Schlumberger Announces Third-Quarter 2009 Results

Income from continuing operations attributable to Schlumberger was $787
million--a decrease of 4% sequentially, excluding $207 million of charges
in the second quarter of 2009, and 48% lower year-on-year. Diluted
earnings-per-share from continuing operations was $0.65 versus $0.68,
excluding charges of $0.17 per share in the previous quarter, and $1.25
in the third quarter of 2008.

Oilfield Services revenue of $4.95 billion was flat sequentially but
down 22% year-on-year. Pretax segment operating income of $1.04 billion
was up 2% sequentially but down 39% year-on-year.

WesternGeco revenue of $463 million was down 17% sequentially and 48%
year-on-year. Pretax segment operating income of $61 million was down
37% sequentially and 83% year-on-year.

Schlumberger Chairman and CEO Andrew Gould commented, "Oilfield Services
revenue was flat with the second quarter as increases in both North and
South America offset a further decline in the Middle East and Asia. As a
result of this, coupled with the implementation of cost-cutting programs
earlier in the year, overall margins slightly increased.

At WesternGeco, sequential revenue declines were due to lower
Multiclient revenues in the quarter and the rollover of Marine contracts
from higher-priced legacy backlog into new lower-priced activity. These
factors resulted in lower margins.

Our outlook for the remainder of 2009 assumes a continued modest
recovery in North American gas drilling but no significant improvement
in service pricing. Overseas, while rig activity is stabilizing,
seasonal factors and pricing concessions made in the first half year
that are still being implemented leave some risk of further small
revenue declines. At WesternGeco, improvement will depend on the level
of fourth-quarter multiclient sales.

Looking further ahead, we said in our second-quarter outlook that the
shape of the economic recovery beyond 2009 and the subsequent recovery
in oil and gas demand remained the determining factors for future
activity increases. Since then, indications of inventory rebuilding
across many industries together with help from government stimuli have
helped to strengthen demand for both oil and gas. While uncertainties
remain, notably the transition from current stimuli to industrial and
consumer demand and the extent to which the recovery will be limited by
high unemployment, the demand for oil and gas will increase somewhat
over the coming months.

As a result, we see continuing stabilization of activity around the
world. However, this will not be uniform across either geographies or
for services by commodity type.

We consider that world gas markets are oversupplied and will remain so
for some time absent any strong recovery in industrial demand. Both new
LNG capacity coming on stream, as well as ample storage and pent-up
supply in North America, will serve to keep prices and activity low. In
North America we feel the current slight recovery in drilling is fragile
and not likely to significantly improve service activity and pricing
until late 2010.

For oil, the current robust price will lead to operators maintaining
their spending levels, and this, coupled with the lowering of their cost
structures, may produce some modest increases in activity. We see
continued strength in deepwater areas and some increases in selected
land markets. We also feel that a more robust commodity price will lead
to some increase in seismic activity, although new marine capacity will
continue to depress pricing.

The worst, provided the economy continues to show signs of recovery, is
behind us."

Other Event:

On September 8, 2009, Schlumberger issued $450 million of Guaranteed
Notes due 2013 at an interest rate of 3.0%. The proceeds from this
issuance were used to refinance existing debt obligations.

Consolidated Statement of Income
(Stated in millions, except per share amounts)
                                                      Third Quarter              Nine Months
For Periods Ended September 30                        2009          2008         2009           2008
Revenue                                               $  5,430      $  7,259     $  16,958      $  20,295
Interest and other income, net (1)                       74            107          211            306
Expenses
Cost of revenue (2)                                      4,122         4,967        13,019         13,934
Research & engineering                                   198           208          585            597
Marketing                                                22            23           67             71
General & administrative                                 128           150          390            434
Interest                                                 54            61           169            189
Income from Continuing Operations before taxes           980           1,957        2,939          5,376
Taxes on income (2)                                      191           418          595            1,104
Income from Continuing Operations                        789           1,539        2,344          4,272
Discontinued Operations                                  -             -            -              38
Net Income                                               789           1,539        2,344          4,310
Net Income attributable to noncontrolling interests      (2    )       (13   )      (6     )       (25    )
Net Income attributable to Schlumberger (2)           $  787        $  1,526     $  2,338       $  4,285
Schlumberger amounts attributable to:
Income from Continuing Operations                     $  787        $  1,526     $  2,338       $  4,247
Discontinued Operations                                  -             -            -              38
Net Income                                            $  787        $  1,526     $  2,338       $  4,285
Diluted Earnings Per Share of Schlumberger:
Income from Continuing Operations                     $  0.65       $  1.25      $  1.93        $  3.46
Discontinued Operations                                  -             -            -              0.03
Net Income (3)                                        $  0.65       $  1.25      $  1.93        $  3.50
Average shares outstanding                               1,200         1,199        1,198          1,197
Average shares outstanding assuming dilution             1,218         1,225        1,214          1,229
Depreciation & amortization included in expenses (4)  $  613        $  583       $  1,848       $  1,656

1)  Includes interest income of:
    Third Quarter 2009 - $15 million (2008 - $31 million)
    Nine Months 2009 - $51 million (2008 - $93 million)
2)  See page 7 for details of charges.
3)  Amounts may not add due to rounding.
4)  Including Multiclient seismic data cost.

Condensed Consolidated Balance Sheet
(Stated in millions)
                                                  Sept. 30,     Dec. 31,
Assets                                            2009          2008
Current Assets
Cash and short-term investments                   $    4,228    $    3,692
Other current assets                                   9,154         9,294
                                                       13,382        12,986
Fixed income investments, held to maturity             625           470
Fixed assets                                           9,610         9,690
Multiclient seismic data                               285           287
Goodwill                                               5,296         5,189
Other assets                                           3,877         3,472
                                                  $    33,075   $    32,094
Liabilities and Equity
Current Liabilities
Accounts payable and accrued liabilities          $    4,734    $    5,319
Estimated liability for taxes on income                929           1,007
Bank loans and current portion of long-term debt       879           1,597
Convertible debentures                                 321           -
Dividend payable                                       250           252
                                                       7,113         8,175
Convertible debentures                                 -             321
Other long-term debt                                   4,313         3,372
Postretirement benefits                                1,293         2,369
Other liabilities                                      892           923
                                                       13,611        15,160
Equity                                                 19,464        16,934
                                                  $    33,075   $    32,094

Net Debt

"Net Debt" represents gross debt less cash, short-term investments and
fixed income investments, held to maturity. Management believes that Net
Debt provides useful information regarding the level of Schlumberger
indebtedness by reflecting cash and investments that could be used to
repay debt. Details of Net Debt follow:

(Stated in millions)
Nine Months                                         2009
Net Debt, January 1, 2009                           $     (1,129 )
Net income                                                2,344
Depreciation and amortization                             1,848
Non-cash postretirement benefits curtailment charge       135
Excess of equity income over dividends received           (54    )
Stock-based compensation expense                          139
Increase in working capital requirements                  (552   )
Capital expenditure                                       (1,719 )
Multiclient seismic data capitalized                      (150   )
Dividends paid                                            (758   )
Proceeds from employee stock plans                        156
Business acquisitions                                     (475   )
Pension plan funding                                      (865   )
Other                                                     486
Translation effect on net debt                            (66    )
Net Debt, September 30, 2009                        $     (660   )
Components of Net Debt                              Sept. 30,        Dec. 31,
                                                    2009             2008
Cash and short-term investments                     $     4,228      $  3,692
Fixed income investments, held to maturity                625           470
Bank loans and current portion of long-term debt          (879   )      (1,598 )
Convertible debentures                                    (321   )      (321   )
Other long-term debt                                      (4,313 )      (3,372 )
                                                    $     (660   )   $  (1,129 )

Business Review
(Stated in millions)
                         Third Quarter                  Nine Months
                         2009       2008       % chg    2009        2008        % chg
Oilfield Services
Revenue                  $  4,953   $  6,356   (22 )%   $  15,349   $  18,027   (15 )%
Pretax Operating Income  $  1,042   $  1,699   (39 )%   $  3,320    $  4,905    (32 )%
WesternGeco
Revenue                  $  463     $  892     (48 )%   $  1,573    $  2,239    (30 )%
Pretax Operating Income  $  61      $  355     (83 )%   $  212      $  748      (72 )%

Pretax operating income represents the segments' income before taxes and
noncontrolling interests. The pretax operating income excludes such
items as corporate expenses and interest income and interest expense not
allocated to the segments as well as the charges described on page 7,
amortization of certain intangible assets, interest on postretirement
medical benefits and stock-based compensation costs.

Charges

In addition to financial results determined in accordance with generally
accepted accounting principles (GAAP), this Third-Quarter Earnings Press
Release also includes non-GAAP financial measures (as defined under SEC
Regulation G). The following is a reconciliation of these non-GAAP
measures to the comparable GAAP measures:

( Stated in millions, except per share amounts )
                                       Second Quarter 2009
                                       Pretax      Tax      Noncont.   Net      Diluted    Income Statement
                                                            Interest            EPS        Classification
Income from Continuing Operations      $   767     $  152   $  (2 )    $  613   $   0.51
attributable to Schlumberger
Add back charges:
- Workforce reduction                      102        17       -          85        0.07   Cost of revenue
- Postretirement benefits curtailment      136        14       -          122       0.10   Cost of revenue
Income from Continuing Operations      $   1,005   $  183   $  (2 )    $  820   $   0.68
attributable to Schlumberger,
before charges

There were no charges in either the first or third quarters of 2009 or
the first nine months of 2008.

Oilfield Services

Third-quarter revenue of $4.95 billion was flat sequentially as certain
geographic strengths were balanced by weaker pricing. Revenue was 22%
lower year-on-year. In North America, the positive impact of a recovery
in rig count in Canada following the spring break-up was offset
primarily by a slowdown in the US Gulf of Mexico GeoMarket* due to
operator caution during the hurricane season and by continuing pricing
erosion in the US Land GeoMarket. Internationally, Latin America revenue
increased with the finalization of certain contracts in
Venezuela/Trinidad & Tobago and higher Integrated Project Management
(IPM) activity in Mexico/Central America, but these increases were
offset by lower Middle East & Asia revenue due to reduced overall
activity and the effects of weaker pricing. Europe/CIS/Africa revenue
was flat as the positive effects of the strengthening of local
currencies against the US dollar and high product sales in North Africa
were offset by reductions in activity in the West & South Africa, North
Sea and Libya GeoMarkets. Across the Areas, revenue increases in IPM,
Testing Services and Well Services were primarily offset by revenue
declines in Completions, Drilling & Measurements and Wireline
Technologies.

Third-quarter pretax operating income of $1.04 billion was 2% higher
sequentially, but 39% lower year-on-year. Pretax operating margin
increased to 21.0% as improvements in North America and Latin America
were offset by modest declines in Europe/CIS/Africa and Middle East &
Asia.

In September, Schlumberger and National Oilwell Varco formed a joint
venture to provide high-speed drill-string telemetry systems to improve
the efficiency and safety of oil and gas operations. The IntelliServ
joint venture is expected to accelerate development and delivery of
intelligent drilling solutions through the expanded use of the
IntelliServ(R) Broadband Network, a patented technology that provides high
resolution data in real time to and from the bottom of oil and gas wells
as they are being drilled. IntelliServ also will provide along-string
evaluation services that will enable real-time monitoring of
drill-string conditions, and an unlimited ability to actuate downhole
tools on demand. The current speed of 57,600 bits per second is up to
20,000 times faster than the transmission speed that is available using
conventional mud-pulse technology.

In Saudi Arabia, Schlumberger announced the opening of a new reservoir
completions manufacturing center in Dammam Industrial City. Representing
an investment of $25 million, the new center houses a team of design and
manufacturing engineers specialized in the production of downhole
reservoir completions equipment. The center also provides a
collaborative environment in which joint oil company and Schlumberger
teams can develop and manufacture completions solutions for application
across Saudi Arabia and the Middle East. The new center also represents
a further step in Schlumberger infrastructure investment in the area.

Recent contract awards demonstrated the value of Schlumberger technology
leadership and operational differentiation. These included an award in
Denmark for Maersk Oil for open-hole wireline operations under
high-pressure, high-temperature conditions; in Russia for Arcticgas, a
SeverEnergia company, for a series of services north of the Arctic
Circle; in West Africa for subsea completion installations, particularly
in Equatorial Guinea; and in the North Sea for Apache for electrical
submersible pump systems based on excellent service delivery.

North America

Revenue of $823 million was unchanged sequentially but 45% lower
year-on-year. Pretax operating income of $27.6 million was up 253%
sequentially but fell 91% year-on-year.

Sequentially, revenue in Canada increased on a muted post spring
break-up recovery in rig count but this was offset by decreased revenue
in the US GeoMarkets. In the US Gulf of Mexico GeoMarket revenue was
impacted by a slowdown in activity due to operator caution during the
hurricane season and by a further decrease in shelf drilling activity as
a result of continued uneconomic natural gas prices. US Land GeoMarket
revenue decreased as an improvement in oil-related activity was more
than offset by pricing erosion in the early part of the quarter. The
Alaska GeoMarket also recorded lower sequential revenue due to a
slowdown in activity for seasonal rig maintenance and operator budget
constraints.

Pretax operating margin increased 240 basis points (bps) sequentially to
3.4% primarily due to the increased activity in Canada, which was
partially offset by weaker activity in the US Gulf of Mexico and Alaska
GeoMarkets.

In the US Gulf of Mexico, Schlumberger Well Services coiled-tubing and
pumping services were deployed with CoilTOOLS* coiled-tubing
intervention tools and solutions to plug and abandon a series of eight
wells for Chevron without lost time and with the minimum number of runs.
An integrated approach to the operations reduced cost and provided a
single point of contact that enabled the customer to spend time on
planning other well intervention activities.

In US Land, advanced Schlumberger Wireline probe technology was used on
the PressureXpress* reservoir pressure-while-logging service for Ultra
Resources to acquire formation pressures in the Pinedale Anticline in
tight reservoirs with porosities less than 8% and mobilities inferior to
0.01md/cp. This success has convinced the customer to continue the
technique as part of their reservoir characterization program.

Elsewhere in the US Gulf of Mexico, a Schlumberger Wireline walkaway
vertical seismic profile was run for Anadarko on the Samurai prospect on
Green Canyon Block 432. The 50,000-ft survey line was completed in 21
hours, with no lost time, and resulted in more than 25,260 shot records.
Processing was completed in less than a week and confirmed a suspected
fault located in a zone of lost circulation at 29,315 ft. The results
are now being used to plan a sidetrack to the well to delineate and
appraise this discovery.

In a Devon Energy Barnett Shale well in US Land, Schlumberger Wireline
Sonic Scanner* and Platform Express* services were run using XTRA*
tractor technology to acquire logging information for integration with
other data in the Schlumberger Petrel* workflow process. This approach
to guiding subsequent hydraulic fracture stage design will integrate
StimMAP* hydraulic fracture evaluation results to help optimize well
completion.

A successful coiled-tubing logging campaign was completed by
Schlumberger for Mariner Energy in the US Gulf of Mexico. Successful
integration of production services technology from Well Services,
CoilTOOLS and Wireline successfully cleaned and logged two wells
producing saltwater from an unidentified zone which subsequently
hindered production due to the salt deposits in the wellbore. Rapid
assembly of downhole tools using VANTAGE* logging-head technology helped
achieve significant time savings with consequent operating cost
reductions compared to conventional coiled-tubing logging methods.

In US Land, advanced Schlumberger Drilling & Measurements technologies
including the EcoScope* multifunction system, the SonicVISION*
sonic-while-drilling service and the PowerDrive* rotary-steerable system
have been deployed in 11 wells in various shale plays including the
Woodford, Eagleford, Haynesville and Marcellus formations. As well as
being used to place wells in the ideal part of the reservoirs and
maximize completion and stimulation efficiencies, the technologies saved
three days' worth of rig time per well in data acquisition and drilled
the lateral sections two days faster than conventional motor technology.

Latin America

Revenue of $1.07 billion was 8% higher sequentially but 6% lower
year-on-year. Pretax operating income of $197 million was 12% higher
sequentially but 14% lower year-on-year.

Sequentially, Venezuela/Trinidad & Tobago GeoMarket revenue increased as
finalization of certain contracts resulted in the recognition of
deferred revenue in addition to revenue from current-quarter activities
related to these contracts. Mexico/Central America GeoMarket revenue was
also higher due to the start-up of the ATG III contract and increased
activity on other IPM projects.

Pretax operating margin improved 70 bps sequentially to 18.3% primarily
due to the positive impact of cost management in the Venezuela/Trinidad
& Tobago GeoMarket and increased IPM activity in Mexico/Central America.
These increases were partially offset by a decrease in Brazil due
primarily to start-up costs for new contracts.

In East Venezuela, north of Monagas, close cooperation between Petroleos
de Venezuela S.A. (PDVSA) and Schlumberger led to a more than 12-fold
production increase on a well perforated by Schlumberger and cleaned-up
using fluid developed by the INTEVEP-PDVSA research organization.
Schlumberger PURE* and PowerJet Omega* perforating technologies were
deployed, and in combination with the clean-up fluid led to significant
skin reduction and flow profile improvement.

Elsewhere in Venezuela, new Schlumberger Wireline formation testing
technology led to successful pressure testing for PDVSA on a key well on
Lake Maracaibo where pressure data had previously proved impossible to
obtain. Two target zones in the well--one highly fractured, the other
less laminated--required different approaches but the combination of
Schlumberger dual packer module technology with Quicksilver Probe*
contamination-free sampling allowed both zones to be tested in a single
run.

In Mexico, Schlumberger Drilling & Measurements new technology continued
to be deployed with the use of EcoScope* multifunction
logging-while-drilling services that allowed Pemex to make real-time
decisions based on petrophysical analyses while drilling. In a well on
the Tupilco field, real-time information helped stop unnecessary pilot
well and horizontal section drilling immediately after data showed that
reservoir conditions were not as expected.

Also in Mexico, Schlumberger Drilling & Measurements continued to set
new drilling records for Pemex. PowerDrive vorteX* technology enabled
increased rate of penetration and saved time in several different areas.
In the Cantarell field, performance gains of 80% over conventional
technologies were recorded and on the Burgos project in the Cuitlahuac
field the technology saved one day in drilling in the 12 1/4"-hole
section. Further deployment is expected on ATG integrated projects and
in other regions to improve performance.

In Colombia, Schlumberger IPM operational planning and execution
practices led to an average 40% reduction in operating time, a 20%
saving in cost and a net-to-gross-pay zone ratio of 98% over the 11
wells of a continuing horizontal well campaign for Mansarovar in the
Girasol field. Close integration between customer and Schlumberger teams
led to optimal technology selection while planning and execution using
Schlumberger Drilling & Measurements PeriScope* well-placement
technology added to operational performance.

In September, Schlumberger announced the signing of a joint cooperation
agreement with the Universidade Federal do Rio de Janeiro to build a key
international research center on the university's campus. The
Schlumberger Brazil Research and Geosciences Center will focus on
research and development activities in the deep-water pre-salt
environment, with emphasis on the development of geosciences software
for the exploration and production sector; new technologies to meet
reservoir challenges in pre-salt environments; and the creation of a
geophysical processing and interpretation Center of Excellence covering
time-lapse seismic and combined electromagnetic and seismic measurements.

Europe/CIS/Africa

Revenue of $1.78 billion was flat sequentially but 18% lower
year-on-year. Pretax operating income of $422 million was 2% lower
sequentially and 33% lower year-on-year.

Sequentially, the strengthening of local currencies against the US
Dollar increased Area revenue by 2%. In addition, North Africa GeoMarket
revenue increased on high Testing Services product sales and stronger
IPM activity while the Nigeria & Gulf of Guinea GeoMarket grew primarily
on strong demand for Well Services technologies. However, these
increases were partially offset by lower revenue in the West & South
Africa GeoMarket from reduced activity that primarily affected Well
Services operations and by a decrease in the North Sea GeoMarket
resulting from lower rig count and pricing that mostly impacted Drilling
& Measurements services. Libya GeoMarket revenue fell on reduced demand
for Testing Services and Well Services technologies as well as for
Completion products.

Pretax operating margin slipped 53 bps sequentially to 23.7% as
increased North Africa GeoMarket revenue and a more favorable revenue
mix in Russia were insufficient to offset lower activity and a less
favorable revenue mix in the North Sea and West & South Africa
GeoMarkets.

In the UK sector of the North Sea, Schlumberger Artificial Lift was
awarded a contract covering all Apache North Sea electrical submersible
pump systems. The award follows excellent service delivery on previous
contracts and includes bonus payments for run-life performance
improvement.

Also in the UK North Sea, the Schlumberger Well Testing Cleanphase*
well-test separator with SmartWeir* technology enabled Total to recover
costly high-density completion fluid while permitting safe, efficient
and environmentally-responsible fluids disposal. SmartWeir technology
handles high fluid volumes, optimizes water retention time, and does not
plug with debris.

In Denmark, Maersk Oil & Gas awarded all open-hole wireline services to
Schlumberger based on technology and high-pressure, high-temperature
data acquisition capabilities.

In Norway, Schlumberger Information Solutions designed and implemented a
fit-for-purpose, fully managed petrotechnical office installation for
Polskie Gornictwo Naftowe i Gazownictwo Norway that included Petrel,
ECLIPSE*, and Interactive Petrophysics* software applications together
with corresponding infrastructure, data management services and
collaboration and visualization technology. The installation enabled the
customer's geologists and geophysicists to become quickly operational
with access to formatted regional data ready for interpretation.

In Equatorial Guinea, Schlumberger was awarded a major subsea
completions contract by Noble Energy for work on 10 wells with the
possibility of additional development in the area. The contract covers
installation of the upper and lower well completions--including reservoir
monitoring and completions technologies--on the Aseng development
project. The award was based on technology availability and operational
support.

In Nigeria, Schlumberger Completions commissioned intelligent well
completions on three deep-water in-fill wells for Eni-NAE. Multiple
Schlumberger technologies were deployed during operations including
tubing-conveyed PowerJet Omega perforating charges, tubing-retrievable
hydraulic flow control valves, Quantum* packers and wire-wrap screens.
The project included a triple-zone intelligent well combined with sand
control systems in a subsea completion, with the well considered to be a
best-in-class example by the customer.

In Uganda, the Schlumberger Wireline MDT* Modular Formation Dynamics
Tester dual packer technology was run in cased hole for Tullow Oil on
the Ngassa-2 well after previous attempts in open hole had proved
unsuccessful. The successful operation minimized risk to secure 14
samples and enabled the customer to discover a previously unknown major
pay zone.

In Russia, Arcticgas, a SeverEnergia company, awarded Schlumberger a
series of contracts covering wireline logging, well perforating and well
testing services for deployment on both newly drilled and existing wells
on Arcticgas fields north of the Arctic Circle near Novy Urengoy.

In Sakhalin, East Russia, Schlumberger Wireline technology was deployed
on two wells for Venineft LLC as part of an exploration program on the
Veninsky Block. The combination of the latest--generation Wireline
skid-mounted logging unit with advanced technology logging tools
delivered high-quality data with no lost time.

Also in East Russia, collaboration between Schlumberger Wireline and
Schlumberger Data & Consulting Services led to success in providing
Gazflot with reliable reservoir characterization results from the
Kirinskaya-2 well drilled to further evaluate reserves on the Kirinsky
Block in Sakhalin. The geology of the area required close cooperation
between Gazflot and Schlumberger to define and deploy an advanced
logging program on TLC* Tough Logging Conditions System equipment
including CMR* Combinable Magnetic Resonance, PressureXpress formation
testing, ECS* Elemental Capture Spectroscopy and APS* Accelerator
Porosity Sonde technologies.

Middle East & Asia

Revenue of $1.23 billion decreased 6% sequentially and 17% year-on-year.
Pretax operating income of $391 million decreased 7% sequentially and
26% year-on-year.

Sequentially, revenue in the East Asia GeoMarket fell from completion of
several exploration-related campaigns with consequent lower demand for
Wireline, Testing Services and Well Services technologies. Qatar
GeoMarket revenue decreased primarily due to the completion of offshore
projects that resulted in reduced demand for all Technologies. Gulf
GeoMarket revenue fell on lower rig count that led to a decrease in
Drilling & Measurements and Wireline services. The East Mediterranean
revenue dropped as the result of lower land activity that reduced demand
primarily for Well Services technologies. These decreases however were
partially offset by an increase in the Arabian GeoMarket revenue on
strong gas-related activity that resulted in higher demand for Well
Services and Testing Services technologies. Weaker pricing also
contributed to lower revenue.

Pretax operating margin decreased by just 32 bps sequentially to 31.7%
as the impact of the stronger activity in the Arabian GeoMarket and a
more favorable revenue mix in the Indonesia GeoMarket almost offset the
lower activity in the East Asia, Qatar, Gulf and East Mediterranean
GeoMarkets as well as the effects of weaker pricing across the Area.

Offshore Australia, a complete Schlumberger Drilling & Measurements
Scope Family* advanced logging-while-drilling tool string was run in
combination with PowerDrive X5* rotary-steerable technology in a
horizontal well for Woodside Energy. Real-time operational support from
Data & Consulting Services petro-technical experts working in the client
office helped ensure successful penetration of two reservoir sands
across a complex faulted geological block with the StethoScope*
formation pressure-while-drilling data confirming the sands to be
separate reservoir compartments. Further use of the technology is
planned in a subsequent well.

In Malaysia, Schlumberger Well Services CoilFLATE* high-pressure,
high-temperature inflatable packer technology was successfully used on a
two-well water shut-off campaign for Petronas Carigali Sdn Bhd. On the
same wells, the Testing Services eFire-CT* coiled-tubing electronic
firing head system was used to perforate a new reservoir. The
combination of these two technologies led to a threefold production
increase over that originally expected.

Also in Malaysia, following several successful deployments of
Schlumberger Neon* opto-electric permanent monitoring cable technology
offshore, Schlumberger Completions successfully installed a unique
multi-gauge Neon system with four next-generation permanent quartz
gauges and double-ended distributed temperature sensor fibers. The
system allows for gas-lift optimization while providing flow
contribution measurements from the four reservoir sands in addition to a
number of critical production diagnostics. This is a critical reservoir
management technology installed to monitor enhanced oil recovery
injection on the Bokor field managed by Schlumberger IPM.

In Brunei, Schlumberger was awarded an additional campaign by Brunei
Shell Petroleum using Well Services coiled-tubing Catenary* technology.
This campaign was added to the Shell production enhancement projects
after the first campaign deploying the technology demonstrated that
wells on remote, small platforms could be accessed for fast and cost
effective production enhancement projects.

In Oman, Schlumberger Subsea was awarded a pipeline surveillance
contract using INtegriti* distributed fiber-optic technology. The new
INtegriti system, based on measurements of vibration and temperature,
will be deployed for detection of leaks and third-party damage.

Also in Oman, SIS was awarded a contract by Petroleum Development Oman
(PDO) for deployment of an integrated information management system
based on Schlumberger Osprey* Operations Manager software. The system
includes drilling information management and a well engineering
collaborative work environment. This combination is designed to help PDO
with performance improvement goals across their fleet of 37 rigs. The
system will monitor performance trends versus established performance
indicators linking them to systematic engagement with the rig teams to
drive a continuous improvement process.

In Saudi Arabia, a series of Schlumberger Well Services ACTive*
real-time coiled-tubing technologies was deployed as part of the
stimulation treatment on a dual lateral natural gas well completed in
open hole. The technologies enabled positive lateral identification,
facilitated fluid movement monitoring and helped customized placement of
the stimulation diversion and acid systems in the main intervals of
interest. Resulting production exceeded initial expectations.

WesternGeco

Third-quarter revenue of $463 million decreased 17% sequentially and 48%
year-on-year. Pretax operating income of $61 million decreased 37%
sequentially and 83% year-on-year.

Sequentially, Multiclient revenue decreased mostly on reduced sales in
North America and the North Sea. Marine revenue fell primarily as the
result of weaker pricing and the completion of two large contracts. Land
revenue was also lower due to project delays in the Middle East and
Africa. Data Processing revenue was flat versus the previous quarter.

Pretax operating margin fell 421 bps sequentially to 13.1% primarily as
a result of the lower Multiclient sales and Land project delays.

During the quarter, the WesternGeco Magellan left the shipyard in
Spain on its maiden voyage to begin operations. The 12-streamer vessel
is the world's second seismic X-Bow design to sail, following the
WesternGeco Columbus earlier in 2009. The new design provides
improved transit speeds, lower power consumption, reduced emissions and
lower levels of pitching and vibration for a friendlier work environment.

WesternGeco recently completed the first ever wide-azimuth survey in
Angolan waters--ahead of schedule and within budget. The vessels Western
Trident, Geco Diamond and Gilavar performed the survey
and their crews and shore-side management were commended by BP for their
professional approach, timely delivery of service, excellent data
quality and outstanding performance.

Following the feasibility study completed for Apache on the Forties
field in the UK North Sea, WesternGeco was awarded a 4D Q-Marine*
seismic survey on the field. The contract includes data processing of
the new survey as well as the reprocessing of several other existing
datasets and is the first Q-Marine award by Apache.

In response to significant customer interest, WesternGeco began
acquisition of multiclient surveys E-Octopus VIII and E-Octopus IX in
early September. Located in the highly prospective Alaminos Canyon,
Keathley Canyon and East Breaks areas of the US Gulf of Mexico, the
surveys cover more than 450 Outer Continental Shelf (OCS) blocks and
target some of the most challenging subsalt imaging areas of the OCS.

Operations commenced on a land 4D baseline survey for Chevron Australia
during the quarter. The survey is a mixture of onshore and transition
zone work within a Class A nature reserve on Barrow Island. The results
of this and future surveys will be used to monitor the underground
injection of carbon dioxide from gas produced from the Gorgon field and
injected into a formation more than 2,000 m beneath Barrow Island.

In seismic data processing, the proven results generated by WesternGeco
3D GSMP* Generalized Surface Multiple Prediction and Reverse Time
Migration (RTM) workflows resulted in the award of three significant
contracts in North America during the quarter.

WesternGeco Electromagnetics completed a multiclient project in the
Potiguar Basin, offshore Brazil. The project comprised integrated
interpretation of 2D prestack depth-migrated seismic data, Petromod*
petroleum systems modeling, and analysis of satellite oil-seep
information to generate prospects. An accumulated total of approximately
1,300 sq km of Controlled Source Electromagnetics (CSEM) data were then
acquired over these prospects and inverted to create resistivity
datasets. The resulting geophysical datasets have been integrated into a
Petrel database to be offered as part of a multiclient package.

WesternGeco Electromagnetics was awarded a contract to conduct the first
CSEM survey in the Turkish sector of the Black Sea. The survey, to be
acquired by Toisa Vigilant, is the largest volume of CSEM work
tendered and awarded in the industry to date.

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 approximately 77,000 people
representing over 140 nationalities and working in approximately 80
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 $27.16 billion in 2008. For more
information, visit www.SLB.com.

*Mark of Schlumberger

(R)Mark of National Oilwell Varco

Notes

Schlumberger will hold a conference call to discuss the above
announcement on Friday, October 23, 2009. The call is scheduled to begin
at 8:00 am US Central Daylight Time (CDT), 9:00 a.m. Eastern Daylight
Time (EDT). To access the call, which is open to the public, please
contact the conference call operator at +1-877-209-9920 within North
America, or +1-612-332-7515 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 November 23,
2009 by dialing +1-800-475-6701 within North America, or +1-320-365-3844
outside of North America, and providing the access code 111676.

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 schedules are available at www.SLB.com/ir.

SOURCE: Schlumberger Limited

Schlumberger Limited 
Malcolm Theobald -- Vice President of Investor Relations 
Robert Bergeron -- Manager of Investor Relations 
Office +1 (713) 375-3535 
investor-relations@slb.com

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