This document contains “forward-looking statements”- that is, statements related to future, not past, events. In this context, forward-looking statements often address our expectation of future conditions including, without limitation, economic conditions, energy demand, energy supply and capability requirements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

From Discovery to Production—The Challenges of Execution

Oil & Money 2013, London, UKOctober 2, 2013

© 2013 Schlumberger Business Consulting. All Rights Reserved. 2

Series1

10000

20000

30000

40000

50000

60000

Billio

n Bb

l

1965 1970 1975 1980 1985 1990 1995 2000 2005 20100

20

40

60

80

100

120

140

US$

(201

1)

The industry has reversed the declining trend in oil discoveries

Five-year averages of oil volumes discovered and crude oil prices

Source: IHS Edin; Rystad Energy; BP Statistical Review; SBC analysis

Onshore and SW DW and Ultra DW Crude oil prices

+6%

-8%

-6%

+3%

© 2013 Schlumberger Business Consulting. All Rights Reserved. 3

More companies manage megabudgets and project delays are increasing

E&P companies spending >$5Bn (2011 US$) capex per year and megaproject* delays

* Projects with budget >$1bn (real 2011$)Source: IHS Upstream database, February 2012; Rystad Energy

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

5

10

15

20

25

30

35

40

0

0.5

1

1.5

2

2.5

3

4 5 5 5 7 7 7 7 7 7 7 7 73

4 6 5

7

9

13 16

17 1816

15

17

1 2 3 47 6

9 11 13

Majors Independents NOCs Average Delay

Num

ber o

f Com

pani

es

Year

s of

Del

ay

© 2013 Schlumberger Business Consulting. All Rights Reserved. 4

Project Teams & Skills, 26%

Governance; 18%

Project Management Processes; 9%

Contracting & Procurement; 12%

Technical Challenges; 21%

External Shareholders; 14%

> 50%of the issues are

internal to the Organizations

Lack of internal capabilities is the main project challenge

Capital project challenges by type

Source: SBC Capital Projects Forum

© 2013 Schlumberger Business Consulting. All Rights Reserved.

The industry faces a shortage of experienced professionals

PTPs per age bracket on a global basis Global number of PTPs (2011-2025)

Note: PTPs stands for Petrotechnical Professionals (geoscientists and petroleum engineers).Source: SBC O&G HR Benchmark 2006-2012, World Energy Outlook 2012

20y-24y

25y-29y

30y-34y

35y-39y

40y-44y

45y-49y

50y-54y

55y-59y

60y-64y

65y+0%

5%

10%

15%

20%

25%

2005 2016

Perc

enta

ge o

f PTP

s

2011 2015 2020 2025

Experienced PTPs Unexperienced PTPs

2022: level of experienced PTPs of 2011

2016: lowest number of experienced PTPs

Inexperienced PTPs

5

© 2013 Schlumberger Business Consulting. All Rights Reserved. 6

Operated production Kboe/d

Num

ber o

f PTP

s R² = 0.9

R² = 0.9

Low production growth1 High production growth

It matters as production is correlated with talent availability

Total number of technical resources vs. operated production

1Low production growth: companies with less than 2% CAGR of operated production during the last 4 years.Note: For confidentiality reasons, company data have been replaced by illustrative data pointsSource: SBC O&G HR Benchmark 2012

© 2013 Schlumberger Business Consulting. All Rights Reserved.

Sub-Saharan Africa: the challenge of education

Ptps required to support the production growth in Africa

Necessary amount of enrolled students to supply PTP graduates1

7

2011

PTPs

PTPs lea

ving t

he i..

.

Supply

of G

radu..

.GAP

2020

requ

ired P

TPs

8,000

11,000

4,400 3,100

4,300

Num

ber o

f PTP

s

1 At current students progression ratesSource: SBC O&G HR Benchmark 2012, UNESCO

~700 more PTPs per year until

2020

Yearly amount of graduates

Tertiary Secondary Primary

Current supplyAdditional required

Thou

sand

Peo

ple

0.7 0.564

51

36

141

981.2

10

87

239

© 2013 Schlumberger Business Consulting. All Rights Reserved.

Education and training capacity should meet employment potential

Job creation in a sub-Saharan country Education and training timeline

Source: SBC analysis

Operators Craftsmen Technicians Engineers

Cum

ulat

ive

num

ber o

f peo

ple

(FTE

)

20302015 2020 2025

Operators

Electrical

Mechanical

Machine Operator

Welders pipe

Technicians

Mechanical

Craftsmen

Civil Craftsmen

Engineers

Driver heavy duty

Years

TodayFormal education time when needs to be supportedLead time to certify/train to work in industry

Time to start workTime to start recruitment for training/certification

8

From Discovery to Production—The Challenges of Execution

Oil & Money 2013, London, UKOctober 2, 2013