private placement is to position

PGS for future growth. At the same time, we maintain a strong balance sheet and

strategic flexibility. We are still in a position to cease opportunities that

may typically arise in a low point of the cycle."

The new shares will be issued in accordance with the Board proxy established at

the Company's Annual General Meeting held on April 29, 2010. The total number of

outstanding shares after the issue will be 217,799,997 shares, each with a

nominal value of NOK 3.00.

ABG Sundal Collier Norge ASA acted as global coordinator and joint bookrunner,

SEB Enskilda AS as joint bookrunner and DnBNOR Markets as co-manager for the

private placement.

***

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

About PGS:

Petroleum Geo-Services (PGS) offers a broad range of products including; seismic

and electromagnetic services, data acquisition, processing, reservoir

analysis/interpretation and multi-client library data. We help oil companies to

find oil and gas reserves offshore worldwide.

For more information on Petroleum Geo-Services, please 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#1462847]