• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 3 hours What China is Learning from Russia's War in Ukraine and its Consequences
  • 6 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 6 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 2 days Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Schlumberger Won’t Take New Full-Oilfield Management Projects

Oilfield services provider Schlumberger will focus on monetizing existing full-field production management contracts in the near to medium term and will not undertake new such deals in the meantime, chairman and chief executive officer Paal Kibsgaard said on Monday.

Schlumberger Production Management (SPM) is the full-field production management business model of the oilfield services provider, in which it has actively invested for several years.

Schlumberger, however, will not be taking new such projects until it executes and monetizes part of its existing portfolio of full-field production management, Kibsgaard said at a presentation at the Scotia Howard Weil 2019 Energy Conference in New Orleans on Monday.

“The SPM model represents our highest level of integration and continues to be a key part of our offering and our future growth potential. Following several years of active investments into our project portfolio, SPM was cashflow neutral in 2018 and will be a growing contributor to our overall free cash flow from 2019 onwards,” Kibsgaard said.

“Our near- to-medium term focus for SPM is to execute out workplans and monetize part of our SPM project portfolio to clearly demonstrate the value of the SPM business model to our investors. In the meantime, we will not undertake any new SPM projects,” the top manager added.

Referring to the different drilling markets around the world and their impact on Schlumberger’s business this year, Kibsgaard said that the company expects high single-digit, year-over-year revenue growth in the international markets in 2019.

In North America’s shale, Schlumberger’s chief executive noted that this year’s investment would likely depend on free cash flows.

“Conversely, in North America land, higher cost of capital, lower borrowing capacity, and investors looking for capital discipline and increased returns suggest that future E&P investments will likely be at levels dictated by free cash flow. Based on this, we expect E&P investment levels in North America land to be down more than 10% in 2019 versus 2018,” Kibsgaard said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News