A Commitment to North Africa

& Technology

Satish Pai Chief Operating Officer, Schlumberger

Libya

1

Schlumberger Libya Operations • 10 operation bases (3 in use today); 2 business offices

• Early operations startup post-revolution

Commitment to Libya • No employees released during revolution despite activity shut down

• Buses donation to support local communities

• Technology transfer via software grants

• Continuous recruiting campaigns

• Local spend of $119M in 2010 and $88M in 2012

Technology use in Libya • PeriScope and geoVISION for geosteering and well placement

• First ever SLB ICD job for ENI in the Bouri field

• Joint NOC—SLB team for relief well planning during revolution

Tunisia

2

Schlumberger Tunisia Operations • 50 years of uninterrupted activity

• 8 operations bases in Sfax and Tatween; 1 business office

Commitment to Tunisia • SEED started 2008 (Tunisia) in 1 school

• Small business loans to help local communities after the revolution

• Continuous engagement with 3 target universities

• Software donations of $17M since 2010 to different universities

Technology use in Tunisia • HiWAY flow-channel hydraulic fracturing

• Flow Scanner high temp

Algeria

3

Schlumberger Algeria Operations • 12 operations bases; 2 business offices

• 50 years of uninterrupted activity (even during crises)

Commitment to Algeria • SEED started in 2002 in 6 schools

• Assisting graduates from Ouargla University start their careers

• Continuous engagement with 2 target universities

• Software donations of $20M since 2010 to 3different universities

Technology use in Algeria • HiWAY flow-channel hydraulic fracturing

• PhaseWatcher multiphase flowmeter and Vx testing technology

• UNiQ seismic acqusition in Algeria (Q1 2013)

Egypt

4

Schlumberger Egypt Operations • 16 operational bases spread over 6 geographical regions

• The widest services coverage in Egypt amongst competitors

Commitment to Egypt • SEED started in 1998 with various contributions in Cairo, Alexandria,

Ras Ghareb, Luxor & Port Said

• ~30,000 hours donated annually in multi-discipline training for

undergraduates spread over 15 universities & institutes

Technology use in Egypt • HiWAY flow-channel hydraulic fracturing

• Seismic Guided Drilling (SGD) redefining drilling risk management in

the Mediterranean

• FMI-HD microelectrical imaging tool for nonconductive mud

HiWAY Service: More Value with Less Resources

5

Improves production from 20-45%

Reduces screenout by 2 orders magnitude

Reduces water up to 50%

Reduces proppant up to 40%

Shale Development Impact: Technology Roles

Groundwater?

Seismic events?

Sheer number of wells

Surface disturbance

Service intensity / well

Truck traffic

Resources required

Noise/Air emissions

Complex reservoirs

Production economics

Can Technology & Innovation play a role to reduce impact?

Industry’s License to Operate From the Community

Reservoir & Completion Quality: Finding the Sweet Spot Petroleum Systems Modeling

AVOAz & Ant Tracking

Heterogeneous Rock Analysis & Seismic

Cuttings, Core, Log, Seismic: 3D Integration

HiWAY Flow-Channel Hydraulic Fracturing Technique

9

322

3475

6772

0

1000

2000

3000

4000

5000

6000

7000

2010 2011 2012*

* Annualized with data through Oct. 31, 2012

HiW

AY

sta

ge

cou

nt

• Commercialized in June’10

• Used in 15 countries by 80+

customers

• Today ~20% of SLB frac jobs

use HiWAY

• Fracture is filled with

proppant

• Oil and gas must flow in

between proppant grains

• Proppant is placed in

clusters

• Oil and gas flow through

open channels

Schlumberger’s Commitment to North Africa

10

NAG – Niger, Mali Algeria & Tunisia

EEG – Egypt LIG – Libya Schlumberger North African Geomarkets

• Algeria • Schlumberger presence for 60+ years

• 3,105 employees (90% local)

• Tunisia

• Schlumberger presence for 50 years

• 453 employees (90% local)

• Libya • Schlumberger presence for 56 years

• 1,087 employees (93% Libyan)

• Egypt

• Schlumberger presence for 74 years

• 1,750 employees (93% Egyptian)

CEU – Continental Europe & Morocco

Technology in Today’s North

African E&P Market

Satish Pai Executive Vice President, Schlumberger