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2014 Annual Report Schlumberger Limited 42 rue Saint-Dominique 75007 Paris 2014 Annual Report 5599 San Felipe, 17th Floor Schlumberger Limited Houston, Texas 77056 62 Buckingham Gate London SW1E 6AJ Parkstraat 83 2514 JG The Hague www.slb.com 72795schD1R4.indd 3-3 2/16/15 9:59 AM Board of Directors Corporate Officers Corporate Information Peter L.S. Currie 1, 2 Paal Kibsgaard Stockholder Information Duplicate Mailings President, Currie Capital LLC Chief Executive Officer Schlumberger’s common stock When a stockholder owns shares Palo Alto, California is listed on the New York Stock in more than one account, or Simon Ayat Exchange, trading symbol “SLB,” when stockholders live at the same Tony Isaac 2, 4 Executive Vice President and and on the Euronext Paris, London address, duplicate mailings may Non-Executive Chairman of the Board Chief Financial Officer and the SIX Swiss Stock Exchanges. result. If you receive duplicate Schlumberger reports, you can help eliminate the London, England Alexander C. Juden For quarterly earnings dividend added expense by requesting that Secretary and General Counsel announcements, and other informa- only one copy be sent. To elimi- K. Vaman Kamath 1, 3 tion, call 1-800-997-5299 from the nate duplicate mailings, contact Non-Executive Chairman of the Board Ashok Belani US and Canada and 1-813-774-5043 Computershare Trust Company, N.A., ICICI Bank Limited Executive Vice President Technology for callers outside North America or Stock Transfer Agent and Registrar. Mumbai, India visit www.slb.com/ir. Jean-François Poupeau Nonprofit Community V. Maureen Kempston Darkes 1 Executive Vice President Corporate Stock Transfer Agent Development Programs Former Group Vice President Development and Communications and Registrar Schlumberger supports and General Motors Corporation Computershare Trust Company, N.A. encourages a range of community Detroit, Michigan Patrick Schorn P.O. Box 30170 development programs – both global President, Operations and College Station, TX 77842 and local – which are often initiated Paal Kibsgaard Integration 1-877-745-9341 or 1-781-575-2707 and implemented by employees. Chief Executive Officer We have chosen to focus on STEM Schlumberger Aaron Gatt Floridia For Overnight Delivery: (science, technology, engineering President, Reservoir Computershare Trust Company, N.A. & mathematics) education and Nikolay Kudryavtsev 1, 5 Characterization Group 211 Quality Circle, Suite 210 community health and safety. To Rector College Station, TX 77845 learn more about these programs, Moscow Institute of Physics Khaled Al Mogharbel 1-877-745-9341 or 1-781-575-2707 please visit www.seed.slb.com and Technology President, Drilling Group and www.foundation.slb.com, Moscow, Russia General stockholder for programs like Faculty for the Sherif Foda information is available on Future, which are managed by Michael E. Marks 2, 4 President, Production Group the Computershare website the Schlumberger Foundation. Managing Partner at www.computershare.com. Riverwood Capital, LLC Imran Kizilbash World Wide Web Palo Alto, California Vice President and Treasurer E-mail Alerts For information on Schlumberger To receive Schlumberger press technology, services and solutions, Lubna S. Olayan 2, 3 Stephane Biguet releases and daily news, visit www.slb.com. For information Financial Performance Chief Executive Officer Vice President Controller sign up at www.slb.com/ir. on career and job opportunities (Stated in millions, except per-share amounts) Olayan Financing Company at Schlumberger, visit Riyadh, Saudi Arabia Gérard Martellozo Form 10-K www.careers.slb.com. Year ended December 31 2014 2013 2012 Vice President Human Resources The Schlumberger 2014 annual 4, 5 Leo Rafael Reif report on Form 10-K filed with * Mark of Schlumberger Revenue $ 48,580 $ 45,266 $ 41,731 President Mark Danton the Securities and Exchange Other company, product, and service names are Income from continuing operations $ 5,643 $ 6,801 $ 5,230 Massachusetts Institute Vice President – Director of Taxes Commission is available without the properties of their respective owners. of Technology charge. To obtain a copy, call Diluted earnings-per-share from continuing operations $ 4.31 $ 5.10 $ 3.91 Cambridge, Massachusetts Simon Farrant 1-800-997-5299 from North Vice President Investor Relations America and 1-813-774-5043 Cash dividends per share $ 1.60 $ 1.25 $ 1.10 Tore I. Sandvold 3, 4 outside North America. Photography by John Amedick (page 5), Executive Chairman Howard Guild Alternatively, you can view and Ken Childress (pages 17, 18), Rossitsa Israel Net debt $ 5,387 $ 4,443 $ 5,111 (cover, inside front cover and pages 4, 6, 8, 14, 15, Sandvold Energy AS Chief Accounting Officer print all of our SEC filings online 16, 20, 21), Mr. Gaston Mbilinyi (page 24), Paul Oslo, Norway at www.slb.com/ir, or write to Swen (page 12), and Schlumberger archives (page Saul Laureles the Vice President Investor 4, 10, 11, 22). Henri Seydoux 3, 5 Assistant Secretary Relations, Schlumberger Limited, Table of Contents Chairman and 5599 San Felipe, 17th Floor, Chief Executive Officer Eileen Hardell Houston, TX 77056. Inside Front Cover and Page 1 Financial, Safety, and Environmental Performance Front Cover Parrot S.A. Assistant Secretary Page 2 Letter to Shareholders Technical Sales Support Engineer Jodi Lau Paris, France Page 5 Performed by Schlumberger and Reservoir Engineer Joseph Chalupsky Page 6 Changing the Way We Work correlate log data using the Petrel platform in Page 8 Accelerating the Pace of Technology Innovation the Schlumberger Digital Technology Theater 1 Member, Audit Committee Page 12 Improving Reliability and Increasing Efficiency in Houston, Texas, USA. 2 Member, Compensation Committee 3 Member, Finance Committee Page 18 Driving Growth Through Greater Integration 4 Member, Nominating and Governance Committee Scan the code with your mobile Page 22 A Sustainable Advantage 5 Member, Science and Technology Committee device to view the multimedia Page 25 Annual Report on Form 10-K version of this report. Inside Back Cover Directors, Officers, and Corporate Information 72795schD1R4.indd 3-3 2/12/15 11:16 AM Schlumberger is the world’s leading supplier of technology, integrated project management, and information solutions to the international oil and gas exploration and production industry. The company employs 120,000 people of over 140 nationalities working in approximately 85 countries. Schlumberger supplies a wide range of products and services, from seismic acquisition and processing; drill bits and drilling fluids; directional drilling and drilling services; formation evaluation and well testing; to well cementing and stimulation; artificial lift, well completions, and well intervention; and consulting, software, and information management. Safety and Environmental Performance Year ended December 31 2014 2013 2012 Combined Lost Time Injury Frequency (CLTIF)—Industry Recognized (OGP) 1.0 1.2 1.3 Auto Accident Rate mile (AARm)—Industry Recognized 0.24 0.24 0.36 CO2 emitted (million tonnes) 2.1 1.8 2.2 Tonnes of CO2 per billion $ revenue 43,200 39,700 52,800 Tonnes of CO2 per employee per year 16.6 14.6 18.6 Carbon Emission Reporting Schlumberger has participated in the Carbon Disclosure In 2014, increased North American Well Services emissions Project since 2005. In 2012, third-party auditing of the were due to increased activity as business conditions improved. company’s emissions accounting began and the company’s These, however, were largely offset by decreased WesternGeco disclosure score has risen with the effects of mitigation emissions as marine seismic activity slowed and benefits were plans and improvements in data capture and quality. realized from the marine energy management plan. The largest contributors to global Schlumberger emissions The rigor now present in emission reporting and auditing are Well Services vehicles, WesternGeco marine vessels, has led to the inclusion of the amount of emissions being and drilling rigs and vehicles used on Integrated Project stated as a function of total revenue as well as per employee Management and Schlumberger Production Management per year. This brings the figures presented in this report into activities. Strategies to reduce fuel consumption and limit line with other company external disclosures. emissions for vehicles and vessels are in place. 1 72795schD1R4.indd 1 2/11/15 10:59 PM Letter to Shareholders Schlumberger revenue for 2014 reached a record $48.6 billion, up 7% and growing for the fifth consecutive year. In North America, revenue surged by more than $2.3 billion, driven by strong activity both on land and offshore as well as by the penetration of innovative hydraulic stimulation technologies. International revenue increased by $1.2 billion, or 4%, on significant strength in the Middle East & Asia and in spite of considerable headwinds in the face of activity challenges, geopolitical unrest, falling oil prices, and international sanctions elsewhere. Oil markets remained relatively well balanced during 2014 as increasing global Paal Kibsgaard production capacity almost matched increasing demand. Yet, after more than Chief Executive Officer three years of remarkable stability, oil prices dropped dramatically by more than 40% late in the year to end at their lowest levels since 2009. But unlike the previous fall in price that was triggered by a global economic recession, this year’s drop resulted from a higher marketed supply of oil that became increasingly evident as North American tight oil production continued to grow and as OPEC shifted focus from protecting oil prices to protecting market share. At the same time, production recovered in countries that had suffered degrees of geopolitical disturbance, and the US dollar strengthened to further weaken overall commodity prices. In natural gas markets, US prices reached multiyear highs in February on exceptionally cold weather and risks of local supply shortages. Storage, however, returned to historical average levels at the end of the year as sustained production growth in the Marcellus play and increasing associated gas production in US tight oil plays more than offset the impact of low activity levels in other unconventional plays.
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