Schlumberger

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For the surname, see Schlumberger (surname).
Schlumberger Limited

Type
Traded as
Industry
Founded
Founder
Headquarters
Area served
Key people
Revenue
Operating
income
Net income
Total assets
Total equity
Number of
employees
Website

Naamloze vennootschap (Dutch

public company)
NYSE: SLB
S&P 500 component
Oilfield services & equipment
1926
Conrad and Marcel Schlumberger
Paris, Houston, London and The
Hague (principal offices); Curaao,
Kingdom of the Netherlands (legal
domicile)
Worldwide
Paal Kibsgaard (CEO)
US$ 48.58 billion (2014)[1]
US$ 7.72 billion (2014)[1]
US$ 5.44 billion (2014)[1]
US$ 66.9 billion (2014)[1]
US$ 37.85 billion (2014)[1]
115,000
www.slb.com

Schlumberger Limited is the world's largest oilfield services company.[2][3]

Schlumberger employs approximately 115,000 people[4] representing more than 140
nationalities working in more than 85 countries.[5] Its principal offices are in Paris,
Houston, London, and the Hague.[6][7]
Schlumberger is incorporated in Curaao as Schlumberger N.V. and trades on the New
York Stock Exchange, Euronext Paris, the London Stock Exchange, and SIX Swiss
Exchange.[8]

Contents

1 History

2 Environmental record
o 2.1 Radioactive sources
o 2.2 Spills
o 2.3 Brownfields
o 2.4 Deepwater Horizon

3 See also

4 References

5 External links

History

Schlumberger offices in Houston

Schlumberger complex in Sugar Land, Texas

Schlumberger was founded in 1926 by French brothers Conrad and Marcel
Schlumberger as the Socit de prospection lectrique (French: Electric Prospecting
Company). The company recorded the first-ever electrical resistivity well log in

Merkwiller-Pechelbronn, France in 1927. Today Schlumberger supplies the petroleum

industry with services such as seismic acquisition and processing, formation evaluation,
well testing and directional drilling, well cementing and stimulation, artificial lift, well
completions, flow assurance and consulting, and software and information management.
The company is also involved in the groundwater extraction[9] and carbon capture and
storage industries.[10]
The brothers had experience conducting geophysical surveys in countries such as
Romania, Canada, Serbia, South Africa, the Democratic Republic of the Congo and the
United States. The new company sold electrical-measurement mapping services, and
recorded the first-ever electrical resistivity well log in Merkwiller-Pechelbronn, France
in 1927. The company quickly expanded, logging its first well in the U.S. in 1929, in
Kern County, California. In 1935, the Schlumberger Well Surveying Corporation
was founded in Houston, later evolving into Schlumberger Well Services, and finally
Schlumberger Wireline & Testing. Schlumberger invested heavily in research,
inaugurating the Schlumberger-Doll Research Center in Ridgefield, Connecticut in
1948, contributing to the development of a number of new logging tools. In 1956,
Schlumberger Limited was incorporated as a holding company for all Schlumberger
businesses, which by now included American testing and production company Johnston
Testers.[citation needed]
Over the years, Schlumberger continued to expand its operations and acquisitions. In
1960, Dowell Schlumberger (50% Schlumberger, 50% Dow Chemical), which
specialized in pumping services for the oil industry, was formed. In 1962, Schlumberger
Limited became listed on the New York Stock Exchange.[11] That same year,
Schlumberger purchased Daystrom, an electronic instruments manufacturer in South
Boston, Virginia which was making furniture by the time the division was sold to Sperry
& Hutchinson in 1971.[12] Schlumberger purchased 50% of Forex in 1964 and merged it
with 50% of Languedocienne to create the Neptune Drilling Company. The first
computerized reservoir analysis, SARABAND, was introduced in 1970. The remaining
50% of Forex was acquired the following year; Neptune was renamed Forex Neptune
Drilling Company. In 1979, Fairchild Camera and Instrument (including Fairchild
Semiconductor) became a subsidiary of Schlumberger Limited.
Schlumberger established the first international data links with e-mail in 1981. In 1983,
Schlumberger opened their Cambridge Research Center in Cambridge, England and
in 2012 it was renamed the Schlumberger Gould Research Center after the company's
former CEO Andrew Gould.[13]
The SEDCO drilling rig company and half of Dowell of North America were acquired
in 1984, resulting in the creation of the Anadrill drilling segment, a combination of
Dowell and The Analysts' drilling segments. Forex Neptune was merged with SEDCO
to create the Sedco Forex Drilling Company the following year, when Schlumberger
purchased Merlin and 50% of GECO.[citation needed]
In the 1970s, the company's top executives in North America were relocated to New
York City.[14]
In 1987, Schlumberger completed their purchases of Neptune (North America), Bosco
and Cori (Italy), and Allmess (Germany). That same year, National Semiconductor

acquired Fairchild Semiconductor from Schlumberger for $122 million.[15] In 1991,

Schlumberger acquired PRAKLA-SEISMOS, and pioneered the use of geosteering to
plan the drill path in horizontal wells.[citation needed]
Schlumberger acquired software company GeoQuest Systems in 1992. With the
purchase came the conversion of SINet to TCP/IP and www capability. In the 1990s
Schlumberger bought out the petroleum division, AEG meter, and ECLIPSE reservoir
study team Intera Technologies Corp. A joint venture between Schlumberger and Cable
& Wireless resulted with the creation of Omnes, which then handled all of
Schlumberger's internal IT business. Oilphase and Camco International were also
purchased.[citation needed]
In 1999, Schlumberger and Smith International created a joint venture, M-I L.L.C., the
world's largest drilling fluids (or mud) company. The company consists of 60% Smith
International, and 40% Schlumberger. Since the joint venture was prohibited by a 1994
antitrust consent decree barring Smith from selling or combining their fluids business
with certain other companies, including Schlumberger, the U.S. District Court in
Washington, D.C. found Smith International Inc. and Schlumberger Ltd. guilty of
criminal contempt and fined each company $750,000 and placed each company on five
years probation. Both companies also agreed to pay a total of $13.1 million,
representing a full disgorgement of all of the joint venture's profits during the time the
companies were in contempt.[16]
In 2000, the Geco-Prakla division was merged with Western Geophysical to create the
seismic contracting company WesternGeco, of which Schlumberger held a 70% stake,
the remaining 30% belonging to competitor Baker Hughes. Sedco Forex was spun off,
and merged with Transocean Drilling company in 2000.[citation needed]
In 2001, Schlumberger acquired the IT consultancy company Sema plc for $5.2 billion.
The company was an Athens 2004 Summer Olympics partner, but Schlumberger's
venture into IT consultancy did not pay off, and divestiture of Sema to Atos Origin was
completed that year for $1.5 billion. The cards division was divested through an IPO to
form Axalto, which later merged with Gemplus to form Gemalto, and the Messaging
Solutions unit was spun off and merged with Taral Networks to form Airwide Solutions.
In 2003, the Automated Test Equipment group, part of the 1979 Fairchild
Semiconductor acquisition, was spun off to NPTest Holding, which later sold it to
Credence.[citation needed]
In 2004, Schlumberger Business Consulting was launched. Based in Paris, it is the
company's management consultancy arm. [17]
In 2005, Schlumberger purchased Waterloo Hydrogeologic,[18][unreliable source?] which was
followed by several other groundwater industry related companies, such as Westbay
Instruments, and Van Essen Instruments. Also that year, Schlumberger relocated its U.S.
corporate offices from New York to Houston.[19]
In 2006, Schlumberger purchased the remaining 30% of WesternGeco from Baker
Hughes for US$2.4 billion.[20] Also that year, the Schlumberger-Doll Research Center
was relocated to a newly built research facility in Cambridge, Massachusetts to replace
the Ridgefield, Connecticut research center. The facility joins the other research centers

operated by the company in Cambridge, England; Moscow, Russia; Stavanger, Norway;

and Dhahran, Saudi Arabia.[21]
In 2010, the acquisition of Smith International in an all stock deal valued at $11.3
billion was announced. The sale price is 45.84-a-share price was 37.5 percent higher
than Smith closing price on 18 February 2010. The deal is the biggest acquisition in
Schlumberger history.[22] The merger was completed on August 27, 2010.[23] Also
announced in 2010 were Schlumberger plans to acquire Geoservices, a French-based
company specializing in energy services, in a deal valued at $1.1 billion, including debt.
[24]

In 2014, Schlumberger announced the purchase of the remaining shares of SES

Holdings Limited (Saxon), a Calgary-based provider of international land drilling
services, from First Reserve and certain members of Saxon management. The
transaction is subject to customary closing conditions, including the receipt of
regulatory approvals. Schulmberger had a minority share in Saxon previously.[25]

Environmental record
In 2009, Newsweek released their "Green Rankings" [26] a ranking of the 500 largest
corporations on track records on a number of environmental issues. Schlumberger was
ranked 118th out of 500 overall, and 3rd out of 31 in their industry. Newsweek
remarked that to mitigate global warming Schlumberger has invested in carbon
sequestration which involves long-term storage of CO2 and that the company's seismic
survey ships are 20% to 25% more fuel-efficient than those of other seismic contractors
from using fuels that emit less pollution and towing equipment that creates less drag on
the vessels.[27]

Radioactive sources
In 2006, a radioactive canister imported by Schlumberger was recovered in the Western
Australian outback desert.[28] The canister had been lost in November 2005 by the
company's transport partner, when the improperly secured container fell off the trailer
on which it was being transported.[29]
In 2010, the Aberdeen Sheriff court fined Schlumberger Oilfield UK 300,000 for
losing a radioactive source on the rig floor on the Ensco 101 mobile drilling rig in the
North Sea for 4 hours.[30]

Spills
In 2009, the Pennsylvania Department of Environmental Protection fined Chesapeake
Appalachia LLC and Schlumberger Technology Corp. more than $15,500 each for a
hydrochloric acid spill in February 2009 at Chesapeake's Chancellor natural gas well
site in Asylum Township, Bradford County, Pennsylvania. Officials said the leak did not
contaminate groundwater.[31]

Brownfields

In 2006, as the current owner of a facility in Pickens, South Carolina, Schlumberger

agreed to pay $11.8 million to federal and state agencies for a problem caused by the
previous owner, Sangamo-Weston, a capacitor manufacturing plant. The cause of the
problem was from polychlorinated biphenyls (PCB) released into the environment by
Sangamo-Weston from 1955 to 1987. According to the Justice Department's
Environment and Natural Resources Division, an additional agreement by Schlumberger
to purchase and remove dams will directly improve the Twelvemile Creek, South
Carolina ecosystem and provide significant environmental benefits for the affected
communities.[32]

Deepwater Horizon
Schlumberger performed wireline logging on the Deepwater Horizon oil rig in the Gulf
of Mexico in 2010. A Schlumberger standby crew had been released by BP and left the
rig earlier on the same day of the Deepwater Horizon explosion.[33]

See also
Houston portal
Companies portal
Energy portal

List of oilfield service companies

References
1.
"Schlumberger Limited (SLB)". Yahoo! Finance.
Wethe, David (January 20, 2012). "Schlumberger Fourth-Quarter Profit Rises as
Drilling Booms". Bloomberg News.
"Schlumberger to cut 9,000 jobs on oil-price plunge". Reuters. January 15, 2015
via CNBC.
- Schlumberger Profile "Bloomberg Businessweek". Retrieved April 2, 2012.
"Schlumberger Website".
"Bloomberg Business Week". Retrieved July 14, 2010.
"Schlumberger - Global Citizenship". Retrieved May 19, 2015.
"10-K". Retrieved March 26, 2015.
"Schlumberger Water Services." Schlumberger Web site. Retrieved on January
30, 2011.
"Schlumberger Carbon Services." Schlumberger Web site. Retrieved on January
30, 2011.
"Listings Directory Schlumberger Limited." NYSE web site. Retrieved on
September 02, 2013.
"History of LADD Furniture, Inc.". fundinguniverse.com. Retrieved 2012-11-01.

 "Schlumberger Research Centers". Schlumberger Limited. Retrieved 2012-0521.

Clanton, Brett. "ENERGY / Growth in the oil patch translates into good times
for oil-field-services firms like Schlumberger - and for Houston / The best of times
means more jobs." Houston Chronicle. Friday September 29, 2006. Business 1.
Retrieved on January 13, 2009.
"History, Schlumberger". Slb. Retrieved January 27, 2010.
"Companies Fined $1.5 Million". December 9, 1999.
Helman, Christopher (August 12, 2009). "Forbes Magazine". Archived from the
original on June 30, 2012.
http://www.flowpath.com/whi-slb-press-release.htm[dead link][unreliable source?]
"Houston Chronicle". October 26, 2005.
"Schlumberger Buys 30% Venture Stake From Baker Hughes". The Wall Street
Journal. Retrieved 19 March 2015.
"Schlumberger Research." Schlumberger. Retrieved on January 30, 2011.
"Schlumberger to Acquire Smith for About $11 Billion (Update3)."
BusinessWeek. February 21, 2010. Retrieved on February 23, 2010.
"Yahoo Finance - Schlumberger Completes Merger with Smith International".
Retrieved September 20, 2010.
Schlumberger to buy Geoservices for $1.1 billion Retrieved from MarketWatch
25 February 2010
Schlumberger Purchases Remaining Shares of Saxon
"Newsweek Greenest Big Companies in America ??? The 2009 List". Retrieved
July 21, 2010.
"Newsweek ???Green Ranking- Schlumberger". Retrieved July 21, 2010.
"Sunday Times Western Australia". January 16, 2007.
Thomas Hunter writes: (January 17, 2007). "Found: WA???s missing radioactive
canister". Crikey. Retrieved January 27, 2010.
"The Press Journal". July 12, 2010.
"DEP fines Chesapeake Appalachia, Schlumberger for acid spill in Bradford
County". The Times-Tribune (Scranton). December 8, 2009. Retrieved December 22,
2010.
"Company To Pay $11.8 Million". Environmental Protection. February 1, 2006.
Retrieved July 22, 2010.
1.

Reddall, Braden. "www.reuters.com-Schlumberger says its crew left

Horizon day of fire-Deep Water Horizon Accident- Schlumberger". Reuters.
Retrieved May 15, 2010.

External links

Schlumberger website

Schlumberger from the Handbook of Texas Online

"Schlumberger, Smith Merger News."

Wikimedia Commons has media related to Schlumberger.

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Petroleum industry
Categories:

Companies listed on the New York Stock Exchange

Multinational companies

Business services companies established in 1927

Schlumberger

Energy companies of the United States

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Economy of Houston, Texas

1927 establishments in Texas

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