Slb Limited · NYSE:SLB

Slb — Schlumberger — UBS Houston Energy Symposium 2015

22 slides from Slb's conference presentation, Sep 16, 2015

  1. Slide 1: Accelerating Our Transformation

    Accelerating Our Transformation Jean-Francois Poupeau EVP Corporate Development and Communication UBS Houston Energy Symposium Houston, September 16, 2015 1

  2. Slide 2: Safe Harbor

    Safe Harbor This presentation contains “forward-looking statements” within the meaning of the federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “believe,” “plan,” “estimate,” “intend,” “anticipate,” “sh

  3. Slide 3: Agenda

    Agenda  Transformation Overview  Transformation Rationale and Goals  Transformation Method  Early Results  Critical Factors for Success 3

  4. Slide 4: Schlumberger Management Structure

    Schlumberger Management Structure Chairman & CEO EVP Corporate EVP & CFO EVP Technology Development Research Investor Relations Characterization Drilling Production Operations Drilling & Engineering Communication WesternGeco Measurements Well Services Areas / GeoMarkets Wireline M-I SWACO Artificial

  5. Slide 5: The Foundations – R&E Transformation

    The Foundations – R&E Transformation  Total restructuring of R&E organization  Total redesign of R&E operating system Full implementation Design and pilot Reorganization Benchmarking  8 years and over $350 million of investment 2007 2008 2009 2010 2011 2012 2013 2014 Increase Shorten Improve rate

  6. Slide 6: Impact on Product Performance – 2014 versus 2011

    Impact on Product Performance – 2014 versus 2011 Quanta Geo PowerDrive/TeleScope ICE Infinity  > 60% increase in high impact technology introductions per R&E dollar spent  > 80% reduction in customer Non-Productive Time attributed to manufacturing defaults  > 225% improvement in reliability of 28

  7. Slide 7: Transformation – Industry Challenges

    Transformation – Industry Challenges Technology Extending technical performance with game-changing technology Reliability Learning from other industries and adopting new ways of working Efficiency Optimizing the support platform and leveraging scale Integration Aligning technical and commercial inte

  8. Slide 8: Leveraging Scale, Managing Complexity

    Leveraging Scale, Managing Complexity 108,000 women and men 6,500 customers 140 nationalities 1.1 million operating hrs/mo 85 countries 5.8 million feet drilled/mo 4,000 drilling rigs 150,000 mobile assets 1,200 workover rigs 2,350 facilities 58,000 suppliers 90 REM centers 500,000 transactions/mo 7

  9. Slide 9: Challenging What We Do

    Challenging What We Do Schlumberger Transformation Goals  In-depth reflection on operational processes Inventory Operational Levels Asset  Best practices from other industries Reliability 25% Utilization 10x 100%  Upgrade the management system and IT People Unit Support Costs Productivity 10% 20%

  10. Slide 10: Challenging What Our Industry Does

    Challenging What Our Industry Does Integrated Partner  Fully integrated technology and systems Number of suppliers  Leveraged knowledge and expertize  Reduced stakeholders in the value chain Multiple  Commercial alignment Stakeholders Call Out AFE Plan Days Weeks Months / Years First engagement

  11. Slide 11: Statoil – Mariner Project

    Statoil – Mariner Project IPM Group and and product lines  Project and Asset Management SPM delivery process Business Models Workflows  Integrated Technology development Technology and and deployment processes EMS GeoMarkets  Unique Collaboration model with fully Software People integrated and co

  12. Slide 12: Schlumberger Transformation Method

    Schlumberger Transformation Method Schlumberger Schlumberger Product Development Method Transformation Method  Based on experience from R&E transformation and ongoing business initiatives  Change management best practices and lessons from other company transformations  Proprietary methodology for

  13. Slide 13: Industrializing Change – Multiskilling Examples

    Industrializing Change – Multiskilling Examples Requirements for Deployment - Multiskilling Contract T&Cs Local Comp & Ben Plan Local Deployment Plan Sales Enablement HR Enablement Certification Training Risk Assessment Standard Work Playbook 13

  14. Slide 14: Accelerating Our Transformation

    Accelerating Our Transformation Operational Implementation of standard work standards Reliability and processes to lower customer NPT 10x Inventory Levels Centralization of distribution to lower 25% inventory days and obsolescence costs Asset Centralization of trackable assets to Utilization decreas

  15. Slide 15: Operational Reliability

    Operational Reliability Operational Reliability 10x Reliability* 5.5 X 2009 2010 2011 2012 2013 2014 YTD-2015 Non-Productive Time / Operating Time 55% H1-11 H1-12 H1-13 H1-14 H1-15 * Reliability trend for a basket of 28 new technologies over a six year horizon, based on field failure rates 15

  16. Slide 16: Asset Utilization

    Asset Utilization Asset Utilization 100% Asset Capex / Revenue Traceability 15% 10% 5% Asset 0% Management H1-11 H1-12 H1-13 H1-14 H1-15 Model 16

  17. Slide 17: People Productivity

    People Productivity People Productivity 20% Remote Operations―D&M Mexico 35% 2013 average crew size 2015 YTD 26 % reduction in crew size per rig Remote Operations―IPM Ecuador 23 Geoservices 17 M-I Swaco Drilling & Measurements Well Intervention Bits As is Optimized 17

  18. Slide 18: Support Cost Optimization

    Support Cost Optimization Revenue and Headcount trend relative to 2004 450% Revenue 300% Field and operations (variable) headcount Support (fixed) headcount 150% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 18 *2015 Revenue based on Street estimates. Headcount based on H1 2015 lev

  19. Slide 19: Creating and Capturing Value

    Creating and Capturing Value Customer Benefits  Successful execution, ahead of plan  Lower NPT  Reduced rig-site personnel  Lower HSE impact Schlumberger Benefits  Increased revenue per operating day  Lower operating costs  Optimized rig-site and support personnel  Improved HSE and service d

  20. Slide 20: Years of Incremental Performance Improvement

    Years of Incremental Performance Improvement Operational Reliability 10x Impact on Operational Reliability Asset Utilization 100% Impact on Assets Utilization Inventory Levels 25% Impact on Inventory Levels People Productivity 20% Impact on Productivity Unit Support Costs 10% Impact on Support Costs

  21. Slide 21: Critical Factors for Success

    Critical Factors for Success  Mature organization with effective management structure  High levels of technology and process integration  Investment in R&E transformation since 2007  Proprietary method based on years of experience  Strong culture with companywide appetite to transform  Aligned

  22. Slide 22: Accelerating Our Transformation

    Accelerating Our Transformation Jean-Francois Poupeau EVP Corporate Development and Communication UBS Houston Energy Symposium Houston, September 16, 2015

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