Schlumberger sees 'little Russia impact'

Paal Kibsgaard: Schlumberger chief executive says Russia impacts minimal

Oil-service giant Schlumberger has seen little fallout in its Russian operations as a result of escalating tensions with Ukraine that racheted up Thursday with the crash of a Malaysia Airlines jet.

The flight, allegedly shot down by pro-Russian separatists in an act that killed all 298 on board, came after the US this week had already imposed fresh sanctions on Russia following its annexation of the Crimea region earlier this year.

Ukraine and Russia have both denied involvement in the incident.

"As of now nothing has really changed for our position in Russia," chief executive Paal Kibsgaard told investors on a conference call detailing the company's second-quarter results.

"So far, that has no real impact on our business."

A weaker ruble did hit results in the first quarter but since rebounded in the second, Kibsgaard said.

"So, as of now, no impact on sanctions and whether there will be impact in the future is a bit difficult to comment on, but as of now, we continue business as usual."

Schlumberger reported improvement as Russian operations "recovered markedly from the effects of a harsh winter" with a rebound in drilling activity, it said in its financial details.

"In Russia, so far this year, activity has been as planned or even slightly stronger," Kibsgaard continued.

GazpromNeft and Schlumberger also earlier this year signed an agreement "aimed at increasing the efficiency of the planned Bazhenov shale development project in the southern part of the giant Priobskoe oilfield in Western Siberia."

The MH17 flight is alleged to have been shot down on Thursday by anti-aircraft missiles from Ukrainian territory occupied by pro-Russian separatists, killing all 298 passengers and crew on board.

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