UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 20-F n REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ¥ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2005 OR n TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR n SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report Commission File Number: 1-14614 Petroleum Geo-Services ASA (Exact name of registrant as specified in its charter) Kingdom of Norway (Jurisdiction of incorporation or organization) Strandveien 4, N-1325 Lysaker, Norway (Address of principal executive offices) Securities registered or to be registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which Registered American Depositary Shares, each representing New York Stock Exchange, Inc. one ordinary share of nominal value NOK 10 per share Ordinary shares of nominal value NOK 10 per share* New York Stock Exchange, Inc. Securities registered or to be registered pursuant to Section 12(g) of the Act: None Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: 60,000,000 ordinary shares, nominal value NOK 10 per share. Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¥ No n If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes n No ¥ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ¥ No n Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of ""accelerated filer and large accelerated filer'' in Rule 12b-2 of the Exchange Act. Large accelerated filer ¥ Accelerated filer n Non-accelerated filer n Indicate by check mark which financial statement the registrant has elected to follow. Item 17 n Item 18 ¥ If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes n No ¥ Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ¥ No n * The ordinary shares were registered for technical purposes only, not involving trading privileges, in accordance with the requirements of the Securities and Exchange Commission. PETROLEUM GEO-SERVICES ASA ANNUAL REPORT ON FORM 20-F FOR THE YEAR ENDED DECEMBER 31, 2005 TABLE OF CONTENTS Page Petroleum Geo-Services ASA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3 Where You Can Find More Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3 Forward-Looking StatementsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3 Currency Presentations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4 PART I ITEM 1. Identity of Directors, Senior Management and Advisors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5 ITEM 2. Offer Statistics and Expected Timetable ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5 ITEM 3. Key Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5 ITEM 4. Information on the Company ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14 ITEM 4A Unresolved Staff Comments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 33 ITEM 5. Operating and Financial Review and ProspectsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 33 ITEM 6. Directors, Senior Management and EmployeesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 60 ITEM 7. Major Shareholders and Related Party Transactions ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 67 ITEM 8. Financial Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 68 ITEM 9. The Offer and ListingÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 69 ITEM 10. Additional InformationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 71 ITEM 11. Quantitative and Qualitative Disclosures About Market RiskÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 81 ITEM 12. Description of Securities Other Than Equity SecuritiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 84 PART II ITEM 13. Defaults, Dividend Arrearages and Delinquencies ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 84 ITEM 14. Material Modifications to the Rights of Security Holders and Use of ProceedsÏÏÏÏÏÏÏ 84 ITEM 15. Controls and Procedures ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 84 ITEM 16A. Audit Committee Financial ExpertÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 85 ITEM 16B. Code of Ethics ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 85 ITEM 16C. Principal Accountant Fees and Services ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 86 ITEM 16D. Exemptions from the Listing Standards for Audit Committees ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 87 ITEM 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers ÏÏÏÏÏÏÏÏÏÏÏÏÏ 87 PART III ITEM 17. Financial Statements ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 87 ITEM 18. Financial Statements ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 87 ITEM 19. Exhibits ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 87 PETROLEUM GEO-SERVICES ASA As used in this annual report, we refer to Petroleum Geo-Services ASA, its predecessors and its majority- owned subsidiaries as ""PGS,'' ""we,'' ""us'' or ""our,'' unless the context clearly indicates otherwise. WHERE YOU CAN FIND MORE INFORMATION We have filed this annual report on Form 20-F with the Securities and Exchange Commission under the Securities Exchange Act of 1934. Statements made in this annual report as to the contents of any agreement or other document referred to are not necessarily complete. For each such agreement or other document filed as an exhibit to this annual report, we urge you to refer to the exhibit for a more complete description of the matter involved. We are subject to the informational requirements of the Exchange Act that apply to foreign private issuers and file or furnish reports and other information with the SEC. Reports and other information we file with or furnish to the SEC, including this annual report, may be inspected and copied at the public reference facilities of the SEC at 450 Fifth Street N.W., Washington D.C. 20549. Additionally, information that we file electronically with the SEC may also be obtained from its Internet site at http://www.sec.gov and our Internet site at http://www.pgs.com. Information contained on or connected to our website is not incorporated by reference into this annual report on Form 20-F and should not be considered part of this report or any other filing that we make with the SEC. FORWARD-LOOKING STATEMENTS In order to utilize the ""Safe Harbor'' provisions of the United States Private Securities Litigation Reform Act of 1995, we are providing the following cautionary statement. This annual report, particularly in ""Our Business Priorities,'' ""Our Geophysical Services'' and ""Our Production Segment'' in Item 4 and ""Outlook; Factors Affecting Our Future Operating Results'' and ""Liquidity and Capital Resources'' in Item 5, contains forward-looking statements about our financial condition, results of operations, businesses and prospects. These forward-looking statements address matters such as: ‚ market conditions, anticipated demand and prices for our services and for multi-client data that we license, productive capacity in the markets in which we operate, other competitive factors, possible expansion, technological developments and other trends in the businesses in which we operate; ‚ business strategies, including geographic areas in which we may operate from time to time and potential acquisitions and/or dispositions; ‚ maintaining and obtaining contracts for our floating production, storage and offloading vessels, the estimated productive lives of the fields served by such vessels and the periods we expect such vessels to continue to produce such fields; ‚ operating regularity and levels of production for our floating production, storage and offloading vessels; ‚ the extent to which our seismic vessels and equipment will be utilized, including utilization of such vessels to acquire contract or multi-client seismic data; ‚ acquisition of contract and multi-client seismic data, governmental licensing activity relating to such acquisition and expected future sales of multi-client seismic data; ‚ future capital expenditures, investments in our businesses and dividends; ‚ investments in, and amortization charges for, our multi-client library; ‚ governmental and tax regulations and enforcement; ‚ future exposure to currency devaluations or exchange rate fluctuations, including in particular fluctuations in the value of the U.S. dollar as compared to the Norwegian kroner and the British