Schlumberger and BT Form Alliance

Schlumberger and BT have formed an alliance targeting the communication needs of the exploration and production (E&P) industry. As a result of this alliance, Schlumberger and BT have signed a five-year, $47 million (£27 million) contract for BT to provide global network services to Schlumberger.

As part of the agreement, BT will assume responsibility for the management and operational delivery of Schlumberger's core MPLS backbone network, spanning 18 countries. The Schlumberger network will be transitioned onto BT's global MPLS infrastructure, ensuring that Schlumberger clients receive continued carrier grade services as well as the benefits of BT's continued investment and innovation. In addition, BT will co-operate with Schlumberger on joint development of new and advanced network solutions to meet the challenging requirements of the E&P industry.

Andy Green, CEO of BT Global Services, said: "We are delighted to support Schlumberger's mission critical E&P business network and augment it with a global networked IT solution. We are committed to building on the access this provides to key remote global locations and to investing in the partnership as part of our 21st century network program."

Olivier Le Peuch, President of Schlumberger Information Solutions, said: "Schlumberger is committed to delivering the digital oilfield so the industry can achieve enhanced operational efficiencies. This agreement will expand our capability to provide end-to-end connectivity solutions and is a logical next step towards the introduction of innovative services that support interactive operations including real-time production and drilling."

Network infrastructure is a fundamental enabler of the digital oilfield. It is integral to the timely delivery of business critical applications and services to upstream E&P companies. This alliance combines Schlumberger's in-depth knowledge of the E&P client community with BT's geographical spread and experience within the Digital Networked Economy.

BT is one of the world's leading providers of communications solutions and services operating in more than 160 Countries. Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended March 31, 2005, BT Group's revenue was £18,623 million with profit before taxation of £2,354 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.