fso oil & gas industry training program

Schlumberger-Private

www.pesa.org

FSO OIL & GAS INDUSTRY TRAINING PROGRAMMay 20-23, 2019Alex JudenSchlumberger Governance


16 GeoMarkets

90 Research, Engineering &

Manufacturing Centers

located in 21 countries

Approximately 100,000 People

Working in more than 85 Countries

Representing 140 Nationalities

▪ Revenue: $ 33.8 billion ▪ Market Cap $ ~61 billion▪ R&E $ 0.8 billion

2018 Financials

DrillingCharacterization

▪ Wireline

▪ Testing Services

▪ OneSurface

▪ WesternGeco

▪ Software Integrated Solutions

▪ Integrated Services Management

▪ Drilling & Measurements

▪ Drilling Tools & Bits

▪ M-I SWACO

▪ Integrated Drilling Services

▪ Land Rigs

Production

▪ Well Services

▪ Completions

▪ Artificial Lift Solutions

▪ Production Management

▪ OneStim

Cameron

▪ OneSubsea

▪ Drilling Systems

▪ Surface Systems

▪ Valves & Measurement

Schlumberger at a Glance


Corporate governance

The system of rules, practices and processes by which a company is directed and controlled and which balancing the interests of stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community


How Does Public Policy Dialogue Fit With Schlumberger’s Overall Strategy?

Communities

Governments (Local & National)

Employees (& families)

Customers

5

Third Party—for Profit—

Advisors

Shareholders

Schlumberger

Lobbyists

Universities

Schlumberger Stakeholders

Suppliers


Schlumberger Governance–It’s Complicated

700 IT connected wellsite units

30 petaflops of computing power65,000 shipments per month

2,750 facilities

90 REM centers

68,000 suppliers

500,000 transactions/month

1.1 million operating

hrs/month

5.8 million feet

drilled/month

85 countries

100,000 women and men

140 nationalities6,500 customers

150,000 mobile assetsActive on 4,000 drilling rigs

1,200 workover rigs

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People = Culture

• A company is a “legal fiction”

• Company culture can only be developed by people

• Company culture can only be sustained by people

• Company culture can only be displayed by people

• Company culture can only be improved by people

• Company culture can only be harmed by people


Mindset Matters

8

▪ Behavior is a choice—in Quality, in HSE and in Ethics…in all Governance


SLB Governance System—Historical

9

Correction

Continuous Improvement

Commitment, Leadership and Accountability

Policies and Objectives

Organization and Resources

Risk Management

Contractor and Supplier Management

Business Processes

Performance Monitoring and Improvement

Audits and Reviews


Defines the company’s

Purpose, Ambition,

Values and Mindset

Outlines the Company’s

expectations to ensure a

compliant and ethical

workplace

Uniform rules of conduct are essential to manage

our global population: 100,000+ employees from

140 nationalities operating in 85+ countries

Together these documents help employees to

live up to the superior standards that have made

Schlumberger the world’s leading oilfield

services company

Our Company’s Culture in Words

10


Individual Conduct Measured

▪ Driving Corporate Behavior: -- Individual Training—”What gets measured, gets done”

-- Annual Employee evaluations

Evolutionary process

11

▪ Service Attitude

▪ Continuous Improvement

▪ Self-Learning

▪ Decision Making

▪ Responsibility

▪ Collaboration

▪ Communication

▪ Coaching and Mentoring

▪ Diversity

▪ Creativity

▪ Initiative

▪ Adaptability

▪ Results Driven

Commitment Integrity

Drive Teamwork


The Enterprise Risk Management Structure

15 May 2019

Board of Directors

Executive Risk CommitteeCorporate Risk Map

Crisis Management

plans

Risk Mapping Team

Crisis Management Team

Global Risk Register

Operational Business Units

Operational Risk Maps Emergency

Management Plans

Business Continuity Plans

Crisis Management

Plans


Operation Risk Map – Dashboard

Average Risk Score Average Residual Risk Score


Corporate Risks

Examples of Risks▪ IT Security

▪ Major well control incident

▪ Political disruption in significant markets

▪ Compliance issues—Primarily Corruption and Trade Controls and Customs*

*Finance/Legal Function Risks


January 2016—Schlumberger 10-K

15

In 2009, the US Department of Justice began an investigation into past violations of US

sanctions regarding Schlumberger’s historical operations in Iran and Sudan that occurred

between 2004 and 2010. During the second quarter of 2014, Schlumberger increased its

accrual for this contingency. Accordingly, Schlumberger recorded a $205 million

charge, which was reflected within Loss from discontinued operations in the

Consolidated Statement of Income during the second quarter of 2014.

During 2015, Schlumberger resolved this investigation and a non-US subsidiary of

Schlumberger pleaded guilty to one criminal count of conspiracy to violate the

International Emergency Economic Powers Act. Under the terms of the plea agreement,

Schlumberger paid approximately $233 million in fines, penalties and assessments

during the second quarter of 2015, which had been previously accrued. This payment is

reflected within Cash flows used in discontinued operations – operating activities in

Schlumberger’s Consolidated Statement of Cash Flows.


Conclusion

• Good governance is mandatory in all well-managed entities

• Governance is required for everything an organization does

• It is driven from the top

• Individual conduct matters

• No one is perfect. Continuous improvement is essential


Questions?

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