provide specialized engineering and project management expertise when Schlumberger is requested to include these
capabilities with services and products across the Technologies in a single contract. In no circumstances does
Schlumberger take any stake in the ownership of oil or gas reserves.
Also included in Schlumberger Oilfield Services is Schlumberger Business Consulting, which helps oil and gas
companies achieve fast and sustainable performance improvements. Schlumberger Business Consulting includes
IndigoPool, an independent business that provides divestiture advisory and marketing services to the international oil
and gas community.
Supporting the Technologies is a global network of research and engineering centers. Through this organization,
Schlumberger is committed to advanced technology programs that enhance oilfield efficiency, lower finding and
producing costs, improve productivity, maximize reserve recovery and increase asset value while accomplishing these
goals in a safe and environmentally sound manner.
Schlumberger Oilfield Services primarily uses its own personnel to market its offerings. The customer base, business
risks and opportunities for growth are essentially uniform across all services. There is a sharing of manufacturing and
engineering facilities as well as research centers, and the labor force is interchangeable. Technological innovation,
quality of service and price differentiation are the principal methods of competition, which varies geographically with
respect to the different services offered. While there are numerous competitors, both large and small, Schlumberger
believes that it is an industry leader in providing wireline logging, well testing, drilling and completion fluids, coiled
tubing, measurement-while-drilling, logging-while-drilling and directional-drilling services, mud logging, as well as fully
computerized logging and geoscience software and computing services. A large proportion of Schlumberger offerings is
non-rig related; consequently, revenue does not necessarily correlate to rig count fluctuations.
Distribution
is an industry leading provider of pipes, valves and valve automation, fittings, mill and tool supplies, safety
products and artificial lift systems to the energy and industrial markets. Additionally, Distribution provides warehouse
management, vendor integration and various inventory management services. The segment comprises the operations of
Wilson International, Inc., a wholly-owned subsidiary, and a majority owned interest in C.E. Franklin Ltd., a publicly
traded Canadian distribution company.
Acquisitions
Information about acquisitions made by Schlumberger appears in Note 4 of the
Consolidated Financial Statements
.
GENERAL
Patents
While Schlumberger seeks and holds numerous patents covering various products and processes, no particular
patent or group of patents is considered material to Schlumberger’s business.
Seasonality
Although weather and natural phenomena can temporarily affect delivery of oilfield services, the widespread
geographic location of such services precludes the overall business from being characterized as seasonal.
Customers and Backlog of Orders
For the year ended December 31, 2011, no single customer exceeded 10% of consolidated revenue. Other than
WesternGeco, we have no significant backlog due to the nature of our businesses. The WesternGeco backlog, which is
based on signed contracts with customers, was $1.0 billion at December 31, 2011 ($0.9 billion at December 31, 2010).
Employees
As of December 31, 2011, Schlumberger had approximately 113,000 employees.
Financial Information
Financial information by business segment for the years ended December 31, 2011, 2010 and 2009 is provided in
Note 17 of the
Consolidated Financial Statements
.
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