SLB's Russian Assets: Unchanged at $600 Million in 2024

SLB, the world's largest oilfield service company, reported that its net assets in Russia remained unchanged at $600 million in 2024, the same as in 2023. This stability in SLB's Russian assets comes despite the company's voluntary measures to curtail its activity in the region and align with international sanctions following Russia's invasion of Ukraine in 2022.

SLB's presence in Russia has been declining since 2022, with the number of employees, contracts, and revenue all decreasing. In 2024, Russia accounted for less than 5% of SLB's global revenue, down from 5% in 2023. The company's workforce has also decreased in the region, with all hiring during 2023 and 2024 focused on replacing headcount reductions due to attrition and the seasonal slow-down.

SLB's decision to remain in Russia has had both positive and negative impacts on its reputation and relationships with international stakeholders. While the company has faced criticism and pressure from some stakeholders for continuing to operate in Russia, it has also maintained its market share and revenue in the region. SLB has taken several voluntary measures to address potential reputational damage, including not making any new investments in Russia and not deploying new technology used in its services business. The company has also halted shipments of products and technology into Russia from all its facilities worldwide, following a previous ban on shipments from the United States, United Kingdom, the European Union, and Canada into Russia.



SLB's adherence to international sanctions and self-imposed restrictions on technology access has led to a decline in its Russian presence, which may have long-term implications for the company's global operations. The reduced market share and revenue in Russia could impact SLB's overall global revenue, as Russia represented less than 5% of its total revenue in 2023 and is expected to be lower in 2024. However, SLB's global scale and unmatched digital offerings may provide a competitive advantage in other regions, as local companies continue to bid on work and maximize their own in-country assets while providing services to the Russian customer base.

In conclusion, SLB's Russian assets remained unchanged at $600 million in 2024, reflecting the company's commitment to complying with international sanctions and minimizing its exposure to the Russian market. Despite the decline in its Russian presence, SLB has maintained its global scale and unmatched digital offerings, which may provide a competitive advantage in other regions. The company's decision to remain in Russia has had both positive and negative impacts on its reputation and relationships with international stakeholders, but SLB has taken steps to address potential reputational damage and maintain its commitment to international standards and sanctions.