Sibneft and Schlumberger Mark New Milestones in Alliance

- Companies celebrate completion of 100 horizontal wells, 1000 fracturing jobs, and 1000 cementing jobs

Noyabrsk, September 19, 2003. Schlumberger Oilfield Services, a global oilfield and information services company, and Sibneft today celebrated several new milestones in their alliance at a ceremony in the city of Noyabrsk, the center of Sibneft’s upstream operations.

Officials from Sibneft, Schlumberger, the Yamal-Nenets okrug administration and the city of Noyabrsk participated in the event, which marked the successful completion of 1000 fracturing and 1000 cementing jobs, as well as the construction of 100 horizontal wells for Sibneft in the area. These joint activities contributed to Sibneft’s record 27.4% increase in crude oil production for the year 2002 and continued rapid production growth in 2003.

Sibneft and Schlumberger began working together in August 1998 and, in October 1999, formed a strategic alliance covering a broad range of oilfield services. The two companies expanded their alliance in 2001 with a landmark outsourcing deal in which Schlumberger took over management of a portion of Sibneft well-workover division.

Schlumberger, working with Sibneft, pioneered fracturing and horizontal drilling in Western Siberia. On September 1, the 100th horizontal well, No. 52 at the Sporyshevskoye field was completed; the 1000th frac was executed on well 1706 in the Vingapurskoye oil field, and the 1000th cementing operation was performed for well 166 at Sporyshevskoye.

The results are evidence of the efficiency of the relationship and the teamwork of both parties. In addition, many new technologies have been introduced to Western Siberia via the alliance.

Reference

OJSC Siberian Oil Company (Sibneft) is Russia’s fifth largest oil producer with output of 26.3 million tons (520,000 bpd) in 2002 and projected 2003 production of 33.0 million tons (650,000 bpd, excluding recent acquisitions). Sibneft is also one of the largest vertically-integrated oil companies in Russia, with refining in Omsk, Moscow and Yaroslavl and a network of 1200 retail filling stations. For more information, visit http://www.sibneft.com.

Schlumberger is a global oilfield and information services company with major activity in the energy industry. The company employs 78,000 people of more than 140 nationalities working in 100 countries and comprises three primary business segments. Schlumberger Oilfield Services is the world's premier oilfield services company supplying a wide range of technology services and solutions to the international oil and gas industry. WesternGeco, jointly owned with Baker Hughes, is the world's largest and most advanced surface seismic company. SchlumbergerSema is a leading supplier of IT consulting, systems integration, and network and infrastructure services to the energy industry, as well as to the public sector, telecommunications and finance markets. In 2002, Schlumberger operating revenue was $13.2 billion. For more information, visit http://www.slb.com.