Conoco Selects Schlumberger as its IT Service Contractor

Conoco is consolidating the company's Information Technology (IT) contractor services and has selected Schlumberger as its global provider for the next six years.

"Using a single global IT contractor will provide significant, long-term cost benefits for Conoco. It will enhance overall quality of service and generate consistent products and services," said Tom Nicewarner, Conoco general manager and CIO.

Under the terms of the agreement, Schlumberger will offer employment to approximately 50 Conoco employees whose jobs will be impacted by the consolidation. Schlumberger also will offer jobs to most of the non-Conoco employees currently working for other contractors.

"Our core value of valuing all people made this a major consideration in the negotiations," said Nicewarner. "We took all of the employees into consideration, not just those working for Conoco."

Nicewarner also said Schlumberger has offices around the globe in proximity to those of Conoco's. "That global compatibility will make future upgrades and troubleshooting less difficult and give us telecommunications capability that is second to none," said Nicewarner.

"This extended relationship with Conoco demonstrates Schlumberger's focus on the transformation of our oil and gas customers with IT technologies and services," said Xavier Flinois, president, Schlumberger Network Solutions. "Our network and managed service infrastructure, as well as our global service delivery capabilities, will be well adapted to Conoco's need of a seamless quality of service."

Conoco said the contract is worth approximately $300 million over a six-year period. Final negotiations are expected to be completed in the fourth quarter of 2001.