Schlumberger
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Backgrounder

Schlumberger

Schlumberger is the world's leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. Working in more than 85 countries and employing approximately 100,000 people who represent over 140 nationalities, Schlumberger supplies the industry's most comprehensive range of products and services, from exploration through production and integrated pore-to-pipeline solutions for hydrocarbon recovery that optimize reservoir performance.

Schlumberger has principal offices in Paris, Houston, London and The Hague. Revenue was $30.44 billion in 2017. Schlumberger stock is listed on the New York Stock Exchange, ticker symbol SLB, on the Euronext Paris, Euronext Amsterdam, London and the SIX Swiss stock exchanges.

Organization

Schlumberger operates in each of the major oilfield service markets, managing its business through four Groups: Reservoir Characterization, Drilling, Production and Cameron. Each Group consists of a number of technology-based service and product lines, or Technologies. These Technologies cover the entire life cycle of the reservoir and correspond to a number of markets in which Schlumberger holds leading positions. The role of the Groups and Technologies is to support Schlumberger in providing the best possible service to customers and to ensure that Schlumberger remains at the forefront of technology development and services integration.

Schlumberger’s business is also reported through four geographic areas: North America, Latin America, Europe/CIS/Africa and Middle East & Asia. Within these geographic areas, a network of 16 GeoMarket* regions provides logistical, technical and commercial coordination.

The GeoMarket regions’ structure offers customers a single point of contact at the local level for field operations and brings together geographically focused teams to meet local needs and deliver customized solutions. The GeoMarket regions are responsible for providing the most efficient and cost-effective support possible to the operations.

Competitive Advantage

Schlumberger offers its clients four key advantages:

  • Deep domain knowledge of exploration and production operations gained through more than 90 years of experience
  • The service industry's longest commitment to technology and innovation through a network of 125 research and engineering technology centers
  • A global reach in more than 85 countries coupled to strong local experience and the diversity in thought, background and knowledge that more than 140 nationalities bring
  • A commitment to excellence in service delivery anytime, anywhere.

Research and Engineering

The company was founded by the two Schlumberger brothers who invented wireline logging as a technique for obtaining downhole data in oil and gas wells. Today, it continues to build on the industry's longest track record of providing leading edge E&P technology to develop new advancements-from reservoir to surface. Schlumberger has always invested significant time and money on research and engineering as a long-term strategy to support and grow its technology leadership. Short-term business cycles do not affect this. In 2017, we invested close to $800 million in R&E for our oilfield activities.

Schlumberger Products and Services

The Schlumberger offerings combine domain expertise, best practices, safe and environmentally sound well site operations, innovative technologies, and high-quality support aimed at helping its customers increase oilfield efficiency, lower finding and producing costs, improve productivity, maximize reserve recovery, and increase asset value in a safe, environmentally sound manner.

Today, Schlumberger products and services include geophysical services; open-hole and cased-hole wireline logging; well testing; logging-while-drilling, directional-drilling services, and surface data (mud) logging ; drilling pressure control; drill bits; drilling and completion fluids; solids control and waste management; drilling rig equipment; surface equipment; subsea equipment; artificial lift; well services, such as cementing, coiled tubing, stimulation and sand control; and well completion products and services.

In addition to these products and services, Schlumberger provides customers with various levels of services integration. The first level of integration we offer is Integrated Services Management, where our specially trained project managers provide scheduling, planning, and activity coordination for the various Schlumberger product lines involved in the project. Within this offering, the improved planning and preparation driven by our project managers is consistently converted into better Quality and HSE performance compared to our single-product-line contracts. The next level of the offering involves our Integrated Drilling Services (IDS) and Integrated Production Services (IPS) offerings where we house a large part of our project management, engineering design, and technical optimization capabilities as typically used in contracts that are fully performance-based.

Strong technical expertise and operational support to the field is vital to the success of any complex global operation that includes remote locations. The key is to provide real-time linkage with world-class experts and knowledge, delivering the latest and best problem-solving capabilities-anywhere, anytime. The company's InTouchsupport.com knowledge management tool improves field access to Schlumberger technology centers through the most advanced IT tools, 24-hours a day, seven days a week.

Enhancing core E&P operations to improve production, increase reserves and drill better wells requires the integration of innovative information technology. Software Integrated Solutions (SIS) sells proprietary software and provides consulting, information management and IT infrastructure services to customers in the oil and gas industry. SIS also offers expert consulting services for reservoir characterization, field development planning and production enhancement, as well as industry-leading petrotechnical data services and training solutions.

As the industry's focus is moving towards maximizing post-plateau production and ultimate recovery, oil and gas companies have to face more and more resource intensive projects. SPM creates alignment between Schlumberger and the asset holder and/or the operator whereby Schlumberger receives remuneration in line with its value creation. These projects are generally focused on developing and co-managing production of customer assets under long-term agreements. Schlumberger will invest its own services and products, and in some cases cash, into the field development activities and operations. Although in certain arrangements Schlumberger is paid for a portion of the services or products it provides, generally Schlumberger will not be paid at the time of providing its services or upon delivery of its products. Instead, Schlumberger is generally compensated based upon cash flow generated or on a fee per-barrel basis. This includes certain arrangements whereby Schlumberger is only compensated based upon incremental production that it helps deliver above a mutually agreed baseline. SPM represented less than 5% of Schlumberger’s consolidated revenue for the year ended December 31, 2017.

WesternGeco

WesternGeco is a leading geophysical services supplier, providing comprehensive worldwide reservoir imaging, monitoring and development services. It provides increasingly accurate measurements and images of subsurface geology and rock properties for both customer proprietary and multiclient surveys. WesternGeco offers the industry’s most extensive multiclient library.

The company's Omega* Seismic Processing System encompasses the industry's most advanced and comprehensive suite of algorithms and runs on multiplatform technology, ensuring timely turnaround for even the most complex processing projects.

Commitment to Health, Safety and the Environment

Schlumberger operates in many varied and often challenging geographical environments. An unwavering commitment has always been maintained to the highest standards of the health and safety of our employees, customers and contractors, as well as for the protection of the environment in the communities in which we live and work. The long-term business success of Schlumberger depends on our ability to ensure that HSE remains a top priority for the management and each employee. The Schlumberger HSE policy and diverse standards are applied throughout the company. Each employee must maintain up-to-date certifications in essential HSE training courses through both traditional classroom and on-line interactive learning. Our driving safety-training program is one example of our HSE success.

Last updated January 2018