Schlumberger Limited
HOUSTON - Tuesday, January 21st 2014 [ME NewsWire]
Full-Year Results
(BUSINESS
WIRE)-- Schlumberger Limited (NYSE:SLB) today reported full-year 2013
revenue from continuing operations of $45.27 billion versus $41.73
billion in 2012.
Full-year 2013 income from continuing operations
attributable to Schlumberger, excluding charges and credits, was $6.33
billion, representing diluted earnings-per-share of $4.75 versus $4.01
in 2012.
Fourth-Quarter Results
Fourth-quarter 2013
revenue was $11.91 billion versus $11.61 billion in the third quarter of
2013, and $11.08 billion in the fourth quarter of 2012.
Income
from continuing operations attributable to Schlumberger, excluding
charges and credits, was $1.79 billion—an increase of 4% sequentially
and an increase of 28% year-on-year. Diluted earnings-per-share from
continuing operations, excluding charges and credits, was $1.35 versus
$1.29 in the previous quarter, and $1.04 in the fourth quarter of 2012.
Schlumberger
recorded charges of $0.09 per share in the fourth quarter of 2013
versus $0.06 per share in the fourth quarter of 2012. Schlumberger did
not record any charges or credits in the third quarter of 2013.
Oilfield
Services revenue of $11.91 billion was up 3% sequentially and increased
7% year-on-year. Oilfield Services pretax operating income of $2.60
billion was up 4% sequentially and increased 23% year-on-year.
Schlumberger
CEO PaalKibsgaard commented, “We ended 2013 with revenue of more than
$45 billion, up 8%, and growing for the fourth consecutive year.
International Area revenue grew by $3.2 billion, or 11%, from higher
exploration and development activity--both offshore and in key land
markets. In North America, we demonstrated continued resilience to the
challenges of the land markets by growing the business by close to $400
million, or 3%, aided by our strong position in the offshore market,
particularly in the US Gulf of Mexico. Full-year pretax operating income
grew 15%, with International delivering a 24% increase and
International margin expanding by more than 200 basis points for the
second consecutive year to reach 22.2% while still posting a margin of
19.7% in North America.
Our fourth-quarter results were driven by
solid activity in key international markets and strong year-end
product, software and multiclient seismic sales in almost all areas.
Growth was strongest internationally, where revenue set a new record
high, but all Areas recorded sequential growth underpinned by the
quality and efficiency of our execution. Overall results were, however,
impacted by the temporary shutdown of activity in South Iraq and
seasonal slowdowns in North America, the North Sea, Russia and China.
Geographical
results were led by the Middle East & Asia, with continuing
strength in the key markets of Saudi Arabia and the United Arab Emirates
as well as in exploration activity in Malaysia and Australia. Deepwater
exploration work and strong project management activity in Argentina
and Ecuador led Latin America higher, while Europe/CIS/Africa made
progress through significant activity in Angola, Azerbaijan and
Turkmenistan. In North America, deepwater activity in the Gulf of Mexico
continued to be strong, while on land increased service intensity,
improved efficiency, market share gains, and new technology uptake was
again offset by further pricing weakness in most product lines.
Among
the Technologies, year-end sales most benefited the Production and
Reservoir Characterization groups. Software and multiclient license
sales were more than sufficient to offset seasonal effects in
WesternGeco and Wireline activity as seismic surveys and exploration
drilling projects were completed in northern regions. Underlying
activity was robust for the Drilling Group on international demand in
key markets and grew in Mexico, Saudi Arabia and Iraq for integrated
project management work. New technology sales remained strong across all
groups, offering select opportunities for higher pricing in a
competitive international market.
The overall global economic
outlook continues largely unchanged, with fundamentals continuing to
improve in the U.S., and Europe seemingly set for stronger growth. These
positive effects should overcome lower growth in some developing
economies and support a continuing rebound in the world economy. Largely
as a result, forecasts for oil demand in 2014 have been revised upwards
to reach the highest demand growth in several years. Supply is expected
to keep pace with demand, with the market, therefore, remaining well
balanced. Natural gas prices internationally should be supported by
demand in Asia and Europe. In the U.S., we see no change in
fundamentals, with any meaningful recovery in dry gas drilling activity
some way out in the future.
The quality of our results in 2013
was driven by strong new technology sales and an unwavering focus on
execution and resource management. With E&P spending expected to
grow further in 2014, led by international activity and continuing
strength in deepwater US Gulf of Mexico, we remain positive about the
year ahead on the back of a well-balanced business portfolio, wide
geographical footprint and strong operational, organizational, and
executional capability.”
Other Events
During the
quarter, Schlumberger repurchased 11.9 million shares of its common
stock at an average price of $89.67 per share for a total purchase price
of $1.07 billion.
On January 16, 2014, the Board of Directors
approved a 28% increase in the quarterly dividend. The next quarterly
dividend, which will increase to $0.40 per share of outstanding common
stock, is payable on April 11, 2014 to stockholders of record on
February 19, 2014.
Oilfield Services
Full-Year Results
Full-year
2013 revenue of $45.27 billion increased 8% over 2012 with the
International Areas growing by 11% and the North America Area by 3%.
Revenue grew for the fourth consecutive year setting a new record for
the company.
On a segment basis, revenues from the Reservoir
Characterization and DrillingGroups increased 10% and 9%, respectively.
The increase in Reservoir Characterization revenue resulted from market
share gains and higher exploration activity in both offshore and key
international land markets that benefited Testing Services, WesternGeco,
Wireline and Schlumberger Information Solutions (SIS). Drilling Group
revenue increased from robust demand for Drilling & Measurement
services as offshore drilling activity strengthened in the US Gulf of
Mexico, Sub-Saharan Africa, Russia and in the Middle East & Asia
Area. Revenue increased also in key international land markets in Saudi
Arabia, China and Australia on higher rig count. ProductionGroup revenue
was up 8%, mostly from Well Intervention, Completions, Artificial Lift,
Schlumberger Production Management (SPM) and Well Services activities
in the international GeoMarkets.
By Area, International revenue
of $30.93 billion increased $3.15 billion from higher exploration and
development activity in a number of GeoMarkets—both offshore and in key
land markets. The increase was led by the Middle East & Asia Area,
which grew 23% from an expanding portfolio of projects and activities in
Saudi Arabia, Iraq, and the United Arab Emirates; increased seismic
surveys together with exploration and development work across Asia; and
sustained land and offshore drilling activity in the Australasia and
China GeoMarkets. Europe/CIS/Africa Area increased 8%, led by the Russia
and Central Asia region on strong land activity in West Siberia and
robust offshore projects in Sakhalin. The Sub-Saharan Africa region also
contributed to growth with strong exploration and development activity.
Latin America Area was 3% higher, mainly due to solid progress on SPM
projects in Ecuador and strong Integrated Project Management (IPM)
activity in Argentina. North America Area revenue of $13.90 billion grew
3%, driven by offshore activity where revenue was up 18%, while land
revenue declined 2%. The increase in offshore revenue resulted from
higher drilling and exploration activity as the rig count grew by 12%.
Land businesses continued to experience pricing weakness in drilling,
stimulation and wireline services, although the effect of this was
partially offset by increased service intensity, improved efficiency,
market share gains, and new technology penetration.
Full-year
2013 pretax operating income of $9.34 billion increased $1.23 billion,
or 15%, as International pretax operating income of $6.88 billion
increased 24% while North America pretax operating income of $2.7
billion was flat year-on-year.
Pretax operating margin of 20.6%
increased 119 basis points (bps) year-on-year, as International pretax
operating margin expanded 225 bps to 22.2% while North America pretax
operating margin contracted 55 bps to 19.7%. The expansion in
International margin was due to increased high-technology exploration,
seismic and deepwater activity. Middle East & Asia margin posted a
309 bps improvement to reach 25.0%, Europe/CIS/Africa increased by 132
bps to 20.9%, and Latin America grew by 214 bps to 20.5%. North America
margin contraction was due to pricing weakness on land although this was
partially offset by continued expansion of offshore margin that
recorded a five-year high. By segment, Reservoir Characterization Group
pretax operating margin expanded 228 bps to 29.8%, Drilling Group
increased by 156 bps to 19.1%, and Production Group improved by 72 bps
to 16.4%. Growth in pretax operating margin for the Reservoir
Characterization and Drilling Groups was the result of higher-technology
exploration activities in North America offshore and in the
international markets. Production Group margin expanded on improving
profitability in SPM, Completions and Artificial Lift but this was
offset by lower margin for Well Services as a result of pricing
pressure—primarily in North America.
Fourth-Quarter Results
Fourth-quarter
revenue of $11.91 billion increased $298 million or 3% sequentially,
and grew 7% year-on-year. Approximately 75% of the sequential revenue
increase came from the year-end surge in product and software sales, and
25% came from higher multiclient seismic sales. International Area
revenue of $8.15 billion grew $235 million or 3% sequentially, while
North America Area revenue of $3.65 billion increased $47 million or 1%
sequentially. Fourth-quarter revenue continued to set a new high for
both North America and the International Areas.
Sequentially,
Reservoir Characterization Group revenue grew 1% to $3.25 billion, while
Drilling Group revenue of $4.50 billion was 2% higher. Production Group
revenue increased 5% sequentially to $4.22 billion. The increase in
Reservoir CharacterizationGroup revenue resulted mainly from robust
international end-of-year SIS software sales and an increase in
WesternGecomulticlient sales. This increase, however, was largely offset
by a sharp seasonal decline in WesternGeco Marine revenue on lower
vessel utilization following completion of surveys in Norway and Canada.
Wireline also declined sequentially on the conclusion of exploration
projects in Eastern Canada and East Africa together with the seasonal
slowdown in Russia. Drilling Group revenue increased on international
demand for Drilling & Measurements and M-I SWACO technologies in
Mexico and Russia & Central Asia as well as in the Middle East &
Asia Area. Stronger IPM project activity in Mexico, Saudi Arabia and
Iraq also contributed to the increase. The increase in ProductionGroup
revenue resulted primarily from stronger Completions and Artificial Lift
product year-end sales. Well Intervention Services declined mainly in
North America land, while Well Services revenue grew primarily from
higher activity in international markets. Well Services stage count in
North America land also increased, but revenue declined from persistent
pricing weakness as a result of the continuing hydraulic horsepower
oversupply.
Sequentially by Area, Middle East & Asia led the
increase with revenue of $2.94 billion growing 5%, mainly from the
continued increase in drilling activity and the start of new IPM
projects in Saudi Arabia; strong product sales and increased seismic
activity in the United Arab Emirates; strong product and year-end
software sales in Kuwait; strong land and offshore exploration activity
in the Australasia and Thailand & Myanmar GeoMarkets; and increased
WesternGeco marine vessel activity in the Brunei, Malaysia &
Philippines GeoMarket. The increase, however, was partially reduced by a
decline in revenue in Iraq from the temporary shut-down in operations
linked to a security incident. In Latin America, revenue of $2.00
billion increased 3%, led by Mexico and Central America on robust
deepwater exploration in addition to stronger land-based project
activities. Strong IPM fracturing and drilling activity in Argentina and
solid progress on SPM projects in Ecuador also contributed to the
increase. Europe/CIS/Africa revenue of $3.21 billion increased 1% mainly
due to robust product and software sales across the Area particularly
in Continental Europe; significant testing and seismic activities in
Angola; and increased offshore seismic and drilling in Azerbaijan and
Turkmenistan. The increase, however, was partially reduced by seasonally
lower activity in Russia and decreased WesternGeco vessel utilization
following the seasonal transit of vessels out of the North Sea. North
America revenue of $3.65 billion increased 1% sequentially. Land
continued to experience pricing weakness in drilling, stimulation and
wireline services, although the effect of this was offset by increased
service intensity, improved efficiency, market share gains, new
technology uptake and business expansion. Offshore revenue declined
following seasonal completion of seismic and exploration campaigns in
Eastern Canada while revenue in the US Gulf of Mexico grew on higher
drilling and testing activities.
Fourth-quarter pretax operating
income of $2.60 billion was up 4% sequentially, and increased 23%
year-on-year. International pretax operating income of $1.92 billion
increased 4% sequentially, while North America pretax operating income
of $716 million declined 2% sequentially. Fourth-quarter pretax
operating income also set a new high, driven by the International Areas.
Sequentially,
pretax operating margin of 21.9% increased 37 bps, as International
pretax operating margin expanded 23 bps to 23.5%. Middle East & Asia
and Europe/CIS/Africa margins were steady at 26.1% and 22.6%,
respectively, while Latin America expanded 59 bps to reach 21.2% on
higher-margin exploration drilling and project activity. North America
pretax operating margin declined 67 bps to 19.6% due to a seasonal
holiday slowdown in activity and continued pricing weakness on land.
Sequentially by segment, Reservoir Characterization Group pretax
operating margin expanded 132 bps to 31.7% due to strong end-of-year
sales of SIS software and WesternGecomulticlient licenses, while the
pretax operating margins of the Drilling and ProductionGroups were 19.6%
and 17.3%, respectively.
Reservoir Characterization Group
Fourth-quarter
revenue of $3.25 billion increased 1% sequentially, and grew 5%
year-on-year. Pretax operating income of $1.03 billion was 5% higher
sequentially, and increased 16% year-on-year.
Sequentially,the
increase inrevenue was mainly driven by robust international end-of-year
SIS software sales and an increase in WesternGecomulticlient sales.
These increases, however, were largely offset by the sharp seasonal
decline in WesternGeco Marine revenue on lower vessel utilization
following completion of surveys in Norway and Canada. Wireline also
declined sequentially on the completion of exploration projects in
Eastern Canada and East Africa, and the seasonal slowdown of activity in
Russia.
Pretax operating margin of 31.7% increased 132 bps
sequentially, and 309 bps year-on-year. The sequential increase from
strong end-of-year sales of SIS software and WesternGecomulticlient
licenses was partially offset by lower WesternGeco Marine vessel
utilization and decreased Wireline high-technology activity following
completion of exploration projects.
A number of technology highlights across the Reservoir Characterization Group contributed to the fourth-quarter results.
Offshore
India, Wireline MDT* modular formation dynamics tester and Saturn* 3D
radial probe technologies in combination with the InSitu Fluid Analyzer*
system were used for the Oil and Natural Gas Corporation (ONGC) to
obtain reservoir measurements in the Mumbai High South field. The larger
flow area of the Saturn elliptical probe allowed formation fluid
sampling at a mobility below 0.1 mD/cP, which enabled completion of a
comprehensive formation test, downhole fluid analysis and fluid sampling
program in the low permeability reservoir sections. The Saturn probe
design also provided improvements in operational efficiency, enabling
ONGC to save up to 75% in fluid sampling time compared with conventional
formation testing methods.
In Indonesia, Wireline MDT modular
formation dynamics tester packer technologies were used for KrisEnergy
to obtain interval pressure transient testing data and fluid samples in
an exploration well. The dual-packer technique delivered excellent
pressure transient data with minimal pressure drop during the pump-out
periods. The combination of MDT technology and the InSitu Fluid
Analyzer* system helped identify a gas-bearing zone and collect
PVT-quality gas samples for further analysis. The real-time monitoring
capability of the Wireline technologies enabled rapid decisions to
achieve the best quality reservoir data, all within a four-hour
timeframe.
Offshore Atlantic Canada, Wireline deployed a suite of
evaluation technologies in three exploration wells drilled by Statoil
in 2013. The Litho Scanner* high-definition spectroscopy tool was run
for the first time for Statoil and used to determine mineralogy and
Total Organic Carbon. The MDT modular formation dynamics tester
configured with Quicksilver Probe* technology, and the InSitu Fluid
Analyzer and dual packer systems enabled interval pressure transient
testing and fluid sampling to be conducted in the same run. These
techniques were used to determine reservoir properties and the pressure
profile within the reservoir. In addition, walkaway seismic profiling
using VSI* versatile seismic imager technology was used to better
calibrate the wells to seismic. The Wireline technology combination gave
Statoil the necessary information to evaluate their Harpoon and Bay du
Nord discoveries.
Offshore Tanzania, BG Group used a combination
of Rt Scanner* and MR Scanner* technologies with the aim of helping
lower the risk of bypassed pay in deepwater East Africa. The approach
was corroborated by high-quality PVT samples using Quicksilver Probe low
contamination sampling and resulted in further evaluation of the
structure. The zones identified were tested at 60 MMscfd.
In
Venezuela, Wireline PowerJet Nova* extradeep penetrating shaped charge
technology was used for PDVSA to improve production from wells in the
Monagas region. The re-perforating campaign was conducted successfully
and led to an increase in oil production of more than 350%, or 17,500
bbl/d of incremental production, which exceeded expectations.
In
the Bakken shale play in North Dakota, a combination of Schlumberger
technologies was specifically designed for use by Continental Resources
to execute the largest ever downholemicroseismic monitoring operation in
the history of the industry. The hydraulic fracture growth and optimum
well spacing were tested in the Bakken and Three Forks formations using
three Wireline VSI* versatile seismic imager receiver arrays
simultaneously conveyed in three wells using TuffTRAC* cased hole
services technology. The VSI technology acquired high quality data over
3,000 ft from the location of the microseismic events. The operation was
successfully completed in 63 days and included 293 fracturing stages
with the Wireline monitoring services efficiently conveyed in excess of
300,000 lateral ft.
In Germany, the WesternGecoAmazon Warrior was
launched at the Flensburg shipyard, with the project on time and on
budget. Amazon-class vessels feature the world’s first custom-built hull
and propulsion system, developed exclusively for seismic operations
using a WesternGeco proprietary design. The vessel is expected to be
completed in Q1 2014 and begin operations in Q2.
In Russia, IG
Seismic Services Ltd (IGSS) has purchased its third WesternGecoUniQ*
integrated point-receiver land seismic system, and will be deploying
over 70,000 UniQ broadband point-receiver recording channels on projects
for their customers in Russia this winter season.
ConocoPhillips
has awarded Schlumberger a global licensing agreement to implement the
Techlog* wellbore software platform in all of its operating units
worldwide. The Techlog platform will enable standardization of
petrophysical and geological well data analysis across the customer’s
business units. The agreement also includes a comprehensive training and
deployment program designed to effectively support global
implementation.
In the UAE, Schlumberger technologies and
petrotechnical expertise assisted Dragon Oil in a challenging reservoir
study in the Lam Main asset in the Cheleken Block in Turkmenistan. SIS
MEPO* multiple realization optimizer software with the help of
experimental designs and workflow optimization techniques enabled the
customer to evaluate the full range of options for asset development and
production challenges, and to mitigate risk and improve reservoir
management decisions. MEPO technology and associated workflows enabled
Dragon Oil to generate history-matched models in two months, compared to
the six to eight months using conventional methods and provided the
customer with a higher level of confidence in its development plan.
Drilling Group
Fourth-quarter
revenue of $4.50 billion was up 2% sequentially and grew 9%
year-on-year. Pretax operating income of $880 million was 2% lower
sequentially, but increased 28% year-on-year.
Sequentially,
revenue increased on international demand for Drilling &
Measurements and M-I SWACO technologies in Mexico and Russia &
Central Asia as well as in the Middle East & Asia Area. Stronger IPM
project activity in Mexico, Saudi Arabia and Iraq also contributed to
the increase.
Sequentially, pretax operating margin declined 69
bps to 19.6% but increased 288 bps year-on-year. The sequential decline
was due to operational start-up delays and the geographical mix of
activity.
A number of Drilling Group technologies contributed to the fourth-quarter results.
In
China, Schlumberger Drilling Group technologies were deployed for CNOOC
(Tianjin Branch) to drill three infill wells in the offshore SZ36-1
field, known for its complex geology and challenging unconsolidated
formations. The combination of Drilling & Measurements PowerDrive
Archer* high build rate rotary steerable and EcoScope*† multifunction
logging-while-drilling technologies, with a customized Smith
polycrystalline diamond compact (PDC) bit and i-DRILL* engineered
drilling system design, enabled the wells to be placed accurately in the
pay zone. This technology combination delivered a 130% average rate of
penetration (ROP) improvement over conventional drilling systems.
Also
in China, Drilling & Measurements deployed StethoScope* formation
pressure-while-drilling technology for Energy Development Corporation
(China), Inc. (EDC), a joint venture between Sinopec and Noble Energy,
on an offshore well in the Shengli oilfield. A total of 61 pressure
tests identified 12 fluid gradients. The pressure gradient information
from this job helped EDC identify up to 55 m of new potential
low-resistivity pay zones, which have been ignored in the past when
evaluated using only petrophysical log data.
In Malaysia,
Drilling & Measurements technologies were deployed for
PetronasCarigaliSdn. Bhd. to drill a horizontal injector well in a
formation with thin, depleted sands. Combination of PowerDrive* rotary
steerable, PeriScope* bed boundary mapping, EcoScope multifunction
logging-while-drilling, and StethoScope formation
pressure-while-drilling technologies enabled PetronasCarigali to
accurately place the well within the thin target zone, while securing
valuable real-time formation pressure measurements in the highly
depleted sands. Periscope technology mapped the top and bottom
boundaries continuously, successfully guiding the steering of the well
within the 1-m target zone and resulting in 100% sand exposure.
Offshore
Gabon, Schlumberger Drilling Group technologies were deployed for Total
to drill an ultra-deepwater exploration well in a pre-salt play.
Drilling & Measurements PowerV* vertical drilling rotary steerable
technology was used to maintain verticality of the well. In the
reservoir section, the combination of PowerDrivevorteX* powered rotary
steerable technology and customized Smith bits drilled the well section
efficiently, 30% ahead of the planned time. Overall, the combination of
these technologies, together with flawless execution, led to zero
non-productive time under challenging pre-salt conditions.
In
Namibia, Drilling & Measurements seismicVISION*
seismic-while-drilling technology was deployed for HRT Africa Petroleo
S.A. (HRT) on three deepwater exploration wells in the Orange and Walvis
basins. The seismicVISION technology provided real-time data for the
PetroTechnical Services InterACT* global connectivity service, which was
used to provide continuous updates of the drill bit position on the
seismic section to the Petrel* E&P software platform. The real-time,
look-ahead vertical seismic profile image enabled HRT to visualize key
formation tops ahead of the bit, which helped make confident drilling
decisions by eliminating depth uncertainty, which in some cases,
exceeded 100 m.
In the UK sector of the North Sea, Schlumberger
Drilling Group Technologies and Petrotechnical Engineering Center
expertise helped EnQuest drill an 8 1/2-in well section with a reduced
four-man offshore crew, supported by two engineers in the Schlumberger
Operations Support Center in Aberdeen. Drilling & Measurements
PowerDriveXceed* rotary steerable, EcoScope multifunction
logging-while-drilling, StethoScope formation pressure-while-drilling,
and sonicVISION* sonic-while-drilling technologies provided the drilling
efficiency to enable the successful remote operations which led to a
reduction of two people on board the space-limited offshore platform.
In
Russia, Schlumberger Drilling Group Technologies established a new
field record for Eriell while drilling an 8 5/8-in well section in the
Samburgskoe field in the NovyUrengoy region. Drilling & Measurements
PowerDrivevorteX* powered rotary steerable technology with a customized
Smith PDC bit achieved a rate of penetration of 41.4 m/h and meterage
of 1,968 m, which represent the best results in the field.
In
Kazakhstan, Schlumberger Drilling Group Technologies established a new
record for Zhaikmunai LLP while drilling the 11 5/8-in section of a well
in the Chinarevskoe field. A combination of Drilling & Measurements
PowerDrive X6* rotary steerable technology and a customized Smith PDC
bit with ONYX* cutter technology enabled the entire section to be
drilled in a single run at an average rate of penetration of 21.9 m/h,
representing the best field result to date.
In Russia,
Schlumberger deployed Stinger* conical diamond element technology on a
Smith customized drill bit for VCNG, a Rosneft company, to drill a 12
1/4-in well section in the East Siberia Verchnechonskoe field. The drill
bit increased the drilling ROP by over 63% compared to the best offset
well in the same field, and showed minimum wear. In addition, the entire
12 1/4-in section was drilled in a single run at an average ROP 140%
higher compared to conventional PDC bits.
In the Caspian Sea,
Drilling Group Technologies performed a successful
underreaming-while-drilling operation for BP Azerbaijan in a complex,
extended-reach well offshore Baku. The combination of Drilling Tools
& Remedial Rhino XC* on-demand hydraulically actuated reamer and
customized Smith PDC bit with ONYX II* cutter technology enabled rapid
reamer activation and deactivation from surface—helping overcome various
technical challenges including equivalent circulating density control. A
post-run analysis indicated that the Rhino XC and ONYX cutter
technologies met all operational objectives and, upon inspection, showed
minimum wear. This job was the first non-ball,
multiactivation/deactivation underreamer run in the Caspian Sea basin.
Production Group
Fourth-quarter
revenue of $4.22 billion increased 5% sequentially, and grew 8%
year-on-year. Pretax operating income of $730 million was 3% higher
sequentially, and increased 26% year-on-year.
The increase in
revenue resulted primarily from stronger Completions and Artificial Lift
product year-end sales coupled with new technology uptake and business
expansion. Well Intervention Services declined mainly in North America
land, while Well Services revenue grew primarily from higher activity in
international markets. Well Services stage count in North America land
also increased, but revenue declined from the persistent pricing
weakness resulting from the continued hydraulic horsepower oversupply.
Sequentially,
pretax operating margin of 17.3% was essentially flat but increased 244
bps year-on-year. The sequential result was attributable to the
favorable impact of year-end Completions and Artificial Lift product
sales and improved SPM profitability being fully offset by continued
Well Services pricing weakness and decline in Well Intervention Services
activity.
Highlights during the fourth quarter included successes for a number of Production Group technologies.
In
Russia, PetroStim, a Schlumberger joint venture, conducted the first
multistage stimulation treatment for Gazpromneft Orenburg in the eastern
part of the Orenburg oil and gas condensate field. The five-stage
stimulation treatment was executed along a 600-m horizontal section of a
well drilled in a very tight carbonate formation. As a result, the
well’s average initial production was approximately 500 bbl/d, twice
that expected.
In Kuwait, after Schlumberger jointly evaluated
several candidate wells with Kuwait Oil Company (KOC), the upper Burgan
reservoir in the Sabriyah field was stimulated using Well Services
HiWAY* flow-channel fracturing technology. Following the analysis of the
DataFRAC* fracture data determination service, the pump schedule was
finalized and the treatment successfully executed as per the design.
Post-job, the well flow-tested at approximately 1,000 bfpd with 20%
water cut, delivering about 400 bopd of additional incremental oil above
initial expectations. This was the first application of the HiWAY
technique in Kuwait and, based on these results, a second job is being
scheduled in the nearby Raudhatain field.
In Kuwait, Well
Intervention Blaster* services were used for Kuwait Oil Company in the
stimulation treatment of a newly drilled well in the tight Ratawi
limestone formation. The Blaster services provided an efficient means of
removal for the filter cake, which together with a
coiled-tubing-deployed stimulation treatment, enabled the operator to
more than double the well's production.
In Russia, Well
Intervention performed a complex water shutoff intervention for Lukoil
in a horizontal well in West Siberia, which was planned for abandonment
as it produced only water. The Vantage* modular coiled tubing logging
head system was used for the initial and post-treatment production
logging measurements to identify the water breakthrough zones and
evaluate the efficiency of the water shutoff operation. Once the water
producing zones were identified, the water shutoff treatment was
performed using a cement slurry solution, accurately placed using two
CoilFLATE* coiled tubing inflatable packers. After intervention, the
water cut decreased by 30%, which allowed the customer to put the well
back in production.
Offshore Nigeria, Well Services deployed
OneSTEP* simplified sandstone stimulation system for Star Deep Water
Petroleum Limited to overcome increasing skin and declining production
on two wells in the 17D formation of the deepwaterAgbami field. Prior to
the matrix stimulation treatment, formation core samples were taken and
analyzed, and the damage mechanism identified as fines migration. The
OneSTEP stimulation was then pumped efficiently, as a single-stage
fluid, compared to conventional matrix stimulation systems that require
several stages. The OneSTEP stimulation treatment effectively remediated
the impairment and led to a production improvement in both wells of 90%
and 150% respectively, compared to pre-stimulation production rates.
The operation was executed safely and exceeded the customer’s
expectations.
In French Guiana, Well Services successfully placed
11 extended-length cement plugs of over 350 m each for Shell in
exploratory wells in the ultra-deep Zaedyus and Priondontes field. The
job execution was flawless, and the results saved Shell over 24 hours of
operating time, representing approximately $1.2 million in drillship
day rate savings.
In Arkansas, Schlumberger Completions
next-generation multistage stimulation technologies were used for BHP
Billiton to reduce completion times in the Fayetteville shale play. The
combination of KickStart* rupture disc valve and degradable materials
technologies eliminated the need for mechanical intervention during the
first hydraulic fracturing stage of each well, along with time-consuming
plug milling operations.
In Colombia, Schlumberger executed the
first multizone, single-selective horizontal openhole gravel pack for
Hocol, a subsidiary of Ecopetrol, in order to control sand production
and high water cut in a well in the Los Llanos foreland basin. The
completion design was based on Sand Management Solutions OptiPAC*
Alternate Path‡ systems with oil swell packers and a hybrid
inner-selective production string. Wireline Flow Scanner* horizontal
well production logging technology enabled a better understanding of
reservoir behavior, and provided the production data for each sand to
validate successful zonal isolation. The combination of Schlumberger
technologies used in this challenging horizontal well helped provide the
customer’s asset team with a more robust reservoir characterization
leading to improved reservoir management and the addition of new
reserves.
Murphy Sabah Oil Co. Ltd. has awarded Schlumberger a
four-year contract for the supply of the products and services
associated with gravel pack activities offshore Sabah, Malaysia. The
contract includes Sand Management Solutions OptiPac Alternate Path
systems, Well Services ClearPAC* fluid system for gravel packing, and
deployment using the fit-for-purpose DeepSTIM* II stimulation vessel.
CNR
International (Côte d'Ivoire) SARL (CNRI) has awarded Schlumberger the
completions work on wells planned to be drilled as part of the Baobab
Phase 3 project in waters offshore the Ivory Coast. The development
includes the installation of completions in six subsea wells. The award
covers upper and lower completions including sand screens and gravel
packing. In addition, the OptiPAC Alternate Path gravel pack system will
be used to ensure complete packing of the long horizontal intervals in a
challenging environment.
Offshore Qatar, Schlumberger
Completions was awarded a three-year contract by Maersk Oil Qatar AS to
provide products and services in the Block-5 field. The award covers
permanent downholegauges, single and multiline flatpacks, control line
clamps, and surface hydraulically controllable sliding sleeves and
services. The first Schlumberger permanent downhole gauges for Maersk
Oil Qatar AS were installed in 1995, and the gauges continue to provide
reliable, real-time pressure and temperature data. In total, 188
Schlumberger permanent downhole gauges and sensors with surface data
communication systems have been installed in this customer’s offshore
field, enabling the real-time remote monitoring of wells for improved
reservoir management.
In India, Schlumberger has been awarded a
multiple services contract by Oil India Ltd. for the engineering design,
drilling and completion of six horizontal wells in the Makum, Deohal
and North Hapjan onshore fields. Traditionally, the horizontal wells in
these fields have been completed with conventional slotted liners. A key
contributing factor for this contract award was the introduction of
Schlumberger Completions FluxRITE* inflow control device systems for the
reliable control of produced water and improved sand management,
allowing the customer to maximize oil recovery. The 18-month contract
includes services from Drilling & Measurements, M-I SWACO, Drilling
Tools & Remedial, Completions, Artificial Lift and Well Services.
To view the full release including the tables, please click here
Contacts
Schlumberger Limited
Malcolm Theobald – Schlumberger Limited, Vice President of Investor Relations
Joy V. Domingo – Schlumberger Limited, Manager of Investor Relations
Office +1 (713) 375-3535
investor-relations@slb.com
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