COMPANIES IN THE NEWS: seismicVision: Schlumberger develops new logging-while-drilling system

Schlumberger Oilfield Services said Nov. 10 that it has developed a new logging-while-drilling system that acquires and transmits seismic data in real time without interfering with normal drilling operations.

The company said “seismicVISION” delivers traditional borehole seismic measurements, including checkshot and interval velocity data in real time, “to reduce the uncertainty of events ahead of the bit.”

“With seismicVISION drillers can manage seismic uncertainty to reduce well costs and improve safety; especially in deepwater and other areas with significant seismic uncertainties,” said Paal Kibsgaard, president, Drilling and Measurements, Schlumberger Oilfield Services. “Importantly, with the checkshot continuously correcting the seismic map both the driller in depth, as well as the geologists and geophysicists in time, can see in real time where they are on the surface seismic map.”

Schlumberger said the system has been successfully tested in a variety of offshore locations, including the Caspian Sea and the Gulf of Mexico.

Schlumberger acquires stake in Russian oilfield service company

Schlumberger will “initially acquire 26 percent of the company, with a further 25 percent to be acquired in the second quarter of 2005, and the remaining interest one year later. Closing on the first 26 percent is expected in the first quarter of 2004,” the company said.

Completion of each of the three stages is subject to performance standards and other customary conditions. The total acquisition price will be determined by a performance-based formula, and paid one-third in cash and two-thirds in Schlumberger stock, Schlumberger said.

“We are very pleased to have reached this agreement with PetroAlliance, the leading independent Russian service provider,” said Andrew Gould, chairman and chief executive officer of Schlumberger. “Advances in oilfield service practices and technologies have already played significant roles in Russia, and making new technology available through broader service options responds to a growing need and expresses our confidence in the continuing development of the Russian oil and gas industry.”

Full range of services

PetroAlliance was established in 1995 and has steadily expanded its activities to include seismic, wireline logging and perforating, directional drilling, pumping, integrated project management, and information management and IT-related services. PetroAlliance provides services to a number of both Russian and international oil and gas operators, Schlumberger said.

Alexander Djaparidze, chairman and chief executive officer of PetroAlliance, said, “We welcome this agreement with Schlumberger and believe that it offers a significant opportunity for the continued growth of the company’s activities. This agreement will allow us to have access to the best oilfield services technology on the market and position PetroAlliance to become the leading player in provision of cutting-edge oilfield technology in Russia.”

Schlumberger is a global oilfield and information services company with major activity in the energy industry. The company employs 78,000 people of more than 140 nationalities working in 100 countries and comprises three primary business segments.

Schlumberger Oilfield Services is the world’s premier oilfield services company supplying a wide range of technology services and solutions to the international oil and gas industry. WesternGeco, jointly owned with Baker Hughes, is the world’s largest and most advanced surface seismic company.

SchlumbergerSema is a leading supplier of IT consulting, systems integration, and network and infrastructure services to the energy industry, as well as to the public sector, telecommunications and finance markets.

In 2002, Schlumberger operating revenue was $13.2 billion.

PetroAlliance is Russia’s largest independent oilfield service company and provides a broad range of exploration and development services to international standards. The company employs 2,500 people.

In 2002, PetroAlliance’s operating revenues were $112 million.