PROJECT SCHLUMBERGER

In the presented report, I am going to evaluate the international oil company called
“Schlumberger” which deals with the exploration and production of oil and gas. Moreover,
it is engaged in manufacturing and maintenance process of equipment which is used
during oil extraction. Schlumberger is public limited company which means that it is open
to the stock exchange in over-counter market. Schlumberger was founded in 1926 by
two brothers Conrad and Marcel Schlumberger from the Alsace region in France as the
Electric Prospecting Company. The main income of the company depends on the amount
of extracted crude oil and natural raw gas and their prices in the worldwide market. It has
four principal executive offices through the world which are located in Paris, Houston,
London, and The Hague. However, Schlumberger is international company which means
that it has special interest to offer its service to any country which has potential reservoirs
to explore.

Over the last few years, company has created new technology centers which keep up
with new innovations and evolve with digital technology and automation. These centers
have created strong relationships with the network of leading digital technology
companies and focus on developing and educating new expertise in chosen areas such
as data analytics, robotics, machine learning, and artificial intelligence and so on. The
DELFI environment can be given as a representative example of mentioned activities.
Moreover, new design of working principle is applied on operational processes, product
lines and Geo Market organizations. In 2017, new IT system was deployed in North
America which aimed to observe efficiency gains in improved way of delivery, engineering
and, maintenance. Schlumberger is incorporated in Willemstad, Curaçao as
Schlumberger N.V. and trades on the New York Stock Exchange, Euronext Paris, the
London Stock Exchange and SIX Swiss Exchange. Due to the recent pandemic, sudden
decrease (about 9 %) in the total revenues and shrunk stuff to the lowest because of the
lowest amount of sales in past 14 years.

One of the challenges that Schlumberger has experienced is oil supply. The dramatic
underinvestment in recent years lead to decline in the production of crude oil in Angola,
Norway, Mexico, Malaysia, China, and Indonesia. Moreover, huge problem related to
production of shale oil in North America, constraints on pipeline capacity and other
infrastructure can be given as example.
On the other side, considering the success of company in recent years, successful
collaboration with Sakhalin Extended Reach Drilling Centre of Excellence which
integrated domain expertise and technology for completing well in Chayvo field which in
turn increased penetration rate up to 37%.

The main challenge which is expected to be dealt with in future is the price decrease in
crude oil market which stem from global pandemic’s worst influence. The price decrease
in oil market is observed since 2016, however, sharp decline which led to almost 40 $ to
barrel created a huge blockage producing oil from wells which are less economical to
extract.

The Rig of the Future program is a natural extension of Drilling Group strategy which was
formed several years ago, the main strategy was to improve drilling efficiency, assure a
high-quality wellbore and optimize well placement and the reservoir model. However, this
new program is aimed to optimize the rig which can have enormous impact on well cost.
The Rig of Future will integrate drilling subsystems to provide open and scalable well
construction platform.

Citations:

“We are Schlumberger” “slb.com” n.d Web 30 September 2020

Crooks Ed “FINANCIAL TIMES” “Schlumberger says oil sector will see supply challenges
this year” 20 April 2018 Web 30 September 2020

“Schlumberger Limited” “2017 Annual report” Paris 2017

HSIEH LINDA “Schlumberger Rig of the Future aims to optimize, integrate drilling
subsystems to provide open and scalable well construction platform” “CRITICAL ISSUES
IN DRILLING & COMPLETIONS”, 2017