The global landscape in the wake of Russia’s invasion of Ukraine has seen many western oilfield services companies exit the Russian market. However, amidst this exodus, one major player, the Houston-based oilfield services giant SLB, formerly known as Schlumberger, is making bold moves in Russia, expanding its operations and bolstering its presence in the country.
- Maintaining a Strong Foothold:
While competitors like Baker Hughes and Halliburton have sold their Russian businesses to local managers, SLB has opted to stay and continue its operations. Peter Voser of Swiss-based ABB acknowledges the short-term competitive advantage these decisions may offer, but believes that sustainable success lies in broader perspectives.
- Contracts and Recruitment:
In December, SLB’s Russian arm inked a deal with the Russian oil and gas institute Vnigni to collaborate on developing oil and gas deposit models for projects. This move underscores SLB’s commitment to the Russian market. Moreover, the company has posted over 1,000 job openings since December across various sectors, showcasing its ongoing recruitment efforts and investment in local talent.
- Import Activities:
SLB’s import activities reflect its continued engagement in Russia. Following a ban on product and technology shipments in response to international sanctions, the company has been importing materials from other sources. These imports, including critical technologies for oil operations, signify SLB’s commitment to supporting the local oil and gas industry.
- Impact on the Oil Sector:
As a key player in the oilfield services industry, SLB’s operations in Russia have attracted scrutiny. While concerns persist about the company’s indirect support for the war effort through its ties to Russian oil companies like Lukoil, western policymakers have refrained from imposing strict sanctions on oilfield services out of fear of disrupting global oil markets. Despite calls for more stringent measures, the complexity of the energy sector and global economic implications have hindered decisive action.
In conclusion, SLB’s ongoing activities in Russia highlight the intricate balance between business interests, geopolitical dynamics, and ethical considerations in the energy sector. As stakeholders navigate these complexities, the need for responsible corporate behavior and international cooperation becomes increasingly paramount. The future of oilfield services in Russia warrants a closer examination and a multifaceted approach to addressing the multifaceted challenges at hand.
