Environmental Awareness Training

Level 1

Schlumberger Limited Environmental Group

 Environmental Pyramid
Decline of SLB share price due to
8 Environmental Factors

Environmental Criminal Prosecutions; Loss of

23 Contracts; Negative Press; Environmental
Reputation Lost/Severely Damaged

Fines, Penalties, Cleanup Costs;

279 Environmental Credibility Impacted
Non-Compliance
Basic Compliance; Maintain ‘Acceptable’
999 Status Quo

Proactive Leadership; “Beyond

30,052 Compliance”; Creative Environmental
Initiatives

Attitude and Behavior

Greg Kubala
July 2002
 Historical Perspective
• Over $550 million in remediation costs for worldwide environmental clean-ups
(primarily from acquisitions).

• Numerous lawsuits, fines, penalties, and citations for environmental non-

compliance from spills, releases, mishandling of waste, permit violations and property
contamination.

• Major criminal investigations on environmental issues at SLB facilities.

• Recent frequent inquiries from major Stock Analysts/Brokerage Houses seeking

information on SLB’s performance on, and management of, environmental issues.

Greg Kubala
July 2002
Schlumberger ?

Greg Kubala
July 2002
Schlumberger ?

Greg Kubala
July 2002
Schlumberger ?

Greg Kubala
July 2002
Schlumberger ?

Greg Kubala
July 2002
Schlumberger ?

Greg Kubala
July 2002
 QHSE Management System
Commitment & Leadership

Policies and Objectives Improvement

Organisation and Resources

Contractor and Supplier Management

Corrections
Risk Management

Design and Planning

Implementation and Monitoring Control

Assessment and Continuous Improvement

Greg Kubala
July 2002
 Environmental Standard

• Environmental Assessment

• Environmental Record Keeping

• Pollution Prevention

• Waste Management

Greg Kubala
July 2002
 Environmental Standard

WHY?
Real estate acquisition, wastes, systemic spills from
operations, and storage of chemicals and hazardous
materials have historically proven to be the greatest
environmental risk to Schlumberger.

Greg Kubala
July 2002
Impact on Profits

CRAB ORCHARD

Project expenditures
$65 million when completed

Greg Kubala
July 2002
 Impact on Profits

PICKENS

Total project expenditures

$103 million when completed

Greg Kubala
July 2002
 Impact on Profits

FAIRCHILD

Total project expenditures

$270 million when completed

Greg Kubala
July 2002
 Impact on Profits

Dowell/Dow/Schlumberger
$80 million when completed

OFS/Others
$33 million when completed

Greg Kubala
July 2002
 Impact on Profits

How long will it take you to recover

$550 million in lost profit?

How much revenue do you need to generate to recover

$550 million in lost profit?

Where would Schlumberger be in 5 years if we had that

$550 million?

Greg Kubala
July 2002
 Environmental Assessment

All Schlumberger sites shall undergo environmental

assessment
 before they are acquired (preliminary acquisition
assessment),
 at least every three years during operation
(environmental compliance audit),
 and at closure (exit survey).

Greg Kubala
July 2002
 Environmental Record Keeping
All Schlumberger sites
shall have and maintain
an updated Site
Environmental History
File.

Purpose: to have a consolidated record

keeping system and a list of required
records.
Greg Kubala
July 2002
 Site Environmental History File
Contents by Tab:
 Environmental Standard
 Site Characterization
 Legal Requirements
 Chemicals
 Spills, Discharge, and Emissions
 Waste Minimization and Management
 Audits and Inspections
 Environmental Training and Loss Prevention/Risk Management
Records
 Site Closure

Greg Kubala
July 2002
 Pollution Prevention
Schlumberger operations shall be conducted in a
manner that prevents pollution to the environment.

Environmental Pollution Risk Areas:

 Wastewater discharges
 Air emissions
 Hazardous spills
 Underground storage tanks

Greg Kubala
July 2002
 Waste Management
All sites shall manage waste in
a manner that prevents
pollution and limits liability.
Waste shall be managed
according to a site-specific,
written waste minimization
and management plan that is
fully implemented and
functional.

Greg Kubala
July 2002
 Conclusions: Environmental Attitude

• Golden Rule - Don't do anything that you

would not do in your own back yard.
• Use common sense; if an action doesn’t
seem right, it probably isn’t.
• Get the advice from the QHSE
Department.

Greg Kubala
July 2002
 Conclusions: Environmental Attitude

• Global environmental awareness by public and governments is developing

very quickly - SLB needs to understand, appreciate, and stay ahead of these
rapid changes.

• SLB must embrace the current environmental initiatives in order to create

and develop a true compliance culture.

• SLB must strive for environmental leadership by recognizing and accepting

its worldwide responsibility in the environmental area.

Greg Kubala
July 2002