This summary is based on the fiscal 2007 first quarter earnings call conducted by Schlumberger Ltd. (SLB) on April 20, 2007.

Management:

- Chairman & Chief Executive Officer: Andrew Gould
- Vice President of Communications and Investor Relations: Jean-Francois (JF)
Poupeau
- Chief Financial Officer: Simon Ayat

Key Investors Issues:

- Net income increased 63% to $1.18 billion or 96 cents per share.
- Revenue was up 29% to $5.46 billion driven by acceleration in international activity in geo-markets.
- The firm repurchased 5.2 million shares for $332 million.

First Quarter Highlights:

Net income rose 63% to $1.18 billion or 96 cents per share, from $723 million or 37 cents a share due to an increase in margins.

- Revenues increased 29% to $5.46 billion from $4.24 billion in the prior year due to an increase in international activity in geo-markets.
- Significant liquidity events included the $332 million for the stock buyback program, CapEx excluding multi-client of $615 million, and a seasonal upswing in working capital.
- CapEx excluding $62 million of multi-client surveys capitalized was $553 million and is expected to reach $3 billion for the year 2007.
– A total of 5.2 million shares were repurchased for $332 million at an average price of $64.19, bringing the total share buyback under the 40 million shares repurchase program to 18.7 million shares.

Segment Highlights:

- Oilfields reported a 28% increased in revenue from the prior year to $4.76 billion, with increases highest in the West and South Africa, Arabian, North Sea and Eastern Mediterranean GeoMarkets.
- Double-digit growth rates were also experienced in Alaska, Australia/Papua New Guinea, Thailand/Vietnam, North Africa and India.
- Across all Oilfield Services Areas demand was particularly strong for Drilling & Measurements, Wireline, Well Testing and Data & Consulting Services technologies.

However, growth was partially offset by lower Schlumberger Information Solutions (SIS) and Artificial Lift Systems sales following seasonal highs in the prior period.

- Operating income of $1.41 billion increased 47% year-on-year driven by higher overall activity. a favorable technology mix, increased rig count, and by efficiency gains in the North America Area.
- The Contact* family of multistage fracturing and completion services was introduced at the first Society of Petroleum Engineers technical conference wholly devoted to hydraulic fracturing technology.
- Integrating stimulation technologies such as CoilFRAC* and RapidSTIM*, the Contact family provides operators with a broader range of efficient and effective fracturing services that are of particular value when placing multiple fractures in a single well.
- Deployed across multiple regions during the quarter, this new stimulation technology has proven instrumental to improving production.

Industry acceptance of the Scanner Family* of wireline logging services continued at a rapid pace.

- With nearly 1,000 operations completed in 2006 and more than 300 logs run since the start of 2007, the Scanner suite of downhole rock and fluid characterization measurements services is now active across all Areas.
- In regions where Scanner technologies have been deployed, their use has brought increased certainty in reservoir modeling to reduce the risk often associated with the development of smaller, more difficult and more complex reservoirs.

- At WesternGeco revenue of $706 million increased 33% compared to the same period last year, resulting in 79% increase in operating income to $266 million.
- Multiclient continued to register growth due to high demand for E-surveys in the US Gulf of Mexico.
- However, this growth was more than offset by the decline in Marine due to vessel transits; lower Land activity associated with project completions and new project start-up delays; together with lower Data Processing revenue following the reassignment of resources toward processing Multiclient surveys.

Operating margins improved to 37.7% driven by increased higher margin, Multiclient sales in North America and improved efficiencies in Land and Data Processing.

- The second phase of acquisition in the E-Octopus wide-azimuth towed-streamer survey in the Gulf of Mexico neared completion.
- Located in the deepwater Walker Ridge and Keathley Canyon areas, the E-Octopus project is part of the family of E-surveys, which utilize the most advanced acquisition and processing technologies in the industry.
- BP Exploration extended the current contract in Algeria to acquire a third high-quality exploration survey using Q-Land* technology.
- In the Turkish sector of the Black Sea the Western Pride completed a Q-Marine* exploration survey for Turkiye Petrolleri A.O. This high-quality survey over the deepwater Sinop and Kozlu blocks was initially 4,500 sq km but was extended in size by a further 40%.
- In Nigeria, Total contracted WesternGeco to carry out a high-resolution 3D survey using Q-Marine acquisition and processing. The two-month survey will be acquired with the vessel Western Pride. The specifications are such that the survey is designed as a baseline for future 4D repeat monitor surveys.

Area Performance:

– North America margin increased by 59 basis points to 31.4% due to an improvement in Canada after the seasonal low of the fourth quarter.
- Seasonal growth in Canada was moderated by project slowdowns and declining activity in regions of shallow gas and coalbed methane production.
- Strong activity in Alaska and overall efficiency more than compensated for the slight decline in US Land on lower activity.
- Elsewhere in the Alaska geo-market recorded strong revenue growth from increased exploration activity and stronger demand for Drilling & Measurements, Well Testing and Well Services technologies.

- Latin America tax margin was 22.4%, up 136 basis points primarily reflecting improved margins across all geo-markets led by our Latin America, South and Mexico geo-markets.
- The finalization of the drilling and engineering contracts associated with the drilling barges in Venezuela resulted in the recognition of the previously deferred revenue and associated cost, however, only had a marginal impact on the area’s pre-tax operating income.
- And in Kuwait, StageFRAC technology placed a Viscoelastic Diverting Acid treatment in eight separate sections of the carbonate reservoir while, in one trip, resulting in production five times higher than the field average.

Rebound in Oil Prices:

- OPEC supply cuts applied late in 2006 coupled with stronger demand and continuing weak non-OPEC supply performance have caused a significant rebound in oil prices.
- The most fragile element of current supply projections is the age of the existing production base and consequent failure of current activity levels to slow decline rates.
- This environment when coupled with delays in the increasingly complex projects that the operators are undertaking means the supply response to create adequate levels of spare production will take longer than originally anticipated.
- Absent any severe economic recession that would impact hydrocarbon demand, Schlumberger remains exceptionally well placed to benefit from this environment.

Key questions and answers from the first quarter earnings call conducted by Schlumberger Ltd. on April 20, 2007.