Investment Opportunities in Exploration and Production Sector for Schlumberger Limited

Running head: Integrated Management Project 1
INTEGRATED MANAGEMENT PROJECT
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Table of Contents
Introduction.................................................................................................................................................2
Overview of Schlumberger..........................................................................................................................2
1. Exploration and production (E&P) opportunity...................................................................................3
1.1 Background of the opportunity identified.........................................................................................3
2. Approaches to investing in exploration and production..........................................................................4
2.1 Integrated project management........................................................................................................5
Integrated services..............................................................................................................................6
Integrated value chain creation...........................................................................................................7
2.2 Technological approach investment in exploration and production..................................................8
Example of technology........................................................................................................................9
2.3 Financial investment approach..........................................................................................................9
2.4 Increasing expertise in exploration and production........................................................................10
Recommendation......................................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................13

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Introduction
The oil and gas industry volatility make investors fear to invest in the industry,
particularly in the upstream sector. The oil and gas industry is divided into upstream, midstream
and downstream. Upstream is the major focus of this paper as this sector presents an investment
opportunity that has not been considered. In addition, the sector has resulted in the low supply of
the oil products leading to supply chain problems. Schlumberger is an example of those
companies that have prospered in the upstream sector of the oil and gas industry. The
Schlumberger being a leader in the industry has wider opportunities to invest in the sector.
Moreover, the company has all the resources required to invest in the sector. Some the resources
the Schlumberger have to include technology, expertise in the industry, investment systems and
reputation to accumulate financial resources. The main aim of this paper is to identify the
investment opportunities available for the company to invest and the opportunity identified is an
investment in exploration and production sector of oil and gas.
Overview of Schlumberger
Schlumberger is the leading oilfield service company in the world that provide various
services that include exploration and production, technologies and integrate project management
services. Schlumberger is the main supplier of various services in the Oman oil industry that help
in the exploration of production of oil. The company employs more than 123000 employees
across more than 85 countries it operates in. Schlumberger of three type of oilfield services and
this can be grouped into integrated project management services, integrated service management
and integrated abandonment management (Schlumberger 2018). Integrated project management
assists in delivering various project services that include exploration, technologies and

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production services. Integrated service entails others services that include technological services
that assist in exploration and mapping of oilfields. Lastly, the abandonment services aim to turn
oilfields that have been abandon into more economical and environmental beneficial areas. The
company has been on the forefront in the provision of integrated project management system that
sets the platform for oil and gas industry in Oman and around the world (PSAC 2017).
1. Identified issues within the Schlumberger Limited
This paper identifies low investment in exploration and production sector of the
organization or industry. Based on the analysis of the Schlumberger Limited, the identified issue
is an impending opportunity within the industry that the company can use for more revenues.
The exploration and production investment is identified due to high chances that currently exist
that may help the company to solidify its strategic position in the oil and gas industry.
Exploration and production have been listed as one of the high risk and high rewarding sector of
the oil and petroleum industry. Schlumberger Limited has the opportunity to invest in
exploration and production sector of the oil and gas. As many companies slow down their
exploration and production the Schlumberger need to take the advantage of the opportunity to
invest in this sector to increase its dominance in the industry.
1.1 Background of the opportunity identified
Exploration and production sector of the oil and gas industry has a high opportunity that
is attributed to a number of reasons. Firstly, supply chain challenges have been a problem within
the oil and gas industry with many players recording value loss on their shares (Marcelo et al
2017, pp 297-304). The supply chain challenges are majorly attributed to underinvestment in