The world’s largest oilfield services company, SLB (formerly Schlumberger), is expanding its operations in Russia, despite the withdrawal of its major Western competitors following Russia’s full-scale invasion of Ukraine.
In July 2023, the Houston-based company publicly committed to halting “shipments of products and technology into Russia” from its global facilities. According to Russian customs filings, these imports slowed to a halt by early September. However, the filings also reveal that SLB continued to import materials from other sources, bringing in $17.5 million worth of equipment between August and December 2023. Of this amount, $2.2 million was declared as being manufactured by SLB or its subsidiaries.
When approached for comment, SLB declined to provide a statement. A source close to the company indicated that these imports did not originate from SLB facilities, aligning with the company’s public statements and adhering to international sanctions guidelines.
SLB’s continued presence in Russia has drawn criticism from human rights organizations and the Ukrainian government. These groups argue that SLB’s operations contribute to Russia’s oil revenues, which support the Kremlin’s war effort. In response, Ukraine’s National Agency on Corruption Prevention (NACP) added SLB to its “international sponsor of war” blacklist, as part of a global effort to expose companies conducting business with Moscow.
SLB’s main U.S. rivals, Baker Hughes and Halliburton, both exited Russia following the invasion, selling their Russian operations to local managers in 2022. The Swiss conglomerate ABB, which supplies the energy sector, also announced its exit from Russia mid-2022, acknowledging the financial losses incurred by refusing new orders from the country.
Peter Voser, ABB’s chair, remarked that the company’s decision to leave Russia resulted in significant business losses but maintained that it was the right long-term choice. In contrast, SLB has maintained its presence in Russia, stating in July 2023 that it would cease shipments from all its facilities worldwide, but stopping short of exiting the country.
SLB has established a substantial business in Russia since the fall of the Soviet Union. In 2023, its operations in Russia accounted for 5% of the group’s $33.1 billion in revenues, and the company employed approximately 9,000 staff in the country. By the end of 2023, SLB held net assets worth $600 million in Russia, according to U.S. regulatory filings.
Oilfield services providers like SLB are critical to the global oil and gas industry, performing tasks ranging from infrastructure development to the provision of sophisticated technologies essential for complex drilling operations. Western policymakers have refrained from imposing broad sanctions on oilfield services in Russia to avoid disrupting global oil supplies.
A U.S. Department of State official stated in May that SLB had not breached sanctions and had a clear understanding of the “guardrails” in place. A Treasury spokesperson added that while the international coalition opposing Russia is committed to reducing Vladimir Putin’s profits, halting the flow of Russian oil would have severe consequences for the global economy.
Some of the goods SLB imported into Russia fall under categories that other governments have flagged as potential concerns, such as electrical cabling and chemicals, valued at $3.3 million. However, these imports originated from countries that do not impose such controls. The bulk of SLB’s imports, $13 million worth, came from China, with an additional $3 million from India. The most expensive single item was a $1.3 million “heavy-duty non-magnetic drill pipe” shipped from China.
SLB has provided equipment to major Russian oil companies, including Lukoil. In 2022 and 2023, the company supplied Lukoil with drilling tools and hydraulic packers. Revenues at SLB’s primary Russian subsidiary increased by Rbs527 million, reaching Rbs27.3 billion ($307 million) in 2023, compared to the previous year.
Documents obtained by Global Witness and reviewed by the Financial Times reveal that in December 2023, SLB’s Russian business signed a contract with the Russian oil and gas institute Vnigni. The agreement involves SLB assisting in the development of models for oil and gas deposits, which can be used for future projects.
Since December, SLB has posted over 1,000 job advertisements in Russia, seeking to fill roles ranging from drivers to chemists and geologists. The company offers various benefits, including lunch at work, access to sports facilities, and participation in discounted share schemes. SLB’s Russian subsidiaries also registered two new trademarks in July 2023.
Lela Stanley, a senior investigator for Global Witness, criticized the situation, stating, “Policymakers need to decide—are they serious about supporting Ukraine or not? Western energy firms are still free to help Russia produce oil and to help fund the war. That’s a profound failure.”
Industry experts note that SLB’s technology and expertise are crucial in enabling Russian operators to develop oil and gas projects at lower costs and with reduced risk. Craig Kennedy, a Harvard-affiliated scholar and former vice-chair at Bank of America, suggested that companies that remain in Russia are viewed favorably by the Kremlin and may receive preferential treatment in the future.
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