Petroleum Geo-Services ASA expects to replace the damaged main production riser on the Varg field in March 2005. This requires the manufacture and installation of a new riser. Pertra AS, a wholly owned subsidiary of PGS, operates the Varg field.

As earlier reported, production from the Varg field will continue at lower rates of 15,000 b/d until the main production riser is replaced.

The reduced production results from damage to the main production riser going from the wellhead platform to PGS' FPSOPetrojarl Varg.

The Varg field is in Production License 038 (block 15/12) in the Norwegian sector of the North Sea. Pertra AS operates Production License 038 with 70% interest while co-venturer Petoro AS holds the remaining 30%.

11/22/04