SOURCE: Petroleum Geo-Services ASA

August 03, 2009 02:45 ET

Petroleum Geo-Services ASA: Update on new builds in Spain

LYSAKER (OSLO), NORWAY--(Marketwire - August 3, 2009) -

Reference is made to previous announcements regarding the vessels under construction at the Factorias Vulcano shipyard in Spain. Petroleum Geo-Services ASA ('PGS' or the 'Company'), and its subsidiary Arrow Seismic Invest III Ltd. ('Arrow'), have received a formal notification by WesternGeco that the company has canceled the charter party and all other related agreements for New Build number 533 after having informed WesternGeco that there was a right to cancel the shipbuilding contract for New Build number 533.

As a consequence, Arrow has formally notified the yard that it reserves any right to at any time cancel the shipbuilding contract for New Build number 533, and call upon the refund of EUR 39 million with the addition of interest (of which approximately EUR 32 million plus interest is covered by bank guarantees), as set out in the shipbuilding contract.


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

            US Investor Services
           Phone: +1 281 509 8712

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