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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 Limited has principal offices in Paris, Houston, London, and The Hague, and reported revenues of $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 product and service 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 customers four key advantages:

  • Deep domain knowledge of exploration and production operations gained through more than 90 years of experience
  • The service industry's longest and most comprehensive commitment to technology and innovation
  • 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.

Leading-Edge Technology and Modern Manufacturing

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 new technologies as a long-term strategy to support and grow its leadership position. New digital technologies now constitute a significant portion of this effort and complement the company’s long-standing strength in domain science and hardware engineering. In 2017, Schlumberger invested close to $800 million in technology development for our oilfield activities. In addition to technology development, modern manufacturing methods such as robotics and automation are important focus areas and are a key contributor to our delivery and quality performance.

Schlumberger Products and Services

The Schlumberger offerings combine domain expertise, best practices, safer 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 safer, 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 fully performance-based contracts.

As the industry's focus is moving toward maximizing postplateau production and ultimate recovery, oil and gas companies are challenged by more and more resource-intensive projects. Schlumberger Production Management (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 comanaging 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 the company will not be paid at the time of providing its services or upon delivery of its products. Instead, it 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.

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.

Building on Schlumberger’s domain expertise and its leadership in hardware and software, the company is also developing new software and a digital technology foundation that removes barriers between disciplines to create seamless digital workflows for all E&P domains. Digital enablement permeates everything Schlumberger does—from research and engineering, manufacturing, operations, and maintenance and resource planning. Schlumberger is already capitalizing internally on the value unlocked by digital enablement. In addition, value from new digital workflows will be increasingly shared between Schlumberger and its customers as the company commercializes new technologies and further enables existing products and services.

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 all employees and contractors. 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 online interactive learning. Our driving safety-training program is one example of our HSE success.

Last updated April 10, 2018