SLB Partially Scales Back Operations in the Middle East Due to Escalation
The world’s largest oilfield services company SLB (formerly Schlumberger) has begun partially scaling back its operations and has also suspended transit shipments in the Middle East due to the escalation of the situation, according to the company’s press release.
The United States and Israel on February 28 began carrying out strikes on facilities in Iran, including in Tehran. Iran is conducting retaliatory strikes on Israeli territory, as well as on U.S. military facilities in the Middle East. As a result, shipping through the Strait of Hormuz has sharply declined.
“Travel to this region (the Middle East) and transit shipments through it have been suspended, and the company has begun scaling back its activities in several countries in response to measures taken by clients to protect personnel and assets,” the statement said.
The company notes that these measures will remain in place until the situation in the Middle East stabilizes, and it will resume full operations as soon as conditions allow.
SLB also expects its revenue for the current quarter to fall below expectations. The company also anticipates additional costs that will impact diluted earnings per share by approximately 6–9 cents. Given the dynamic nature of the situation, expectations may change, SLB added.
SLB is a major global provider of technologies for reservoir evaluation, well construction, production management, and hydrocarbon processing.
