Oilfield Services Giant SLB Expands in Russia Despite Sanctions

Oilfield services giant SLB, formerly Schlumberger, is still operating in Russia and expanding its operations there in the absence of its biggest competitors.

This is according to a Financial Times report that cites filings made by the company that show it has been importing equipment into Russia, hiring new employees, and signing new contracts.

Last year, SLB said it would stop delivering “products and technology into Russia” although unlike its peers Halliburton and Baker Hughes, it never said it would exit Russia. According to the FT report, customs filings show equipment manufactured by SLB or subsidiaries still getting shipped into Russia.

Data for last year shows that between August and December, SLB delivered $17.5 million worth of equipment into Russia. Of this total, the FT said, $2.2 million worth of equipment was declared as manufactured by SLB or subsidiaries. One unnamed source close to the Texas-based major said the equipment had not been manufactured at an SLB facility, which made the shipments consistent with the company’s statement from 2023.

Indeed, the equipment delivered during the five-month period reviewed by the FT came from China and India, with the bulk coming from China.

Activists are understandably not happy about this state of affairs. “Policymakers need to decide — are they serious about supporting Ukraine or not?” Lela Stanley, a senior investigator for Global Witness, which is working on a report about SLB and Russia, told the FT. “Western energy firms are still free to help Russia produce oil, and to help fund the war. That’s a profound failure.”

The policymakers referred to by the Global Witness activist have been wary of sanctioning oilfield service e providers with a presence in Russia for fear of disrupting global oil markets. It is for the same reasons that they did not impose direct sanctions on Russian oil but rather opted for a price cap.

By Irina Slav for Oilprice.com

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