SCHLUMBERGER IN THE CASPIAN
Sixty-five years after Schlumberger establishers, brothers Marcel and Conrad, first came to Baku in 1929 to log wells under a contract with the Soviet regime, Schlumberger returned, establishing base operations in Baku in 1994, when the Azerbaijan International Operational Company (AIOC) signed what became known as "the contract of the century" to develop the ACG project. This project, kick-started our participation in the budding Caspian boom.
Schlumberger has made a considerable organizational effort and capital investment in the last few years. New Schlumberger business offices have sprung up, operational bases have been rebuilt or are undergoing expansion, experienced new staff have moved in to assess needs and opportunities, and in every member country throughout Caspian Region have netted hundreds of new local employees. Headcount in Caspian GeoMarket has gone from about 500 in 2000 to 1,040 today.
Schlumberger Limited is the world's leading oilfield services company supplying technology, project management and information solutions that optimize customers' performance working in the international oil and gas industry. Founded in 1927, today the company employs over 52,000 people of more than 140 nationalities working in 100 countries.
Local solutions and global expertise. Schlumberger strives to be close to its customers to gain thorough understanding of both their needs and businesses, often working in joint teams in both research and field activities. Schlumberger conducts its business through geographical business units based on common languages, logistics and market needs called GeoMarkets. GeoMarket offices and operating locations are chosen to simplify communications, while respecting the desire to remain close to the customer. The Caspian GeoMarket, headquartered in Atyrau, Kazakhstan, comprises operations in Kazakhstan, Azerbaijan, Turkmenistan and Uzbekistan. Schlumberger employs over 1,040 people throughout the Caspian region under the guidance of the General Manager, Mr. Tom Allan.
Today, Schlumberger Oilfield Services is represented in the Caspian with all major product lines:
- Reservoir Evaluations - Wireline (Wireline, Cased & Open hole Services);
- Drilling & Measurements (Drilling Services, Directional Drilling, LWD, MWD);
- Well Services (Pumping, Cementing, Drilling Fluids, Stimulation, Coiled Tubing, Sand Control/Completions);
- Well Completions & Productivity (Perforating, Slickline, Surface Well Testing, Downhole Test Strings);
- Data Consulting Services (Data Management, Data Services);
- Schlumberger Information Solutions (Hardware, Software);
- Integrated Project Management (Project Management, Procurement, Logistics, Well Engineering, Reservoir Studies).
In addition to the above product lines, Schlumberger has KOS-Cementing JV with KazMunayGas providing cementing services in Kazakhstan. It's an excellent example of Schlumberger's Local Content effort. This company was formed in January 2002 and has expanded from simple Cementing services to providing all pressure pumping related services. Another example is AzLab JV, formed in 1996, between SOCAR (State Oil Company of Azerbaijan Republic) and Schlumberger. Originally AzLab was a conventional core laboratory, PVT and Geochemistry laboratory. All of the profits of AzLab were re-invested in the JV and the world-class core storage facilities were constructed with these funds. Schlumberger's affiliate WesternGeco (jointly owned with Baker Hughes) formed Caspian Geophysical JV with SOCAR, which provides 2D, 3D, Time-Lapse (4D) and Multicomponent (4C) marine seismic surveys in all ranges of water depths, processing/reprocessing and non-exclusive 2D data for licensing. Caspian Geophysical's technically advanced seismic vessel "Gilavar" and powerful processing capacity provides international oil companies with the widest range of seismic services.
To provide quality service, it is critical to have sufficient infrastructure in the area of operations to support the services provided. Schlumberger has demonstrated its commitment to long-term business in the Caspian with world-class support bases in Baku and Tengiz and new bases being built around the Caspian region. This year we're planning the opening of the new facility in Baku, representing $6 mln. investment in Azerbaijan operational capability. The construction of the facility started in third quarter 2003 and is almost completed. The new base will have full comprehensive facilities for all oilfield services including the storage area for completions equipment.
Workforce Development. Schlumberger's greatest and longest lasting impact on sustainable development in the Caspian comes from the development of people. For example, today in Kazakhstan Schlumberger employs over 650 Kazakhstan people with over 60 Kazakhstan professionals working as expatriates in Schlumberger operations around the world. Azeri nationals already account for some 70% of Schlumberger staff in Baku with 50 Azeri nationals working as expatriates. These expatriates are learning global best practices to bring back to the operations here at home. We enjoy close relationships with several universities in the Caspian countries as we help to develop the technical human resources needed for these countries' future expansion in the oil and gas industry. We support universities in the way of scholarships, donation of computer hardware and Petroleum Engineering software and periodic lectures by experts.
Through these and other forms of educational support, we believe, we are providing the groundwork for better employees. We are already seeing the fruits of this effort and have local engineers and geoscientists moving into management positions at home and around the globe. In long-term projects we have met or exceeded all of our goals on Workforce Nationalization and Development.
At the wellsite, in our global connectivity centers and in our R&E facilities, we are working to optimize customer performance in a safe and environmentally sound manner. Our employees are committed to working together within our organization and with our customers to create the highest level of added value. Knowledge, technical innovation and teamwork are at the center of Schlumberger. For the last 75 years, we have focused on leveraging these assets to deliver solutions that improve customer performance.
With a presence in more than 100 countries, a highly technical workforce from as many nationalities, and a worldwide IT infrastructure, we felt we had the right ingredients to launch the non-profit Schlumberger Excellence in Education (SEED) Program that targets secondary-school science education in the developing world. Since 1998 when SEED began, we have connected 110 schools to the Internet, touching 150,000 children in over 30 countries. At the other end of the pipe, we created an on-line science center where children can ask Schlumberger volunteer engineers and scientists questions on virtually any science topic. Taking a long-term view to human capital development in the Caspian, we believe that education, and specifically science education, is the key to providing a competent workforce of the future. We have 4 such SEED locations set-up around the Caspian today.