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Schlumberger expects loss from Russian sanctions

Company experiencing "some restrictions" because of economic pressure.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   Aug. 13, 2014 at 8:52 AM
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HOUSTON, Aug. 13 (UPI) -- Oil services company Schlumberger said it expects to take a financial hit as a result of Western sanctions targeting the Russian energy sector.

The United States, European and Canadian governments are among those targeting the Russian energy sector with sanctions in response to Moscow's policies in eastern Ukraine and Crimea.

Schlumberger said it was monitoring the events to make sure its activities are in line with applicable regulations regarding Russia's energy sector. The company said the financial impacts should be limited to about 3 cents of earnings per share.

"The sanctions are placing some restrictions on the engagement of certain people and equipment in our Russian operations which in the short term will have an impact on operational efficiency and costs in Russia," Schlumberger said in a statement Tuesday.

British energy company BP said in July sanctions on the Russian energy sector, particularly oil company Rosneft, could impact business operations in Russia. In a statement on second quarter earnings, BP said any more sanctions pressure on Rosneft could impact its "strategic objectives" in Russia.

BP owns a 19.75 percent stake in Rosneft, the target of U.S. and European sanctions.

"Schlumberger remains confident that we can support our clients in Russia without material disruption and operations are therefore being adjusted as necessary in response to the US and EU measures, while we continue to work closely with our Russian customers," it said.

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