Texas oil company enlarges existence in Russia

(MENAFN) SLB, the American oilfield services conglomerate formerly known as Schlumberger, is significantly increasing its footprint in Russia, according to a Financial Times report. This expansion comes at a time when many of its competitors have exited the Russian market in response to the ongoing conflict in Ukraine, which began in 2022.

SLB's continued presence in Russia involves several key activities: the company is importing equipment, registering new trademarks, securing contracts, and recruiting personnel. Between August and December 2023, SLB imported $17.5 million worth of equipment into Russia, despite previously committing to halt shipments to the country. The equipment, including cabling and chemicals, primarily came from China and India. These goods could face restrictions if they were exported from the European Union.

The firm's operations in Russia are bolstered by the lack of comprehensive sanctions against oilfield services from Western policymakers. While sanctions have targeted Russian oil exports due to the Ukraine conflict, broader restrictions on oilfield services have been avoided to prevent disruptions in global oil supplies and prevent an increase in oil prices.

SLB’s expansion includes posting over 1,000 job openings for roles such as drivers, chemists, and geologists. In 2023, Russian operations contributed 5% to SLB’s total revenue of $33.1 billion.

This strategic move by SLB contrasts sharply with other Western oil companies that have withdrawn from Russia, highlighting the complex and often contentious nature of international business amid geopolitical conflicts.

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