Schlumberger Announces Third-Quarter 2007 Results



    HOUSTON, October 19 /CNW/ - Schlumberger Limited (NYSE:  SLB) today
reported third-quarter revenue of $5.93 billion versus $5.64 billion in the
second quarter of 2007, and $4.95 billion in the third quarter of 2006.

    Net income reached $1.35 billion--an increase of 8% sequentially and 35%
year-on-year. Diluted earnings-per-share were $1.09 versus $1.02 in the
previous quarter, and $0.81 in the third quarter of 2006.

    Oilfield Services revenue of $5.13 billion increased 3% sequentially and
19% year-on-year. Pretax business segment operating income of $1.51 billion
was essentially flat sequentially but increased 23% year-on-year.

    WesternGeco revenue of $794 million increased 19% sequentially and 20%
year-on-year. Pretax business segment operating income of $306 million
increased 42% sequentially and 32% year-on-year.

    Schlumberger Chairman and CEO Andrew Gould commented, "Growth in the
third quarter was driven by international markets particularly in Latin
America, Russia, China and Indonesia. In North America, increased activity in
Canada was offset by weaker pricing for pressure pumping in certain regions on
land, and a sharp revenue drop in the Gulf of Mexico due to the departure of
several rigs to overseas locations and the loss of approximately 15 operating
days due to precautionary stand downs for approaching weather systems.

    Technology growth was strongest at WesternGeco, as the segment recovered
from the second-quarter dry docks and vessel transits. Marine acquisition
revenue for the quarter was an all-time record as advanced Q-Technology
acquisition techniques continued to be deployed. In other Technologies, growth
was led by robust IPM activity and by demand for Wireline and Drilling &
Measurements services, particularly in overseas markets.

    In the immediate future, while there will be some recovery from low
activity levels in the Gulf of Mexico, natural gas activity in both Canada and
the US is likely to stabilize as production remains relatively strong and gas
storage approaches winter at comfortable levels. As a result, pressure-pumping
pricing deterioration will continue. The current situation does not however
change our view that North American natural gas supply will require sustained
activity to combat production decline, and technology to increase production
rates from poorer quality reservoirs. Overseas, growth will continue at
varying rates between regions due to the effects of winter weather and project
delays in certain countries.

    Global demand for oil remains strong while non-OPEC production continues
to disappoint. Production decline rates in mature areas and continuing project
delays will inhibit non-OPEC supply increases, while personnel and equipment
shortages will restrict the industry's ability to respond."

    Other Events

    --  As part of the previously announced 40 million-share repurchase
program approved by the Board of Directors in the second quarter of 2006,
Schlumberger repurchased 3.1 million shares during the third quarter of 2007
for a total amount of $293 million, at an average price of $93.62 per share.
Under this program 24.1 million shares had been repurchased as of September
30, 2007.

    

                       Consolidated Statement of Income

                                                  (Stated in thousands
                                                   except per share
                                                   amounts)

                               Third Quarter            Nine Months
                           ---------------------- ------------------------
    For Periods Ended
     September 30             2007       2006         2007        2006
    ----------------------------------------------------------------------

    Revenue                $5,925,662 $4,954,818  $17,028,829 $13,880,610
    Interest and other
     income (1)(3)            107,578     70,699      288,685     199,781
    Expenses
        Cost of goods sold
         and services (3)   3,905,095  3,361,555   11,264,310   9,605,372
        Research &
         engineering (3)      190,194    149,538      531,971     449,834
        Marketing              21,904     17,632       58,585      49,474
        General &
         administrative       137,260    117,176      375,576     323,615
        Interest               68,622     62,351      203,039     171,616
    ----------------------------------------------------------------------

    Income before taxes
     and minority interest  1,710,165  1,317,265    4,884,033   3,480,480
    Taxes on income (3)       356,168    317,434    1,090,730     852,504
    ----------------------------------------------------------------------
    Income before minority
     interest               1,353,997    999,831    3,793,303   2,627,976
    Minority interest (3)           -         (7)           -     (48,741)
    ----------------------------------------------------------------------

    Net Income (3)         $1,353,997 $  999,824  $ 3,793,303 $ 2,579,235
    ----------------------------------------------------------------------

    Diluted Earnings Per
     Share (3)             $     1.09 $     0.81  $      3.08 $      2.09

    Average shares
     outstanding            1,194,175  1,183,683    1,185,624   1,182,795
    Average shares
     outstanding assuming
     dilution               1,243,808  1,243,966    1,238,675   1,243,579

    Depreciation &
     amortization included
     in expenses (2)       $  497,661 $  392,765  $ 1,399,570 $ 1,122,410
    ----------------------------------------------------------------------

    

    
    1) Includes interest income of:
         Third Quarter 2007 - $44 million (2006 - $25 million)
         Nine Months 2007 - $114 million (2006 - $90 million)

    2) Including Multiclient seismic data costs.

    3) See page 6 for details of Charges & Credits.

    

    

                           Condensed Balance Sheet

                                                            (Stated in
                                                             thousands)

    Assets                                   Sept. 30, 2007 Dec. 31, 2006
    ----------------------------------------------------------------------
    Current Assets
      Cash and short-term investments        $    3,238,119 $    2,998,873
      Other current assets                        7,697,610      6,186,789
    ----------------------------------------------------------------------
                                                 10,935,729      9,185,662
    Fixed income investments, held to
     maturity                                       382,582        153,000
    Fixed assets                                  6,686,750      5,576,041
    Multiclient seismic data                        223,100        226,681
    Goodwill                                      5,079,953      4,988,558
    Other assets                                  2,998,400      2,702,196
    ----------------------------------------------------------------------

                                             $   26,306,514 $   22,832,138
    ----------------------------------------------------------------------


    Liabilities and Stockholders' Equity
    ----------------------------------------------------------------------
    Current Liabilities
      Accounts payable and accrued
       liabilities                           $    4,158,374 $    3,848,017
      Estimated liability for taxes on
       income                                     1,026,290      1,136,529
      Bank loans and current portion of
       long-term debt                               770,776      1,321,529
      Convertible debentures                        491,609              -
      Dividend payable                              210,660        148,720
    ----------------------------------------------------------------------
                                                  6,657,709      6,454,795
    Convertible debentures                          443,015      1,424,990
    Other long-term debt                          3,598,761      3,238,952
    Postretirement benefits                         951,394      1,036,169
    Other liabilities                               637,915        257,349
    ----------------------------------------------------------------------
                                                 12,288,794     12,412,255

    Stockholders' Equity                         14,017,720     10,419,883
    ----------------------------------------------------------------------

                                             $   26,306,514 $   22,832,138
    ----------------------------------------------------------------------

    

    
                                   Net Debt

    "Net Debt" represents gross debt less cash, short-term investments and
     fixed income investments, held to maturity. Management believes that
     Net Debt provides useful information regarding the level of
     Schlumberger indebtedness. Details of the Net Debt follow:
    

    

                                              (Stated in
                                               millions)

    Nine Months                                       2007
    -------------------------------------------------------
    Net Debt, January 1, 2007                 $     (2,834)
      Net income                                     3,793
      Depreciation and amortization                  1,400
      Excess of equity income over dividends
       received                                       (128)
      Increase in working capital
       requirements                                   (856)
      US qualified pension plan contribution          (150)
      Capital expenditure (1)                       (2,207)
      Dividends paid                                  (562)
      Proceeds from employee stock plans               521
      Stock repurchase program                        (798)
      Business acquisitions                           (196)
      Conversion of debentures                         490
      Other                                            (64)
      Translation effect on net debt                   (92)
                                              -------------

    Net Debt, September 30, 2007              $     (1,683)
                                              -------------


    Components of Net Debt                    Sept. 30, 2007 Dec. 31, 2006
    ----------------------------------------------------------------------
    Cash and short-term investments           $      3,238        $ 2,999
    Fixed income investments, held to
     maturity                                          383            153
    Bank loans and current portion of long-
     term debt                                        (771)        (1,322)
    Convertible debentures                            (934)        (1,425)
    Other long-term debt                            (3,599)        (3,239)
                                              -------------  -------------

                                              $     (1,683)       $(2,834)
                                              -------------  -------------

    (1) Including Multiclient seismic data
     expenditure.

    

    
                              Charges & Credits

    Net Income for the nine months 2006 included the impact of the Charges
     & Credits described below:

    

    
                                                           (Stated in
                                                            millions
                                                            except per
                                                            share amounts)

                             Nine Months 2006
                 -----------------------------------------
                                                   Diluted     Income
                  Pretax    Tax   Min Int   Net      EPS      Statement
                                                            Classification
                 ----------------------------------------- ---------------
    Net
     Income
     per
     Consolidated
     Statement of
     Income      $3,480.5 $852.5  $(48.8) $2,579.2 $  2.09
    Add back
     Charges &
     Credits:
     -
      WesternGeco
      in-process                                            Research &
      R&D charge     21.0      -       -      21.0    0.02   engineering
     - Loss on
      sale of
      investments
      to fund the
      WesternGeco                                           Interest and
      transaction     9.4      -       -       9.4    0.01   other income
     -
      WesternGeco                                           Cost of goods
      visa                                                   sold and
      settlement      9.7   (0.3)   (3.2)      6.8    0.01   services
     - Other in-
      process R&D                                           Research &
      charges         5.6      -       -       5.6       -   engineering
                 -----------------------------------------
    Net Income
     before
     charges &
     credits     $3,526.2 $852.2  $(52.0) $2,622.0 $  2.13
                 -----------------------------------------

    Effective tax
     rate:
     - GAAP         24.5%
     - Before
      charges &
      credits       24.2%

    

    
                               Business Review

    Business Segments
    ------------------------------

    ( Stated in millions)
                                     Third Quarter        Nine Months
                                   ------------------ --------------------
                                                  %                    %
                                    2007   2006   chg   2007    2006   chg
                                   ------------------ --------------------
    Oilfield Services
    ------------------------------
    Revenue                        $5,128 $4,297  19% $14,862 $12,134  22%
    Pretax Operating Income        $1,505 $1,223  23% $ 4,424 $ 3,316  33%

    WesternGeco
    ------------------------------
    Revenue                        $  794 $  661  20% $ 2,165 $ 1,754  23%
    Pretax Operating Income        $  306 $  232  32% $   789 $   550  43%

    

    Pretax operating income represents the segments' income before taxes and
minority interest. The pretax operating income excludes corporate expenses,
interest income, interest expense, amortization of certain intangible assets,
interest on postretirement medical benefits, stock-based compensation costs
and the Charges & Credits described on page 6, as these items are not
allocated to the segments.

    Oilfield Services

    Third-quarter revenue of $5.13 billion was 3% higher sequentially and 19%
higher year-on-year.

    Sequential revenue increases were highest in Latin America led by the
Mexico/Central America and Peru/Colombia/Ecuador GeoMarkets followed by
Europe/CIS/Africa, particularly in the East Russia and North Africa
GeoMarkets, with growth also recorded in Middle East & Asia, led by the
China/Japan/Korea and Indonesia GeoMarkets. In North America, the strong
increase in revenue following the seasonal spring breakup in Canada was not
enough to offset lower revenue in the US GeoMarkets. This was the result of a
sharp revenue drop in the US Gulf of Mexico due to the transfer of several
rigs to overseas locations and from the loss of approximately 15 operating
days due to precautionary stand downs for approaching weather systems. In the
North American pressure-pumping stimulation services market, capacity-driven
pricing erosion continued.

    Pretax operating income of $1.51 billion was essentially flat
sequentially but increased 23% year-on-year. Sequentially, growth through
stronger demand for Well Services and Wireline technologies in Canada; a more
favorable activity mix in the Mexico/Central America GeoMarket; higher
activity levels and a favorable technology mix in Peru/Colombia/Ecuador; and
increased high-margin Drilling & Measurements activity in China/Japan/Korea
and Eastern Russia was experienced. However, this growth was more than offset
by the weather-related effects in the US Gulf of Mexico and the
pressure-pumping pricing erosion on land in the US. The overall Oilfield
Services pretax operating margin was 29.4%.

    Advanced technology uptake continued during the quarter as demand for new
Wireline technologies was driven by the need for more accurate formation
evaluation. New Wireline Scanner(*) deployments included high-pressure,
high-temperature applications in the US Gulf of Mexico, use for thin-bed and
laminated-sand analysis in the US and West Africa, and for evaluation of
additional natural gas production in Mexico. Total jobs run with Scanner
technology now exceed 1,500 worldwide, with more than 300 tools deployed.
Drilling & Measurements Scope(*) services also continued their worldwide
expansion with PeriScope(*) imaging-while-drilling jobs in China and TeleScope(*)
high-speed telemetry in combination with StethoScope(*) formation
pressure-while-drilling operations in Qatar, Brunei and the US Gulf of Mexico.

    North America

    Revenue of $1.30 billion decreased 3% sequentially and 3% year-on-year.
Pretax operating income of $350 million decreased 16% sequentially and 15%
year-on-year.

    Sequentially, revenue in the Canada GeoMarket rebounded on the higher rig
count led by demand for Well Services and Wireline technologies following the
seasonal spring break-up. However, this growth was more than offset by a
slowdown in the US Gulf Coast due to operator caution during the hurricane
season; lower exploration-driven activity associated with seasonal facilities
and rig maintenance in Alaska; and the pricing erosion in pressure-pumping
stimulation services in all three US land GeoMarkets.

    Pretax operating margin for the Area declined sequentially to 26.9%
primarily due to the weather-related effects on activity in the US,
particularly in the Gulf of Mexico; lower high-margin exploration activity in
Alaska; and the lower pricing environment for pressure-pumping stimulation
services in the US land GeoMarkets. In Canada, however, margins grew as a
result of improved utilization of people and equipment as activity rebounded.

    In the US Gulf of Mexico, Rt Scanner(*) and Sonic Scanner(*)--members of the
Schlumberger Wireline Scanner Family(*) of rock and fluid characterization
services--were run for the first time for BP in a high-pressure environment.
The technologies were successfully deployed to a total depth of 29,300 ft
where bottom-hole pressures exceeded 23 kpsi. Coordination between the field
and Schlumberger Data & Consulting Services (DCS) allowed delivery of
high-quality dip results from the Rt Scanner enabling the customer to
determine subsequent drilling plans.

    BP also deployed in the US Gulf of Mexico advanced Schlumberger Drilling
& Measurements technologies to run a complex bottom-hole assembly in a hostile
deep-water environment. The unique toolstring combination included PowerDrive(*)
rotary-steerable systems, VISION(*) imaging-while-drilling measurements,
TeleScope high-speed telemetry and StethoScope formation
pressure-while-drilling technologies.

    Elsewhere in the US Gulf of Mexico, BHP Billiton Petroleum set a new
benchmark for subsalt deep-water drilling by achieving a record average of
only one-and-a-half days per 1,000 ft, utilizing Schlumberger Drilling &
Measurements PowerDrive rotary-steerable technology, TeleScope high-speed
telemetry and VISION resistivity measurements in all six hole sections.

    In Oklahoma, Devon Energy and Schlumberger DCS continued to develop a
comprehensive formation evaluation methodology for the customer's horizontal
Barnett Shale play. This methodology integrates the latest in Schlumberger
seismic, logging, micro-seismic and core analysis technologies to develop and
optimize the completion process. The efforts bring deeper understanding across
the Barnett Shale play in the areas of stress analysis, fracture-height
containment and rock mechanics--allowing for increased effectiveness during
stimulation of these wells.

    In South Texas, Brigham Oil and Gas deployed the Rt Scanner triaxial
induction tool to identify two laminated sand bodies that would have been
overlooked with conventional petrophysical analysis. The assessment revealed
64 ft of net pay in these zones, which were subsequently perforated and
stimulated and are now producing approximately 3 MMscfd.

    Latin America

    Revenue of $863 million increased 13% sequentially and 37% year-on-year.
Pretax operating income of $204 million increased 14% sequentially and 58%
year-on-year.

    Sequential revenue growth was primarily driven by a continuing ramp-up in
Integrated Project Management (IPM) activity. A higher rig count coupled with
stronger demand for Drilling & Measurements, Artificial Lift Systems and
Schlumberger Information Solutions technologies in the Peru/Colombia/Ecuador
GeoMarket also contributed to growth.

    Pretax operating margin increased sequentially to 23.7% as a result of an
increase in exploration-related higher-margin Drilling & Measurements services
in Peru/Colombia/Ecuador and a more favorable activity mix on IPM projects.

    In Colombia, the National Hydrocarbon Agency awarded Schlumberger
implementation of a state-of-the-art solution for stereoscopic visualization
and collaborative immersion using Petrel(*) seismic-to-simulation software.

    In the Mexico/Central America GeoMarket, Schlumberger performed the first
StageFRAC(*) multistage fracturing and completion operation in Latin America.
Part of the Contact(*) family of staged fracturing and completion services,
StageFRAC delivers effective stimulation of multi-layered reservoirs ensuring
optimal treatment of each zone, while reducing total treatment time. This
marked the first time that a well was completed with the StageFRAC system
outside North America.

    In Mexico, Pemex ran the Sonic Scanner advanced acoustic scanning tool
and the Rt Scanner triaxial induction tool in combination on a deep-water
well, revealing a significantly larger gas zone than previously expected. The
radial profile acquired by the Sonic Scanner identified additional production
from a zone the customer previously thought uneconomical.

    Europe/CIS/Africa

    Revenue of $1.69 billion increased 5% sequentially and 28% year-on-year.
Pretax operating income of $495 million increased 7% sequentially and 38%
year-on-year.

    Sequential revenue growth was driven by seasonally higher activity levels
on land and offshore in the East Russia GeoMarket; increased demand for IPM
services and for Artificial Lift Systems products in South Russia; higher
demand for Drilling & Measurements technologies in North Russia; and the
impact of the consolidation of Tyumenpromgeofizika. Increased demand for Well
Services and Drilling & Measurements technologies in North Africa; higher
demand for Artificial Lift Systems products in Continental Europe; and
stronger demand for Wireline and Well Testing technologies in West and South
Africa also contributed to growth. However, this was partially offset by
project slowdowns in Nigeria and the Caspian, and by lower activity in Libya.

    The Area pretax operating margin increased by 50 basis points (bps)
sequentially to reach 29.2% driven primarily by increased demand for
higher-margin Well Services and Drilling & Measurements technologies in North
Africa and a more favorable activity mix in the Russia GeoMarkets. This
performance was partially offset by the project slowdowns in Nigeria and the
Caspian and by lower demand for higher-margin Wireline and Drilling &
Measurements technologies in Libya.

    Offshore Norway, Schlumberger performed a complex formation evaluation
program on the high-pressure, high-temperature Onyx South West appraisal well
for Norske Shell using the new Wireline InSitu Density(*) fluid characterization
service. A member of the InSitu Family(*) of quantitative fluid properties
measurements, the advanced technology was deployed on state-of-the-art
wireline cables rated to 500 deg F using a high-tension capstan.

    In Russia, the Sakhalin Energy Investment Company (SEIC) awarded
Schlumberger a multi-well intelligent completions contract for the supply of
downhole flow-control valves, permanent gauges and distributed temperature
systems for the SEIC Piltun Astokhskoye B platform. The work scope comprises
water injection wells scheduled to be drilled and completed offshore Sakhalin
Island over the next three years. Plans for each well include a three- to
four-zone intelligent completion.

    In North Russia, FiberFRAC(*) fiber-based fracturing fluid technology was
introduced for Gazprom neft (Sibneft-Noyabrskneftegaz). The application
resulted in a production increase of more than 20% over that achieved with
current hydraulic fracturing techniques. FiberFRAC technology allows
customization of fracturing fluid properties for varying reservoir conditions
and enables optimization of the stimulation design and treatment leading to
improved production.

    Elsewhere in Russia, Schlumberger was awarded a contract for more than
400 electrical-submersible pump systems. These systems will be manufactured in
the Schlumberger Russia manufacturing facility located in Tyumen, Western
Siberia.

    In the UK sector of the North Sea, Venture Production plc deployed the
first FlexSTIM(*) modular skid-mounted stimulation package capable of
large-scale fracturing operations. Installed on a supply vessel, the system
placed multiple-propped fracture treatments in a horizontal gas well.
Following stimulation, the well tested at rates approaching 50
MMscfd--providing the customer additional production of more than 9,000
barrels of oil equivalent per day, including associated gas condensate. The
FlexSTIM technique offers an alternative to leasing a dedicated stimulation
vessel.

    In West Africa, operators Total, Eni and Sonangol adopted integration of
Schlumberger Wireline Scanner Family and Quicksilver Probe(*) rock and fluid
characterization measurement technologies for thin-bed reservoir exploration
and reservoir studies where analysis of fluid properties and distribution is
complex--effectively minimizing risk and maximizing reserves.

    Middle East & Asia

    Revenue of $1.23 billion increased 1% sequentially and 28% year-on-year.
Pretax operating income of $438 million increased 2% sequentially and 42%
year-on-year.

    The sequential growth in revenue resulted from higher activity in the
China/Japan/Korea, Indonesia, Australia/Papua New Guinea, India,
Brunei/Malaysia/Philippines and Gulf GeoMarkets. This growth was partially
offset by lower activity in Qatar and Thailand/Vietnam.

    Pretax operating margin increased sequentially to 35.7% driven by the
activity mix in China/Japan/Korea; increased demand for higher-margin Drilling
& Measurements and Well Testing technologies in Australia/Papua New Guinea;
and higher demand for Wireline and Well Testing technologies in
Brunei/Malaysia/Philippines. This performance was partially offset by the
slowdown in the Thailand/Vietnam GeoMarket.

    In the Middle East, as part of a deep-reading technology collaboration
project with Saudi Aramco, Schlumberger conducted the world's deepest
cross-well electromagnetic survey in the Ghawar field--the world's largest
oilfield--using the Electromagnetic Imaging technique that provides reservoir
scale measurements to map fluid distribution. Although it stands as the
deepest-reading survey completed to date, the key achievement was the well
separation, which was in the range of 860 meters.

    In Saudi Arabia, Saudi Aramco selected StageFRAC multistage fracturing
and completion technology for a staged-acid fracturing treatment in a 5,000-ft
openhole section in an oil well in a carbonate reservoir where seven intervals
were stimulated and tested in one trip. Post-treatment evaluation indicated
that production doubled.

    In the United Arab Emirates, increased activity and strong
customer-support services led to an increase in the number of ECLIPSE(*)
reservoir simulation software licenses purchased by the Abu Dhabi National Oil
Company. ECLIPSE advanced technology enables oil and gas customers to better
simulate reservoir behavior over the life of the field.

    In China, Schlumberger Drilling & Measurements PeriScope 15(*) technology
was deployed for the PetroChina Xinjiang Oil Company to enable placement of
six horizontal wells in the sweet spot of a heavy-oil reservoir while staying
within two meters of the undulating reservoir bottom contact. Use of this
technology resulted in an average reservoir contact of 98%.

    WesternGeco

    Third-quarter revenue of $794 million increased 19% sequentially and was
20% higher compared to the same period last year. Pretax operating income of
$306 million increased 42% sequentially and 32% year-on-year.

    Sequentially, Marine revenue increased due to higher vessel utilization
following seasonal transits and scheduled dry dock inspections in the prior
quarter, full-quarter utilization of the seventh Q(*) vessel, and improved
pricing for conventional and Q-Marine(*) surveys. Data Processing revenue also
increased driven primarily by higher sales in Europe, North America and Asia.
These increases were partially offset by lower Multiclient sales while Land
activity remained flat.

    Pretax operating margins increased by a robust 611 bps to reach 38.6%
driven by higher operating leverage in Marine and higher-margin Data
Processing activities.

    Shanghai Petroleum Co., Ltd. awarded WesternGeco the first Q-Marine
acquisition survey in China, which was completed in August using the vessel
Geco Searcher to cover an area of more than 380 sq km.

    In Mexico, Pemex awarded an integrated Q-Marine acquisition and
processing survey covering 7,050 sq km of the Temoa field. Acquisition began
in July 2007 and is expected to be completed in December 2007.

    In Africa, Petrobras awarded WesternGeco an integrated Q-Marine
acquisition and processing survey to cover 1,200 sq km in Angola Block 6. The
survey was completed ahead of schedule.

    WesternGeco recently completed a 1,100 sq km 3D land seismic acquisition
project for Abu Dhabi National Oil Company in South East Abu Dhabi. The survey
area consisted of 180-m high sand dunes and the survey was completed three
months ahead of schedule.

    During the quarter, Schlumberger acquired a minority interest in
PetroMarker, a Norwegian-based developer of marine electromagnetics
measurements and interpretation technology. This acquisition will complement
the WesternGeco integration of seismic and electromagnetics services designed
to introduce a step change in reservoir definition.

    In the US Gulf of Mexico, WesternGeco announced the expansion of the
E-Octopus wide-azimuth towed-streamer survey with the fourth and fifth phases
scheduled to commence in January 2008. These surveys offer the unique
advantage of more precise base and edge-of-salt definition through
multi-measurement constrained imaging--the integration of magnetotellurics,
gravity and Q-Marine data. As part of the E-Octopus survey, WesternGeco has
developed the world's first onboard prestack wave-extrapolation (WEM) depth
migration using proprietary Q-Xpress(*) techniques to provide quick-look
migrated data volumes for interpretation, quality control, illumination, and
to meet in-fill acquisition requirements. The E-Octopus final deliverables
will include the latest state-of-the-art technologies such as anisotropic
multi-azimuthal tomography, wavefield extrapolation demultiple and shot domain
WEM with angle gathers.

    About Schlumberger

    Schlumberger is the world's leading oilfield services company supplying
technology, information solutions and integrated project management that
optimize reservoir performance for customers working in the oil and gas
industry. The company employs more than 76,000 people of over 140
nationalities working in approximately 80 countries. Schlumberger supplies a
wide range of products and services from seismic acquisition and processing;
formation evaluation; well testing and directional drilling to well cementing
and stimulation; artificial lift and well completions; and consulting,
software, and information management. In 2006, Schlumberger operating revenue
was $19.23 billion. For more information, visit www.SLB.com.

    (*) Mark of Schlumberger

    Notes

    Schlumberger will hold a conference call to discuss the above
announcement on Friday, October 19, 2007, at 9:00am Eastern, 8:00am Central
(2:00pm London time/3:00pm Paris time). To access the call, which is open to
the public, please contact the conference call operator at +1-800-230-1059
(toll free) within North America, or +1-612-288-0329 outside of North America,
approximately 10 minutes prior to the scheduled start time. Ask for the
"Schlumberger Earnings Conference Call." A replay of the conference call will
be available through November 18, 2007, by dialing +1-800-475-6701 within
North America or +1-320-365-3844 outside of North America, and providing the
access code 886387.

    The conference call will be webcast simultaneously at
www.SLB.com/irwebcast on a listen-only basis. Please log in 15 minutes ahead
of time to test your browser and register for the call. A replay of the
webcast will also be available at the same web site.

    Supplemental information in the form of a question and answer document on
this press release and financial schedules are available at www.SLB.com/ir.




For further information:

For further information: Schlumberger Malcolm Theobald, +1-713-375-3535
Vice President of Investor Relations or Debashis Gupta, +1-713-375-3535
Manager of Investor Relations investor-relations@slb.com

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