PGS - Private placement

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, 15 November, 2010:
Petroleum Geo-Services ASA ("PGS" or the "Company") has decided to effect a
private placement directed towards professional Norwegian and international
investors after the close of Oslo Børs today. The private placement comprises of
up to 19,799,998 new shares, equivalent of up to approximately 9.99% of the
current number of outstanding shares of the Company. The price in the private
placement will be determined through an accelerated book-building process.

The purpose of the private placement is to support the Company's planned fleet
expansion of two new fifth generation Ramform vessels. The Company expects that
the yard contract will include the option for two further identical vessels. For
further information on the fleet expansion, please refer to the separate press
release issued by PGS today.

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 minimum order in the private placement has been set to the number of shares
that equals an aggregate purchase price of at least the equivalent of NOK
2,000,000.

The book-building period opens today (15 November 2010) at 17:30 CET and closes
on 16 November 2010 at 08:30 CET. The managers may, however, at any time resolve
to close or extend the book building period at their own discretion, but it will
in no event close earlier than today (15 November 2010) at 19:00 CET.

PGS has retained ABG Sundal Collier Norge ASA as global coordinator and joint
bookrunner, SEB Enskilda 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)



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