Saudi Arabia and Qatar emerge as top regional markets for Schlumberger

Schlumberger was recently awarded a five-year contract for three simulation vessels in Qatar North Field

  
The exterior of a Schlumberger Corporation building is pictured in West Houston January 16, 2015.

The exterior of a Schlumberger Corporation building is pictured in West Houston January 16, 2015.

REUTERS/Richard Carson

DUBAI: Saudi Arabia and Qatar emerged as top regional growth markets for global oilfield services contractor Schlumberger.

It said that growth in both countries helped to offset declines in some other markets across the Middle East and Asia.

The US company reported an overall 20 percent decline in net profit to $299 million in the first quarter.

The result was still better than analysts had expected because of concerns of the lingering effect of the COVID-19 pandemic on the global oil market.

Schlumberger CEO Olivier Le Peuch said global oil demand should return to pre-pandemic levels by the end of next year, if not sooner.

“With the gradual return of oil demand, we anticipate North America activity to level off at production maintenance levels, while international activity is poised to ramp up through year-end 2021 and beyond,” he said, particularly noting the performance of its non-US operations.

The Texas-based company recorded a 5 percent sequential decrease in revenue – at $1.9 billion – in Middle East and Asia, but these declines were “partially offset by robust activity growth in Saudi Arabia and Qatar.”

“We are increasingly confident that our international revenue will see double-digit growth in the second half of 2021 as compared to the same period last year, which implies potential upside to the already robust growth that is anticipated in 2022 and beyond,” Le Peuch said.

Schlumberger was recently awarded a five-year contract for three simulation vessels in Qatar North Field, with an optional five-year extension.

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