Schlumberger Announces Fourth-Quarter and Full-Year 2007 Results

Schlumberger Limited (NYSE:SLB) today reported 2007 revenue of
$23.28 billion versus $19.23 billion in 2006.

Net income, excluding charges and credits, reached $5.16 billion,
representing diluted earnings-per-share of $4.18 versus $3.04 in 2006.

Fourth-Quarter Results

Fourth-quarter revenue reached $6.25 billion versus $5.93 billion
in the third quarter of 2007, and $5.35 billion in the fourth quarter
of 2006.

Net income in the fourth quarter, excluding a $17 million
after-tax gain on the sale of certain workover rigs in the quarter,
reached $1.37 billion -- an increase of 1% sequentially and 21%
year-on-year. Diluted earnings-per-share, excluding this gain, were
$1.11 versus $1.09 in the previous quarter, and $0.92 in the fourth
quarter of 2006.

Oilfield Services revenue of $5.44 billion increased 6%
sequentially and 18% year-on-year. Pretax segment operating income of
$1.54 billion increased 2% sequentially and 16% year-on-year.

WesternGeco revenue of $798 million increased 1% compared to the
prior quarter and increased 11% year-on-year. Pretax segment operating
income of $272 million decreased 11% sequentially but increased 4%
year-on-year.

Schlumberger Chairman and CEO Andrew Gould commented,
"Schlumberger revenues in 2007 grew by 21% driven by strong demand for
oilfield services particularly in the Eastern Hemisphere and Latin
America. All Technologies showed double-digit improvement, with
Drilling & Measurements, Well Testing and Integrated Project
Management recording the highest overall growth rates.

In the fourth quarter strong sequential revenue growth contributed
significantly to overall performance, but a less favorable Oilfield
Services revenue mix, lower pricing in US land operations, and a
number of exceptional and seasonal weather effects led to less than
satisfactory margins.

In addition, strong WesternGeco Multiclient sales failed to offset
lower Marine utilization for the quarter due to several vessels dry
docking or seasonally transiting to new contracts with consequent
margin decline.

During the second half of 2007, IPM mobilized and started 17
drilling rigs for the Mezosoico and Alianza projects in Mexico. The
fourth-quarter results included the expensing of significant startup
costs associated with both projects.

However, with the exception of pricing for certain Oilfield
Services activities on land in North America, the events in the
quarter were largely seasonal or reflected the startup cost of new IPM
activities and do not represent a change in the underlying trends.

Shorter-term growth presents a more complex picture than the
immediate past. Natural gas drilling in North America is not expected
to vary greatly in the absence of any severe weather in the remaining
winter months. High utilization of the existing offshore rig fleet and
limited new builds entering the market during the year will not only
limit growth, but also make activity vulnerable to operating
efficiency. However, growth in land activity outside North America
will remain strong, while seismic exploration services worldwide will
remain in high demand both on land and offshore as the industry gears
up for the expanding exploration cycle.

Within this context, technology that assists our customers in
mitigating risk in exploration and development projects, increasing
recovery factors and improving operational efficiency will remain at a
premium.

In the longer term however, current levels of drilling are
insufficient to meaningfully slow decline rates, improve reservoir
recovery or add sufficient new production capacity. The explosion in
exploration licenses awarded in the last three years, the continual
expansion of the number of new offshore rigs being ordered for
delivery through and beyond the end of the decade, and the
industry-wide, as well as our own plans to increase both capex and
research and development spend are clear indicators of future growth.
It is our view that only a global economic recession that lowers
demand can flatten this trend.

In line with this overall positive outlook, I am pleased to
announce that the Board of Directors has increased the quarterly
dividend for the fourth consecutive year."

Other Events

-- Schlumberger acquired Eastern Echo Holding plc, a Dubai-based
marine seismic company, to boost plans to meet demand for
market-leading WesternGeco Q-Marine* seismic technology
services. Eastern Echo has a total of six high-performance 3D
seismic vessels on order. These high-capacity vessels are
ideally suited for the exploration and development markets of
the future.

-- Schlumberger acquired an additional 5.5% in Framo Engineering
AS to take its holding to a majority of 52.75%. A
Norwegian-based company, Framo provides multiphase booster
pumps, flow metering equipment and swivel stack systems.
Schlumberger will begin consolidating the results of Framo in
the first quarter of 2008.

-- As part of the previously announced 40 million-share
repurchase program approved by the Board of Directors in the
second quarter of 2006, Schlumberger repurchased 5.8 million
shares of common stock at an average price of $95.67 for a
total of $557 million in the quarter. During 2007,
Schlumberger repurchased 16.3 million shares of common stock
at an average price of $82.94 for a total of $1.35 billion. As
of December 31, 2007, Schlumberger had remaining authorization
to repurchase 10.1 million shares of common stock.

-- The Board of Directors of Schlumberger approved a 20% increase
in the quarterly dividend. The dividend, which will increase
to 21 cents per share of outstanding common stock, is payable
on April 4, 2008 to stockholders of record on February 20,
2008.

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*T
Consolidated Statement of Income

Fourth Quarter Twelve Months
--------------------- ------------------------
For Periods Ended
December 31 2007 2006 2007 2006
----------------------------------------------------------------------

Revenue $6,247,713 $5,349,868 $23,276,542 $19,230,478
Interest and other
income (1)(3) 142,810 86,935 431,495 286,716
Expenses
Cost of goods sold
and services (3) 4,217,436 3,577,381 15,481,746 13,182,753
Research &
engineering (3) 196,520 169,482 728,491 619,316
Marketing 22,960 26,230 81,545 75,704
General &
administrative 141,672 132,732 517,248 456,347
Interest 71,519 63,300 274,558 234,916
----------------------------------------------------------------------

Income before taxes and
minority interest 1,740,416 1,467,678 6,624,449 4,948,158
Taxes on income (3) 357,203 337,064 1,447,933 1,189,568
----------------------------------------------------------------------
Income before minority
interest 1,383,213 1,130,614 5,176,516 3,758,590
Minority interest (3) - 2 - (48,739)
----------------------------------------------------------------------

Net Income (3) $1,383,213 $1,130,616 $ 5,176,516 $ 3,709,851
----------------------------------------------------------------------

Diluted Earnings Per
Share (3) $ 1.12 $ 0.92 $ 4.20 $ 3.01

Average shares
outstanding 1,194,905 1,178,347 1,187,944 1,181,683
Average shares
outstanding assuming
dilution 1,239,999 1,238,047 1,238,675 1,242,196

Depreciation &
amortization included
in expenses (2) $ 554,417 $ 439,000 $ 1,953,987 $ 1,561,410
----------------------------------------------------------------------

1) Includes interest income of:
Fourth Quarter 2007 - $48 million (2006 - $27 million)
Twelve Months 2007 - $162 million (2006 - $117 million)

2) Including Multiclient seismic data costs

3) See page 6 for details of Charges & Credits
*T

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Condensed Balance Sheet

(Stated in
thousands)

Assets Dec. 31, 2007 Dec. 31, 2006
----------------------------------------------------------------------
Current Assets
Cash and short-term investments $ 3,169,033 $ 2,998,873
Other current assets 7,886,350 6,186,789
----------------------------------------------------------------------
11,055,383 9,185,662
Fixed income investments, held to
maturity 440,127 153,000
Fixed assets 8,007,991 5,576,041
Multiclient seismic data 182,282 226,681
Goodwill 5,142,083 4,988,558
Other assets 3,025,506 2,702,196
----------------------------------------------------------------------

$27,853,372 $22,832,138
----------------------------------------------------------------------

Liabilities and Stockholders´ Equity
----------------------------------------------------------------------
Current Liabilities
Accounts payable and accrued
liabilities $ 4,550,729 $ 3,848,017
Estimated liability for taxes on
income 1,071,888 1,136,529
Bank loans and current portion of
long-term debt 1,318,227 1,321,529
Convertible debentures 353,408 -
Dividend payable 210,599 148,720
----------------------------------------------------------------------
7,504,851 6,454,795
Convertible debentures 415,897 1,424,990
Other long-term debt 3,378,569 3,238,952
Postretirement benefits 840,311 1,036,169
Other liabilities 775,975 257,349
----------------------------------------------------------------------
12,915,603 12,412,255
Minority interest 61,881 -
Stockholders´ Equity 14,875,888 10,419,883
----------------------------------------------------------------------

$27,853,372 $22,832,138
----------------------------------------------------------------------
*T

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*T
Net Debt

"Net Debt" represents gross debt less cash, short-term investments and
fixed income investments, held to maturity. Management believes that
Net Debt provides useful information regarding the level of
Schlumberger indebtedness by reflecting cash and investments that
could be used to repay debt. Details of the Net Debt follow:
*T

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*T
(Stated in
millions)

Twelve Months 2007
--------------------------------------------------------
Net Debt, January 1, 2007 $ (2,834)
Net income 5,177
Depreciation and amortization 1,954
Excess of equity income over dividends
received (189)
Charges & credits, net of taxes (17)
Increase in working capital
requirements (552)
US qualified pension plan contribution (150)
Capital expenditure (1) (3,191)
Dividends paid (771)
Proceeds from employee stock plans 622
Stock repurchase program (1,355)
Eastern Echo acquisition (699)
Other business acquisitions (286)
Conversion of debentures 656
Other (94)
Translation effect on net debt (128)
-------------

Net Debt, December 31, 2007 $ (1,857)
=============

Components of Net Debt Dec. 31, 2007 Dec. 31, 2006
----------------------------------------------------------------------
Cash and short-term investments $ 3,169 $ 2,999
Fixed income investments, held to maturity 440 153
Bank loans and current portion of long-
term debt (1,318) (1,322)
Convertible debentures (769) (1,425)
Other long-term debt (3,379) (3,239)
------------- -------------

$ (1,857) $(2,834)
============= =============

(1) Including Multiclient seismic data expenditure
*T

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Charges & Credits

In addition to financial results determined in accordance with
generally accepted accounting principles (GAAP) this Fourth-Quarter
and Full-Year 2007 Earnings Press Release also includes non-GAAP
financial measures (as defined under SEC Regulation G). The following
is a reconciliation of these non-GAAP measures to the comparable GAAP
measures:
*T

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*T

( Stated in millions except per share amounts )

Fourth Quarter 2007
--------------------------------------------
Pretax Tax Min Int Net
-------------- --------- ------- ---------
Net Income $1,740.4 $ 357.2 $ - $1,383.2
Add back Charges &
Credits:
- Gain on sale of
workover rigs (24.5) (7.1) - (17.4)
-------------- --------- ------- ---------
Net Income before charges
& credits $1,715.9 $ 350.1 $ - $1,365.8
============== ========= ======= =========

Twelve Months 2007
--------------------------------------------
Pretax Tax Min Int Net
-------------- --------- ------- ---------
Net Income $6,624.4 $1,447.9 $ - $5,176.5
Add back Charges &
Credits:
- Gain on sale of
workover rigs (24.5) (7.1) - (17.4)
-------------- --------- ------- ---------
Net Income before charges
& credits $6,599.9 $1,440.8 $ - $5,159.1
============== ========= ======= =========

Twelve Months 2006
--------------------------------------------
Pretax Tax Min Int Net
-------------- --------- ------- ---------
Net Income $4,948.2 $1,189.6 $(48.7) $3,709.9
Add back Charges &
Credits:
- WesternGeco in-process
R&D charge 21.0 - - 21.0
- Loss on sale of
investments to
fund the WesternGeco
transaction 9.4 - - 9.4
- WesternGeco visa
settlement 9.7 (0.3) (3.2) 6.8
- Other in-process R&D
charges 5.6 - - 5.6
-------------- --------- ------- ---------
Net Income before charges
& credits $4,993.9 $1,189.3 $(51.9) $3,752.7
============== ========= ======= =========

( Stated in millions except per share amounts )

Fourth Quarter 2007
---------------------------------------------
Diluted Income Statement
EPS Classification
------------------- -------------------------
Net Income $ 1.12
Add back Charges &
Credits:
- Gain on sale of
workover rigs (0.01) Interest and other income
-------------------
Net Income before charges
& credits $ 1.11
===================

Twelve Months 2007
---------------------------------------------
Diluted Income Statement
EPS (*) Classification
------------------- -------------------------
Net Income $ 4.20
Add back Charges &
Credits:
- Gain on sale of
workover rigs (0.01) Interest and other income
-------------------
Net Income before charges
& credits $ 4.18
===================

Twelve Months 2006
---------------------------------------------
Diluted Income Statement
EPS (*) Classification
------------------- -------------------------
Net Income $ 3.01
Add back Charges &
Credits:
- WesternGeco in-process
R&D charge 0.02 Research & engineering
- Loss on sale of
investments to
fund the WesternGeco
transaction 0.01 Interest and other income
- WesternGeco visa Cost of goods sold and
settlement 0.01 services
- Other in-process R&D
charges - Research & engineering
-------------------
Net Income before charges
& credits $ 3.04
===================

*T

(*) May not add due to rounding.

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Business Review

(Stated in millions)
Fourth Quarter Twelve Months
-------------------- ----------------------
% %
2007 2006 chg 2007 2006 chg
------ ------ ---- ------- ------- ----
Oilfield Services
-------------------------
Revenue $5,445 $4,628 18% $20,306 $16,763 21%
Pretax Operating Income $1,535 $1,328 16% $ 5,959 $ 4,644 28%

WesternGeco
-------------------------
Revenue $ 798 $ 722 11% $ 2,963 $ 2,476 20%
Pretax Operating Income $ 272 $ 262 4% $ 1,060 $ 812 31%
*T

Pretax operating income represents the segments´ income before
taxes and minority interest. The pretax operating income excludes
corporate expenses, interest income, interest expense, amortization of
certain intangible assets, interest on postretirement medical
benefits, stock-based compensation costs and the Charges & Credits
described on page 6, as these items are not allocated to the segments.

Oilfield Services

Full-year 2007 revenue of $20.31 billion increased 21% versus 2006
driven by growth of 31% in the Middle East & Asia Area, 30% in
Europe/CIS/Africa and 29% in Latin America. Revenue in North America
remained essentially flat. Pretax operating income of $5.96 billion in
2007 was 28% higher than 2006. Pretax operating margins of 29.3%
improved 164 basis points (bps) in 2007 versus 2006.

Fourth-quarter revenue of $5.44 billion was 6% higher sequentially
and 18% higher year-on-year. Sequential revenue increases were highest
in the Middle East & Asia Area led by the Arabian, Qatar,
China/Japan/Korea and India GeoMarkets*, followed by the Latin America
Area where growth was strongest in the Mexico/Central America, Latin
America South and Peru/Colombia/Ecuador GeoMarkets. In the
Europe/CIS/Africa Area, increases were led by the North Sea, Caspian
and Continental Europe GeoMarkets. Growth was also recorded in North
America, led primarily by the Canada and US Gulf Coast GeoMarkets.
Among Schlumberger Technologies, Artificial Lift Systems, Completions
Systems and Schlumberger Information Solutions (SIS) registered strong
growth due to seasonal end-of-year product sales.

Fourth-quarter pretax operating income of $1.54 billion increased
2% sequentially and 16% year-on-year. Sequentially, growth was driven
by demand for higher-margin Drilling & Measurements services in the
Middle East & Asia Area and by increased product sales in Artificial
Lift Systems in Europe/CIS/Africa and Middle East & Asia, and by
Completions Systems product sales in the Middle East & Asia and Latin
America. However, these increases were offset by pricing erosion for
well stimulation related activities on land in the US; exceptional
weather-related and operational delays in Mexico/Central America; and
weather and seasonal effects in the US West, North Sea and East Russia
GeoMarkets. These events resulted in an overall pretax operating
margin of 28.2%.

North America

Revenue of $1.33 billion increased 3% sequentially but decreased
7% year-on-year. Pretax operating income of $338 million decreased 3%
sequentially and 23% year-on-year.

Sequentially, revenue in the Canada GeoMarket continued to grow
led by demand for Well Services and Wireline technologies. In the US
Gulf Coast GeoMarket, activity partially recovered from the slowdown
experienced during the hurricane season of the third quarter with
higher demand for Wireline, Well Testing and Well Services
technologies. In addition, higher SIS product sales were recorded
across the Area. This performance was largely offset by the continuing
pricing erosion in well stimulation related activities in the US land
GeoMarkets, seasonal land access constraints in the west, and by lower
activity in Alaska.

Pretax operating margin for the Area declined sequentially to
25.4% due to the lower pricing environment for well stimulation
related services in the US land and Canada GeoMarkets, as well as
lower operating leverage in Alaska and Canada. This was partially
offset by a more favorable activity mix and higher operating
efficiency in the US Gulf Coast GeoMarket together with the Area-wide
SIS product sales.

Schlumberger worked with Trilogy Energy Trust, an operator of
mature assets in the Western Canadian Sedimentary Basin, to address
production declines and significantly improve recovery in a complex,
naturally fractured carbonate reef reservoir. This was accomplished by
integrating the near-wellbore analysis of Schlumberger Artificial Lift
Systems with the reservoir engineering expertise of the Data &
Consulting Services (DCS) group. Using SIS Petrel*
seismic-to-simulation software, the DCS team evaluated the
petrophysical, geological and reservoir information to construct a
detailed geological model that was integrated with a simulation model.
This collaborative workflow assisted Trilogy Energy to identify nearly
20% additional oil in place.

In the US Gulf of Mexico, Schlumberger Wireline acquired a complex
walkaway seismic profile for BP to image a salt face in the vicinity
of the well. A total of 1,450 shot points along two 50,000 ft lines
was acquired using a VSI* Versatile Seismic Imager tool. The
complexity of the job required sophisticated navigation and source
control that contributed to the overall success of the operation.

Working in Canada´s technologically challenging and fast-growing
heavy-oil sector, Schlumberger Testing completed for Suncor the
first-ever steam-assisted gravity drainage (SAGD) operation using the
unique Vx* advanced multiphase flowmeter in an environment where
flowline surface temperatures could exceed 200 degC. The technology
enabled real-time production optimization of this multiphase flow
where steam, bitumen and water are mixed with a high content of sour
gas, demonstrating that multiphase Vx technology can be applied in
various types of fluids from bitumen to gas condensate.

On land in the US, Schlumberger Wireline Flow Scanner* production
logging technology continued its introduction as part of the Scanner*
family of advanced wireline logging measurements during the quarter.
Newfield Exploration Company used the Flow Scanner tool on
electric-line coiled-tubing in four horizontal wells to save
significant workover expense by eliminating the need to replace the
tubing string prior to logging. The Flow Scanner tool was also
deployed for another operator in Eastern Oklahoma in a horizontal well
in the Woodford Shale unconventional gas play to indicate water
entries that were rendering the well uneconomical. The measurements
indicated that 75% of the water was coming from perforations that were
producing only 20% of the natural gas. The operator was subsequently
able to plug this zone thus eliminating the majority of the water
production with only a minimal drop in gas production.

Interest and activity in AbrasiFRAC* technology -- a member of the
Contact* family of staged fracturing and completion services --
continued to strengthen during the quarter as operators across the
Area deployed the technology on various stimulation operations. In one
instance on land in the US, an operator used AbrasiFRAC to
individually treat all productive sands in a single operation in the
well that resulted in a 50% production increase. Elsewhere, AbrasiFRAC
was deployed for another operator in a reservoir consisting of many
thin, gas-bearing sands alternating with water-bearing sands. The
technology enabled the customer to place the treatment more accurately
and avoid fracture growth in the water-bearing sands resulting in
reduced water production and in one case increased gas production from
1.2 MMscf/d to 3 MMscf/d. Use of this technique also resulted in a
significant completion cost reduction from conventional techniques
normally used in this field.

North Texas operators in the Barnett Shale continue to see the
benefits of StimMAP* LIVE, the first real-time microseismic hydraulic
fracturing monitoring service. With its ability to visualize the
fracture network as it propagates, the technology enabled one operator
to successfully control the fracturing process by diverting the
fracture to increase the volume of reservoir in contact with the well
-- a measure vital to improving production. Results of this treatment
are encouraging with an estimated ultimate recovery increase of 11%.

Latin America

Revenue of $943 million increased 9% sequentially and 40%
year-on-year. Pretax operating income of $208 million increased 2%
sequentially and 47% year-on-year.

Sequential revenue growth was recorded in all GeoMarkets primarily
driven by IPM activities in Mexico/Central America,
Peru/Colombia/Ecuador and Venezuela/Trinidad & Tobago. Increased
demand for Well Testing technologies and higher sales of Artificial
Lift Systems, Completions Systems and SIS products in Latin America
South, together with higher sales of Artificial Lift Systems and
Completions Systems products in the Mexico/Central America and
Peru/Colombia/Ecuador GeoMarkets, also contributed to growth.

Pretax operating margin declined sequentially to 22.1% primarily
due to the activity mix in the Mexico/Central America GeoMarket, which
was affected by higher IPM project startup and third-party costs as
well as by flooding in the south and operational delays offshore. A
lower mix of higher-margin Drilling & Measurements activity in
Venezuela/Trinidad & Tobago and higher-margin Wireline technology in
Peru/Colombia/Ecuador also contributed to this result.

In Colombia, the National Hydrocarbon Agency awarded SIS a
two-year contract to operate the National Data Center. The center is
the cornerstone for effective international promotion of the Colombian
oil and gas industry and represents the digital management of more
than 75 years of industry logs, seismic maps, contracts and other
critical information.

Using the intelligent field development concept, Petrobras Energia
Ecuador implemented a model based on the SIS Avocet* Integrated Asset
Modeler platform. As a result of this project, it was possible to
complete an evaluation of alternatives to increase overall field
production that led to a successful Well Services hydraulic fracturing
campaign on 10 wells. The result was a net field production increase
of 20%.

Schlumberger Completions and Artificial Lift Systems pioneered
Dual Concentric Completions (DCC) technology to produce non-commingled
fluids from two different zones in wells in Ecuador Block 15. Ten
wells have already been equipped with DCC systems and the technology
has enabled the operator, Petroecuador subsidiary UB-15, to double the
wells´ production and eliminate the cost of the extra wells and
conventional completion systems that would otherwise have been needed
to meet the field production goal.

In another new technology introduction for UB-15, Schlumberger
Testing and Artificial Lift Systems deployed the tubing-conveyed
perforating gun-drop system MAXR with the installation of the
electrical submersible pump to enable virtually damage-free
perforating with immediate well clean-up and no deferred production.
PowerJet Omega* ultra-deep penetrating charges were used to further
improve performance.

Elsewhere in Ecuador, PeriScope* well-placement technology was run
on a Repsol-YPF horizontal well to navigate 1,000 ft in the 15-ft
thick Upper U sand. This is the first time a horizontal well has been
drilled in this formation in Ecuador. The well had an initial water
cut of only 8%.

In Brazil, Schlumberger signed a three-year contract to provide
exploration and development wireline logging services for Petrobras.
The contract includes an extension option while allowing for
deployment of the latest Schlumberger Wireline technologies.

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.

In Russia, Yuganskneftegaz, a subsidiary of Rosneft, awarded
Schlumberger a one-year contract for 287 fracturing treatments in the
Khanty-Mansisk region of Western Siberia. Operations will use the
latest Schlumberger high-efficiency fracturing fleets currently being
deployed.

In Italy, STOGIT, the subsidiary of Eni responsible for natural
gas storage, awarded Schlumberger a contract for drilling,
logging-while-drilling and well placement services on approximately 68
wells over the next 2 1/2 years. Key technologies to be deployed
include the PowerDrive X5* rotary-steerable system, the EcoScope*
logging-while-drilling platform for environmentally sensitive
operations, PeriScope well-placement technology, and InterACT*
real-time well-site data transmission. The new GeoVISION* resistivity
technology for 6-in. diameter wells will also be run to provide
high-resolution images for structural definition.

Offshore West Africa, Schlumberger Wireline ran a successful
dual-CHDT* Cased Hole Dynamics Tester tool string with the TLC* Tough
Logging Conditions system to acquire accurate pressures in a highly
deviated well for Total. The deepest test on this extended-reach well
was at a measured depth of 8,100 m. Total required the data to verify
depletion predictions in the reservoir model. With the industry´s only
dual-CHDT technology, Schlumberger is uniquely capable of performing
such complex wireline operations.

Offshore Angola, Schlumberger Wireline MDT* Modular Formation
Dynamics Tester technology was deployed for Chevron in a highly
deviated well to obtain uncontaminated samples for the first time from
a reservoir in which numerous attempts had proven unsuccessful using
standard technologies.

The Aberdeen Operation Support Center (OSC) performed its first
real-time well-testing job in the North Sea. The collaborative OSC
workflow allowed AGR Petroleum Services and Schlumberger personnel to
save significant rig time and cost. Data quality assurance and
real-time interpretation during the test were key factors to ensuring
success. In addition, the Aberdeen OSC implemented remote
measurement-while-drilling services on a Shell Exploration &
Production Europe platform in the North Sea thus increasing efficiency
and allowing expertise of senior shore-based personnel to be shared.

In the Norwegian sector of the North Sea, StatoilHydro used a
combination of Schlumberger Wireline UltraSonic Imager* and Isolation
Scanner* technologies on more than 25 wells that were candidates for
abandonment and sidetracking to identify swollen shale sections behind
casing and qualify them as annular barriers. Proper abandonment
procedures require sufficient annular barriers to be in place to avoid
reservoir leakage, and with the lack of sufficient traditional cement
barriers these wells often need costly remedial work. This novel
application eliminated the need for additional cement barriers and
enabled StatoilHydro to make substantial savings.

Middle East & Asia

Revenue of $1.35 billion increased 10% sequentially and 30%
year-on-year. Pretax operating income of $473 million increased 8%
sequentially and 40% year-on-year.

The sequential growth in revenue resulted from high demand for
Drilling & Measurements and Wireline technologies together with higher
Completions Systems, Artificial Lift Systems and SIS product sales in
the Arabian GeoMarket; higher demand for exploration-related Drilling
& Measurements technologies and for Artificial Lift Systems products
in Qatar; increased demand for Drilling & Measurements and Well
Testing services in China/Japan/Korea; and higher deepwater
exploration-driven demand for Wireline and Drilling & Measurements
technologies together with higher SIS product sales in India.

The pretax operating margin of 35% resulted from the more
favorable activity mix in the Arabian and India GeoMarkets being
offset by reduced demand for higher-margin Wireline, Well Services and
Well Testing technologies in the Indonesia, Thailand/Vietnam and
Australia/Papua New Guinea GeoMarkets.

In Saudi Arabia, Schlumberger secured a significant contract award
for Reslink ResFlow*, a simple, reliable and robust passive inflow
control completion technology. Test installations conducted by Saudi
Aramco in sandstone and carbonate reservoirs showed excellent
correlation between the production logging program and simulations
developed by Saudi Aramco and Schlumberger, as well as improved
wellbore cleanup. The successful testing campaign resulted in approval
of the ResFlow passive inflow completion system and subsequent
contract award.

Saudi Aramco also evaluated the benefits of StageFRAC* technology
-- part of the Contact family of staged fracturing and completion
services -- on two deep gas wells in the Khuff formation. Initial
production results from both wells indicated significant production
rate increases. Based on long-term production forecasts, it is
estimated that ultimate recovery will be increased substantially over
the economic life of the well. These results have led Saudi Aramco to
plan further deployment of StageFRAC technology in horizontal gas
wells.

Elsewhere in Saudi Arabia, Schlumberger Well Services ran the
first AbrasiFRAC job on coiled-tubing using a new slotting tool
developed as part of a rapid response project created in partnership
with Saudi Aramco. The job was run in a deep, vertical, cased-hole
natural gas exploration well and injectivity tests confirmed the
success of the operation in the very tight formation. A subsequent
fracture job increased production ten-fold.

In Indonesia, Schlumberger Well Services deployed new FiberFRAC*
fiber-based fracturing technology with PrimeFRAC* polymer fracturing
fluid in a low-permeability natural-gas reservoir for Vico. The new
technology combination limited fluid loss, controlled fracture-height
growth and retained high fracture conductivity to increase production
levels by factors of three to five. The results were particularly
successful given the high fracture gradients and severely depleted
reservoir pressures in the field.

Elsewhere in Indonesia, Schlumberger Wireline enabled TATELY, a
Malaysian E&P company, to evaluate a complex reservoir and design a
cased-hole formation interval test in a high-temperature well. The
service included fluid analysis to determine formation fluid
properties and composition downhole in real time using a Wireline MDT
tool, equipped with high-temperature packers and the In-Situ Fluid
Analyzer. This unique tool combination and the support provided by
Schlumberger DCS at the wellsite allowed the job data to be
transmitted and processed for real-time pressure and sampling
interpretation, enabling TATELY to make the decision to complete the
well.

In Malaysia, Schlumberger DCS completed a review of the Erb West
field for Petronas Carigali Sdn. Bhd. The project used SIS Petrel
workflow software for 3D modeling and the ECLIPSE* reservoir simulator
for dynamic modeling and history matching over 20 years of production
using data from 52 completion strings, 17 of which are horizontal.
Results of the study provided immediate production enhancement
solutions that boosted field production by 6%. New data from the
Wireline Flow Scanner imager tool were acquired in a number of the
horizontal wells and the project identified four potential reservoirs
for development, and 25 new locations for in-fill drilling.

WesternGeco

Full-year 2007 revenue of $2.96 billion increased 20% versus 2006.
Pretax operating income of $1.06 billion in 2007 was 31% higher than
2006. Pretax operating margin reached 35.8% -- an increase of 299 bps
in 2007 versus 2006 -- demonstrating continued high vessel
utilization, pricing increases in Marine and accelerating demand for
exploration-driven seismic services. Q-Technology* revenue reached
$1.14 billion, representing 38% of 2007 full-year revenue.

Fourth-quarter revenue of $798 million increased 1% over the prior
quarter and increased 11% compared to the same period last year.
Pretax operating income of $272 million decreased 11% sequentially but
increased 4% year-on-year.

Sequentially, Multiclient revenue increased 83% due to higher
sales in North America, Africa and Asia. However, this increase was
largely offset by a decrease in Marine revenue due to vessel transits
between projects, several vessel dry docks, and lower vessel
utilization. Overall vessel utilization in 2007 was 93%.

Pretax operating margin declined sequentially to 34.1% as the
high-margin Multiclient activity was more than offset by the lower
Marine vessel utilization.

Eni awarded WesternGeco two Q-Marine* acquisition and processing
contracts over their recently acquired acreage in Angola and
Mozambique. The Angola survey will cover a base area of at least 2,200
sq km -- with options to extend by a further 800 sq km -- and the
Mozambique survey will cover an area of 1,040 sq km.

Following the successful 3D seismic survey acquired offshore
Alaska in the Chukchi Sea, WesternGeco used the marine vessel M/V
Gilavar to complete the first open-water towed-streamer 3D survey in
the US sector of the Beaufort Sea for Shell Offshore Inc.

In Egypt, Apache awarded WesternGeco an integrated Q-Land*
single-sensor technology acquisition and processing contract for 460
sq km in the Salloum, and 800 sq km in the West Ghazalat concessions.

WesternGeco completed a Controlled-Source ElectroMagnetics (CSEM)
survey for Eni offshore Norway using the CSEM vessel Toisa Valiant.

WesternGeco and TGS-NOPEC Geophysical Company ASA (TGS) signed a
cooperative agreement to acquire and process a minimum of 650 Outer
Continental Shelf blocks covering approximately 15,000 sq km of
multiclient wide-azimuth (WAZ) 3D data in the Mississippi Canyon and
Atwater Valley areas of the Gulf of Mexico. Under this agreement,
WesternGeco and TGS will share project costs and revenues equally.
Q-Technology will be used for data acquisition and processing with the
surveys significantly complementing the WesternGeco library of
multiclient WAZ data. While both parties will market this product, TGS
will be responsible for sales. WesternGeco has acquired more than 950
Outer Continental Shelf blocks of WAZ data since July 2006 and has an
additional 1,300 blocks planned for 2008.

About Schlumberger

Schlumberger is the world´s leading oilfield services company
supplying technology, information solutions and integrated project
management that optimize reservoir performance for customers working
in the oil and gas industry. The company employs more than 80,000
people of over 140 nationalities working in approximately 80
countries. Schlumberger supplies a wide range of products and services
from seismic acquisition and processing; formation evaluation; well
testing and directional drilling to well cementing and stimulation;
artificial lift and well completions; and consulting, software, and
information management. In 2007, Schlumberger revenue was $23.28
billion. For more information, visit www.SLB.com.

* Mark of Schlumberger

Notes

Schlumberger will hold a conference call to discuss the above
announcement on Friday, January 18, 2008, at 9:00 a.m. Eastern, 8:00
a.m. Central (2:00 p.m. London time/3:00 p.m. Paris time). To access
the call, which is open to the public, please contact the conference
call operator at +1-888-428-4480 within North America or
+1-651-291-5254 outside of North America approximately 10 minutes
prior to the call´s scheduled start time. Ask for the "Schlumberger
Earnings Conference Call." A replay of the conference call will be
available through February 15, 2008, by dialing +1-800-475-6701 within
North America or +1-320-365-3844 outside of North America, and
providing the access code 899456.

The conference call will be webcast simultaneously at
www.SLB.com/irwebcast on a listen-only basis. Please log in 15 minutes
ahead of time to test your browser and register for the call. A replay
of the webcast will also be available at the same web site.

Supplemental information in the form of a question and answer
document on this press release and financial schedules are available
at www.SLB.com/ir.