In-Country Value

Practices in Oil & Gas Industry

Mohsin Al Hadhrami

General Manager

Schlumberger Sustainability Framework

Schlumberger Evolution in ICV

Omanisation in Workforce

Recruitment, Training and Development

Investment in Fixed Assets

National Sourcing of Goods and Services

Development of 3rd party National Suppliers

Educational Institutions support

Schlumberger ICV Commitment

Content

15-Sep-15 2

Schlumberger Sustainability Framework

15-Sep-15 3

Social Investment Activities

15-Sep-15 4

UN Millennium Development Goals

In Country Value Elements

15-Sep-15 5

Omanisation in the workforce

Training of Omanis

Investment in Fixed Assets

Investments in National Institutions

Local Sourcing (Goods & Services)

Local Supplier Development

• Approximately 1,500 Omani nationals operating today in Schlumberger Oman

• Current Omanisation is 81%

• >100 Omanis working for Schlumberger abroad

Omanisation in Workforce

60%

65%

70%

75%

80%

85%

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2008 2009 2010 2011 2012 2013 2014 2015(exp)

2016(exp)

hea

dco

un

t

Year

Headcount & Omanization

Total HC Omanisation HC Omanis Outside Omanisation %

15-Sep-15 6

• > 450 graduates recruited in the last 3 years

• Doubled number of female employees since 2009 ensuring equality in job opportunities

Recruitment, Training and Development

15-Sep-15 7

• Newly hired Schlumberger employees join the in-house, fixed-step training programs

• Field engineers and specialists join structured learning at one of the Schlumberger’s world-class purpose-built learning centers in the Middle East, UK, France, the Far East, or the USA

• Schlumberger Oman estimated spend on training in 2014 alone exceeds $5M

Recruitment, Training and Development

• NExT, is a Schlumberger company that delivers

complete oil and gas training and career

development solutions for E&P organizations and

professionals worldwide.

• The NExT training facility in Muscat has already

hosted approximately 1,000 participants since

2012.

15-Sep-15 8

Recruitment, Training and Development

Ranaa Al Riyami

Vice President IPM Integrated Services

United Kingdom

Khalid Al Ghammari

PetroTechnical Services Training Manager

United States

Jokha Al Busaidi

Regional Recruiting Manager

UAE

Najma Al Kharusi

iRecruit Champion

Italy

Munir Al Balushi

Bits Operation Manager

Saudi Arabia

Latifa Aal Said

SIS Regional HR Manager

UAE

Aktham Al Naabi

Cost Management Project Regional Manager

UAE

15-Sep-15 9

Investments in Fixed Assets

Schlumberger main facilities in Oman are:• HQ Office in Muscat• Petrotechnical Engineering Centre (PTEC)• Four permanent bases located at:

• Nizwa Base• Fahud Base• Marmul Base• Mukhaizna Base

• Ghala warehouse

15-Sep-15 10

Nizwa Base

Base design

• A 10,000 M2 state of art in Nizwa industrial

area

• Built on Lean principles

• Became Schlumberger international standard

Employment

• Created a considerable figure of full time jobs

Environment

• Schlumberger has incorporated the latest

environmental protection measures

Local economy

• Created demand for rented accommodation,

catering services, facility maintenance

services and other opportunities for SMEs

15-Sep-15 11

Nizwa Base

Phase-1

D&M Base

Phase-2

WS Base

Phase-3

DT&R, CPS and

D&M

Phase-4

Bits

Total

Investment

Investment Value $5.9M $16.7M $ 4.9M $ 1.4M $ 28.9M

15-Sep-15 12

Petro Technical Engineering Center (PTEC)

Target to lower Cost Per Well for all Oman

Operators through the integration of the various

drilling disciplines

Provide fit for purpose system optimization and

RT value capture on every well where the

Schlumberger is involved

Provide technical focus on key projects

First 24/7 Support Centre in Oman

SLB investment in “Nizwa base and PTEC”has won the PDO ICV

award for year of 2014

15-Sep-15 13

Oman Institute for Oil and Gas (InstOG)

• Initiated by Schlumberger Oman and Takatuf (Oman Oil)

• Industrial training Centre - First of its kind in the region

• The main objectives of this project are:-

o Be the best facility in Oman to train Omanis in RE, PE, DE and G&G.

o Accelerate onboarding of new PTPs by bridging the gap between university and industry

o Invest in Oman’s Geoscience & Engineering communities

15-Sep-15 14

Oman Institute for Oil and Gas (InstOG)

TRAINING DISCIPLINES AT CDI

• Geology & geophysics

• Petrophysics

• Reservoir Engineering

• Production Technology

• Drilling & Completion Engineering

• Short courses

TRAINING INTAKE - PTPS

Fresh graduates

Mid-careers

Discipline conversion

University student short courses

Developing Talent for the Future (Production Technologist )

15-Sep-15 15

Oman Institute for Oil and Gas (InstOG)

• Location will be in Innovation Park Muscat (IPM) inside SQU

• Program work shop will be held early 2016 with Key clients

SLB Investment $ 6M

15-Sep-15 16

Future Plans in Fixed Assets

Below are some of the main future plans in fixed assets

• New Muscat Main Office

• Artficial Lifting Regional Distribution Center

• Samail Manufacturing Facility for Completions (local supplier)

• New Marmul Base

• Continuous upgrades in Nizwa, Fahud & Mukhaizna Bases

15-Sep-15 17

Local Sourcing

More than 300 Locally Registered Companies

Developing and Training Contractors to HSE

International standards

Driver training and monitoring

system

Safety training and equipment

Maintenance standards

Local Spend on Community Contractors

(LCCs)

$-

$70

$140

$210

Total Oman UAE USA Japan Singapore UK

65%

12% 7%

Millions

2014 (exp.)

2013

2012

2011

3rd Party Spend - Registered Country

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

2009 2010 2011 2012 20132014 (exp.)

Local Community Contractors Spend

Total LCC Spend

15-Sep-15 18

National Supplier Development Plan

Company Project

National Supplier 1

Manufacturing of Mandrels and Landing nipples

Audited and qualified products by Schlumberger

50% significant improvement on delivery

20% cost saving

Supporting operations in Oman, Qatar and Saudi

National Supplier 2Manufacturing of Transformers

Matched with Schlumberger specifications

National Supplier 3

Manufacturing of class-G cement

Supporting operations in Oman, UAE, Qatar and Yemen

National Supplier 4Manufacturing of nipples, SSD, liner hangers and packers

Support completion’s operations

15-Sep-15 19

National Supplier Development PlanThe national suppliers development program consists of 4 elements: Communication of Information

• Schlumberger Approved Supplier List (ASL)• Ariba Sourcing application

Monthly Upgrading• KPI report by critical suppliers, self-assessment audit • Annual Audit by Schlumberger• Strengthen KPI to develop supplier management system, capability and competence

Skills Training• HSE and operational training • Higher level training for supervisors and management of local supplier (QHSE 2)• Different award and performance recognition to appraise suppliers performance

Collaboration• Collaboration with Super-LCC and SME for business opportunity with Schlumberger

15-Sep-15 20

Educational Institutions support

Supporting universities and technical schools

Inauguration of SLB geosciences lab in GUTech Software licenses and computers

SQU software and computers donation, value of software $13M plus maintenance and support

GUTech eminent donation of software solution $6M plus maintenance and support

Platinum Sponsor of Engineering Society at SQU Sponsor of SQU career fairs and overseas Omani

graduates first career fair

Summer internships

Six to eight weeks in duration and run year round on a variety of technical subjects, most involving training in the field

15-Sep-15 21

Challenges in ICV

15-Sep-15 22

Improving recognition measures that should be

implemented for a lasting sustainable business

development in country

Standardized evaluation measures to be

available for corporation self-assessment and

authority evaluation

Schlumberger ICV Commitment

Environment Capacity building

Employment and human capital

Local economic

development

Community Outreach

Ethics and governance

Local Impact

Lens

SLB is committed to consistently develop lasting “in-country value” for Oman

Employment and expansion of Omani workforce

Our best-in-class training and career development

programs aim to realize the full potential of all our

employees

Investing heavily in building the facilities needed to

deliver oilfield services to the highest international

standards

Creating conditions that foster the development of

local suppliers.

supporting them through training, knowledge and

technology transfer, or favorable commercial terms

as they grow

15-Sep-15 23

Thank You