January 11, 2009:  Reference is made to earlier announcements regarding the
vessels under construction at the Factorias Vulcano shipyard in Spain. Petroleum
Geo-Services ASA ('PGS' or the 'Company') announced, on March 23, 2009, that its
subsidiary Arrow Seismic Invest II Ltd. ('Arrow') had terminated the
shipbuilding contract for New Build number 532. PGS further announced on 30
March, 2009, that the yard disputed Arrow's right to terminate the contract, and
that the dispute would be submitted to arbitration in Norway.

The arbitration court has now announced a ruling in favor of PGS. The yard was
ordered to pay Arrow the full amount claimed for, EUR 39 658 000, with the
addition of interest and full legal costs. The arbitration ruling is final and
binding.

Arrow will immediately pursue its claim for payment in accordance with the
decision of the arbitrators. Approximately EUR 32 million plus interest out of
the amount awarded by the arbitrators is covered by bank guarantees.




  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


****

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
<http://www.pgs.com/>.

This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)


[HUG#1371947]





    Update on New Builds in Spain: http://hugin.info/115/R/1371947/335926.pdf