US-based oilfield services provider SLB has indicated that it currently has no plans to exit its operations in Russia, despite the ongoing conflict with Ukraine and the resultant western pressure, reported the Financial Times (FT).
SLB CEO Olivier Le Peuch, in an interview with the FT, stated that the company is focusing on protecting its assets and personnel, with no public decision made on whether to follow industry peers in selling Russian operations.
“When we decide, we will make it public if we need to. But now, there is no decision yet,” the CEO said.
He added: "The team over there is operating autonomously and I think is behind the curtain to some extent. We are protecting our assets, that is our priority. We are protecting our people."
SLB, which generated approximately 5% of its $33.1bn revenues from Russia last year, has been operating in the country since the fall of the Soviet Union.
The company employs around 9,000 staff in Russia and, according to US regulatory filings, maintained net assets worth $600m in the country at the end of 2023.
Despite halting new investments and technology deployment in March 2022 and stopping product shipments in July 2023, SLB continues to retain a presence in Russia.
Le Peuch highlighted that the company has implemented controls to prevent any technology support to Russia, which could impact the country's offshore oilfield development in the long term.
Facing criticism from the Ukrainian Government and human rights groups, SLB has been accused of indirectly supporting the Russian war effort through its business operations.
Ukraine's National Agency On Corruption Prevention listed SLB on an "international sponsor of war" blacklist.
In response, SLB issued a statement denying any claim that it had “in any way endorsed or supported the violence against the people of Ukraine”.
Oilfield services companies like SLB provide essential services and technologies for exploration and complex drilling operations.
SLB's continued presence in Russia is notable as competitors such as Baker Hughes and Halliburton have chosen to divest their Russian operations.
In a follow-up to the interview, SLB reiterated its commitment to adhering to international sanctions and export restrictions, stating: "SLB takes its responsibility to comply with export control and economic sanction laws extremely seriously, and the company remains aligned with the international community in condemning and calling for an end to the war in Ukraine."
