Texas oil firm expanding presence in Russia – FT
American oilfield servicing giant SLB (formerly Schlumberger) is expanding in Russia despite its main rivals having pulled out of the country following the start of the Ukraine conflict in 2022, the Financial Times has reported, citing customs filings and employment listings.
Oil servicing companies manufacture, repair, and maintain equipment used in the extraction and transportation of crude.
SLB has continued to provide equipment in Russia, as well as register new trademarks, sign new contracts and seek new employees, the FT wrote on Friday.
While Russian oil exports have been placed under Ukraine-related sanctions, policymakers in the United States and the European Union have not imposed comprehensive restrictions on oilfield services in Russia due to concerns that such measures would stifle the global fossil fuel supply and drive up oil prices, the outlet noted.
SLB imported $17.5 million worth of equipment into Russia between August and December 2023, the FT wrote, citing Russian customs filings.
The deliveries came despite a pledge by the company in July of the same year to halt shipments of products and technology to the country.
The oilfield services giant's imports reportedly came from countries such as China and India. Among the supplied goods are cabling and chemicals; these categories could be subject to controls if exported from the EU, the outlet noted.
The oilfield services major has also posted more than 1,000 job advertisements since December, for positions ranging from drivers to chemists and geologists, the FT claimed.
In 2023, Russian operations generated 5% of SLB’s $33.1 billion in revenues, noted the outlet.
The company´s profits in Russia increased four-fold in 2023 compared to 2022, the business daily Vedomosti reported in April, citing its own analysis of SLB’s financial results.
Schlumberger´s main rivals, such as Texas-based Halliburton and Houston-based Baker Hughes, suspended their Russia operations in 2022 amid a mass exodus of Western firms from the country. The company also said at the time that it had suspended new investment and technology deployment in Russia. It added, however, that it was continuing with its existing activity, in compliance with international laws and sanctions.
SLB CEO Olivier Le Peche told the FT in March that the company does not yet intend to leave the country despite Western pressure.
Following the US and EU embargoes on Russian oil, Moscow started exporting fuel to countries in Asia and Africa; China and India have become its top customers.
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