Schlumberger Governance

Alexander C. Juden8 February 2017

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Schlumberger at a Glance

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36 GeoMarkets in 5 Areas

90 Research, Engineering &

Manufacturing Centers

located in 15 countries

Approximately 100,000* People

Working in more than 85 Countries

Representing 140 Nationalities

Revenue: $ 27.8 billion Market Cap $~100 billion R&E: $ ~1 billion

2016 Financial Highlights

Deep Industry Knowledge Global CultureTechnology Solutions

DrillingCharacterization

Wireline

Testing Services

WesternGeco

Software Integrated Solutions

Drilling & Measurements

Geoservices

Bits & Advanced Technologies

Drilling Tools & Remedial

M-I SWACO

Production

Well Services

Completions

Artificial Lift

Well Intervention

Cameron

Drilling Solutions

Valves & Measurement

OneSubsea

Surface Systems

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How Does Public Policy Dialogue Fit With

Schlumberger’s Overall Strategy?

Communities

Governments (Local & National)

Employees (& families)

Customers

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Third Party—for Profit—

Advisors

Shareholders

Schlumberger

Lobbyists

Universities

Schlumberger Stakeholders

Suppliers

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Schlumberger Governance Impact Points – It is

Complicated

700 IT connected wellsite units

30 petaflops of computing power65,000 shipments per month

2,750 facilities

90 REM centers

68,000 suppliers

500,000 transactions/month

1.1 million operating

hrs/month

5.8 million feet

drilled/month

85 countries

100,000 women and men

140 nationalities6,500 customers

150,000 mobile assetsActive on 4,000 drilling rigs

1,200 workover rigs

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Defines the company’s

Purpose, Ambition,

Values and Mindset

Outlines the Company’s

expectations to ensure a

compliant and ethical

workplace

Uniform rules of conduct are essential to manage

our global population: 100,000+ employees from

140 nationalities operating in 85+ countries

Together these documents help employees to live

up to the superior standards that have made

Schlumberger the world’s leading oilfield

services company

Our Company’s Culture in Words

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Mindset Matters

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Behavior is a choice—in Quality, in HSE and

in Ethics…in all Governance

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Individual Conduct Measured

Driving Corporate Behavior: -- Individual Training—”What gets measured, gets done”

-- Annual Employee evaluations

Evolutionary process

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Service Attitude

Continuous Improvement

Self-Learning

Decision Making

Responsibility

Collaboration

Communication

Coaching and Mentoring

Diversity

Creativity

Initiative

Adaptability

Results Driven

Commitment Integrity

Drive Teamwork

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Governance Methodology in Schlumberger

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Correction

Continuous Improvement

Commitment, Leadership and Accountability

Policies and Objectives

Organization and Resources

Risk Management

Contractor and Supplier Management

Business Processes

Performance Monitoring and Improvement

Audits and Reviews

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January 2016—Schlumberger 10-K

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In 2009, the US Department of Justice began an investigation into past violations of US

sanctions regarding Schlumberger’s historical operations in Iran and Sudan that occurred

between 2004 and 2010. During the second quarter of 2014, Schlumberger increased its

accrual for this contingency. Accordingly, Schlumberger recorded a $205 million

charge, which was reflected within Loss from discontinued operations in the

Consolidated Statement of Income during the second quarter of 2014.

During 2015, Schlumberger resolved this investigation and a non-US subsidiary of

Schlumberger pleaded guilty to one criminal count of conspiracy to violate the

International Emergency Economic Powers Act. Under the terms of the plea agreement,

Schlumberger paid approximately $233 million in fines, penalties and assessments

during the second quarter of 2015, which had been previously accrued. This payment is

reflected within Cash flows used in discontinued operations – operating activities in

Schlumberger’s Consolidated Statement of Cash Flows.

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Conclusion

Governance is mandatory in all well-managed

entities

Governance is required for everything an

organization does

It is driven from the top

Individual conduct matters

No one is perfect. Continuous improvement is

essential

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Questions?

Consistent with our Values, our actions must follow

the highest standards of ethics, quality, personal integrity, and

compliance with all applicable laws.