Schlumberger profited US$6.7B in Q2, cites increased drilling activity offshore Guyana

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As the second quarter of 2022 drew to a close, oilfield services company Schlumberger netted US$6.7 billion in profits, up 14% sequentially and 20% year-on-year.

“This represented the strongest sequential quarterly growth since 2010,” said Schlumberger’s Vice President and Chief Financial Officer, Stephane Biguet during the company’s Q2 Conference Call.

Of Schlumberger’s Q2 revenues, those from North America totalled US$1.54 billion and international at US$5.19 billion. Net income in Q2 was US$959 million (67 cents/share) versus US$510 million (36 cents/share) three months earlier.

Schlumberger said its international growth was widespread across all areas with more than 90% of its GeoUnits experiencing revenue growth.

“Latin America sequential revenue growth of 10% was due to higher stimulation activity in Argentina, increased Production Systems sales in Brazil and Mexico, and higher offshore drilling in Guyana,” the company outlined.

Looking ahead, Schlumberger’s Chief Executive Officer, Olivier Le Peuch noted that stepped-up activity in the back half of 2022 will likely be marked by an acceleration of investments in basins outside North America and continued strengthening of offshore activity as operators, including international oil companies, increase spending.

“The energy security situation continues to drive structural activity increase, resulting from the increased focus on short-term production and mid- to long-term capacity expansion across oil and gas plays,” Le Peuch added.

Schlumberger Limited provides technology for the energy industry worldwide and has played an integral role in the development of Guyana’s oil and gas sector. The Company has set up a source storage and calibration facility at Houston, East Bank Demerara, on the outskirts of Georgetown to support offshore exploration and production activities.

ExxonMobil – the operator of Guyana’s largest offshore block, Stabroek – plans to drill more than 60 exploration wells offshore Guyana in six years – more wells than it has drilled in the past. It has already planned a 35-well exploration campaign for the Stabroek Block.

It is anticipated that this campaign will begin in the third quarter of 2023, and if discoveries are made, well test(s) may be performed. Conclusion of the proposed drilling campaign is expected by the fourth quarter of 2028.


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