PGS Production Update OSLO, Norway, March 11 /PRNewswire-FirstCall/ -- Petroleum Geo-Services ASA ("PGS" or the "Company") (OSE and NYSE: PGS) disclosed on November 8 and 22, 2004 that the main production riser on the Varg field was damaged, reducing oil production from that field to a maximum of approximately 15,000 barrels per day thereby. This reduced production has negatively affected the tariff based portion of revenues associated with PGS' FPSO Petrojarl Varg which is producing the Varg field. A new riser has been successfully installed this week and normal production levels have been obtained. Due to maintenance work on Petrojarl Foinaven, production will be reduced by approximately 20-25,000 barrels per day for a two week period in March. The production on Foinaven also was somewhat lower than expected in January. As previously disclosed the total oil production from PGS' four FPSO's is expected to be in line with 2004. 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, 2003. As a result of these factors, actual events may differ materially from those indicated in or implied by such forward-looking statements. Ola Bosterud Sam R. Morrow Phone: +47 6752 6400 US Investor Services, Renee Sixkiller, Phone: +1 281 679 2240 DATASOURCE: Petroleum Geo-Services ASA CONTACT: Ola Bosterud or Sam R. Morrow, +47-6752-6400, or US Investor Services, Renee Sixkiller, +1-281-679-2240, all for Petroleum Geo-Services ASA Web site: http://www.pgs.com/

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