Vessel Allocation Third Quarter 2008

Monday, 06. October 2008 07:46
October 6, 2008: Oslo, Norway, Petroleum Geo-Services ASA ('PGS' or
the 'Company') announced today that its seismic 3D vessel fleet used
approximately 81% of its total time to acquire marine contract and
multi-client seismic in the third quarter of 2008. This compares to
84% in the second quarter of 2008 and 89% in the third quarter of
2007.

PGS routinely releases information about vessel
utilization around the end of each quarter.

Summary of vessel utilization:


+-------------------------------------------------------------------+
| Approximate allocation of PGS | Quarter ended | Quarter ended |
| total 3D towed streamer capacity | September 30, | June 30, |
|-----------------------------------+---------------+---------------|
| | 2008 | 2007 | 2008 |
|-----------------------------------+--------+------+---------------|
| Contract seismic | 63% | 64% | 70% |
|-----------------------------------+--------+------+---------------|
| Multi-client seismic | 18% | 25% | 14% |
|-----------------------------------+--------+------+---------------|
| Steaming | 16% | 8% | 13% |
|-----------------------------------+--------+------+---------------|
| Yard | 3% | 3% | 3% |
|-----------------------------------+--------+------+---------------|
| Standby | 0% | 0% | 0% |
+-------------------------------------------------------------------+


High steaming in the third quarter 2008 is caused by a lot of
capacity moving out of the North Sea, as earlier communicated.

The vessel statistics for the third quarter 2008 includes Ramform
Sovereign. The vessel is not included in the statistics for 2007.

The vessel statistics further excludes Ramform Victory from mid
October 2007. Ramform Victory was delivered to the Japanese Ministry
of Economy, Trade and Industry ("METI") January 31, 2008 and the
revenues under the service agreement, which is reported as contract
revenues, took full effect from the date of delivery.

Reference is made to earlier disclosures in PGS earnings releases
relating to sensitivity to fluctuation in foreign currency exchange
rates. The US dollar (USD) has appreciated significantly towards the
end of Q3 2008. A stronger USD generally favors the Company's
operations since it incurs significant parts of its operating
expenses in other currencies, but the effect on Q3 operating profit
is limited.
The Company holds foreign currency positions to balance its
operational foreign currency exposure. As earlier disclosed some of
these positions are not accounted for as hedges, but marked to market
at each balance sheet date together with receivables and payables in
non US currencies.
During the first half of 2008 the USD depreciated from 5.41 against
NOK at January 1, 2008 to 5.08 at June 30. In the same period PGS
reported a gain in financial items of $15.8 million from revaluing
foreign currency derivatives and other assets or liabilities. The
appreciation of the USD against NOK in Q3 will more than reverse the
foreign exchange gains recorded in first half of 2008 with a closing
rate in Q3 of 5.77 against NOK. During Q3 PGS has generally reduced
its foreign currency positions (hedging ratio) somewhat.

As previously announced PGS plans to release its 2008 third quarter
financial results on Friday, October 24, 2008, at approximately 8:00
am Central European Time (CET).


FOR DETAILS, CONTACT:

Bård Stenberg
Phone: +47 67 51 43 16
Mobile: +47 99 24 52 35

US Investor Services
Phone +1 281 509 8712


****
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 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
multi-client 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 2007.
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.

View document
Related Links: PGS ASA
Author:
Hugin
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