Schlumberger rakes in $22.7 billion in tough 2009

“Fourth-quarter revenue increased sequentially in the North America, Latin America and Middle East and Asia Areas as offshore revenue quality improved with increasing deepwater rig count while software and product sales saw the usual fourth-quarter strength,” said Schlumberger Chairman and CEO Andrew Gould.

“Europe/CIS/Africa was flat with the previous quarter as stronger offshore activity and year-end software and product sales in the Area were not sufficient to offset the seasonal decline in Russia. Margins were also impacted by pricing concessions made earlier in the year.

Area Focus: Middle East & Asia

Fourth quarter revenue of $1.31 billion increased 7% sequentially but decreased 10% year-on-year. Pretax operating income of $426 million was 9% higher sequentially but 13% lower year-on-year.

Sequentially, ME & Asia revenue growth was driven by an increase in deepwater and exploration-related activity that led to strong demand for Wireline services. Seasonal year-end Artificial Lift and SIS product sales also contributed to the increase in revenue.

Middle East highlights

In Saudi Arabia, Schlumberger Well Services technologies were deployed in an extended-reach open-hole horizontal well to demonstrate their viability in the stimulation of water injection wells on the Saudi Aramco Manifa field. In a rig-less operation, the world’s longest coiled-tubing-deployed fiber-optic cable measuring 32,175 ft was used for real-time downhole monitoring of an ACTive Matrix treatment on the injection zone of the well with VDA* Viscoelastic Diverting Acid technology. An ACTive Profiling distributed temperature survey was then used to record an injectivity test to provide data for water-injection planning. All services were performed in one coiled-tubing run. The results were highly successful and will permit operational and quality optimization on future treatments.

Also in Saudi Arabia, a series of Schlumberger Well Services ACTive real-time coiled-tubing technologies were deployed as part of the stimulation treatment on a dual lateral natural gas well completed in open hole. The technologies enabled positive lateral identification, facilitated fluid movement monitoring and helped customized placement of the stimulation diversion and acid system in the main intervals of interest. Resulting production exceeded initial expectations.

In the Arabian GeoMarket, Schlumberger Drilling & Measurements StethoScope formation-pressure-while-drilling technology has been successfully introduced for the Kuwait Oil Company. Close cooperation between Drilling & Measurements and Data & Consulting Services teams identified opportunities for pressure measurements-while-drilling and helped monitor operations in real time to control quality and ensure optimal results. StethoScope technology was deployed in combination with other Scope* family services to acquire the data necessary to guide subsequent operations including determination of perforation intervals.

In Abu Dhabi, UAE, Schlumberger Well Services VDA technology was deployed with ACTive coiled-tubing services to stimulate carbonate formations in an onshore field. The real-time capability of the ACTive system, in conjunction with InterACT* connectivity and collaboration services, provided the information needed to identify high-permeability zones that were then isolated to divert treatment fluids into the target zones. The treatment was monitored from the customer’s office using the InterACT system to track progress and make decisions in real time.

Asia highlights

In Malaysia, Schlumberger introduced a combination of CIRP Completion Insertion and Removal under Pressure, eFire-CT electronic firing head system for coiled-tubing, and ACTive fiber-optic enabled coiled-tubing technologies that reduced operating time and increased depth accuracy. Following this success, Talisman Malaysia Ltd. awarded Schlumberger a contract for the same technologies to be deployed on other projects in Malaysia, including the Bunga Orchid field development in 2010.

Also in Malaysia, Schlumberger successfully completed two water injector wells by deploying electrical submersible pumps using REDACoil technology with 2 3/8-in coiled-tubing used as completion tubing. The project deployed resources and services from a number of Schlumberger Technologies including Artificial Lift, Completions and Well Services and was completed eight days ahead of schedule and below the allocated budget.

In Brunei, Schlumberger Testing Services performed an offshore exploration and appraisal test for Brunei Shell Petroleum (BSP) on the BIMA multipurpose jack-up rig. The 75-day, multi-zone test—which also involved Well Services fracturing operations—was monitored in real time and set new benchmarks for operating efficiency through close cooperation and meticulous planning by BSP and Schlumberger that culminated in health, safety and environment key performance indicators being exceeded in line with Shell Goal Zero targets.

In Australia, recently introduced Schlumberger Wireline pressure measurement technology was run for Chevron to improve efficiency and mitigate risk in two deepwater wells. The Pressure Xpress reservoir pressure-while-logging service reduced station measurement time by half and in combination with CMR-Plus* high logging speed magnetic resonance technology led to an average 16-hour saving per well.

In the Assam field in India, Schlumberger Wireline slim cased-hole formation resistivity tool technology was used for ONGC to acquire data in a well in which conventional open-hole logs could not be run due to hole conditions. The measurements indicated the presence of hydrocarbon-bearing zones and, based on this interpretation, ONGC perforated the well resulting in oil production. Without this technology, such results would not have been feasible.

Offshore India, innovative Schlumberger Wireline technology revived oil production from an ONGC well in the Neelam field. The gas-oil contact (GOC) in this field is thought to be regional and the recent drilling of a new well had produced only water. For the subsequent well, it was decided to run the downhole fluid profiling service using the MDT modular formation dynamics tester combined with the LFA Live Fluid Analyzer module to optimize well placement. Real-time data established the depth of the GOC to help characterize the reservoir more accurately with the contact found higher than previously thought. A good oil producing horizon was consequently identified in which a horizontal drain hole was placed and the well is now the best producer of the platform. The new technology combination run is estimated to have saved seven days of rig time. The addition of LFA technology for in-fill well planning is credited by the client as the single most important factor in the rejuvenation of this platform.