Schlumberger on Friday posted its overall second quarter results which indicated a revenue of US$1.37 billion which was 4% higher sequentially and 5% higher year-on-year. Pretax operating income of $427 million increased 4% sequentially and 2% year-on-year.
The increase in the region was driven specifically by demand for the company’s wireline and well services in Saudi Arabia and Oman.
Commenting generally on the company’s performance, chairman and CEO, Andrew Gould said: “Sequential revenue increases were recorded in all Areas as were sequential margin improvements led by strong performances in North America and Latin America.”
Sequentially, revenue growth was recorded across most of the Middle Eastern GeoMarkets from increased activity that resulted in strong demand for Wireline services, and from higher sales of Well Services products and Artificial Lift equipment. These increases were partially offset by a decrease in revenue in the Australia/Papua New Guinea GeoMarket as a change in the mix of offshore activities reduced demand for Wireline and Drilling & Measurements services; and by a decrease in the East Asia GeoMarket on lower IPM activity.
Pretax operating margin remained strong at 31.1% as the positive impact of the increased activity in the Middle Eastern GeoMarkets offset the impact of a less favorable revenue mix in the Australia/Papua New Guinea GeoMarket.
In Saudi Arabia, a combination of Wireline FloScan Imager and RST* reservoir saturation tool technologies was run on coiled-tubing for Saudi Aramco. The FloScan Imager determined the total contribution of each lateral. The RST was run in water flow log mode to pinpoint water entry zones in each of the laterals. This was the first time that the water flow log conveyed with a coiled-tubing multilateral tool has been run in Saudi Arabia where real-time monitoring and decision making is a critical success factor for such operations.
Also in Saudi Arabia, Schlumberger Well Services FUTUR* active set-cement technology was used for LUKOIL Saudi Arabia Energy Limited on a natural gas well planned to be tested in openhole under varying conditions of temperature and pressure. After placement, Wireline cement evaluation logs confirmed optimal cement bonding across the interval indicating that the self-repairing cement will be able to react if the cyclical well test stresses lead to any loss of zonal isolation.
Elsewhere in Saudi Arabia, Well Services FlexSTONE HT* advanced high-temperature flexible cement technology was used to cement the liner in a LUKOIL Saudi Arabia Energy Limited well that was to be fractured. The design of the cement job was based on the expected fracture stimulation pressure and temperature changes with subsequent cement bond logs showing excellent bonding between casing and cement, and between cement and formation. During fracturing, pressures up to 14,000 psi were experienced while temperatures reached 340 deg F.
In Oman, Schlumberger has been awarded a five-year contract by Petroleum Development Oman for well production services. The contract covers hydraulic fracturing services with coiled-tubing and surface sand handling and well flow-back operations for formation clean-up. The contract, which includes the highest number of fracture stages pumped per year in the region, was awarded based on operational efficiency, service delivery, and engineering support.
