Schlumberger Announces Fourth-Quarter and Full-Year 2011 Results

Schlumberger Limited (NYSE:SLB) today reported full-year 2011 revenue of
$39.54 billion versus $27.45 billion in 2010.

Full-year 2011 income from continuing operations attributable to
Schlumberger, excluding charges and credits, was $4.97 billion,
representing diluted earnings-per-share of $3.66 versus $2.86 in 2010.

Fourth-Quarter Results:

Fourth-quarter 2011 revenue was $10.97 billion versus $10.23 billion in
the third quarter of 2011, and $9.07 billion in the fourth quarter of
2010.

Income from continuing operations attributable to Schlumberger,
excluding charges and credits, was $1.49 billion?an increase of 13%
sequentially and 28% year-on-year. Diluted earnings-per-share from
continuing operations, excluding charges and credits, was $1.11 versus
$0.98 in the previous quarter, and $0.85 in the fourth quarter of 2010.

Schlumberger recorded charges of $0.06 per share in the fourth quarter
of 2011 versus $0.02 per share in the previous quarter, and $0.09 per
share in the fourth quarter of 2010.

Oilfield Services revenue of $10.30 billion increased 8% sequentially
and 21% year-on-year. Pretax segment operating income of $2.17 billion
was up 12% sequentially and 28% year-on-year.

Distribution revenue of $685 million decreased 2% sequentially but
increased 19% year-on-year. Pretax segment operating income of $26
million declined 14% sequentially but increased 26% year-on-year.

Schlumberger CEO Paal Kibsgaard commented, 'Fourth-quarter results
showed solid sequential growth driven by stronger activity both on land
and offshore for most Technologies, and stronger product sales for
completions, software and multiclient seismic. All Areas and Product
Groups grew sequentially.

Growth in North America was led by high-technology services in deepwater
Gulf of Mexico, where operational performance was extremely solid.
Significant multiclient seismic sales were recorded and a second
wide-azimuth seismic fleet was mobilized. North America land revenue
grew in line with rig count while performance improved through asset
deployment and crew efficiency. Pricing momentum in our Wireline and
Drilling product lines continued though the trend slowed somewhat versus
the prior quarter.

International growth was driven by deepwater and exploration activity,
particularly in East and West Africa, and by strong land activity in the
Middle East and North Africa. In addition, regional strength was seen
for drilling and production technologies in a number of GeoMarkets.

Bidding remained competitive on large tenders for standard technology.
We continued to see positive pricing signs for Wireline and Drilling &
Measurements driven by our unique technology capability and strong
operational performance.

Integration with Smith made further progress during the quarter and
revenue synergies in 2011 exceeded our revised targets. The transaction
was accretive on an earnings-per-share basis in the quarter and for the
full year.

Uncertainty remains over the outlook for 2012 due to the continuing
sovereign debt crisis in Europe which places downward pressure on GDP
and oil demand forecasts. Natural gas markets are well supplied in North
America with gas storage well above five-year highs. In this
environment, the thin excess oil supply cushion is expected to support
oil prices close to current levels, while global demand for LNG
continues to increase. Recent E&P customer spending forecasts also point
to higher E&P investment in 2012, particularly in international markets.

Against this backdrop we are planning for growth in 2012, while building
the required flexibility into our resource plans. We remain confident
that any potential reductions in activity will be short-lived and that
our competitive position remains strong, given our presence and strength
in the international markets and the balance we have established between
reservoir characterization, drilling and production services in our
North America offering.?

Other Events:

• 
  During the quarter, Schlumberger repurchased 9.2 million shares of its
  common stock at an average price of $69.42 for a total purchase price
  of $635 million.
  
• 
  On December 2, 2011, Schlumberger and Saxon Energy Services Inc.
  ('Saxon?) merged their rig businesses. Under the terms of the
  transaction, 14 Schlumberger land drilling rigs and crews in Oman,
  Pakistan and Venezuela have become part of Saxon′s operations. Saxon
  will also provide technical drilling contracting support to existing
  Schlumberger joint ventures and operations in Saudi Arabia, Algeria,
  Iraq, and Venezuela (Lake Maracaibo). Saxon continues to be owned by
  Schlumberger, affiliates of First Reserve Corporation and Saxon
  management.
  
• 
  During the quarter, Schlumberger completed the purchase of ThruBit,
  LLC, a company that provides openhole logging services using a unique
  through-the-bit deployment technique.
  
• 
  On January 5, 2012, Petrofac and Schlumberger signed a cooperation
  agreement under which both will establish a working relationship to
  deliver integrated and high-value production projects in the emerging
  and growing production services and production enhancement market.
  
• 
  On January 19, 2012, the Board of Directors approved a 10% increase in
  the quarterly dividend. The next quarterly dividend, which will
  increase to $0.275 per share of outstanding common stock, is payable
  on April 13, 2012 to stockholders of record on February 22, 2012.
  

⁽¹⁾Excludes interest included in the product groups and
geographic areas results.

⁽¹⁾Excludes interest included in the product groups and
geographic areas results.

Oilfield Services

Full-year 2011 revenue of $36.96 billion increased 39% over 2010 driven
by significantly improved worldwide activity; stronger pricing and
improved asset efficiency in North America as the market continued to
shift to liquids-rich plays; and marked international growth as
deepwater and exploration work continued to strengthen with further
signs of early pricing traction for Wireline and Drilling & Measurements
services. The full-year impact of the Smith International and
Geoservices businesses acquired in 2010, the resumption of deepwater
operations in the US Gulf of Mexico and higher WesternGeco marine
activity and multiclient sales worldwide also contributed to overall
performance. In addition, a number of international regions showed
particular strength in Reservoir Production and Drilling Group
Technologies. These included Iraq with strong operational performance
and new Integrated Project Management (IPM) contract awards, and Latin
America, the North Sea, Russia, Saudi Arabia, Bahrain and East Asia that
benefited from strengthening drilling and production activity. However,
international results were tempered by activity disruptions following
the first quarter′s geopolitical unrest in North Africa and the Middle
East. Pretax operating income of $7.31 billion was 44% higher than in
2010. Pretax operating margin increased 75 basis points (bps) to 19.8%
following the resumption of higher-margin activity in the US Gulf of
Mexico, improved pricing and asset efficiency for Well Services
technologies in North America, and improving activity for WesternGeco
although these gains were muted by the effects of the first quarter′s
geopolitical events.

Fourth-quarter revenue of $10.30 billion increased 8% sequentially and
21% year-on-year. Sequentially, revenue increased across all Groups and
geographical Areas.

Sequentially, Reservoir Characterization revenue increased on
strong WesternGeco multiclient sales in the US Gulf of Mexico and the
Angola GeoMarket, together with robust end-of-year Schlumberger
Information Solutions (SIS) software sales across all Areas. WesternGeco
also improved with the resumption of land seismic activity in the Middle
East and new surveys in North Africa. Wireline reported considerable
growth across all geographical Areas, and particularly on stronger
offshore exploration activities in the Nigeria & Gulf of Guinea,
Southern & Eastern Africa and Central & West Africa GeoMarkets. Drilling
revenue increased on higher M-I SWACO activity in North America Land,
the US Gulf of Mexico and Latin America. IPM revenue increased
significantly, mostly from projects in Mexico and Iraq, while Drilling &
Measurements revenue was higher on improved pricing and strong activity
in the US Gulf of Mexico and the Nigeria & Gulf of Guinea GeoMarket. Reservoir
Production revenue increased, driven by stronger Completions and
Artificial Lift product sales across all Areas. In North America Land,
Well Services grew through capacity additions and continued improvements
in asset utilization and crew efficiency. In addition, Framo and
Schlumberger Production Management (SPM) posted strong sequential
increases.

On a geographical basis, North America Area revenue grew
sequentially on increasing deepwater work in the US Gulf of Mexico,
higher rig count and land activity in the US and Canada, and significant
WesternGeco multiclient sales. In addition, Well Services reported
considerable increases from additional fleet deployment and continued
improvements in asset utilization and crew efficiency. In the Latin
America Area, strong revenue was recorded in the Mexico & Central
America GeoMarket from higher IPM project activities and SIS software
sales; in the Venezuela, Trinidad & Tobago GeoMarket from WesternGeco
marine seismic activities; and in the Peru, Colombia & Ecuador GeoMarket
from robust Artificial Lift product sales. In the Europe/CIS/Africa
Area, strong results were led by the Angola GeoMarket, which saw
vigorous WesternGeco multiclient sales in addition to expanded presalt
offshore activity for Wireline, Testing Services and Drilling &
Measurements; the Nigeria & Gulf of Guinea GeoMarket, which recorded
robust Completions product sales and higher Drilling & Measurements and
Wireline activity; and the North Africa GeoMarket that reported higher
Wireline, Testing Services, Well Services and IPM project activity.
These increases, however, were reduced by lower North Sea activity which
was impacted by seasonal weather issues. In the Middle East & Asia
Area, strong Completions and Artificial Lift product sales and
robust SIS software sales drove results?particularly in the India
GeoMarket. These results were augmented by continued growth in the Saudi
Arabia, Bahrain GeoMarket due to the rebound of land seismic
acquisition, strong rigless activity and land rig additions. The Oman
GeoMarket grew primarily on higher Wireline and Artificial Lift
activities while the Iraq GeoMarket saw an increase in non-project
services in addition to new IPM projects.

Pretax operating income of $2.17 billion increased 12% sequentially and
28% year-on-year. Pretax operating margin increased 82 bps sequentially
to 21.1% primarily due to the strong sales of WesternGeco multiclient
licenses, SIS software and Completions products. Drilling & Measurements
and Wireline also contributed to this sequential improvement through
increasing higher-margin exploration activities.

Technology highlights during the quarter confirmed further market
penetration of new Schlumberger technologies across all Product Groups
in a number of key areas.

In the UAE, Crescent Petroleum awarded WesternGeco an acquisition and
processing contract for a full-offset, full-azimuth 3D survey in their
Sharjah onshore concession using the UniQ* integrated point-receiver
land seismic system. The contract integrates several of the most recent
technologies from WesternGeco, including Managed Spread and Source
(MSS), Surface Wave Analysis Modeling and Inversion (SWAMI), and
anisotropic Reverse Time Migration (RTM) depth migration.

WesternGeco has also been awarded a five-year contract by Kuwait Oil
Company for the world′s largest channel-count seismic survey ever
conducted, encompassing land acquisition and data processing of 2,895
km2 covering five fields in Kuwait. The contract includes acquisition
with the WesternGeco UniQ integrated point-receiver system, utilizing
over 200,000 point receivers on a single crew.

In Western Australia, Origin Energy awarded WesternGeco a contract for a
3D land seismic survey in the Perth Basin using the UniQ integrated
point-receiver land seismic system. This is the first commercial survey
of its kind in the Asia-Pacific region and marks a return to the
Australia land seismic market for WesternGeco. The goal of the survey is
to improve reservoir delineation and aid drill placement for multiple
plays in a mature basin.

Advanced Schlumberger Wireline technologies were deployed for Statoil in
two exploration wells drilled off the Atlantic coast of Canada. The
services run included the Sonic Scanner* acoustic imaging platform for
compressional and shear sonic data, the Rt Scanner* triaxial induction
tool for horizontal and vertical resistivity measurements, and the USI*
ultrasonic imager tool for cement evaluation. The MDT* modular formation
dynamics tester with InSitu Fluid Analyzer* technology provided
real-time fluid density, viscosity, contamination and fluid color
measurements while the MSCT* mechanical sidewall coring tool recovered a
series of high-quality cores. Walkaway and vertical seismic profiles
were also recorded using eight-shuttle VSI* versatile seismic imager
technology with dual ITAGA^? seismic sources.

In Brazil, Petrobras Exploration acquired a further 20 Petrel* E&P
software technology licenses to support basic seismic interpretation
workflows and real-time monitoring of exploration field operations.
Integration of WesternGeco multiclient seismic data in Petrel workflows
further improves Petrel scalability and flexibility across multiple
zones.

In Mexico for PEMEX Marine, a number of state-of-the-art Schlumberger
Wireline services including CMR-Plus* magnetic resonance, Rt Scanner
triaxial induction, Sonic Scanner acoustic scanning, OBMI2* dual
oil-base microimager, PressureXpress* reservoir pressure, InSitu Fluid
Analyzer fluid sampling and MSCT mechanical sidewall coring technologies
were run in a deepwater exploration well. High-resolution logging
combined with Schlumberger leadership in formation testing allowed PEMEX
to define the vertical extent of the hydrocarbon column and acquire
representative fluid samples that, in this case, were paramount as a
standard petrophysical evaluation would not have been sufficient to
decide on the well completion. PEMEX acknowledged the value of these
technologies in reducing uncertainty in deepwater exploration.

Combined interpretation of advanced Wireline logging measurements for
Ural Oil and Gas LLP in Kazakhstan improved reservoir characterization
and facilitated planning of exploration drilling and development in a
complex carbonate reservoir environment. Data from the CMR-Plus, ECS*
elemental capture spectroscopy sonde and Platform Express* tools aided
reservoir understanding, while FMI* fullbore formation microimager,
PressureXpress reservoir pressure while logging and MDT modular
formation dynamics tester technologies optimized formation pressure and
sampling programs.

Drilling & Measurements successfully introduced PowerDrive Archer*
high-build-rate rotary steerable technology for an operator in Asia in
response to a need for directional control in unconsolidated sands
encountered while drilling lateral sections. The PowerDrive Archer
system was run with a Smith 8 1/2-in bit with the entire bottomhole
assembly modeled with Smith IDEAS* software. The evaluation string run
with the combination included PeriScope* bed-boundary mapper, adnVISION*
logging-while-drilling and TeleScope* high-speed
telemetry-while-drilling technologies. Deployment of these technologies
saved four days budgeted rig time while the system's superior well
placement capability added extra production.

In Argentina, Schlumberger StimMAP* LIVE real-time fracture monitoring
technology was deployed on a job in the Vaca Muerta shale for YPF.
Drawing on products, services and expertise from Wireline, Well Services
and Data & Consulting Services, two vertical treatment wells were
monitored from a single offset vertical well. The operation provided a
better understanding of the nature of the fracture network created and
YPF is currently planning further StimMAP operations for 2012.

??In the Mexico North region, Schlumberger was awarded the completion of
two PEMEX horizontal wells in the Eagle Ford shale formation. Combined
Schlumberger Well Services and Wireline technical expertise was used to
design a perforating technique to yield optimal hydraulic fracturing
results. The Schlumberger perforating design of 14 stages included 6 gun
clusters that were conveyed using the pump-down technique. The distance
between perforating intervals enabled innovative use of addressable gun
switches for operational safety. PEMEX acknowledged the value of this
integrated solution in terms of cost savings, service quality and
excellence in execution.

Also in Mexico, Schlumberger Completions have run their first inflow
control device (ICD) installation in the PEMEX Southern Region. The
technology was deployed in the Tecominoacan field which contains low
pressure formations and a shallow oil-water contact. The well was
predicted to produce at 30% water cut without inflow control, but the
ICD installation reduced this to 24% while sustaining oil production at
1,200 bpd. The results have encouraged PEMEX management to seek more
well candidates in Southern Region fields where production can be
improved through controlling water coning.

Reservoir Characterization Group

Fourth-quarter revenue of $2.79 billion was 12% higher both sequentially
and year-on-year. Pretax operating income of $777 million was 28% higher
sequentially and increased 16% year-on-year.

WesternGeco and SIS posted significant sequential revenue growth on
strong multiclient sales in the US Gulf of Mexico and the Angola
GeoMarket, and on robust software sales across all geographical Areas,
respectively. WesternGeco also improved on the resumption of land
seismic activity in the Middle East and new surveys in North Africa.
Wireline recorded increases across all Areas led by stronger offshore
exploration activities in the Nigeria & Gulf of Guinea, Southern &
Eastern Africa and Central & West Africa GeoMarkets. Data & Consulting
Services and Testing Services also posted gains.

Sequentially, pretax operating margins increased markedly by 340 bps to
27.9% through the seasonally strong sales of WesternGeco multiclient
licenses and SIS software. Increasing higher-margin Wireline exploration
activities also contributed to the growth.

Reservoir Characterization Group activities saw a number of new or
significant technology deployments in the quarter.

ENI has awarded WesternGeco a contract for a high-resolution seismic
survey offshore Angola using Q-Marine* point-receiver marine seismic
technology. The six-month survey is being conducted by the WGAmundsen
and will be completed in the first quarter of 2012.

WesternGeco has begun acquisition of two significant multiclient surveys
in the US Gulf of Mexico: the 2,800 km2 Revolution III full-azimuth
survey and the 11,655 km2 Patriot wide-azimuth 3D orthogonal survey,
which is the first of its kind. The Revolution survey, conducted using
Dual Coil Shooting* multivessel full-azimuth technology, will increase
the WesternGeco full-azimuth portfolio to more than 10,000 km2, while
data from the Patriot survey, conducted in partnership with TGS, will be
combined with the existing Freedom wide-azimuth multiclient dataset to
provide the industry with a dual-azimuth orthogonal subsurface image.

WesternGeco has commenced Phase 2 of its agreement with PetroSA for a
Q-Marine program offshore South Africa using the DISCover* deep
interpolated streamer coverage seismic technique. The four-month project
comprises 3,500 km2 and follows the successful Phase 1 of the program,
in which the broadband capabilities of the DISCover technique
demonstrated an ability to broaden the weather acquisition window and
yielded significant data quality improvement compared to a conventional
seismic survey.

Advanced Wireline Rt Scanner triaxial induction logging technology in
combination with epithermal neutron, advanced magnetic resonance and
density measurements guided identification of thinly-bedded zones in a
Vanco Cote d'Ivoire Ltd exploration well in the Ivory Coast. In addition
to the thin beds that could have been missed with conventional
technology, the reservoirs showed a high degree of anisotropy due to
grain size variation that required the three-dimensional measurement
capability of the Rt Scanner service for accurate evaluation.

In Malaysia, ?Schlumberger Wireline MDT modular formation dynamics tester
technology helped evaluate thinly-bedded formations in an offshore
exploration well. Insitu Fluid Analyzer and dual-packer module services
were used to evaluate reservoir formations and fluids in real time and
obtain representative samples from the thinly-bedded formations. The
results helped the customer with early confirmation of reservoir
potential, reducing the need for additional cost and operational risk.

In Saudi Arabia, innovative use of Wireline Sonic Scanner acoustic
scanning platform technology enabled a horizontal well to intersect an
old vertical well bore. The Sonic Scanner tool was used to run a
borehole acoustic reflection survey (BARS) that correctly located the
target well and accurately predicted its distance and direction. This
was confirmed by drilling sidetracks to intersect the vertical well.
Schlumberger Data & Consulting Services in Saudi Arabia and the acoustic
group in the Schlumberger Tokyo Technology Center collaborated on the
BARS data processing.

In Brazil, Wireline ran Quicksilver Probe* focused extraction of pure
reservoir fluid technology on an OGX exploration well where standard
technologies had shown limitations in decreasing filtrate contamination
below 40%. The Quicksilver Probe samples taken in the carbonate
formations in this well resulted in contamination levels below 10% and
OGX plan to use this technology on future exploration wells.

Offshore Abu Dhabi, Wireline Dielectric Scanner* multifrequency
dielectric dispersion technology was logged for the first time in a
cretaceous carbonate reservoir. Data repeatability between successive
runs of the tool was excellent and the results showed the water volume
measurement to be unaffected during drilling fluid changes. Later
saturation measurements in the laboratory from 56 core plugs and 165
cores confirmed the quality and accuracy of the residual oil
measurements acquired by the tool.

In India, integration of data from advanced Wireline logging
technologies in the complex ONGC Padra field has enabled identification
of producing zones in the field's basaltic rock. Basalts have negligible
porosity and permeability but produce through fractures that are
difficult to identify with standard logs. Using FMI fullbore formation
imager, DSI* dipole sonic imager and Sonic Scanner acoustic scanning
platform technologies, Schlumberger Data & Consulting Services developed
methodology to identify the productive intervals that were confirmed by
production logging data. The success of the method paves the way for the
necessary logging suite to be deployed in future wells.

In Argentina, innovative Schlumberger TargeTT* intelligent well
intervention and testing helped Pan American Energy LLC with future
completion design, electrical submersible pump (ESP) production regime,
and workover intervention planning. Collaboration between Wireline,
Artificial Lift and Data & Consulting Services developed a technique to
access producing zones below the ESP pumps to be able to evaluate
production. Unique Wireline GHOST* gas holdup optical sensor technology
detected even the smallest hydrocarbon entries and after evaluation and
remedial work in five wells, a reduction in water production of more
than 50% was achieved.

Chevron USA Inc. has awarded Schlumberger a three-year contract for
tubing-conveyed perforating and drillstem testing services on nine wells
on the Jack/St. Malo deepwater project. Key technologies to be deployed
include the new 6 5/8-in 27,000 psi INsidr* gun system with PowerFlow
Max* charges, the new deepwater Omegamatic* long-stroke 9-5/8-in packer,
and the use of PURE* planner software for gun shock and dynamic
underbalance modelling.

??In Ecuador, Testing Services introduced PowerJet Nova*
extra-deep-penetrating shaped charges for Petroamazonas following
increased production after perforating a well in a double casing overlap
with this new technology. As a result, Petroamazonas will run PowerJet
Nova for future work on their fields.

??In the Caspian, PSA LLP announced the purchase of SIS software
including Petrel seismic-to-simulation, ECLIPSE* reservoir simulation,
and Techlog* petrophysical analysis software. The purchase represents
the first Techlog sale in the Caspian region.

Drilling Group

Fourth-quarter revenue of $3.91 billion was 6% higher sequentially and
22% higher year-on-year. Pretax operating income of $658 million
improved 7% sequentially and increased 41% year-on-year.

Significant sequential revenue growth was recorded by M-I SWACO from
higher rig count on land in the US & Canada; sustained growth in
deepwater activity in the US Gulf of Mexico; and strong contributions in
Latin America. IPM activity increased significantly, mainly from
projects in Mexico and in Iraq. Drilling & Measurements revenue
increased on improved pricing and strong activity in the US Gulf of
Mexico and the Nigeria & Gulf of Guinea GeoMarket, although this was
partially offset by weather-related activity reductions in the North Sea
and East Asia GeoMarkets. In addition, Geoservices and Bits & Advanced
Technologies registered robust sequential increases.

Sequentially, pretax operating margins were up slightly to 16.8%.
Drilling & Measurements obtained increased margins from improved
technology mix and service pricing but this was partly offset by the
effects of weather-related activity delays and reductions. Most of the
other Technologies exacted margin expansion following the continued
successful integration and expansion of Smith, Geoservices and
Schlumberger drilling technologies.

During the quarter, a number of highlights confirmed further
opportunities generated by the combination of Smith and Schlumberger
drilling technologies.

In Russia, continued synergy between Schlumberger Drilling &
Measurements, Smith Bits and M-I SWACO has enabled TNK-BP to pass
another significant milestone by further extending the achievable
drilling envelope in the Verknechonskoe field in Eastern Siberia. In
particular, the combination of PowerDrive X6* and PowerDrive vorteX*
rotary steerable systems with Smith 8 1/2-in MDSi716 bit technology has
achieved an almost 50% improvement in drilling performance versus
conventional technologies. The same combination has also been
responsible for all runs to date when single-run distances exceeded the
2000-m threshold. The continuing extension of drilling length has also
been assisted by innovative M-I SWACO Asphasol Supreme* shale inhibitor
and supplemental high-temperature fluid-loss additive that helped limit
rotary torque and drag. On one recently drilled well, the field's
longest-ever extended-reach section of 3,824 m was drilled to total
depth 6 days ahead of schedule.

In Malaysia, integration of Drilling & Measurements PowerV* vertical
drilling system technology with Smith IDEAS integrated drillbit design
and OSC* interactive drilling operations monitoring helped drill the
entire 17 1/2-in section of a PETRONAS Carigali well in a single run.
PowerV technology was used to maintain verticality while yielding a
smooth borehole for subsequent wireline logging. The IDEAS design
platform enabled a specific polycrystalline diamond compact (PDC)
drillbit to increase drilling efficiency and prevent disturbance of a
weak coal formation. The combined Smith and Schlumberger technologies
resulted in minimal stick, slip and vibration, no losses and a rate of
penetration that exceeded plan.

In Kazakhstan, Smith Services Neyrfor turbines were deployed for Great
Wall Kazakhstan as part of a joint project to improve drilling
performance and reduce drilling times in the 8 1/2-in sections of wells
in the Kenkiyak field. Before use of turbine technology, drilling time
could reach 105 days but with turbine use in conjunction with a Smith
drillbit in a new well the section was drilled in two runs in 38 days
with full directional control even with dogleg severities of 7 ?/30 m.
This is approximately three times faster compared to previously used
conventional motor technology. Based on these results, turbine
technology has been adopted as standard for all directional wells on the
Kenkiyak and other fields in the Aktobe area.

In Malaysia, Drilling & Measurements StethoScope 675* formation
pressure-while-drilling service was run in a PETRONAS appraisal well in
conjunction with @balance Services* managed pressure and underbalance
drilling technology to allow safe drilling with a narrow mud weight
window in an operation that would have been impossible using
conventional drilling practices. This was the first operation in Asia to
combine these technologies with StethoScope real-time formation pore
pressure measurements used to guide bottomhole pressures in successfully
drilling to total depth in a reservoir that had never been successfully
penetrated.

In a Chevron horizontal natural gas well in the Netherlands, Drilling &
Measurements TeleScope high-speed telemetry-while-drilling technology
transmitted real-time data from EcoScope*^? multifunction
logging-while-drilling and PeriScope bed boundary mapper tools at rates
high enough to geosteer the well at up to 150 ft/hr while remaining
within 3 ft of the top of the reservoir. The bottomhole assembly was
steered over 1,500 ft using a PowerDrive Xceed* rotary steerable system.

In China, Drilling & Measurements PowerV vertical drilling system
technology enabled PetroChina to improve rate of penetration (ROP) by
68% in the 13 1/8-in. section of a well in the Tarim oilfield. A total
interval of 230 m was drilled in 94 on-bottom hours representing a
saving of three days over similar sections drilled with conventional
technology in offset wells. The operation, which was marked by excellent
hole quality, represented the first job for this technology in this hole
size in the world.

Also in China, Drilling & Measurements PowerDrive vorteX powered rotary
steerable system technology successfully drilled a high-inclination well
for CCLT in Bohai Bay with significantly improved ROP. A total of 1,026
m was drilled in one run with accurate trajectory control at an ROP 260%
faster than that achieved in adjacent wells. This success has convinced
CCLT, the CNOOC branch in Bohai, that PowerDrive vorteX technology is
fit-for-purpose in wells of this type.

In the Eagle Ford shale, Schlumberger Pathfinder at-bit inclination,
gamma ray and imaging logging-while-drilling technology was run above a
mud motor for a customer to provide reservoir images in a well with an
extreme dogleg profile requiring more than 1.5 ? of bend at the motor.
This innovative combination yielded accurate, real-time imaging that
facilitated the successful landing of the well in the reservoir target
zone.

In Brazil, Petra Energia selected Schlumberger dynamic pressure
measurement technologies to provide managed pressure drilling services
for their São Francisco basin exploration campaign. This technology
choice was driven by the need to enhance drilling performance, enable
gas zones identification while reducing non-productive time due to lost
circulation and well kicks, and support real-time reservoir
characterization in the target zones. Well pressure response data will
further enhance characterization from measurement-while-drilling,
logging-while-drilling, wireline logging and well testing, clearly
showing the differentiation of integrated services.

In Colombia, Smith Trackmaster Plus* technology was successfully
deployed for the first time in Latin America on a double casing
sidetrack operation on 7 ?-in and 9 ?-in strings on a well for Equion
Energia. The operation also included a 6-in whipstock sub-assembly
equipped with an expandable anchor and a FasTrack* mill. After
sidetracking, drilling operations continued without further delays as
the bottomhole assembly was able to cross the casing window smoothly.

In designing the fluids program for the 8  ?-in section on a well in the
Norwegian North Sea where previous wells had experienced challenging
cementing operations, M-I SWACO and Schlumberger engineers recommended
use of M-I SWACO WARP* drilling fluid prior to running and cementing the
7-in casing. The section was first drilled with VersaTec* fluid, and
WARP drilling fluid was then displaced in the hole prior to pulling out
of hole at total depth. The displacement from VersaTec fluid to WARP
fluid gave an instant reduction in torque and pump pressure, and no
cementing problems were consequently experienced.

M-I SWACO PRESSPRO RT* software has been used for the first time on a
PEMEX well in the Mexico South region to control drilling fluid
equivalent circulating density to prevent mud losses. Mexico South is
one of the most difficult environments for drilling because the wells
reach high temperature and cross zones of both high and low pressure
with a very complex mud weight window. Lost circulation, stuck pipe and
well control events are the main drilling risks. PRESSPRO RT
implementation in the 12 1/4-in section of the well achieved the main
goal of zero mud losses while drilling, tripping and running casing and
the software's hydraulic calculations were validated against Drilling &
Measurements APWD* annular pressure while drilling measurements. This
success was achieved through teamwork and commitment from the
engineering team, the OSC interactive drilling operations center and
PRESSPRO RT engineers.

Reservoir Production Group

Fourth-quarter revenue of $3.60 billion increased 7% sequentially and
29% year-on-year. Pretax operating income of $768 million was 9% higher
sequentially and increased 32% year-on-year.

Among Reservoir Production Group Technologies, Completions and
Artificial Lift posted the strongest sequential growth driven by robust
product sales across all Areas. Well Services sequential growth was seen
mainly in North America Land as additional fleets deployed and continued
improvements in asset utilization and crew efficiency were achieved
although these positive factors were partially muted by the impact of
year-end seasonal effects. Framo and SPM also posted strong sequential
increases.

Sequentially, fourth-quarter pretax operating margins were slightly up
at 21.3%. Completions, Artificial Lift and Well Services reported
improvements from strong sales.

Reservoir Production Group highlights included technology deployments in
a number of key areas.

Petroleum Development of Oman (PDO) has awarded Schlumberger a five-year
contract for 35% of the total cementing scope in North Oman.
Schlumberger Well Services ability to provide innovative solutions for
challenging well environments including high pressures and temperatures,
lost circulation, salt-zone cementing and cyclic steam and polymer
injection led partly to this award.

??In Kazakhstan, Well Services MaxCO3* degradable diversion fluid
technology has been introduced for Tengizchevroil in the Tengiz field,
one of the world's deepest super giant oil fields with a very thick
hydrocarbon column. MaxCO3 technology is of particular value in
naturally fractured reservoirs as its fibrous component degrades
completely while leaving the reservoir undamaged. For application in
Tengiz, the MaxCO3 system has been blended with VDA* viscoelastic
diverting fluid and the combination is now being optimized following
encouraging production results.

??In southern Mexico, Well Services ScavengerPlus* scavenger slurry
stabilizer has been introduced for PEMEX to improve zonal isolation in
the 20-in and 13 3/8-in sections in onshore fields where water-based and
oil-based drilling fluids are used respectively. The technology improved
mud removal and zonal isolation, both of which are critical for well
life. Use of the ScavengerPlus system has now become common practice and
has resulted in increased operational efficiency and improved safety in
cementing operations.

Offshore Mexico, Well Services OilSEEKER* diverter technology was
successfully applied at bottom hole temperatures above 300 deg F in a
matrix stimulation treatment in a fractured carbonate formation. Water
cut was reduced from 20% to zero and oil production of 4,700 bpd was the
highest ever in the history of the well?clearly indicating that the
stimulation fluids were successfully diverted to the oil-saturated
zones. The right combination of engineering and stimulation fluids
together with teamwork between Schlumberger and PEMEX made this success
possible.

In Brazil, Schlumberger Well Services has mobilised the BRASIL I
DeepSTIM* offshore stimulation vessel for Petrobras. The vessel's
five-year contract for matrix stimulation, sand control and hydraulic
fracturing services in presalt exploration and development wells covers
key Schlumberger technologies including MaxCO3 degradable diversion and
VDA viscoelastic diverting fluids. The large storage capacity and
state-of-the-art mixing and pumping equipment will be important factors
for successful presalt reservoir stimulation.

Elsewhere in Brazil, Schlumberger Well Services has renewed its contract
for the FlexSTIM* modular offshore stimulation system with OGX. The
system was designed and mounted on a standard supply vessel to provide
the flexibility, capacity and response time needed by the client to
complete horizontal wells requiring multistage matrix stimulation in the
Campos Basin. Following the successful 2011 completion campaign, the
system is being upgraded to allow treatment of all intervals in a single
trip to location while eliminating mixing operations between stages,
thus reducing rig time and associated logistics.

In Colombia, Schlumberger Well Services deployed CoilFLATE* and ACTive*
technologies simultaneously for the first time to perform a pressure
build-up test for Equion Energia Limited in the Mirador formation. A
CoilFLATE high-pressure, high-temperature packer was set at 14,100 ft
and the well partially opened to generate a drawdown above the packer to
take fluid samples after flow and pressure had stabilized. The well was
then shut in for a 12-hour build-up test with real-time data. The use of
these technologies enabled Equion to plan similar operations in the
Florena and Cusiana fields.

Schlumberger Well Services deployed CoilFLATE coiled-tubing
through-tubing inflatable packer technology as a mechanical diverter to
perform a selective matrix stimulation in the Guadalupe and Barco
formation for Ecopetrol in Colombia. The CoilFLATE packer was run in a
Chrome 13 completion under dynamic downhole conditions with cross flow
between formations, low bottom hole pressures and high gas cut. The
complex well treatment included a harsh fluid environment with energized
xylene with injection above and below packer. The results of this
successful technology introduction allowed Ecopetrol to plan future
wells with mechanical diverter treatment packers on operations in the
Cupiagua fields.

In Algeria, Schlumberger used a combination of the ACTive in-well live
performance system with ABRASIJET* hydraulic pipe-cutting and
perforating technology to bring oil wells on production for Sonatrach in
the Hassi Messaoud field. The combined technologies offer an alternative
to conventional perforation with the fiber-optic capability of the
ACTive system permitting real-time depth correlation in addition to
monitoring differential pressure for optimum performance.

In the UK sector of the North Sea, Xcite Energy has awarded Schlumberger
Artificial Lift and Schlumberger Completions a contract to supply,
install, and provide operational support for ESP systems and intelligent
completions for the Phase 1A Development of the Bentley field. The award
was based on Schlumberger expertise in heavy oil solutions and the
ability to provide a unique lifting solution integrating REDA*
electrical submersible pumping systems, variable speed drives and
Schlumberger intelligent completion systems.

About Schlumberger

Schlumberger is the world′s leading supplier of technology, integrated
project management and information solutions to customers working in the
oil and gas industry worldwide. Employing more than 113,000 people
representing over 140 nationalities and working in approximately 85
countries, Schlumberger provides the industry′s widest range of products
and services from exploration through production.

Schlumberger Limited has principal offices in Paris, Houston and The
Hague, and reported revenues of $39.54 billion in 2011. For more
information, visit www.slb.com.

*Mark of Schlumberger or of Schlumberger Companies

^?Japan Oil, Gas and Metals National Corporation (JOGMEC),
formerly Japan National Oil Corporation (JNOC), and Schlumberger
collaborated on a research project to develop LWD technology. EcoScope
service uses technology that resulted from this collaboration.

^?Mark of Exxon Mobil Corporation

Notes

Schlumberger will hold a conference call to discuss the above
announcement and business outlook on Friday, January 20, 2012. The call
is scheduled to begin at 8:00 a.m. US Central Time (CT), 9:00 a.m.
Eastern Time (ET). To access the call, which is open to the public,
please contact the conference call operator at +1-800-230-1059 within
North America, or +1-612-234-9959 outside of North America,
approximately 10 minutes prior to the call′s scheduled start time. Ask
for the 'Schlumberger Earnings Conference Call.? At the conclusion of
the conference call an audio replay will be available until February 20,
2012 by dialing +1-800-475-6701 within North America, or +1-320-365-3844
outside of North America, and providing the access code 222324.

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 information is available at www.slb.com/ir.

Schlumberger Limited

Malcolm Theobald, +1 (713) 375-3535

Vice
President of Investor Relations

or

Joy V. Domingo, +1 (713)
375-3535

Manager of Investor Relations

investor-relations@slb.com