National Oilwell Varco and Schlumberger Form IntelliServ Joint Venture

Independent Joint Venture to Provide High-Speed Drill String Telemetry

National Oilwell/Schlumberger Joint Venture (72 KB PDF)
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HOUSTON, Texas, September 28, 2009 - National Oilwell Varco (NYSE: NOV) and Schlumberger Limited (NYSE: SLB) announced today the creation of a joint venture to provide high-speed drill string telemetry systems to improve the efficiency and safety of oil and gas operations.

The IntelliServ joint venture is expected to accelerate development and delivery of intelligent drilling solutions through the expanded use of the IntelliServ® Broadband Network, a patented technology that provides high resolution data in real time to and from the bottom of oil and gas wells as they are being drilled. IntelliServ also will provide along-string evaluation services that will enable real-time monitoring of drill string conditions, and an unlimited ability to actuate downhole tools on-demand. The current speed of 57,600 bits per second is up to 20,000 times faster than the transmission speed that is available using conventional mud pulse technology.

National Oilwell Varco owns 55 percent of the joint venture and provides manufacturing, technical and operational support, while Schlumberger owns 45 percent and brings evaluation and measurement expertise, and will pursue the development of advanced drilling-related systems enabled by the IntelliServ® Broadband Network. The joint venture will maintain the open access architecture of the IntelliServ® Broadband Network, and will seek to become the industry standard for all drilling tools utilizing high data transmission rates.

Pete Miller, Chairman, President and Chief Executive Officer of National Oilwell Varco, stated “Our new joint venture with Schlumberger will permit us to better serve our customers by opening a range of new intelligent drilling possibilities, and expanding the global reach of the IntelliServ® Broadband Network. We are excited about the possibilities this joint venture brings to the marketplace and we look forward to working closely with Schlumberger to expand further the commercial use of IntelliServ.”

Commenting on the transaction, Andrew Gould, Chairman and Chief Executive Officer of Schlumberger Limited, remarked “The combination of our respective strengths in drilling measurements and telemetry brings a unique opportunity for a step-change in the development of technology capable of significantly improving drilling performance through continuous information about the well and the reservoir, as the well is drilled.”

About National Oilwell Varco
National Oilwell Varco is a world leader in the design, manufacture and sale of equipment and components used in oil and gas drilling and production operations, the provision of oilfield services, and supply chain integration services to the upstream oil and gas industry. For more information, visit www.nov.com.

About Schlumberger
Schlumberger is the world’s leading supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide. Employing approximately 79,000 people representing over 140 nationalities and working in more than 80 countries, Schlumberger provides the industry’s widest range of products and services from exploration through production.

Schlumberger Limited has principal offices in Paris, Houston and The Hague and reported revenues of $27.16 billion in 2008. For more information, visit www.SLB.com.

For further information, contact:

National Oilwell Varco
Clay Williams, Chief Financial Officer
Tel: +1 713 346 7606

Schlumberger
Stephen Whittaker, Director of Corporate Communications
Tel: +33 1 4062 1308
E-mail: swhittaker@slb.com