Marine Log

September 28, 2006

PGS orders further Ramform seismic vessel

Petroleum Geo-Services ASA (OSE and NYSE: PGS) is to exercise an option with Aker Yards, Langsten to build an additional new third generation Ramform vessel, "Ramform 8."

This is a sister vessel of the previously announced "Ramform 7," which is currently being built at the same yard. "Ramform 8" has an agreed cost from the yard including installation, but excluding the cost of seismic equipment, of NOK 578 million (approximately $88.0 million). The vessel is scheduled for delivery in the second quarter of 2009.

The third generation Ramform is designed with the objective to further extend the PGS lead in 3D seismic acquisition productivity and efficiency. The design builds on the capabilities of the current Ramform fleet, while introducing several improvements.

Compared to the existing Ramform vessels, the vessel is approximately 16 meters longer, giving higher fuel capacity and transit speed.

A substantial power upgrade will significantly increase speed while surveying. The vessel will be capable of towing up to 22 streamers.

A range of technology improvements will be implemented to maintain or improve efficiency of handling, deployment, retrieval and maintenance of the in sea equipment.

PGS President and CEO, Svein Rennemo said:

"The strategic rationale for this investment is to further enhance PGS' productivity leadership in towed streamer acquisition, in general, and in advanced towed streamer acquisition, in particular. We expect demand for marine seismic services to be very strong over the next years. Although significant additional capacity will come into the industry we believe that demand fundamentals longer term will support advanced high productivity capacity like the new generation Ramforms."