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Hitt og þetta 23. ágúst 2006

PGS sells its Petrojarl shareholding

August 23, 2006 Oslo, Norway - Petroleum Geo-Services ASA ("PGS" or the "Company") (OSE and NYSE: PGS) announced today that it has sold 6,467,440 shares in Petrojarl ASA for NOK 60 per share. This represents 8.6% of the share capital in Petrojarl ASA. Subsequent to the sale, PGS owns no shares in Petrojarl ASA.

PGS will be further compensated with the difference in the event the buyer in a period of three months after August 23, 2006 acquires Petrojarl shares at a higher price than NOK 60 or sells Petrojarl shares at a higher price than NOK 60.

In conjunction with the agreement to sell the 6,467,440 Petrojarl ASA shares held by PGS, the representatives of the managers in the Petrojarl IPO have given consent to such sale, as required by the lock-up agreement, subject to the buyer assuming the continuing obligations related to this lock-up.

**** Petroleum Geo-Services is a focused geophysical company providing a broad range of seismic and reservoir services, including acquisition, processing, interpretation, and field evaluation. The company also possesses the world's most extensive multi-client data library. PGS operates on a worldwide basis with headquarters at Lysaker, Norway. For more information on Petroleum Geo-Services visit 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, 2005. 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 Bøsterud Phone +47 6752 6400, Mobile: +47 90 95 47 43

Christopher Møllerløkken Phone: +47 6752 6400, Mobile: +47 90 27 63 55

US Investor Services Katrina Green Phone: +1 281 509 8000