SLB » Topics » Europe/CIS/Africa

These excerpts taken from the SLB 10-K filed Feb 5, 2010.

Europe/CIS/Africa

 

Fourth-quarter revenue of $1.78 billion was flat sequentially. Pretax operating income of $385 million was down 9% sequentially.

Sequentially, Nigeria & Gulf of Guinea GeoMarket revenue grew as the result of strong Testing Services product sales and an increase in exploration activity that led to greater demand for Wireline services. In the West & South Africa GeoMarket revenue increased on high demand for Drilling & Measurements services. The

 

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Part II, Item 7 

 

 

North Sea GeoMarket also recorded growth from increased Well Services stimulation activity while Libya GeoMarket revenue increased on higher deepwater Testing Services and Wireline exploration activity. These increases, however, were partially offset by lower revenue in Russia as a result of client budgetary constraints which mainly affected IPM activity. Revenue was also lower in the North Africa GeoMarket on reduced Testing Services product sales and in the Caspian GeoMarket on the completion of drilling campaigns.

Pretax operating margin decreased 208 bps sequentially to 21.6% largely as the result of the lower activity in Russia.

 

Europe/CIS/Africa

 

Revenue of $7.15 billion was 13% lower than last year largely due to the weakening of local currencies against the US dollar, which reduced revenue by approximately 7%. In addition, revenue was negatively impacted by reduced customer spending that resulted in significantly lower activity and pricing erosion in Russia and the North Sea. Revenue in the West & South Africa and Caspian GeoMarkets and in Framo was also negatively impacted by lower activity levels. These decreases were partially offset by a revenue increase in the North Africa GeoMarket due to strong Testing Services product sales.

Pretax operating margins declined 357 bps to 23.9% on a combination of the overall lower activity and heavy pricing pressure across the Area.

 

Europe/CIS/Africa

 

Revenue of $8.18 billion increased 24% versus the same period last year. Growth was led by Russia which experienced strong demand for Wireline, Well Services and Drilling & Measurements technologies. The West & South Africa, North Sea and Caspian GeoMarkets grew on increased exploration-related services as well as strong demand for Well Services technologies. The Continental Europe GeoMarket was higher due to strong drilling-related activities and demand for SIS offerings. The consolidation of Framo also contributed to the increase.

Pretax operating margin decreased 112 bps to 27.4% primarily as a result of reduced pricing in the Libya GeoMarket and a less favorable revenue mix in the Nigeria & Gulf of Guinea GeoMarket and Russia. The consolidation of Framo also reduced total Area margin.

 

This excerpt taken from the SLB 8-K filed Jan 22, 2010.

Europe/CIS/Africa

Fourth quarter revenue of $1.78 billion was flat sequentially but 13% lower year-on-year. Pretax operating income of $385 million was down 9% sequentially and 28% year-on-year.

Sequentially, Nigeria & Gulf of Guinea GeoMarket revenue grew as the result of strong Testing Services product sales and an increase in exploration activity that led to greater demand for Wireline services. In the West & South Africa GeoMarket, revenue increased on high demand for Drilling & Measurements services. The North Sea GeoMarket also recorded growth from increased Well Services stimulation activity while Libya GeoMarket revenue increased on higher deepwater Testing Services and Wireline exploration activity. These increases, however, were partially offset by lower revenue in Russia as a result of client budgetary constraints which mainly affected IPM activity. Revenue was also lower in the North Africa GeoMarket on reduced Testing Services product sales, and in the Caspian GeoMarket on the completion of drilling campaigns.

Pretax operating margin decreased 208 bps sequentially to 21.6% largely as the result of the lower activity in Russia.

In Sakhalin, Schlumberger Completions successfully installed the first intelligent completion in Russia on a Sakhalin Energy Investment Company Piltun well. The completion was installed in less than ten days in the 4,008-m water injection well and will control four independently monitored zones with a number of innovative solutions that include unique switching technology to link downhole gauges to surface monitoring equipment. The installation was completed only six weeks after the opening of the Schlumberger Yuzhno-Sakhalinsk completions base.

In the Caspian, Schlumberger Wireline deployed a range of new technology to help Karachaganak Petroleum Operating BV—a consortium between Eni, BG, Chevron and LUKOIL—significantly improve reservoir understanding in the Karachanagak field, one of the world’s largest oil and gas-condensate fields. The multi-array vertical wellbore seismic profiler allowed imaging of the complex sub-basalt structure, while the slim formation imager run on drillpipe identified the position of a fault in a horizontal well, and the new combinable rapid formation-pressure measurement service enhanced overall reservoir characterization.

In Angola, Schlumberger Drilling & Measurements seismicVISION* seismic-while-drilling technology was successfully deployed for Petrobras on their first exploration well to mitigate drilling uncertainties

 

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in an extremely high-cost deepwater environment. The real-time data transmitted to the Schlumberger OSC* Operations Support Center in Luanda were used to ensure optimum well placement and the service is now being considered by Petrobras for some of the future wells in the deepwater exploration program in Angola.

In Nigeria, Schlumberger Drilling & Measurements deployed StethoScope* formation pressure-while-drilling, EcoScope*† multifunction logging-while-drilling, and PeriScope technology in a deepwater well operated by Nigerian Agip Exploration (NAE). This technology solution reduced the risk associated with data acquisition while obtaining high-quality formation evaluation, reservoir property, and borehole caliper data and enabled NAE to drill 612 m of 8.5-in horizontal drain section with 100% reservoir exposure making this section the longest horizontal well completed with sand control for Eni worldwide.

In Equatorial Guinea, Noble Energy awarded Schlumberger wireline logging, directional drilling and subsea completions contracts to cover the work on 10 wells, with the possibility of additional development in the region. The subsea completions contract covers installation of the upper and lower well completions—including reservoir monitoring and control technologies—on the Aseng development project. The award was based on technology availability and operational support.

In North Africa, Schlumberger Well Services EverCRETE* CO2-resistant cement was used to plug and abandon a natural gas producing well in a field where produced carbon dioxide (CO2) is reinjected into saline-water zones. New wells in the field are now planned to be completed using this novel cement that has been recognized for the benefits it brings to operations where the presence of CO2 requires a long-term solution for zonal isolation during injection, storage, monitoring and abandonment. The technology can be applied for both carbon capture and storage, and for CO2 enhanced oil recovery projects.

In Algeria, Schlumberger Artificial Lift was awarded a two-year contract for artificial lift systems by Groupement Sonatrach AGIP. The contract covers the lease of high-technology electric submersible pumps, including power generation services and espWatcher* surveillance and control systems for a number of wells covering multiple oilfields in southeast Algeria. The contract award represents a breakthrough in addressing the artificial lift challenges of small oilfields in remote locations.

Offshore Libya, Schlumberger Completions completed two jobs in the Bouri field operated by Mellitah Oil and Gas (an NOC/Eni controlled joint venture) using nickel-chromium 4 1/2-in inflow control devices (ICD) to counter the downhole hostile environment. The operations were the first Schlumberger ICD jobs run for Eni as well as the first matrix stimulations performed in the Bouri field fractured carbonate reservoir using ICD technology.

In the UK sector of the North Sea, Schlumberger installed an innovative completion for Centrica Energy. The completion, designed in close collaboration with Centrica Energy, used the hybrid NEON* opto-electric permanent monitoring cable as well as permanent quartz gauges. The NEON cable, attached to the perforating gun assembly, extended below the production packer across the perforated interval to provide distributed temperature sensing (DTS) with the measurements enabling Centrica Energy to save rig time and establish well performance. This is the first known instance of fiber-optic measurements being used to monitor a perforating operation and the installation represents the first Schlumberger fixed-fiber DTS installation in a subsea environment.

In Italy, ACTive* technology real-time coiled-tubing services have been successfully introduced for Eni throughout the client’s matrix stimulation and well clean-out operations in carbonate reservoirs in the Val d’Agri region. The ACTive system fiber-optic cable deployed along the coiled tubing, together with discrete downhole pressure, temperature and depth measurements, provides proper pay zone evaluation as well as analysis of thermal behavior before and after stimulation. The combination identifies injection intervals from temperature changes to help divert treatments for optimal stimulation.

 

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Also in Italy, Schlumberger Completions was awarded a contract by Stogit, the Eni gas storage company, for 20 hybrid onshore gas storage well monitoring systems. The new hybrid systems combine fiber-optic and quartz pressure gauges with fiber-optic distributed temperature sensing. Gas storage in Italy is ruled by strict government laws that require data to be provided at regular intervals, and Stogit selected hybrid sensor technology in order to maximize the system’s long-term reliability. Schlumberger has a 20-year track record of successful deployment of gas storage well monitoring systems for Stogit, and this award represents the first time that this particular technology will be installed in multiple wells on the same project.

This excerpt taken from the SLB 8-K filed Oct 23, 2009.

Europe/CIS/Africa

Revenue of $1.78 billion was flat sequentially but 18% lower year-on-year. Pretax operating income of $422 million was 2% lower sequentially and 33% lower year-on-year.

Sequentially, the strengthening of local currencies against the US Dollar increased Area revenue by 2%. In addition, North Africa GeoMarket revenue increased on high Testing Services product sales and stronger IPM activity while the Nigeria & Gulf of Guinea GeoMarket grew primarily on strong demand for Well Services technologies. However, these increases were partially offset by lower revenue in the West & South Africa GeoMarket from reduced activity that primarily affected Well Services operations and by a decrease in the North Sea GeoMarket resulting from lower rig count and pricing that mostly impacted Drilling & Measurements services. Libya GeoMarket revenue fell on reduced demand for Testing Services and Well Services technologies as well as for Completion products.

Pretax operating margin slipped 53 bps sequentially to 23.7% as increased North Africa GeoMarket revenue and a more favorable revenue mix in Russia were insufficient to offset lower activity and a less favorable revenue mix in the North Sea and West & South Africa GeoMarkets.

In the UK sector of the North Sea, Schlumberger Artificial Lift was awarded a contract covering all Apache North Sea electrical submersible pump systems. The award follows excellent service delivery on previous contracts and includes bonus payments for run-life performance improvement.

Also in the UK North Sea, the Schlumberger Well Testing Cleanphase* well-test separator with SmartWeir* technology enabled Total to recover costly high-density completion fluid while permitting safe, efficient and environmentally-responsible fluids disposal. SmartWeir technology handles high fluid volumes, optimizes water retention time, and does not plug with debris.

In Denmark, Maersk Oil & Gas awarded all open-hole wireline services to Schlumberger based on technology and high-pressure, high-temperature data acquisition capabilities.

In Norway, Schlumberger Information Solutions designed and implemented a fit-for-purpose, fully managed petrotechnical office installation for Polskie Górnictwo Naftowe i Gazownictwo Norway that included Petrel, ECLIPSE*, and Interactive Petrophysics* software applications together with corresponding infrastructure, data management services and collaboration and visualization technology. The installation enabled the customer’s geologists and geophysicists to become quickly operational with access to formatted regional data ready for interpretation.

In Equatorial Guinea, Schlumberger was awarded a major subsea completions contract by Noble Energy for work on 10 wells with the possibility of additional development in the area. The contract covers installation of the upper and lower well completions—including reservoir monitoring and completions technologies—on the Aseng development project. The award was based on technology availability and operational support.

In Nigeria, Schlumberger Completions commissioned intelligent well completions on three deep-water in-fill wells for Eni-NAE. Multiple Schlumberger technologies were deployed during operations including tubing-conveyed PowerJet Omega perforating charges, tubing-retrievable hydraulic flow control valves, Quantum* packers and wire-wrap screens. The project included a triple-zone intelligent well combined with sand control systems in a subsea completion, with the well considered to be a best-in-class example by the customer.

In Uganda, the Schlumberger Wireline MDT* Modular Formation Dynamics Tester dual packer technology was run in cased hole for Tullow Oil on the Ngassa-2 well after previous attempts in open hole had proved unsuccessful. The successful operation minimized risk to secure 14 samples and enabled the customer to discover a previously unknown major pay zone.

 

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In Russia, Arcticgas, a SeverEnergia company, awarded Schlumberger a series of contracts covering wireline logging, well perforating and well testing services for deployment on both newly drilled and existing wells on Arcticgas fields north of the Arctic Circle near Novy Urengoy.

In Sakhalin, East Russia, Schlumberger Wireline technology was deployed on two wells for Venineft LLC as part of an exploration program on the Veninsky Block. The combination of the latest–generation Wireline skid-mounted logging unit with advanced technology logging tools delivered high-quality data with no lost time.

Also in East Russia, collaboration between Schlumberger Wireline and Schlumberger Data & Consulting Services led to success in providing Gazflot with reliable reservoir characterization results from the Kirinskaya-2 well drilled to further evaluate reserves on the Kirinsky Block in Sakhalin. The geology of the area required close cooperation between Gazflot and Schlumberger to define and deploy an advanced logging program on TLC* Tough Logging Conditions System equipment including CMR* Combinable Magnetic Resonance, PressureXpress formation testing, ECS* Elemental Capture Spectroscopy and APS* Accelerator Porosity Sonde technologies.

This excerpt taken from the SLB 8-K filed Jul 24, 2009.

Europe/CIS/Africa

Revenue of $1.78 billion was 1% lower sequentially and 14% lower year-on-year. Pretax operating income of $432 million was 8% lower sequentially and 26% lower year-on-year.

Sequentially, Russia revenue increased on the seasonal rebound of offshore activities in the East and generally improved activity levels in East and West Siberia as well as through higher sales of Artificial Lift and Completions products. The North Africa GeoMarket also increased on strong demand for Testing Services technologies and Completions products. These increases were offset by lower revenue in the Nigeria & Gulf of Guinea and the West & South Africa GeoMarkets due to reduced activity levels that mainly impacted Drilling & Measurements and Wireline services. The Caspian and North Sea GeoMarkets were down primarily due to reduced demand for Drilling & Measurements and Well Services technologies. Sequentially, revenue also declined in the Continental Europe GeoMarket due to lower SIS software sales as well as reduced demand for Drilling & Measurements, Wireline and Testing Services technologies.

Pretax operating margin of 24.2% dropped 172 bps sequentially primarily due to the lower activity levels and a less favorable revenue mix in the Nigeria & Gulf of Guinea, West & South Africa and North Sea GeoMarkets. These decreases, however, were partially offset by the improving activity levels in Russia.

Offshore Sakhalin Island, Russia, two more gas production wells were perforated on the Lunskoye gas field operated by the Sakhalin Energy Investment Company Ltd. The jobs were conducted using the Schlumberger Completion Insertion and Removal under Pressure technique on coiled tubing. The perforated intervals were shot with tubing-conveyed perforating guns fired using dual Hydraulic Delay Firing heads to enable the operation to be conducted in one run with the well underbalanced to prevent formation damage and potential well control risks.

Also in Russia, Schlumberger recently signed a technology cooperation agreement with OZNA—a leader in the oil well flow-metering business and a major supplier of surface pumping and injection systems for production optimization. As part of this agreement, OZNA becomes the exclusive provider of automated group metering stations using Schlumberger Testing Services proprietary Vx* technology for oilfield land applications in Russia and the CIS.


These excerpts taken from the SLB 10-Q filed Apr 29, 2009.

Europe/CIS/Africa

Revenue of $1.80 billion decreased 12% compared to the fourth-quarter of 2008. Pretax operating income of $467 million decreased 12% sequentially.

 

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Sequentially, the weakening of local currencies against the US dollar, primarily in Russia and the North Sea, reduced Area revenue by 5%. In addition, Russia experienced a sharp drop in revenue as the result of seasonal weather-related slowdowns, further reductions in customer activity, and heavy pricing pressure. Revenue for the North Africa GeoMarket was down due to lower demand for Well Services technologies and SIS products while the Caspian GeoMarket experienced reduced demand for Well Services, Drilling & Measurements and Wireline services as customer activity slowed. Weaker Framo revenue also contributed to the Area decline. These decreases were partially offset by improved activity in the Nigeria & Gulf of Guinea GeoMarket that resulted in increased demand for Wireline services.

Pretax operating margin was essentially flat at 25.9% as the impact of lower activity in North Africa, a less favorable revenue mix in West & South Africa, and weaker Framo sales and services were largely offset by increased higher-margin activity in the North Sea and Nigeria & Gulf of Guinea GeoMarkets.

Europe/CIS/Africa

First-quarter 2009 revenue of $1.80 billion was 5% lower year-on-year primarily due to the weakening of local currencies against the US dollar, particularly in the North Sea, Continental Europe and Russia. Additionally, Russia experienced a significant reduction in activity from lower customer spending and pricing pressure. However, these decreases were partially offset by higher revenue in Libya due to strong demand for Well Testing and Drilling & Measurements services in offshore activities and for Artificial Lift systems; growth in West & South Africa from higher Completion systems sales and strong exploration-related activity which resulted in strong demand for Wireline and Testing technologies; and increased revenue in Continental Europe due to demand for Drilling & Measurements services and SIS products.

Year-on-year, pretax operating margin decreased only 41 bps to 25.9% as a more favorable revenue mix in Continental Europe and the North Sea offset the impact of the significantly lower activity in Russia.

This excerpt taken from the SLB 8-K filed Apr 24, 2009.

Europe/CIS/Africa

Revenue of $1.80 billion decreased 12% sequentially and 5% year-on-year. Pretax operating income of $467 million decreased 12% sequentially and 6% year-on-year.

Sequentially, the weakening of local currencies against the US dollar, primarily in Russia and the North Sea, reduced Area revenue by 5%. In addition, Russia experienced a sharp drop in revenue as the result of seasonal weather-related slowdowns, further reductions in customer activity, and heavy pricing pressure. Revenue for the North Africa GeoMarket was down due to lower demand for Well Services technologies and SIS products while the Caspian GeoMarket experienced reduced demand for Well Services, Drilling & Measurements and Wireline services as customer activity slowed. Weaker Framo revenue also contributed to the Area decline. These decreases were partially offset by improved activity in the Nigeria & Gulf of Guinea GeoMarket that resulted in increased demand for Wireline services.

 

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Pretax operating margin was sequentially flat at 25.9% as the impact of lower activity in North Africa, a less favorable revenue mix in West & South Africa, and weaker Framo sales and services were largely offset by increased higher-margin activity in the North Sea and Nigeria & Gulf of Guinea GeoMarkets.

Offshore Germany in the Mittelplate field, Schlumberger No Drilling Surprises drilling risk management processes were used by Drilling & Measurements and Data & Consulting Services (DCS) for RWE-DEA in the planning and execution of the first horizontal drilling campaign on the field. Single-well mechanical earth models were incorporated into Petrel workflow processes to capture the complex stresses and heterogeneities associated with the salt diapirs around the Mittelplate reservoir. This information was input to the DrillMAP* drilling management and process software to monitor the drilling of the well. Three horizontal wells have been drilled using this process without major incident in comparison to difficulties experienced on almost all previous wells in the field.

In Norway, Schlumberger was awarded the subsea completions landing string contract together with well testing services on the 16-well BP Skarv development. Schlumberger Well Testing SenTREE 7* subsea well control systems technology will be deployed under the contract, which represents a new market in the Norwegian Sector of the North Sea for Schlumberger.

In the United Kingdom, Common Data Access (CDA), a wholly owned subsidiary of Oil & Gas UK, awarded SIS a contract to build and operate the Seismic DataStore, a new centralized, state-of-the-art repository for seismic data from the UK continental shelf. The Seismic DataStore will allow users to download quality-assured seismic in days or hours compared to the current performance of weeks or even months, significantly improving productivity by allowing faster responses to data needs.

In the Romanian Black Sea, a number of Schlumberger advanced technologies were deployed for Petrom in the completion of the LV03 horizontal well. Wireline log data were used to assess natural fractures, evaluate porosity and saturation, and derive formation mechanical properties as inputs to the mechanical earth model used to optimize the Well Services StageFRAC* hydraulic fracture design. The fast response of DCS enabled optimized packer positioning across non-fractured zones and helped place hydraulic fractures away from the reservoir gas cap, resulting in stabilized production two-and-a-half times greater than the best offset well.

In Kazakhstan, Schlumberger Well Services Discovery MLT* coiled-tubing technology was used successfully on a re-entry job to stimulate a multilateral well for the Karachaganak Petroleum Operating Company at a record depth of 5,700 m. Prior re-entry attempts with other technologies had proved unsuccessful and the success of this job led to deployment on a second well to remove sand in a situation where other solutions had failed.

In Sakhalin, East Russia, Schlumberger Wireline technology scored two significant successes in acquiring data in complex well conditions for Sakhalin Energy Investment Company. In one case, MDT* Modular Formation Dynamics Tester equipment was run on drillpipe to acquire a total of 94 pressure samples and 16 fluid samples that yielded critical data. In the second case, USI* Ultrasonic Imager technology was successfully conveyed by Wireline MaxTRAC* tractoring technology for more efficient cement evaluation operations.

In West Siberia, Russia, Schlumberger was awarded a three-year wireline logging contract extension for Salym Petroleum Development (SPD), a joint venture between Shell and Sibir Energy. Under the existing contract, SPD and Schlumberger have been successfully applying a wide variety of operating procedures focused on efficiency and adherence to Health, Safety, Quality and Environmental requirements in Siberian winter-weather conditions.

In Libya, Mellitah Oil and Gas B.V. (oil division) and Schlumberger Wireline deployed PURE perforating technology to successfully remove Barium Sulfate scale from a productive perforated zone in a brownfield well. Similar scale was left in place to block water-producing zones close to the productive interval. Production-logging equipment was used to establish fluid profiles before and after the PURE perforating operation while a Schlumberger Well Testing Vx* multiphase meter was deployed at surface to monitor surface flow rates. As a result of this technique production increased from 163 to 430 bopd while water production decreased.

 

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These excerpts taken from the SLB 10-K filed Feb 11, 2009.

Europe/CIS/Africa

 

Revenue of $2.05 billion decreased 5% sequentially but increased 16% year-on-year. Pretax operating income of $533 million decreased 15% sequentially but was 8% higher year-on-year.

Sequentially, Area revenue was 5% lower due to the weakening of local currencies against the US dollar particularly in the North Sea, Continental Europe and Russia. Additionally, Russia experienced significant reductions in activity from lower customer spending and the seasonal slowdown in Sakhalin. Lower Framo revenue also contributed to the decline. These decreases were partially offset by significantly increased activity in the Libya GeoMarket from strong demand for Artificial Lift products and for Drilling & Measurements, Well Testing and Wireline services, as well as in the Continental Europe GeoMarket from higher demand for Wireline and Drilling & Measurements technologies.

Pretax operating margin decreased sequentially from 29.0% to 26.1% primarily due to lower activity and a less favorable revenue mix in the North Sea and Nigeria & Gulf of Guinea GeoMarkets and Russia. The decrease in Framo revenue also contributed to this result.

 

Europe/CIS/Africa

 

Revenue of $8.18 billion increased 24% versus the same period last year. Growth was led by Russia which experienced strong demand for Wireline, Well Services and Drilling & Measurements technologies. The West & South Africa, North Sea and Caspian GeoMarkets grew on increased exploration-related services as well as strong demand for Well Services technologies. The Continental Europe GeoMarket was higher due to strong drilling-related activities and demand for SIS products. The consolidation of Framo also contributed to the increase.

 

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Part II, Item 7 

 

 

Pretax operating margin decreased 112 bps to 27.4% primarily as a result of reduced pricing in the Libya GeoMarket and a less favorable revenue mix in the Nigeria & Gulf of Guinea GeoMarket and Russia. The consolidation of Framo also reduced total Area margin.

 

Europe/CIS/Africa

 

Revenue of $2.05 billion decreased 5% sequentially but increased 16% year-on-year. Pretax operating income of $533 million decreased 15% sequentially but
was 8% higher year-on-year.

Sequentially, Area revenue was 5% lower due to the weakening of local currencies against the US dollar
particularly in the North Sea, Continental Europe and Russia. Additionally, Russia experienced significant reductions in activity from lower customer spending and the seasonal slowdown in Sakhalin. Lower Framo revenue also contributed to the
decline. These decreases were partially offset by significantly increased activity in the Libya GeoMarket from strong demand for Artificial Lift products and for Drilling & Measurements, Well Testing and Wireline services, as well as in the
Continental Europe GeoMarket from higher demand for Wireline and Drilling & Measurements technologies.

Pretax operating margin
decreased sequentially from 29.0% to 26.1% primarily due to lower activity and a less favorable revenue mix in the North Sea and Nigeria & Gulf of Guinea GeoMarkets and Russia. The decrease in Framo revenue also contributed to this result.

 

Europe/CIS/Africa

 

Revenue of $6.60 billion in 2007 increased 31% over 2006 with the highest growth recorded in the North Sea, West & South Africa and North Africa GeoMarkets.

Strong revenue increases were recorded in the North Sea, West & South Africa and North Africa driven by the expansion of exploration-related activities. GeoMarkets in Russia continued to grow strongly due to a combination of organic growth and the completion of the acquisition of Tyumenpromgeofizika during the second quarter of the year.

Pretax operating margins increased by 301 bps to reach 28.6%. This performance was due to a combination of increased activity, improved pricing and accelerated new technology deployment across most GeoMarkets partially offset by a pricing decline in well stimulation activities in the East Russia and subdued activity in Nigeria.

 

Europe/CIS/Africa

 

STYLE="margin-top:0px;margin-bottom:0px">Revenue of $8.18 billion increased 24% versus the same period last year. Growth was led by Russia which experienced strong demand for Wireline, Well Services and
Drilling & Measurements technologies. The West & South Africa, North Sea and Caspian GeoMarkets grew on increased exploration-related services as well as strong demand for Well Services technologies. The Continental Europe
GeoMarket was higher due to strong drilling-related activities and demand for SIS products. The consolidation of Framo also contributed to the increase.

 


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Part II, Item 7 

 

STYLE="margin-top:0px;margin-bottom:0px"> 

Pretax operating margin decreased 112 bps to 27.4% primarily as a result of
reduced pricing in the Libya GeoMarket and a less favorable revenue mix in the Nigeria & Gulf of Guinea GeoMarket and Russia. The consolidation of Framo also reduced total Area margin.

STYLE="margin-top:0px;margin-bottom:0px"> 

Europe/CIS/Africa

STYLE="margin-top:0px;margin-bottom:-6px"> 

Revenue of $6.60 billion in 2007 increased 31% over 2006 with the highest growth recorded in
the North Sea, West & South Africa and North Africa GeoMarkets.

Strong revenue increases were recorded in the North Sea,
West & South Africa and North Africa driven by the expansion of exploration-related activities. GeoMarkets in Russia continued to grow strongly due to a combination of organic growth and the completion of the acquisition of
Tyumenpromgeofizika during the second quarter of the year.

Pretax operating margins increased by 301 bps to reach 28.6%. This performance
was due to a combination of increased activity, improved pricing and accelerated new technology deployment across most GeoMarkets partially offset by a pricing decline in well stimulation activities in the East Russia and subdued activity in
Nigeria.

 

This excerpt taken from the SLB 8-K filed Jan 23, 2009.

Europe/CIS/Africa

Revenue of $2.05 billion decreased 5% sequentially but increased 16% year-on-year. Pretax operating income of $533 million decreased 15% sequentially but was 8% higher year-on-year.

Sequentially, Area revenue was 5% lower due to the weakening of local currencies against the US dollar particularly in the North Sea, Continental Europe and Russia. Additionally, Russia experienced significant reductions in activity from lower customer spending and the seasonal slowdown in Sakhalin. Lower Framo revenue also contributed to the decline. These decreases were partially offset by significantly

 

 

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increased activity in the Libya GeoMarket from strong demand for Artificial Lift products and for Drilling & Measurements, Well Testing and Wireline services, as well as in the Continental Europe GeoMarket from higher demand for Wireline and Drilling & Measurements technologies.

Pretax operating margin decreased sequentially to 26.1% primarily due to lower activity and a less favorable revenue mix in the North Sea and Nigeria & Gulf of Guinea GeoMarkets and Russia. The decrease in Framo revenue also contributed to this result.

In Kazakhstan, Tengizchevroil—a Chevron affiliate—awarded Schlumberger a five-year contract for wireline logging, slickline, coiled tubing, pressure pumping, well testing, directional drilling and perforating services. The contract, which also includes the supply of well completion equipment, covers field development in a technically challenging area and provides opportunities for new technology introduction and deployment.

In Angola, BP awarded Schlumberger wireline, pressure pumping, well testing, directional drilling, measurement-while-drilling and logging-while-drilling services on their ultra deep-water drilling program in offshore Block 31. The program is expected to cover 188 wells over an eight-year period beginning in 2010 and BP expect to deploy four drilling units to perform the work. Access to new technologies and significant Schlumberger Angolan local content were contributing factors in these awards.

Also in Angola, Total E&P Angola awarded Schlumberger Well Testing the completion landing string contract for the Pazflor development. The project will include the completion of 49 producer and injector wells beginning in 2010 and services will be provided using the newly launched SenTURIAN* subsea control system.

In the Sakhalin Energy Investment Company Lunskoye field offshore Sakhalin Island, Schlumberger Well Testing successfully perforated the longest-ever zone in one run using 4  1/2 -in casing guns deployed on coiled tubing with the Completion Insertion & Removal under Pressure (CIRP) technique. CIRP technology allows long intervals to be perforated underbalanced and the guns to be retrieved without killing the well which avoids formation damage and potential well control issues.

In Russia, Schlumberger performed the first Flow Scanner* operation in a horizontal well in the Vankor field for Rosneft. The job, which was the first deployment of its kind in West Siberia, resulted in a complete flow analysis in a complex downhole environment and the technology is now being considered for future applications in this new field.

In The Netherlands, Schlumberger DCS performed a sand production study on a natural gas field that had been partly suspended by Gaz de France due to heavy sand production. The study concluded that oriented tubing-conveyed perforating technology could help eliminate sand production and a sidetrack well was drilled and perforated to confirm this conclusion. The resulting gas production was double expectations and a number of wells in the field have now been recompleted to yield sand-free production.

 

 

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In Norway, Schlumberger Wireline deployed MaxTRAC* tractor-conveyed production-logging technology that included the FlowScanner* fluid imaging service on four wells for ConocoPhillips Norway to confirm feasibility of a new completion and stimulation strategy on the Eldfisk A platform. The technology combination in conjunction with a portable OSC* Operations Support Center set in the customer’s Well Intervention Center enabled successful data acquisition in a difficult logging environment monitored in real time by specialists in the Aberdeen Operations Support Center.

This excerpt taken from the SLB 10-Q filed Oct 22, 2008.

Europe/CIS/Africa

Revenue of $6.13 billion increased 27% versus the same period last year. Growth was led by the Russian GeoMarkets on stronger exploration activity and increased demand for Well Services technologies. The North Sea and West & South Africa GeoMarkets grew on increased exploration-related services as well as strong demand for Well Services technologies while the Continental Europe GeoMarket increased due to strong drilling-related and IPM activities. The consolidation of Framo also contributed to the increase.

Pretax operating magin decreased from 28.8% to 27.9% as improved revenue mix in Russia and in the North Sea GeoMarkets were offset by decreased margins in most other GeoMarkets and by the effect of the consolidation of Framo.

This excerpt taken from the SLB 8-K filed Oct 17, 2008.

Europe/CIS/Africa

Revenue of $2.17 billion increased 5% sequentially and 28% year-on-year. Pretax operating income of $628 million increased 8% sequentially and 27% year-on-year.

Sequentially, revenue growth was led by the Russian GeoMarkets with the summer seasonal offshore exploration campaigns in the East and strong demand for Well Services technologies in the North and South while the Caspian GeoMarket experienced a sharp rise in activity resulting in strong demand for exploration-related technologies. Libya revenue increased in both exploration- and development-related activities that led to robust demand for Wireline, Drilling & Measurements and Well Services


This excerpt taken from the SLB 10-Q filed Jul 23, 2008.

Europe/CIS/Africa

Revenue of $3.97 billion was 26% higher than the same period last year, led by the North Sea GeoMarket on increased exploration activity that resulted in a surge in demand for Wireline and Well Services technologies and by the West & South Africa GeoMarket on robust demand for Drilling & Measurements and Well Services technologies. Strong growth was also recorded in the Continental Europe GeoMarket with increased demand for Drilling & Measurements and Well Services technologies while Russia grew primarily on higher demand for Drilling & Measurements services and increased IPM project activity. The consolidation of Tyumenpromgeofizika and Framo also contributed to the increase in revenue.

Pretax operating margin decreased from 28.5% to 27.3% primarily as result of operational delays in the Nigeria & Gulf of Guinea GeoMarket and cost inflation in the West & South Africa and Continental Europe GeoMarkets in addition to the impact from the consolidation of Tyumenpromgeofizika and Framo. These decreases were offset by the impact of a more favorable revenue mix in the North Sea, North Africa, Caspian and Russia GeoMarkets.

This excerpt taken from the SLB 8-K filed Jul 18, 2008.

Europe/CIS/Africa

Revenue of $2.07 billion increased 9% sequentially and 28% year-on-year. Pretax operating income of $583 million increased 17% sequentially and 26% year-on-year.

Sequential revenue growth was primarily driven by strong demand for all Technologies across the North Sea GeoMarket—in particular for Drilling & Measurements and high-pressure, high-temperature Wireline services. Strong activity for all Technologies in West & South Africa together with increased demand for exploration-related activities in East Russia also contributed to sequential growth. These increases were partially offset by operational delays in the Nigeria & Gulf of Guinea GeoMarket and the seasonal slowdown of activity in the North Russia GeoMarket.

Pretax operating margin increased sequentially by 181 bps to 28.2% due to a more favorable activity mix in the North Sea, East Russia, and West & South Africa GeoMarkets. Strengthened IPM activity in South Russia also contributed to the increase.

During the quarter, Schlumberger completed the first PeriScope operation for Rosneft Sakhalinmoreneftegas on Sakhalin Island, offshore Russia. More than 600 m of horizontal wellbore were geosteered in the target reservoir, maintaining 100% reservoir contact and accurately mapping the top and bottom reservoir boundaries. The wellbore was landed in the target reservoir without the need for a pilot hole, saving Rosneft two weeks of rig time.

In Angola, a joint Sonangol and Schlumberger Completions team has completed seven wells in the Gimboa field since the launch of the project in August 2007. To date, a total of 4,860 m of Schlumberger screens have been installed with zero non-productive time. The installations included the deployment of 1,660 m of sandface completions assembly in the horizontal section of the first producer well—setting a new industry record as the longest horizontal well completed in Angola.

Offshore Ghana, Schlumberger Testing Services helped Kosmos appraise the Mahogany-2 well located in water depths of 3,400 ft. The favorable results validated the geological and reservoir models and confirmed the Turonian turbidite reservoirs of the Jubilee field to be highly productive.

Surgutneftegaz, the third-largest oil producer in Russia, awarded Schlumberger Wireline and Data & Consulting Services a significant project for the provision of formation evaluation services on the Rogozhnikovskoye field—one of the most geologically challenging fields in western Siberia—to improve understanding of the geology and optimize reservoir engineering strategies. Among the key technologies to be deployed on the project are the SonicScanner* advanced acoustic scanning platform, the FMI imager, and the CMR* Combinable Magnetic Resonance tool.

Elsewhere in Russia, Schlumberger was awarded directional-drilling, MWD and LWD contracts on up to 10 rigs by Vankorneft, a subsidiary of Rosneft. Drilling & Measurements is currently deploying a number of advanced services in support of this work that includes arcVISION* array resistivity compensated, adnVISION* azimuthal density neutron and PowerDrive technologies. A new base north of the Arctic Circle will be used to support these extremely remote operations.


This excerpt taken from the SLB 10-Q filed Apr 23, 2008.

Europe/CIS/Africa

Revenue of $1.9 billion increased 7% sequentially and 24% year-on-year. Pretax operating income of $500 million increased 1% sequentially and 16% year-on-year.

Sequential revenue growth was driven by higher Artificial Lift Systems product sales and increased market penetration for Well Services technologies in South Russia; strong demand for Well Services technologies in Continental Europe; higher demand for Drilling & Measurements technologies in West & South Africa and the Caspian; higher IPM and Drilling & Measurements activities in North Russia; and by the consolidation of FRAMO revenue. This was partially offset by operational delays in the North Sea GeoMarket, the seasonal impact of winter weather in East Russia, and lower SIS product sales across the Area.

Pretax operating margin declined sequentially from 28.0% to 26.3% due to an unfavorable activity mix in the North Sea, lower-margin Artificial Lift Systems product sales in South Russia, reduced high-margin Area-wide SIS product sales, and the effect of consolidation of FRAMO in the Area.

Year-on-year revenue growth increased due to higher demand for Drilling & Measurement services in West & South Africa, increased IPM project activities in North Russia and increased demand for Drilling & Measurements and Well Services technologies in Continental Europe. The consolidation of Tyumenpromgeofizika revenue following the completion of this acquisition, during the second quarter of 2007, together with the consolidation of FRAMO revenue also contributed to this increase.

Year-on-year pretax operating margin declined from 28.3% to 26.3%, primarily due to a reduction in high margin exploration activity, lower Drilling and Measurements margins in the North Sea on unfavorable weather conditions, and further reductions in Well Services in South Russia and the Caspian. The effect of the consolidation of FRAMO in the Area also contributed to the margin decline.

This excerpt taken from the SLB 8-K filed Apr 18, 2008.

Europe/CIS/Africa

Revenue of $1.9 billion increased 7% sequentially and 24% year-on-year. Pretax operating income of $500 million increased 1% sequentially and 16% year-on-year.

Sequential revenue growth was driven by higher Artificial Lift Systems product sales and increased market penetration for Well Services technologies in South Russia; strong demand for Well Services technologies in Continental Europe; higher demand for Drilling & Measurements technologies in West & South Africa and the Caspian; higher IPM and Drilling & Measurements activities in North Russia; and by the consolidation of FRAMO revenue. This was partially offset by operational delays in the North Sea GeoMarket, the seasonal impact of winter weather in East Russia, and lower SIS product sales across the Area.

Pretax operating margin declined sequentially to 26.3% due to an unfavorable activity mix in the North Sea, lower-margin Artificial Lift Systems product sales in South Russia, reduced high-margin Area-wide SIS product sales, and the effect of consolidation of FRAMO revenue in the Area.

Offshore Ivory Coast, Schlumberger Testing Services successfully introduced PURE* perforating systems for clean perforations technology for independent operator Foxtrot International. The first job was designed to provide dynamic underbalanced conditions and data confirmed the well-bore pressure to have remained below formation pressure during perforation. The well subsequently flowed without stimulation at a rate that exceeded customer expectations. Based on this success, Foxtrot International intends to further deploy the technique.

In Algeria, First Calgary Petroleum (FCP) used the Schlumberger SensaLine* fiber-optic slickline monitoring system to assist in detecting a leak in a bridge plug set to isolate a productive lower zone while running production tests on the upper zone. Real-time THERMA* temperature analysis software enabled FCP to detect a leak originating from the bridge plug and subsequently evaluate the flow contribution from the lower zone. Schlumberger Testing Services also completed a fourth SensaLine distributed temperature survey (DTS) for ConocoPhillips in Algeria.

In Angola, Schlumberger Drilling & Measurements Scope* logging-while-drilling and PowerDrive rotary steerable technologies were deployed on the Gimboa field for Sonangol P&P. The success of the technologies in drilling the Gimboa horizontal well led to their use on a subsequent lateral drainhole that represents the longest-ever


These excerpts taken from the SLB 10-K filed Feb 13, 2008.

Europe/CIS/Africa

 

Revenue of $5.05 billion in 2006 increased 36% over 2005 with the highest growth recorded in the North Sea, North Africa, Nigeria GeoMarkets and in Russia.

Strong revenue increases were recorded in Russia and other CIS countries despite the weather-related slowdown in the first quarter, due to a combination of organic growth within Schlumberger Technology lines and the impact of the acquisition of PetroAlliance Services. Renewed customer focus on exploration resulted in steep growth in the North Sea and North Africa GeoMarkets, while the West & South Africa and Nigeria GeoMarkets maintained a robust growth momentum.

Pretax operating income of $1.29 billion in 2006 increased 67% compared to 2005. All GeoMarkets contributed significantly through increased activity, improved pricing and accelerated new technology deployment.

 

Europe/CIS/Africa

 

STYLE="margin-top:0px;margin-bottom:0px">Revenue of $5.05 billion in 2006 increased 36% over 2005 with the highest growth recorded in the North Sea, North Africa, Nigeria GeoMarkets and in Russia.

STYLE="margin-top:0px;margin-bottom:0px; text-indent:2%">Strong revenue increases were recorded in Russia and other CIS countries despite the weather-related slowdown in the first quarter, due to a combination
of organic growth within Schlumberger Technology lines and the impact of the acquisition of PetroAlliance Services. Renewed customer focus on exploration resulted in steep growth in the North Sea and North Africa GeoMarkets, while the
West & South Africa and Nigeria GeoMarkets maintained a robust growth momentum.

Pretax operating income of $1.29 billion in 2006
increased 67% compared to 2005. All GeoMarkets contributed significantly through increased activity, improved pricing and accelerated new technology deployment.

 


This excerpt taken from the SLB 8-K filed Jan 18, 2008.

Europe/CIS/Africa

Revenue of $1.77 billion increased 4% sequentially and 23% year-on-year. Pretax operating income of $493 million was flat sequentially but increased 28% year-on-year.

Sequentially, the North Sea GeoMarket recorded the highest revenue growth driven by increased demand for Wireline and Well Services technologies together with higher Artificial Lift Systems and SIS product sales. Higher demand for Drilling & Measurements technologies in the Caspian GeoMarket, increased Artificial Lift Systems product sales in North Russia, and high demand for Drilling & Measurements, Well Services and Well Testing technologies in Continental Europe also contributed to growth. This performance was partially offset by the seasonal slowdown in Sakhalin and subdued activity in Nigeria.

Pretax operating margin declined sequentially to 27.9% due to the seasonal slowdown in Sakhalin, and to weather-related delays which led to reduced demand for higher-margin Drilling & Measurements and Well Testing technologies in the North Sea. A less favorable activity mix in the West & South Africa and North Africa GeoMarkets also contributed to this result.


This excerpt taken from the SLB 10-Q filed Oct 24, 2007.

Europe/CIS/Africa

Revenue of $4.82 billion increased 33% year-on-year. Pretax operating income of $1.39 billion increased 53% year-on-year. Growth in the Area was driven by rising offshore activity with higher application of premium technologies in North Africa; higher rig count and improved activity mix together with pricing gains in West & South Africa; increased exploration activity in Continental Europe; and higher IPM activity across Russia together with the impact of the consolidation of Tyumenpromgeofizika. In addition, growth was also recorded in the North Sea and Nigeria GeoMarkets. Year-on-year double-digit growth was achieved across all Technologies.

This excerpt taken from the SLB 8-K filed Oct 19, 2007.

Europe/CIS/Africa

Revenue of $1.69 billion increased 5% sequentially and 28% year-on-year. Pretax operating income of $495 million increased 7% sequentially and 38% year-on-year.

Sequential revenue growth was driven by seasonally higher activity levels on land and offshore in the East Russia GeoMarket; increased demand for IPM services and for Artificial Lift Systems products in South Russia; higher demand for Drilling & Measurements technologies in North Russia; and the impact of the consolidation of Tyumenpromgeofizika. Increased demand for Well Services and Drilling & Measurements technologies in North Africa; higher demand for Artificial Lift Systems products in Continental Europe; and stronger demand for Wireline and Well Testing technologies in West and South Africa also contributed to growth. However, this was partially offset by project slowdowns in Nigeria and the Caspian, and by lower activity in Libya.

The Area pretax operating margin increased by 50 basis points (bps) sequentially to reach 29.2% driven primarily by increased demand for higher-margin Well Services and Drilling & Measurements technologies in North Africa and a more favorable activity mix in the Russia GeoMarkets. This performance was partially offset by the project slowdowns in Nigeria and the Caspian and by lower demand for higher-margin Wireline and Drilling & Measurements technologies in Libya.

Offshore Norway, Schlumberger performed a complex formation evaluation program on the high-pressure, high-temperature Onyx South West appraisal well for Norske Shell using the new Wireline InSitu Density* fluid characterization service. A member of the InSitu Family* of quantitative fluid properties measurements, the advanced technology was deployed on state-of-the-art wireline cables rated to 500 deg F using a high-tension capstan.

In Russia, the Sakhalin Energy Investment Company (SEIC) awarded Schlumberger a multi-well intelligent completions contract for the supply of downhole flow-control valves, permanent gauges and distributed temperature systems for the SEIC Piltun Astokhskoye B platform. The work scope comprises water injection wells scheduled to be drilled and completed offshore Sakhalin Island over the next three years. Plans for each well include a three- to four-zone intelligent completion.

In North Russia, FiberFRAC* fiber-based fracturing fluid technology was introduced for Gazprom neft (Sibneft-Noyabrskneftegaz). The application resulted in a production increase of more than 20% over that achieved with current hydraulic fracturing techniques. FiberFRAC technology allows customization of fracturing fluid properties for varying reservoir conditions and enables optimization of the stimulation design and treatment leading to improved production.

Elsewhere in Russia, Schlumberger was awarded a contract for more than 400 electrical-submersible pump systems. These systems will be manufactured in the Schlumberger Russia manufacturing facility located in Tyumen, Western Siberia.

In the UK sector of the North Sea, Venture Production plc deployed the first FlexSTIM* modular skid-mounted stimulation package capable of large-scale fracturing operations. Installed on a supply vessel, the system placed multiple-propped fracture treatments in a horizontal gas well. Following stimulation, the well tested at rates approaching 50 MMscfd—providing the customer additional production of more than 9,000 barrels of oil equivalent per day, including associated gas condensate. The FlexSTIM technique offers an alternative to leasing a dedicated stimulation vessel.


This excerpt taken from the SLB 8-K filed Jul 20, 2007.

Europe/CIS/Africa

Revenue of $1.61 billion increased 6% sequentially and 30% year-on-year. Pretax operating income of $462 million increased 7% sequentially and 46% year-on-year.

Sequential revenue growth was driven by the higher rig count in the East Russia, Continental Europe, Libya and North Africa GeoMarkets; strong demand for exploration-related Wireline, Drilling & Measurements and Well Testing technologies together with higher Artificial Lift Systems and Completions product sales in the North Sea; and increased demand for Well Services technologies, higher Artificial Lift Systems product sales and higher IPM activity in North Russia. This growth was partially offset by seasonal weather-related effects in South Russia.

Pretax operating margins reached 28.7% driven primarily by a more favorable activity mix in the North Sea, North Africa and Russia GeoMarkets. This performance was partially dampened by the weather-related seasonal effects in South Russia.

In Algeria, the Schlumberger Wireline PressureXpress* service was run for CNPC International Algeria Exploration to determine fluid contacts and gradients in order to improve reservoir understanding. Job execution was optimized in real time using the InterACT* web-based service.

StageFRAC* multistage fracturing technology, a member of the Contact family of fracturing and completion services, was deployed on three offshore oil wells for Eni Congo. The technology, resulting in increased well productivity, proved highly effective for the customer’s stimulation campaign. StageFRAC will be used by Eni Congo on additional offshore fields, reflecting the growing acceptance of this advanced technology.

PeriScope* and EcoScope*, members of the Scope family of advanced while-drilling-services, were deployed for Chevron Nigeria Ltd. in an offshore field. Results showed that the horizontal well’s oil-water contact was dipping due to down-slope water injection. The use of conventional technologies would have led to the incorrect assumption that the transition from oil to water was due to faulting. The results prevented an unnecessary sidetrack and modified the field development plan.


This excerpt taken from the SLB 8-K filed Apr 20, 2007.

Europe/CIS/Africa

Revenue of $1.52 billion increased 6% sequentially and 45% year-on-year. Pretax operating income of $430 million increased 12% sequentially and 87% year-on-year.

Sequential revenue growth was driven by higher activity in the West and South Africa, North Sea, North Africa, Nigeria and Libya GeoMarkets. This was partially offset by weather-related seasonal drilling activity slowdowns in Russia, coupled with seasonal drilling shutdowns in northern Russia and offshore Sakhalin, as well as lower activity in the Caspian GeoMarket. Across the Area demand was particularly strong for Drilling & Measurements, Wireline, Well Services and Well Testing technologies.

Sequential pretax operating margins grew by 150 bps driven by demand for exploration-related services in West and South Africa and Libya; increased demand for Drilling & Measurements technologies in the North Sea; and new technology Well Testing services in North Africa. This growth was partially offset by lower SIS and Completions sales across the Area and the seasonal weather activity slowdown in Russia.

In Gabon, Schlumberger performed the world’s first offshore stimulation using the StageFRAC* multistage fracturing technology for Perenco. Part of the Contact family of fracturing services, StageFRAC delivers effective stimulation of multi-layered reservoirs ensuring optimal treatment of each zone, while reducing total treatment time. Four wells were treated, with initial post-treatment well performance revealing a substantial increase in well productivity.

In North Africa, Schlumberger opened an OSC* Operation Support Center for Eni Oil. This marks the first fully dedicated real-time drilling center in the region. The center is staffed by Drilling & Measurements experts and supported by SIS and Data & Consulting Services personnel to provide around the clock monitoring of up to 10 remote rigs.

Petrel* seismic-to-simulation software continued gaining operator acceptance as Hydro selected the technology as its standard workflow tool for subsurface reservoir characterization. Hydro exploration and production asset teams worldwide will use Petrel software to develop and refine workflows across multiple technical disciplines.

In Italy, an innovative, self-healing cement system to maintain zonal isolation was deployed for Stogit, a subsidiary of Eni responsible for gas storage. The technology will be used in a three-year cementing campaign to develop gas storage wells for Stogit.

During the quarter, Schlumberger Artificial Lift Systems won multiple contracts for the supply of 40 subsea XLift* gas lift systems, notably in Norway, Angola and Nigeria. XLift artificial lift technology enables reliable high-pressure gas lift operations in deepwater subsea wells by increasing the operating gas-injection depth, improving efficiency and increasing production with optimal performance.


This excerpt taken from the SLB 10-K filed Feb 16, 2007.

Europe/CIS/Africa

 

Revenue of $3.53 billion in 2005 increased 27% over 2004 with the highest growth recorded in the Russia and Nigeria GeoMarkets.

Strong revenue increases were recorded offshore Nigeria and in deepwater West Africa GeoMarket operations mainly benefiting Well Completions & Productivity, Wireline, and Drilling & Measurements with the rapid market acceptance of Scope technology.

The CIS reached revenue of $1.17 billion, an increase of 42% over 2004. The significant increase in revenue in Russia was due to a combination of organic growth, and the impact of the acquisitions of PetroAlliance and the Siberian Geophysical Company. Organic growth in Russia was driven by a recovery in activity for Yuganskneftegaz during the first quarter, increased demand for stimulation and cementing services, strengthening of IPM operations, and robust uptake of new technology.

Pretax operating income of $704 million in 2005 increased 57% compared to 2004. Nigeria and West Africa contributed significantly due to increased activity, pricing improvements, and accelerated technology deployment. Operating income in the North Africa GeoMarket also increased markedly due to the growing presence of international oil companies in the region. The North Sea GeoMarket was a strong contributor to operating income through increased drilling activity and strong demand for production technologies from Well Services and Wireline.

 

20


Table of Contents

Part II, Item 7 

 

 

This excerpt taken from the SLB 8-K filed Jan 19, 2007.

Europe/CIS/Africa

Revenue of $1.37 billion increased 8% sequentially and 35% year-on-year. Pretax operating income of $359 million increased 7% sequentially and 59% year-on-year.

Sequential revenue growth in the Area was driven by higher activity in the Nigeria, West & South Africa and Continental Europe GeoMarkets and increased product sales in the North Sea. Demand was particularly strong for Wireline, Well Testing and Well Services technologies together with SIS, Completions and Artificial Lift Systems products. This was offset by weather-related activity slowdowns in the North Sea, and in Russia with seasonal drilling shutdowns offshore Sakhalin.

Sequential pretax operating income growth was driven by higher activity for Wireline and Well Testing services and increased SIS, Completions and Artificial Lift Systems product sales. This growth however was offset by an unfavorable activity mix in the North Sea, West & South Africa and Caspian GeoMarkets; project start-up costs in North Africa; and the seasonal slowdown offshore Sakhalin.

In Norway, Statoil and Schlumberger launched a new technology collaboration in which the Wireline Sonic Scanner* service will be used to develop a highly detailed 3D geomechanical earth model of the high-pressure, high-temperature Kvitebjoern gas condensate field. The model will enable improved wellbore instability forecasting; evaluation of reservoir compaction during production; initiation or reactivation of faults; analysis of rock anisotropy, stress orientations and magnitudes; and quantification of alteration around the borehole.

 

This excerpt taken from the SLB 8-K filed Oct 20, 2006.

Europe/CIS/Africa

Revenue of $1.27 billion increased 7% sequentially and 34% year-on-year. Pretax operating income of $335 million increased 14% sequentially and 67% year-on-year.

Sequential revenue growth in the Area was driven by higher activity in the Caspian and Eastern Russia GeoMarkets, and strong demand for higher-margin technologies in the North Sea. Overall growth in Russia resulted from higher land drilling activity and the seasonal pick-up in offshore activity in Sakhalin. Sequential growth was further boosted by higher rig count in Nigeria and pricing gains and extended Wireline activities in the West and South Africa GeoMarket.

Sequential gains in pretax operating margin of 156 bps resulted from a more favorable mix of technologies offshore in the Caspian, pricing and technology gains in the North Sea and stronger returns on higher-margin offshore activities in the Eastern Russia GeoMarket.

In Sakhalin, Russia, EcoScope* multifunction logging-while-drilling, TeleScope* high-speed telemetry and VISION* imaging-while-drilling services enabled faster rate-of-penetration and acquired high-quality LWD data for Elvary Neftegaz. The resultant time savings from Scope technology, slimhole well design, bit performance and reduced non-productive time allowed the customer to improve drilling performance by 100% from 2005 to 2006 during the four-month weather window.

In the UK sector of the North Sea, Schlumberger was awarded a contract for ESP systems and associated monitoring and control services for the first stage of the CNR International (UK) Ltd. Lyell project. When completed, this artificial lift project will be the largest subsea deployment of dual ESPs in the North Sea.

On a Shell Aragorn high-pressure, high-temperature exploration well in the UK sector of the North Sea, Schlumberger deployed a custom-designed FlexSTONE HT* cementing system. Due to the hostile nature of this well, the mechanical properties of the cement were optimized to suit the harsh downhole conditions and ensure long-term zonal isolation.

 

This excerpt taken from the SLB 8-K filed Jul 21, 2006.

Europe/CIS/Africa

Revenue of $1.18 billion increased 18% sequentially and 43% year-on-year. Pretax operating income of $294 million increased 40% sequentially and 91% year-on-year.

Sequential revenue growth in the Area was mainly driven by higher activity across Russia following the end of the extreme winter weather conditions experienced in the previous quarter, and increased demand for IPM, Well Services, and Drilling & Measurements services. The North Sea GeoMarket achieved double-digit growth due primarily to higher exploration activity in Norway, accelerating demand for PURE* and Quicksilver Probe* Wireline technologies, and higher demand for Well Testing services. Double-digit growth was also recorded in the Continental Europe and Nigeria GeoMarkets due to increased activity, and in North Africa due to strong demand for Well Testing services.

Robust sequential gains in pretax operating margins of 390 bps resulted from strengthening pricing, higher efficiency, increased demand for Wireline and Drilling & Measurements new technologies, and the favorable activity mix in the developing exploration market.

During the quarter, Shell extended their pan-European contracts for Drilling & Measurements and Wireline logging services for a further two years at attractive commercial rates. The exceptional safety record, good service quality, and high level of support provided during the past three years led to these contract extensions.

The first espWatcher* system for Petrom was installed on their Gloria Platform offshore Romania. This data acquisition system for monitoring and surveillance of electrical submersible pumps has already led to significant production increases at levels above the client’s expectations. Other benefits realized by the customer include improvements in the economics of their artificial lift methods and a better understanding of the field.

Statoil and Schlumberger Information Solutions (SIS) announced the start of a three-year technology collaboration agreement to develop new production-optimization technologies to extend the life of oil and gas fields. In addition to new technology development, the agreement calls for standardizing and automating workflow processes with the goal of increasing oil recovery and accelerating production by identifying best practices and information management processes for the complete producing asset, including the processing facilities.

This excerpt taken from the SLB 8-K filed Apr 21, 2006.

Europe/CIS/Africa

Revenue of $1.0 billion declined 1% sequentially but increased 33% year-on-year. Pretax operating income of $210 million declined 7% sequentially but increased 70% year-on-year.

Sequential revenue performance was impacted by extreme winter weather conditions across Russia and the Caspian, negatively affecting activity for a three-week period. Activity resumed normal levels by the end of the quarter. The effect of the slowdown was partially offset by increased activity in the North Sea GeoMarket due to operating efficiencies, favorable seasonal weather conditions and accelerating demand for Wireline and Drilling & Measurements new technologies. Double-digit growth was also recorded in the North Africa, Continental Europe and Nigeria GeoMarkets.


This excerpt taken from the SLB 10-K filed Feb 24, 2006.

Europe/CIS/Africa

 

Revenue of $2.79 billion increased 7% over 2003 mainly due to Russia, the Caspian and West Africa with gains recorded in all Technologies led by Drilling & Measurements and Well Services.

CIS revenue reached $825 million, a 33% increase over 2003. Activity was particularly sustained in Russia mainly due to the continued expansion of the customer base and the deployment of new production-related technologies. The revenue growth was tempered by the halt of activities for Yuganskneftegaz in Russia in the fourth quarter. However, successful redeployment of the equipment previously working for Yuganskneftegaz was completed by the end of the year.

West Africa continued to deliver robust performance achieving record activity levels mainly due to the development of deepwater projects combined with price increases through the introduction of new services and increasing demand for Well Services and Well Completions & Productivity technologies.

Pretax operating income of $447 million declined 3% over 2003 mainly due to persistent union strikes in Norway, redeployment costs and associated decreased operating efficiency in Russia, weak results in North Africa, and the appreciation of local currencies against the US dollar. These were partially offset by the continued strengthening of activity in Continental Europe and the Caspian.

 

This excerpt taken from the SLB 8-K filed Jan 20, 2006.

Europe/CIS/Africa

 

Revenue of $1.01 billion increased 7% sequentially and 45% year-on-year. Pretax operating income of $226 million increased 12% sequentially and 111% year-on-year.

 

Sequential revenue growth was due to strong activity in North Africa and Russia; strong deepwater completion sales combined with the rapid market acceptance of Drilling & Measurements Scope* technology in West Africa; the start of a drilling campaign in Azerbaijan; and price increases on completion products in the Caspian. High levels of activity were maintained in the North Sea despite the seasonal winter impact.

 

The improved sequential operating income was principally due to higher efficiency in Russia, growing international oil company presence in North Africa, and accelerated technology deployment in West Africa, together with stronger pricing across the Area.


This excerpt taken from the SLB 8-K filed Oct 21, 2005.

Europe/CIS/Africa

 

Revenue of $944 million increased 14% sequentially and 28% year-on-year. Pretax operating income of $201 million increased 31% sequentially and 71% year-on-year.

 

Sequential revenue growth was partially due to continued strong activity in Russia, particularly for Drilling & Measurements and Well Completions & Productivity technologies, combined with the first full quarter of financial consolidation of PetroAlliance operations.

 

West Africa experienced strong activity improvement with continued deepwater activity growth benefiting mainly Wireline and Drilling & Measurements technologies. The North Sea GeoMarket also contributed to the revenue growth with increased drilling activity and strong demand for production technologies from Well Services and Wireline.

 

Sequentially, Drilling & Measurements, Well Services, and Well Completions & Productivity technologies showed the strongest rise in operating income from increased pricing and activity, particularly in the North Sea, West Africa and Russia GeoMarkets. All seven Europe/CIS/Africa GeoMarkets delivered operating margin improvements resulting in a sequential increase of 270 basis points due to price increases in a tight supply environment.

 

In Norway, the first-ever intelligent multilateral well for the Troll field was successfully installed for Hydro. The completion includes a surface-controlled natural gas lift system comprising a hydraulically operated Wireline Retrievable Flow Control gas lift valve, integrated with sand control and side mounted guns to boost production using the gas cap, and to bring wells to production. The completion also incorporates two remotely controlled flow control valves, operated by a single control line, to optimize and control the flow from the two branches of the multilateral.


Continuing its worldwide introduction, the new Wireline PressureXpress* service was deployed for Burren Energy Resources for the first time in their Burun field in the Caspian. Providing accurate measurements of formation pressure and fluid mobility, PressureXpress was run successfully in a program of 89 pressure points in extremely low-mobility formations. The tool’s unique ability to acquire pressure measurements in very tight formations identified a non-depleted zone in the field and a candidate for future development.

 

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