Slb Limited · NYSE:SLB
Slb — Schlumberger — UBS Houston Energy Symposium 2015
22 slides from Slb's conference presentation, Sep 16, 2015
Slide 1: Accelerating Our Transformation
Accelerating Our Transformation Jean-Francois Poupeau EVP Corporate Development and Communication UBS Houston Energy Symposium Houston, September 16, 2015 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking statements” within the meaning of the federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “believe,” “plan,” “estimate,” “intend,” “anticipate,” “sh
Slide 3: Agenda
Agenda Transformation Overview Transformation Rationale and Goals Transformation Method Early Results Critical Factors for Success 3
Slide 4: Schlumberger Management Structure
Schlumberger Management Structure Chairman & CEO EVP Corporate EVP & CFO EVP Technology Development Research Investor Relations Characterization Drilling Production Operations Drilling & Engineering Communication WesternGeco Measurements Well Services Areas / GeoMarkets Wireline M-I SWACO Artificial
Slide 5: The Foundations – R&E Transformation
The Foundations – R&E Transformation Total restructuring of R&E organization Total redesign of R&E operating system Full implementation Design and pilot Reorganization Benchmarking 8 years and over $350 million of investment 2007 2008 2009 2010 2011 2012 2013 2014 Increase Shorten Improve rate
Slide 6: Impact on Product Performance – 2014 versus 2011
Impact on Product Performance – 2014 versus 2011 Quanta Geo PowerDrive/TeleScope ICE Infinity > 60% increase in high impact technology introductions per R&E dollar spent > 80% reduction in customer Non-Productive Time attributed to manufacturing defaults > 225% improvement in reliability of 28
Slide 7: Transformation – Industry Challenges
Transformation – Industry Challenges Technology Extending technical performance with game-changing technology Reliability Learning from other industries and adopting new ways of working Efficiency Optimizing the support platform and leveraging scale Integration Aligning technical and commercial inte
Slide 8: Leveraging Scale, Managing Complexity
Leveraging Scale, Managing Complexity 108,000 women and men 6,500 customers 140 nationalities 1.1 million operating hrs/mo 85 countries 5.8 million feet drilled/mo 4,000 drilling rigs 150,000 mobile assets 1,200 workover rigs 2,350 facilities 58,000 suppliers 90 REM centers 500,000 transactions/mo 7
Slide 9: Challenging What We Do
Challenging What We Do Schlumberger Transformation Goals In-depth reflection on operational processes Inventory Operational Levels Asset Best practices from other industries Reliability 25% Utilization 10x 100% Upgrade the management system and IT People Unit Support Costs Productivity 10% 20%
Slide 10: Challenging What Our Industry Does
Challenging What Our Industry Does Integrated Partner Fully integrated technology and systems Number of suppliers Leveraged knowledge and expertize Reduced stakeholders in the value chain Multiple Commercial alignment Stakeholders Call Out AFE Plan Days Weeks Months / Years First engagement
Slide 11: Statoil – Mariner Project
Statoil – Mariner Project IPM Group and and product lines Project and Asset Management SPM delivery process Business Models Workflows Integrated Technology development Technology and and deployment processes EMS GeoMarkets Unique Collaboration model with fully Software People integrated and co
Slide 12: Schlumberger Transformation Method
Schlumberger Transformation Method Schlumberger Schlumberger Product Development Method Transformation Method Based on experience from R&E transformation and ongoing business initiatives Change management best practices and lessons from other company transformations Proprietary methodology for
Slide 13: Industrializing Change – Multiskilling Examples
Industrializing Change – Multiskilling Examples Requirements for Deployment - Multiskilling Contract T&Cs Local Comp & Ben Plan Local Deployment Plan Sales Enablement HR Enablement Certification Training Risk Assessment Standard Work Playbook 13
Slide 14: Accelerating Our Transformation
Accelerating Our Transformation Operational Implementation of standard work standards Reliability and processes to lower customer NPT 10x Inventory Levels Centralization of distribution to lower 25% inventory days and obsolescence costs Asset Centralization of trackable assets to Utilization decreas
Slide 15: Operational Reliability
Operational Reliability Operational Reliability 10x Reliability* 5.5 X 2009 2010 2011 2012 2013 2014 YTD-2015 Non-Productive Time / Operating Time 55% H1-11 H1-12 H1-13 H1-14 H1-15 * Reliability trend for a basket of 28 new technologies over a six year horizon, based on field failure rates 15
Slide 16: Asset Utilization
Asset Utilization Asset Utilization 100% Asset Capex / Revenue Traceability 15% 10% 5% Asset 0% Management H1-11 H1-12 H1-13 H1-14 H1-15 Model 16
Slide 17: People Productivity
People Productivity People Productivity 20% Remote Operations―D&M Mexico 35% 2013 average crew size 2015 YTD 26 % reduction in crew size per rig Remote Operations―IPM Ecuador 23 Geoservices 17 M-I Swaco Drilling & Measurements Well Intervention Bits As is Optimized 17
Slide 18: Support Cost Optimization
Support Cost Optimization Revenue and Headcount trend relative to 2004 450% Revenue 300% Field and operations (variable) headcount Support (fixed) headcount 150% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 18 *2015 Revenue based on Street estimates. Headcount based on H1 2015 lev
Slide 19: Creating and Capturing Value
Creating and Capturing Value Customer Benefits Successful execution, ahead of plan Lower NPT Reduced rig-site personnel Lower HSE impact Schlumberger Benefits Increased revenue per operating day Lower operating costs Optimized rig-site and support personnel Improved HSE and service d
Slide 20: Years of Incremental Performance Improvement
Years of Incremental Performance Improvement Operational Reliability 10x Impact on Operational Reliability Asset Utilization 100% Impact on Assets Utilization Inventory Levels 25% Impact on Inventory Levels People Productivity 20% Impact on Productivity Unit Support Costs 10% Impact on Support Costs
Slide 21: Critical Factors for Success
Critical Factors for Success Mature organization with effective management structure High levels of technology and process integration Investment in R&E transformation since 2007 Proprietary method based on years of experience Strong culture with companywide appetite to transform Aligned
Slide 22: Accelerating Our Transformation
Accelerating Our Transformation Jean-Francois Poupeau EVP Corporate Development and Communication UBS Houston Energy Symposium Houston, September 16, 2015