The Largest Oilfield Services Company Has Stopped Deliveries to Russia
SLB announced the termination of the supply of products and technologies from all its enterprises in connection with the tightening of sanctions against Moscow. Prior to this, shipments were limited only from the US, UK, EU and Canada
The largest oilfield service company SLB (formerly Schlumberger) announced the termination of the supply of products and technologies to Russia from all its enterprises around the world due to the tightening of international sanctions, according to the SLB website. Prior to this, the company limited shipments from the US, UK, EU and Canada.
“SLB takes enforcement of export control laws and economic sanctions seriously and continues to support the international community,” the statement said. The SLB added that they are calling for a cessation of hostilities in Ukraine.
Since March 2022, the company has been taking steps to reduce its activities in Russia and limit investment and new technologies, they noted.
In May, Reuters reported that SLB had restricted supplies of products and technologies made in the United States, Britain, the European Union and Canada to keep its business in Russia amid sanctions. The company also closed Russian employees access to some software, internal message boards and databases in the US and Britain. The head of SLB, in an internal address to employees in February, admitted that the situation was difficult, but the company was not going to leave the Russian market. “We believe that the best option for all stakeholders is to continue working in Russia as long as we can do it in full compliance with international sanctions,” he said, quoted by the agency.
In January, Reuters, citing sources and company documents that came into its possession, reported that SLB was able to increase revenue in the country due to competitors who left the market. According to the agency, the revenue of the SLB division operating in Russia and the states of Central Asia in the third quarter of 2022 increased by 25% compared to the second.
In 2015, SLB admitted violating sanctions against Iran and Sudan, for which it was fined $237.2 million by the US Department of Justice. In addition, it had to pay a fine of $1.4 million for providing services to the Russian company Gazprom Neft Shelf (located in US sanctions list).
