Halliburton, Schlumberger, Baker Hughes Freeze Russian Ops

Halliburton, Schlumberger, Baker Hughes Freeze Russian Ops
U.S. oilfield services players Halliburton, Schlumberger, and Baker Hughes announced that they decided to suspend operations in Russia following its invasion of Ukraine.

In line with a myriad of oil companies that decided to suspend or completely abandon any operations in Russia following its invasion of Ukraine, three giant U.S. oilfield services players Halliburton, Schlumberger, and Baker Hughes announced that they would be doing the same.

Immediately following Russia’s invasion of Ukraine, the USA and the EU imposed heavy sanctions targeting Russia, state-owned oil companies, banks, and oligarchs close to Russia’s President Vladimir Putin.

Oil and gas giants such as BP, Equinor, Shell, and ExxonMobil opted to completely abandon their businesses in Russia while some companies like TotalEnergies just decided to stop further investment in the country as its current projects were deemed too valuable to abandon.

On Friday last week, Baker Hughes, Halliburton, and Schlumberger all decided to suspend further investments in Russia.

Baker Hughes said that it was continuing to comply with applicable laws and sanctions as it fulfills current contractual obligations.

“The crisis in Ukraine is of grave concern and we strongly support a diplomatic solution. We condemn violence and our hearts go out to the people and families of those impacted,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes.

“The health and safety of our employees, customers, partners, and their families always remain our top priority. We have been continuously monitoring the situation, and today’s announcement follows an internal decision made with our Board of Directors and communicated to our leadership team earlier this week. We remain committed to acting in full compliance,” Simonelli added.

Halliburton also suspended future business in Russia as ‘the company complies with sanctions that prohibit transactions and work, including for certain state-owned Russian customers.’

The company added that it would prioritize safety and reliability as it winds down its remaining operations in Russia. Halliburton also stated that it halted all shipments of specific sanctioned parts and products to Russia several weeks ago and that it has no active joint ventures in Russia.

“The war in Ukraine deeply saddens us. We have employees in both Ukraine and Russia, and the conflict greatly impacts our people, their families, and loved ones throughout the region. Since the start of this conflict, we prioritized employee safety and compliance with all relevant sanctions,” Halliburton Chairman, President, and CEO Jeff Miller stated.

Like its two competitors, Schlumberger did the same as it also decided to immediately suspend new investment and technology deployment to our Russia operations. The company will continue to actively monitor the situation and ‘fulfill any existing activity in full compliance with applicable international laws and sanctions.’

“We have watched with immense concern as the conflict in Ukraine has escalated. First and foremost, we are deeply focused on the health, safety, and security of our employees, colleagues, and their families in Ukraine, Russia, and throughout the region,” said Schlumberger CEO Olivier Le Peuch.

“Safety and security are at the core of who we are as a company, and we urge a cessation of the conflict and a restoration of safety and security in the region,” he added.

One other company that decided to suspend its operations in a statement issued today is the Aberdeen-based drilling and engineering contractor KCA Deutag.

“We are shocked and saddened by the deteriorating situation in Ukraine, and we join many to call upon all parties to urgently work towards a peaceful resolution in the region,” said Joseph Elkhoury, CEO of the company.

“Since the start of the conflict, KCA Deutag established a dedicated committee to actively monitor the situation and stay in full compliance with all applicable sanctions. The group suspended all new investments in Russia and is evaluating its options relating to the Russian business.

“We remain focused on the health, safety, and security of our colleagues and their families in Ukraine and Russia. Our thoughts continue to be with those impacted by these tragic events,” Elkhoury concluded.

To contact the author, email bojan.lepic@rigzone.com

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