Schlumberger has announced during its latest earning results that it will exit the marine and land seismic acquisition business which has faced hard times during the oil downturn.
Schlumberger has announced during its latest earning results that it will exit the marine and land seismic acquisition business which has faced hard times during the oil downturn.
Schlumberger’s marine and land seismic acquisition services are offered through WesternGeco, which is part of the company’s reservoir characterisation group. The group reported revenue of US$1.6 billion for fourth-quarter 2017, down 8 per cent sequentially and down 2 per cent from a year ago. The oil service giant took more than $1.1 billion in restructuring expenses tied to its WesternGeco seismic business.
Schlumberger Chairman and CEO Paal Kibsgaard commented: “With the significant changes seen in customer priorities and buying habits in recent years, we have also continued to evaluate the present and future return prospects for all of our product lines, as we look to maximise all aspects of the Company’s long-term financial performance. Based on this in-depth analysis, the only product line that does not meet our return expectations going forward, even factoring in an eventual market recovery, is our seismic acquisition business. We have therefore taken the difficult decision to exit the marine and land seismic acquisition market, and instead turn our WesternGeco product line into an asset-light business, built on our leading position within multiclient, data processing, and geophysical interpretation services.”
Source: Pipeline ME
