reduced activity in the US Gulf of Mexico. Latin America revenue increased on strong activity in the Brazil and Peru/
Ecuador/Colombia GeoMarkets partially offset by reduced IPM activity in Mexico/Central America due to client
budgetary constraints. Middle East & Asia Area revenue grew from higher drilling activity in the Australia/Papua New
Guinea, China/Japan/Korea and East Asia GeoMarkets as well as from increased IPM activity and strong demand for Well
Services technologies in the Middle Eastern GeoMarkets. The addition of Geoservices also contributed to the increased
revenue. These increases were partially offset by a decrease in Europe/CIS/Africa revenue as reduced activity in the
North Africa, Libya, Caspian and Continental GeoMarkets and generally lower pricing across the Area offset higher
activity in Russia.
Year-on-year, pretax operating margin declined 82 bps to 20.3% as a significant improvement in North America Area
performance was insufficient to offset the reduced activity and weaker pricing in the Europe/CIS/Africa Area and lower
IPM activity in Latin America.
North America
Revenue of $5.01 billion was 35% higher than last year primarily due to strong activity in unconventional oil and gas
reservoirs, improved pricing in US Land for Well Services technologies and improved activity levels in oil basins in
Canada. These increases were partially offset by a decrease in the US Gulf of Mexico revenue as a six-month moratorium
on drilling and lingering uncertainty about rules for operating resulted in the stoppage of deepwater drilling activity.
Year-on-year, pretax operating margin increased 10 percentage points to 16.0% mostly due to the stronger activity and
improved pricing in the US land, partially offset by the impact of the activity slow-down in the US Gulf of Mexico.
Latin America
Revenue of $4.32 billion was 2% higher than the previous year. Growth was strongest in the Brazil GeoMarket where
higher offshore activity increased demand for Wireline and Drilling & Measurements services technologies. Revenue
also increased significantly in the Peru/Ecuador/Colombia GeoMarket due to strong IPM activity and higher Artificial
Lift systems sales. The addition of Geoservices also contributed to the growth. These increases were partially offset by a
decrease in the Mexico/Central America GeoMarket revenue as client budgetary constraints reduced IPM activity.
Year-on-year, pretax operating margin decreased 110 bps to 16.7% primarily due to the reduced activity levels in
Mexico/Central America partially offset by the impact of lower costs in Venezuela/Trinidad & Tobago.
Europe/CIS/Africa
Revenue of $6.88 billion was 4% lower year-on-year. This decrease was largely attributable to lower pricing across
much of the Area and reduced activity in the North Africa, Libya, Caspian and Continental Europe GeoMarkets. These
decreases were partially offset by increases in Russia due to higher IPM activity. The addition of Geoservices also
contributed to Area revenue.
Year-on-year, pretax operating margin decreased 543 bps to 18.4% primarily due to the lower overall activity levels and
reduced pricing.
Middle East & Asia
Revenue of $5.59 billion was 7% higher than the previous year primarily due to strong drilling activity in Asia,
particularly in the Australia/Papua New Guinea, China/Japan/Korea and East Asia GeoMarkets, and to increased IPM
activity and strong demand for Well Services technologies in the Middle Eastern GeoMarkets. The addition of
Geoservices also increased Area revenue.
Year-on-year, pretax operating margin decreased 199 bps to 30.4% primarily due the impact of lower pricing across the
Area.
WesternGeco
Full-year 2010 revenue of $1.99 billion was 6% lower than the prior year primarily due to reduced activity and pricing
in Marine. This decrease was partially offset by an increase in Multiclient revenue as the result of increased acquisition
and sales of wide-azimuth surveys in the US Gulf of Mexico.
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Part II, Item 7
