Schlumberger Announces First-Quarter 2008 Results
Schlumberger Limited (NYSE:SLB) today reported first-quarter
revenue of $6.29 billion versus $6.25 billion in the fourth quarter of
2007, and $5.46 billion in the first quarter of 2007.
Income from continuing operations before charges and credits was
$1.30 billion--a decrease of 5% sequentially, but an increase of 10%
year-on-year. Diluted earnings-per-share from continuing operations
was $1.06, versus $1.11 before charges and credits in the previous
quarter, and $0.96 in the first quarter of 2007.
Net income, including discontinued operations, was $1.34 billion
or $1.09 per share-diluted, compared to $1.12 in the previous quarter
and $0.96 in the first quarter of 2007.
Oilfield Services revenue of $5.60 billion increased 3%
sequentially and 18% year-on-year. Pretax segment operating income of
$1.50 billion decreased 2% sequentially but increased 7% year-on-year.
WesternGeco revenue of $676 million decreased 15% compared to the
prior quarter and 4% year-on-year. Pretax segment operating income of
$196 million decreased 28% sequentially and 26% year-on-year.
Schlumberger Chairman and CEO Andrew Gould commented, "Seasonal
factors and weather-related events, as well as lower product and
software sales following the exceptional levels in the fourth quarter
had a general dampening effect on sequential revenue gains with a
consequent effect on margins.
"Integrated Project Management activity in Mexico continued its
rapid new-project ramp up with an additional seven drilling rigs being
deployed in the quarter, which resulted in heavy initial start-up
costs being incurred.
"At WesternGeco, results fell sequentially as Multiclient revenues
declined steeply from the record levels of the fourth quarter of 2007.
The Gulf of Mexico lease sale late in the first quarter, coupled with
the increased cost of wide-azimuthal data sets that are fast becoming
the norm for new Multiclient purchases, delayed new sales activity
until customers absorb the results of the March leasing round. We
expect the uneven pattern in Multiclient activity to likely persist
throughout the year.
"In the absence of a severe global recession leading to a steep
drop in demand, the thin cushion of excess oil supply and the failure
to stem decline rates in many countries, coupled with the
higher-than-expected drawdown of US natural gas storage, are all
factors that lead us to conclude that growth will strengthen as the
year progresses.
"We remain convinced that current investment levels are
insufficient to both stem decline and to explore and develop new
reserves and, as a result, we anticipate that the current cycle of
exploration and production spending will remain stronger for a longer
period than we originally anticipated."
Other Events
-- 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 7.0 million
shares of common stock at an average price of $81.16 for a
total of $564 million in the quarter. As of March 31, 2008
Schlumberger had repurchased 36.9 million shares of common
stock at an average price of $74.15 for a total of $2.73
billion and had remaining authorization to repurchase
3.1 million shares of common stock.
-- On April 17, 2008, the Schlumberger Board of Directors
approved a new share repurchase program of $8 billion in
shares of common stock to be acquired before December 2011.
-0-
*T
Consolidated Statement of Income
(Stated in thousands except
per share amounts)
Three Months
-----------------------------
For Periods Ended March 31
2008
2007
---------------------------------------------------------------------
Revenue
$6,289,873
$5,464,405
Interest and other income (1)
102,230
83,623
Expenses
Cost of goods sold and services
4,358,295
3,622,344
Research & engineering
191,031
167,098
Marketing
22,968
16,683
General & administrative
138,332
119,250
Interest
66,041
68,147
---------------------------------------------------------------------
Income from Continuing Operations
before taxes and minority interest
1,615,436
1,554,506
Taxes on income
308,587
373,679
---------------------------------------------------------------------
Income from Continuing Operations
before minority interest
1,306,849
1,180,827
Minority interest
(6,395)
-
---------------------------------------------------------------------
Income from Continuing Operations
1,300,454
1,180,827
Income from Discontinued Operations
37,850
-
---------------------------------------------------------------------
Net Income
$1,338,304
$1,180,827
---------------------------------------------------------------------
Diluted Earnings Per Share
Income from Continuing Operations
$
1.06
$
0.96
Income from Discontinued Operations
0.03
-
-------------- --------------
Net Income
$
1.09
$
0.96
-------------- --------------
Average shares outstanding
1,195,995
1,178,453
Average shares outstanding assuming
dilution
1,233,244
1,236,491
Depreciation & amortization included in
expenses (2)
$ 516,689
$ 440,977
---------------------------------------------------------------------
*T
-0-
*T
1) Includes interest income of:
First Quarter 2008 - $38 million (2007 - $35 million)
2) Including Multiclient seismic data costs.
*T
-0-
*T
Condensed Balance Sheet
(Stated in thousands)
Assets
Mar. 31, 2008 Dec. 31, 2007
---------------------------------------------------------------------
Current Assets
Cash and short-term investments
$ 3,153,439
$ 3,169,033
Other current assets
8,492,521
7,886,350
---------------------------------------------------------------------
11,645,960
11,055,383
Fixed income investments, held to
maturity
423,688
440,127
Fixed assets
8,350,827
8,007,991
Multiclient seismic data
220,267
182,282
Goodwill
5,172,562
5,142,083
Other assets
3,141,065
3,025,506
---------------------------------------------------------------------
$28,954,369
$27,853,372
---------------------------------------------------------------------
Liabilities and Stockholders´ Equity
---------------------------------------------------------------------
Current Liabilities
Accounts payable and accrued
liabilities
$ 4,474,466
$ 4,550,728
Estimated liability for taxes on
income
1,002,843
1,071,889
Bank loans and current portion of
long-term debt
1,272,870
1,318,227
Convertible debentures
306,579
353,408
Dividend payable
252,525
210,599
---------------------------------------------------------------------
7,309,283
7,504,851
Convertible debentures
415,770
415,897
Other long-term debt
3,737,656
3,378,569
Postretirement benefits
830,882
840,311
Other liabilities
827,675
775,975
---------------------------------------------------------------------
13,121,266
12,915,603
Minority interest
50,455
61,881
Stockholders´ Equity
15,782,648
14,875,888
---------------------------------------------------------------------
$28,954,369
$27,853,372
---------------------------------------------------------------------
*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 Net Debt follow:
-0-
*T
(Stated in millions)
Three Months
2008
---------------------------------------------------------------------
Net Debt, January 1, 2008
$(1,857)
Net income
1,338
Depreciation and amortization
517
Excess of equity income over dividends received
(57)
Increase in working capital requirements
(611)
Capital expenditure (1)
(832)
Dividends paid
(209)
Proceeds from employee stock plans
79
Stock repurchase program
(564)
Conversion of debentures
47
Other
18
Translation effect on net debt
(25)
--------------------
Net Debt, March 31, 2008
$(2,156)
====================
Components of Net Debt
Mar. 31, 2008
Dec. 31, 2007
----------------------------------------------------------------------
Cash and short-term investments
$ 3,153
$ 3,169
Fixed income investments, held to
maturity
424
440
Bank loans and current portion of long-
term debt
(1,273)
(1,318)
Convertible debentures
(722)
(769)
Other long-term debt
(3,738)
(3,379)
-------------- ---------------
$(2,156)
$(1,857)
============== ===============
(1) Including Multiclient seismic data expenditure.
*T
Charges & Credits
In addition to financial results determined in accordance with
generally accepted accounting principles (GAAP) this First-Quarter
2008 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:
-0-
*T
(Stated in millions except per share amounts)
Fourth Quarter 2007
--------------------------------------------------------
Income
Min
Diluted
Statement
Pretax
Tax
Int
Net
EPS
Classification
--------- ------- ---- --------- ------- ---------------
Income from
continuing
operations
$1,740.4 $357.2
$- $1,383.2 $ 1.12
Add back
Charges &
Credits:
- Gain on
sale of
workover
Interest and
rigs
(24.5)
(7.1)
-
(17.4) (0.01) other income
--------- ------- ---- --------- -------
Income from
continuing
operations
before
charges &
credits
$1,715.9 $350.1
$- $1,365.8 $ 1.11
========= ======= ==== ========= =======
*T
There were no charges & credits in the first quarters of 2008 and
2007.
-0-
*T
Business Review
(Stated in millions)
First Quarter
-----------------------------
2008
2007
% chg
-----------------------------
Oilfield Services
Revenue
$5,605
$4,759
18%
Pretax Operating Income
$1,502
$1,405
7%
WesternGeco
Revenue
$ 676
$ 706
(4)%
Pretax Operating Income
$ 196
$ 266
(26)%
*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
and stock-based compensation costs, as these items are not allocated
to the segments.
Oilfield Services
First-quarter revenue of $5.60 billion was 3% higher sequentially
and 18% higher year-on-year. Sequential revenue increases were highest
in the Canada, US Gulf Coast, South Russia, Australia/Papua New
Guinea, West & South Africa and Alaska GeoMarkets*. In addition
double-digit growth rates were recorded by the North Russia
Thailand/Vietnam, Continental Europe and Caspian GeoMarkets. Among the
Technologies, demand was strongest for Wireline, Drilling &
Measurements, Well Services and Well Testing services. Sequential
revenue also grew through inclusion of FRAMO revenue in the
Europe/CIS/Africa Area following the acquisition, in the prior
quarter, of a majority stake in the company. However, overall
sequential growth was moderated by operational delays in the North
Sea, project transitions and delays on Integrated Project Management
(IPM) activities in Latin America, and seasonal weather-related
reductions in the China/Japan/Korea GeoMarket. Lower sales of
Schlumberger Information Solutions (SIS), Completions and Artificial
Lift Systems products were also recorded following the seasonal highs
of the prior quarter.
First-quarter pretax operating income of $1.50 billion decreased
2% sequentially but increased 7% year-on-year. Sequential growth was
recorded through demand for high-margin Wireline and Drilling &
Measurements services in the US Gulf Coast; strong demand for Wireline
and Well Services technologies in Canada; and higher activity levels
with a more favorable technology mix in East Mediterranean
Australia/Papua New Guinea and Thailand/Vietnam. However, this growth
was more than offset by the impact of the seasonal land access
restrictions in US West; a less favorable activity mix in the North
Sea; project delays in Peru/Colombia/Ecuador; higher IPM project
startup and third-party managed costs in Mexico/Central America; the
weather-related slowdown in China/Japan/Korea; and an overall
reduction in Completions and Artificial Lift Systems product sales
together with reduced high-margin SIS sales across all Areas. These
events resulted in an overall pretax operating margin of 26.8%.
During the quarter, Schlumberger formally opened the new Siberian
Training Center in Tyumen, West Siberia. The facility includes
classrooms, workshops, fully equipped laboratories and test wells to
provide Schlumberger geoscientists, field engineers, field technicians
and maintenance engineers from the Russian Federation and
Russian-language countries with technology skills in artificial lift
directional drilling, well cementing and stimulation, data services
and information solutions as well as in integrated project management.
The training capacity is expected to double over the next year to
reach 350 students.
North America
Revenue of $1.42 billion increased 6% sequentially and 3%
year-on-year. Pretax operating income of $363 million increased 7%
sequentially but decreased 16% year-on-year.
Sequentially, the US Gulf Coast GeoMarket continued to grow
following the return of deep-water rigs together with stronger demand
for Wireline and Drilling & Measurements exploration services. Growth
was also registered in Canada, resulting from a robust winter drilling
season with high demand for Wireline and Well Services technologies
as well as in Alaska due to strong demand for exploration-related
services. This performance was partially offset by the seasonal land
access restrictions in US West, the impact of weather on operations in
US North, and lower Completions and SIS product sales across the Area.
Pretax operating margin for the Area increased sequentially to
25.6% due to a more favorable exploration-driven activity mix and
higher operating leverage in the US Gulf Coast, Canada and Alaska
GeoMarkets. This was partially offset by a lower pricing environment
for well-stimulation-related activities in US Central, lower
efficiency in US West, and reduced Area-wide high-margin SIS product
sales.
Schlumberger deployed a number of advanced Drilling & Measurements
technologies on the Bob North #3 well for Chevron in the US Gulf of
Mexico. On this deep-water, sub-salt exploration well, StethoScope*
and sonicVISION* services were used to optimize mud weight within
narrow margins while PowerDrive X5* technology improved drilling rates
and maintained an in-gauge wellbore through the salt and rubble zones.
In addition, the PowerDrive Xceed* system was used to successfully
perform a deep sidetrack operation in a matter of hours rather than
days. Despite being the second most complex well this customer had
ever attempted, it was completed in 143 days versus a planned 191.
As a result of previous success, Goodrich Petroleum selected Well
Services PerfFRAC*+ technology--a member of the Contact* family of
staged fracturing and completion services--to improve fracturing
efficiency in 23 wells in its field in Cotton Valley in East
Texas. The campaign increased estimated ultimate recovery by 10%
reduced completion costs by 25%, and decreased completion time and
gas-to-market time by 92 days for the 23 wells.
In Western Canada, BP used real-time ACTive* Matrix service--a
member of the ACTive family of coiled-tubing services--to stimulate a
two-branch multilateral open-hole completion in a naturally fractured
dolomite formation. Using ACTive real-time bottomhole pressure and
temperature measurements increased the accuracy of the stimulation
treatments. A subsequent distributed temperature survey (DTS)
confirmed that the treatment successfully diverted the acid and
stimulated the targeted zones.
In the Canadian Arctic, Schlumberger worked with the Japan Oil
Gas and Metals National Corporation, Natural Resources Canada, and the
Aurora Research Institute to conduct the world´s first
de-pressurization test of gas hydrates in the Mackenzie Delta. The
project used services and technologies from Schlumberger IPM and
Artificial Lift, in addition to Well Testing Vx* multiphase meters
Completions MeshRite* sand screens, and Well Services ARCTICSET*
cementing blends. Reservoir parameters were monitored in real time by
the Schlumberger technology center in Fuchinobe, Japan.
In a tight gas sand formation in South Texas for Kaler Energy
Corporation, Schlumberger Data & Consulting Services (DCS) identified
and predicted economic production from sands thought to be
water-producing that were going to be bypassed. The sands were
perforated and resulted in an initial gas production rate of 3 MMcf/d.
In Canada, an operator used FUTUR* active set-cement technology to
cement two wells in an active geological area of the Central Alberta
Foothills where maintaining cement integrity has been problematic.
More than a year after deployment, the wells have developed no
casing-head pressure or surface casing venting.
Latin America
Revenue of $922 million decreased 2% sequentially but increased
27% year-on-year. Pretax operating income of $185 million decreased
11% sequentially but increased 14% year-on-year.
Sequential revenue growth was recorded in the Venezuela/Trinidad &
Tobago GeoMarket due to higher demand for Drilling & Measurements
Wireline and Well Services technologies together with increased SIS
product sales. However, this growth was more than offset by project
transitions and delays in Peru/Colombia/Ecuador and Mexico/Central
America, and lower Artificial Lift Systems and SIS product sales in
Brazil.
Pretax operating margin declined sequentially to 20.1% primarily
due to higher IPM project startup and third-party managed costs in the
Mexico/Central America GeoMarket. An unfavorable activity mix in both
Peru/Colombia/Ecuador and Brazil together with reduced high-margin SIS
and Artificial Lift Systems product sales also contributed to this
result.
In Brazil, Petrobras awarded Schlumberger a multi-year contract to
deploy a full range of exploration and development testing services
including exploration testing and production clean-up, as well as PVT
sampling and analysis. With this award, further opportunities exist
for Schlumberger Testing Services to introduce additional key
technologies.
In Colombia, Schlumberger Drilling & Measurements PowerDrive X5*
rotary steerable services and PeriScope* bed boundary mapping
technology have been used for Mansarovar in the Girasol 1 horizontal
well to keep the horizontal section entirely within the reservoir. As
part of the same project, work has started on the Girasol 2
multilateral well in which four legs will be drilled with the same
technologies--PowerDrive X5 and PeriScope. Real-time operations
support center processes and personnel have been key to this project.
Also in Colombia, BP achieved substantial drilling efficiencies using
PowerDrive X5 technology on a 14 3/4-in hole section running to 4,661
ft for 303 hours--221 hours of which were on-bottom drilling.
Elsewhere in Colombia, Ecopetrol awarded Schlumberger a contract
to create the Prospects Generation Center. This facility, a key
component of Ecopetrol exploration initiatives, will combine the
interpretation and engineering expertise of Schlumberger DCS with the
advanced technologies of SIS. DCS geoscientists will work in groups to
identify exploration prospects.
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
horizontal well drilled in Angola. Operations were monitored remotely
from a Schlumberger OSC* Operations Support Center installed in the
customer´s office. The lateral drainhole was positioned using Scope
technology resulting in a net pay greater than 70%.
In the Congo, Societe Nationale des Petroles du Congo (SNPC)
selected SIS software for their Kundji Bindi Asset Team interpretation
platform. The team will use Petrel* seismic-to-simulation, IP
(Interactive Petrophysics), OFM* well and reservoir analysis and
PIPESIM* production analysis software to develop a plan for
redevelopment of the Kundji and Bindi reservoirs that represents a
strategic milestone for SNPC.
In Italy, STOGIT, the ENI subsidiary responsible for natural gas
storage, has implemented Well Services FUTUR* active set-cement
technology as part of a three-year, 50-well campaign to develop gas
storage wells. This unique self-healing cement system was deployed in
order to prevent the leakage of stored gas that could be detrimental
to the environment and require expensive well repair or
abandonment. Since using FUTUR technology as part of their standard
cementing operations, STOGIT has not experienced any problems with
leaking wells or loss of zonal isolation.
Middle East & Asia
Revenue of $1.32 billion decreased 2% sequentially but increased
22% year-on-year. Pretax operating income of $460 million decreased 2%
sequentially but increased 24% year-on-year.
Sequentially, the Australia/Papua New Guinea GeoMarket grew with
exploration-driven demand for Wireline and Well Testing services.
Sequential growth was also registered in the Gulf, East Mediterranean
and Thailand/Vietnam GeoMarkets with strong demand for Wireline, Well
Testing and Well Services technologies. However, this performance was
more than offset by the impact of winter weather in the
China/Japan/Korea GeoMarket together with lower Completions and
Artificial Lift Systems product sales across the Area.
The pretax operating margin of 34.9% was essentially flat compared
to the prior quarter with a more favorable activity mix in the
Australia/Papua New Guinea, East Mediterranean, Gulf and
Thailand/Vietnam GeoMarkets being offset by the slowdown in
China/Japan/Korea together with a lower-margin activity mix for
Drilling & Measurements services in the Area.
In Qatar, Qatargas awarded a two-year contract to Schlumberger
Testing Services to provide high-rate clean-up and testing for the
development of 33 natural gas wells in the North Field. The wells
belong to two separate joint ventures, Qatargas 3, with shareholders
Qatar Petroleum, ConocoPhillips and Mitsui, and Qatargas 4, whose
shareholders are Qatar Petroleum and Royal Dutch Shell. In order to
capture synergies, the assets of both projects are being developed
jointly by a single team. Among the factors taken into account in
awarding the contract were the availability of new multiphase flow
metering Vx technology in gas mode, and demonstrated Schlumberger
service quality and HSE performance. This contract complements a
previously awarded fluid sampling and analysis contract for the two
Qatargas projects, supported by the Qatar Fluid Analysis Center--a
Schlumberger PVT laboratory.
Maersk Oil Qatar awarded Schlumberger Drilling & Measurements a
two-year contract for directional drilling
measurements-while-drilling and logging-while-drilling services for 80
extended-reach wells offshore Qatar. The contract covers services on 6
rigs and was based on proven technological success in 2007 when
Drilling & Measurements passed the million-foot milestone on the Al
Shaheen project where horizontal sections range from 18,000 ft to
25,000 ft.
In Kuwait, SIS was awarded a multi-year information management
technologies and services contract by the Kuwait Oil Company for the
provision of Corporate Data Management services, real-time production
data E&P management software, and other information management
projects including capabilities mapping and knowledge transfer
services.
In the South China Sea, an operator selected ACTive* Perf
service--a member of the ACTive family of coiled-tubing services--to
perforate and complete underbalanced wells to minimize formation
damage. The deployment of ACTive Perf technology led to earlier and
higher-than-expected production of sand-free gas.
In India, the Schlumberger Wireline PressureXpress* reservoir
pressure measurement service saved significant rig time for Reliance
Industries deep-water operations over a five-month
period--representing substantial cost savings in this expensive
deep-water environment.
WesternGeco
First-quarter revenue of $676 million decreased 15% over the prior
quarter and 4% compared to the same period last year. Pretax operating
income of $196 million decreased 28% sequentially and 26%
year-on-year.
Sequentially, Marine revenue increased as both vessel utilization
and productivity improved following the vessel dry-docks and the
seasonal transits of the prior quarter. Data processing also recorded
a sequential increase in revenue, but these increases were more than
offset by a significant decrease in Multiclient revenue in North
America following the record sales in the previous quarter. Land
revenue also declined following project completions in North Africa
and lower demand in the Middle East.
Pretax operating margin declined sequentially to 29.1% as the
increase in Marine was more than offset by the decline in high-margin
Multiclient sales.
Sonatrach awarded WesternGeco a Q-Land* acquisition and data
processing project over the Hassi R´Mel field covering 2,225 sq
km--the largest Q-Land survey to date. Acquisition commenced earlier
in the quarter and the data will be processed at the recently opened
WesternGeco center in Algiers.
In the Norwegian sector of the North Sea, StatoilHydro ASA awarded
WesternGeco multicomponent acquisition projects using Q-Seabed*
technology. The system will deliver superior imaging and inversion
results using the low-frequency signals made possible by the system´s
high-fidelity technology. The projects will cover parts of the Oseberg
Sor and Gullfaks fields. At Oseberg Sor, Q-Seabed technology will
acquire multiazimuth data through the use of the system´s active cable
lengths. At Gullfaks, the survey will be used as a reservoir
monitoring tool to optimize production.
Elsewhere in the Norwegian sector of the North Sea, StatoilHydro
ASA awarded WesternGeco integrated 4D Q-Marine* acquisition
processing and inversion projects covering the Norne and Heidrun
fields including the Epsilon structure with the total area of the
award exceeding 500 sq km. This will be the fifth survey using
Q-Marine technology at Norne and the third at Heidrun. The surveys are
part of ongoing efforts to maximize recovery from both fields through
identification of unswept and partially swept areas.
WesternGeco commenced the previously announced fourth phase of the
multiclient E-Octopus wide-azimuth acquisition program in the US Gulf
of Mexico. In parallel with these projects, WesternGeco
Electromagnetics is completing 3D marine magnetotelluric inversion and
interpretation using a dedicated computer cluster in Houston. This
first multi-measurement constrained imaging project involves
significant interpretation iterations of magnetotelluric, gravity and
Q-Marine seismic data sets to produce a more precise integrated
sub-surface model--thus reducing overall risk in this challenging
sub-salt environment.
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
+Technology licensed from ExxonMobil Upstream Research Company
Notes
Schlumberger will hold a conference call to discuss the above
announcement on Friday, April 18, 2008, at 9:00am Eastern, 8:00am
Central (2:00pm London time/3:00pm Paris time). To access the call
which is open to the public, please contact the conference call
operator at +1-800-288-8976 within North America or +1-612-332-0530
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 May
18, 2008, by dialing +1-800-475-6701 within North America or
+1-320-365-3844 outside of North America, and providing the access
code 915451.
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.