The company comprises two business segments:

Schlumberger Oilfield Services supplies a wide range of products and services from formation evaluation through directional drilling, well cementing and stimulation, well completions and productivity to consulting, software, information management and IT infrastructure services that support core industry operational processes.

WesternGeco is the world's largest seismic company and provides advanced acquisition and data processing services.

Schlumberger has principal offices in Houston, Paris and The Hague. Revenue was $19.23 billion in 2006. Schlumberger stock is listed on the New York Stock Exchange, ticker symbol SLB, on the Euronext Paris, Euronext Amsterdam, London and the SWX Swiss stock exchanges.

Organization
Schlumberger manages its business through 28 GeoMarket regions, which are grouped into four geographic areas: North America, Latin America, Europe, CIS & Africa and Middle East & Asia. The GeoMarket structure offers customers a single point of contact at the local level for field operations and brings together geographically focused teams to meet local needs and deliver customized solutions. Working together with the company's technology segments, the GeoMarkets provide a powerful conduit through which information and know-how flow to the customers, and through which Schlumberger engineers and geoscientists maximize technological synergies over the entire life of the field.

Competitive Advantage
Schlumberger offers its clients four key advantages:

• Deep domain knowledge of exploration and production operations gained through 75 years of experience
• The service industry's longest commitment to technology and innovation through a network of 23 research, development and technology centers
• A global reach in more than 80 countries coupled to strong local experience and the diversity in thought, background and knowledge that more than 140 nationalities bring
• A commitment to excellence in service delivery anytime, anywhere.

Research and Development
The company was founded by the two Schlumberger brothers who invented wireline logging as a technique for obtaining downhole data in oil and gas wells. Today, it continues to build on the industry's longest track record of providing leading edge E&P technology to develop new advancements-from reservoir to surface. Schlumberger has always invested significant time and money on research and engineering as a long-term strategy to support and grow its technology leadership. Short-term business cycles do not affect this. In 2006, we invested $619 million in R&D for our oilfield activities. Schlumberger invests more each year in R&D than all other oilfield services companies combined.

Schlumberger Products, Services and Solutions

Schlumberger services and solutions combine domain expertise, best practices, safe and environmentally sound well site operations, innovative technologies, and high-quality support aimed at helping its customers increase oilfield efficiency, lower finding and producing costs, improve productivity, maximize reserve recovery, and increase asset value in a safe, environmentally sound manner.

Today, Schlumberger Oilfield Services solutions include open-hole and cased-hole wireline logging; drilling services; well services, such as cementing, coiled tubing, stimulations and sand control; well completion services including well testing and artificial lift; interpretation and consulting services; and integrated project management. Strong technical and operational support to the field is vital to the success of any complex global operation that includes remote locations. The key is to provide real-time linkage with world-class experts and knowledge, delivering the latest and best problem-solving capabilities-anywhere, anytime. The company's InTouchsupport.com knowledge management tool improves field access to Schlumberger technology centers through the most advanced IT tools, 24-hours a day, seven days a week.

Enhancing core E&P operations to improve production, increase reserves and drill better wells requires the integration of innovative information technology. Schlumberger Information Solutions (SIS) offers a unique combination of people and processes, technology and infrastructure, and real-time IT enablers-delivering key value-adding solutions to overcome a myriad of challenges confronting industry operational processes. SIS offers information management, software technology and infrastructure services. Combined with the domain experience available through the Business Consulting group, these enable oil and gas companies to enhance their workflows and achieve their goals.

As the industry's focus is moving towards maximizing post-plateau production and ultimate recovery, oil companies have to face more and more resource intensive projects. Integrated Project Management (IPM) is the Schlumberger response to this challenge and a significant growth area for Schlumberger. IPM activity is characterized by long-term relationships between the customer and Schlumberger. It offers a combination of engineering, process management and understanding of Schlumberger segment technologies. As well as providing technology and expertise, Schlumberger often works with local subcontractors to harness local knowledge and experience. Schlumberger has achieved a number of successes in IPM in particular in Mexico. The Burgos project for example, now in its seventh year, has delivered 237 completed wells, which include the drilling of 2.3 million ft of hole. The benefits to the customer have included accelerated production, reduced capital expenditure and increased efficiency.

WesternGeco

WesternGeco provides comprehensive worldwide reservoir imaging, monitoring, and development services, with the most extensive seismic crews and data processing centers in the industry, as well as the world's largest multiclient seismic library. Services range from 3D and time-lapse (4D) seismic surveys to multicomponent surveys for delineating prospects and reservoir management.

Positioned to meet the full range of customer needs in land, marine, and shallow-water transition-zone areas, WesternGeco draws on a superior record of market-driven innovation and technology leadership.

Seismic solutions include proprietary Q-Technology* for enhanced reservoir description, characterization, and monitoring throughout the life of the field-from exploration through enhanced recovery. Q* single-sensor hardware and software are setting a new quality and capability standard for seismic solutions.

The company's Omega* Seismic Processing System encompasses the industry's most advanced and comprehensive suite of algorithms and runs on multiplatform technology, ensuring timely turnaround for even the most complex processing projects.

Commitment to Quality, Health, Safety and the Environment

Schlumberger operates in many varied and often challenging geographical environments. An unwavering commitment has always been maintained to the highest standards of the quality, health and safety of our employees, customers and contractors, as well as for the protection of the environment in the communities in which we live and work. The long-term business success of Schlumberger depends on our ability to ensure that QHSE remains a top priority for the management and each employee. The Schlumberger QHSE policy and diverse standards are applied throughout the company. Each employee must maintain up-to-date certifications in essential QHSE training courses through both traditional classroom and on-line interactive learning. Our driving safety-training program is one example of our QHSE success. In 2003 it resulted in zero occupational auto fatalities despite employees logging a monthly average of 12 million driving miles.