PGS - Classification of Pertra in Financial Statements

PGS - Classification of Pertra in Financial Statements 


OSLO, Norway, May 23  /PRNewswire-FirstCall/ -- Petroleum Geo-Services ASA
("PGS" or the "Company") (NYSE:PGS)(OSE:PGS) announced today that as a
consequence of a recent interpretation by the Emerging Issues Task Force,
"Applying the Conditions in Paragraph 42 of FASB Statement No. 144 in
Determining Whether to Report Discontinued Operations" (EITF No. 03-13), under
U.S. GAAP, the Company will not classify Pertra as discontinued operations in
its consolidated financial statements. Therefore, revenues and expenses
relating to Pertra, which was sold March 1, 2005, will be included in
consolidated revenues and expenses through February 2005.  Also, the gain from
sale of Pertra will be reported on a separate line and will be included in
consolidated operating profit.

Pertra revenues of $27.6 million and an operating loss of $1.5 million (after
considering the offsetting effect of eliminating inter-segment lease of
Petrojarl Varg) will be included in PGS' consolidated financial statements for
first quarter 2005.  The gain from the sale of Pertra amounts to $150.3 million
(including a $ 2.5 million option premium) and, as noted above, will be
reflected as a separate line item in consolidated operating profit.

As previously reported, PGS will release its 2005 first quarter financial
results on Tuesday, May 24, 2005. The results will be released at approximately
8:00 a.m. Central European Time (CET). A presentation has been scheduled the
same day at 9:00 am (CET) at PGS' Headquarters at Lysaker Norway.

A web cast and conference call have also been scheduled the same day at 2:00
p.m. CET (8:00 a.m. ET), to discuss PGS' first quarter results. The contact
details for this service are detailed below. As previously announced, the
release and the slide presentation will be based on U.S. GAAP.

To participate on the simulcast of the conference call over the Internet,
please visit PGS' web site, http://www.pgs.com/, at least 15 minutes early, to
register and to download and install any necessary audio software.

Alternatively, to access the live broadcast of the conference call by
telephone, please dial-in at the number provided below, corresponding to your
location:

           Location                        Dial-In Number
           U.S. and Canada (Toll-Free):    [phone]
           ** International (Toll-Free):   +00 800 4363 7976
           International (Toll):           [phone]



**      Participants dialing in from Finland (990), Australia (0011), Hong Kong
(001), Japan (001), Korea  (002), Singapore (001), or Thailand (001) should use
the designated International Access Code (+)  specified here in place of (00).

The telephone will be open for questions at the conclusion of management's
remarks.

****

Petroleum Geo-Services is a technologically focused oilfield service company
principally involved in geophysical and floating production services. PGS
provides a broad range of seismic and reservoir services, including
acquisition, processing, interpretation, and field evaluation.  PGS owns and
operates four floating production, storage and offloading units (FPSOs).  PGS
operates on a worldwide basis with headquarters at Lysaker, Norway.  For more
information on Petroleum Geo-Services visit http://www.pgs.com/.

****

The information included herein contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. 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 as disclosed by the Company in its
filings with the Securities and Exchange Commission including the Company's
most recent Annual Report on Form 20- F for the year ended December 31, 2004. 
As a result of these factors, actual events may differ materially from those
indicated in or implied by such forward-looking statements.

   FOR DETAILS, CONTACT:
   Ola Bosterud
   Sam R. Morrow
   Christopher Mollerlokken
   Phone: [phone]

   US Investor Services,
   Renee Sixkiller,
   Phone: [phone]


DATASOURCE: Petroleum Geo-Services ASA



CONTACT:  Ola Bosterud, Sam R. Morrow, or Christopher Mollerlokken,

[phone], all of Petroleum Geo-Services ASA, or US Investor Services:

Renee Sixkiller, [phone]



Web site:  http://www.pgs.com/ 

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