In 2009, Schlumberger learned that United States officials began a grand jury investigation and an associated
regulatory inquiry, both related to certain Schlumberger operations in specified countries that are subject to United
States trade and economic sanctions. Also in 2009, prior to being acquired by Schlumberger, Smith received an
administrative subpoena with respect to its historical business practices in certain countries that are subject to United
States trade and economic sanctions. Schlumberger is cooperating with the governmental authorities.
On April 20, 2010, a fire and explosion occurred onboard the semisubmersible drilling rig
Deepwater Horizon
, owned
by Transocean Ltd. and under contract to a subsidiary of BP plc. Pursuant to a contract between M-I SWACO and BP,
M-I SWACO provided certain services under the direction of BP. A number of legal actions, certain of which name an
M-I SWACO entity as a defendant, have been filed in connection with the
Deepwater Horizon
incident, and additional
legal actions may be filed in the future. Based on information currently known, the amount of any potential loss
attributable to M-I SWACO with respect to potential liabilities related to the incident would not be material to
Schlumberger’s consolidated financial statements.
Schlumberger and its subsidiaries are party to various other legal proceedings from time to time. A liability is
accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a
material loss is remote. However, litigation is inherently uncertain and it is not possible to predict the ultimate
disposition of these proceedings.
17. Segment Information
Schlumberger’s segments are as follows:
Š
Reservoir Characterization Group
– Consists of the principal technologies involved in finding and defining
hydrocarbon deposits. These include WesternGeco, Wireline, Testing Services, Schlumberger Information
Services and PetroTechnical Services.
Š
Drilling Group
– Consists of the principal technologies involved in the drilling and positioning of oil and gas
wells and is comprised of Bits & Advanced Technologies, M-I SWACO, Geoservices, Drilling & Measurements,
Pathfinder, Drilling Tools & Remedial Services, Dynamic Pressure Management and Integrated Project
Management well construction projects.
Š
Production Group
– Consists of the principal technologies involved in the lifetime production of oil and gas
reservoirs and includes Well Services, Completions, Artificial Lift, Well Intervention, Subsea, Water Services,
Carbon Services and the Schlumberger Production Management field production projects.
The Groups are collectively referred to as “Oilfield Services”.
Financial information for the years ended December 31, 2012, 2011 and 2010, by segment, is as follows:
(Stated in millions)
2012
Revenue
Income
before
taxes Assets
Depn. &
Amortn.
Capital
Expenditures
OILFIELD SERVICES
Reservoir Characterization
$11,424 $3,212 $ 8,699 $1,311
$1,236
Drilling
(1)
15,971 2,824 11,027 1,086
1,668
Production
(1)
14,875 2,371
9,643
724
1,439
Eliminations & other
(2)
(121)
(60)
2,065
181
352
42,149 8,347 31,434 3,302
4,695
Goodwill and intangible assets
(3)
19,387
All other assets
2,705
Corporate
(4)
(694)
8,021
198
Interest income
(5)
30
Interest expense
(6)
(331)
Charges & credits
(7)
(161)
$42,149 $7,191 $61,547 $3,500
$4,695
56
