SLB (SLB) 10-K risk factor changes: FY2021 vs FY2020

[removed: The current significant] [added: Recent] oil and gas industry [removed: downturn has] [added: downturns have] resulted in reduced demand for oilfield [added: products and] services and lower expenditures by our customers, which has [added: in the past] had, and may [removed: continue to] [added: in the future] have, a material adverse effect on our financial condition, results of operations and cash flows.

Demand for our products and services depends substantially on expenditures by our customers for the exploration, development and production of oil and [removed: natural] gas reserves.

These expenditures are generally dependent on our customers’ views of future [added: demand for] oil and [removed: natural] gas [added: and future oil and gas] prices, as well as [removed: their] [added: our customers’] ability to access capital.

[removed: This has] [added: Actual and anticipated declines in oil and gas prices have in the past] resulted in, and may [removed: continue to] [added: in the future] result in, lower capital expenditures, project modifications, delays or cancellations, general business disruptions, and delays in payment of, or nonpayment of, amounts that are owed to us.

These effects have had, and may [removed: continue to] [added: in the future] have, a material adverse effect on our financial condition, results of operations and cash flows.

Historically, oil and [removed: natural] gas prices have experienced significant volatility and can be affected by a variety of factors, including:

| | • | changes in the supply of and demand for hydrocarbons, which are affected by general economic and business [removed: conditions, as well as increased demand for (and availability of) alternative energy sources and electric vehicles;] [added: conditions;] |

| | • | the ability or willingness of the Organization of Petroleum Exporting Countries and [removed: 10 other oil producing countries, including Russia, Mexico and Kazakhstan (“OPEC+”),] [added: the expanded alliance known as OPEC+] to set and maintain production levels for oil; |

| | • | the level of [removed: global] oil and gas exploration and production activity; |

| | • | the level of [removed: global] oil and [removed: natural] gas inventories; |

| | • | speculation as to the future price of oil and the speculative trading of oil and [removed: natural] gas futures contracts; |

[removed: Continued or worsening] [added: The COVID-19 pandemic and resulting adverse economic] conditions [removed: in the oil] [added: have had,] and [removed: gas industry generally] may [removed: have] [added: to continue to have,] a [removed: further] material adverse effect on our [removed: business,] financial condition, results of [removed: operations, cash flows] [added: operations] and [removed: prospects.][added: cash flows.]

Other effects of the pandemic [removed: have] included, and may continue to include, [added: significant volatility and disruption of the global financial markets;] adverse revenue and net income effects; disruptions to our operations, including suspension or deferral of drilling activities; customer shutdowns of oil and gas exploration and production; downward revisions to customer budgets; limitations on access to sources of liquidity; [added: supply chain disruptions; limitations on access to raw materials;] employee impacts from illness, school closures and other community response measures; [removed: workforce reductions in response to activity declines;] and temporary closures of our facilities or the facilities of our customers and suppliers.

Our non-US operations accounted for approximately [removed: 81%] [added: 85%] of our consolidated revenue in [removed: 2020, 72%] [added: 2021, 81%] in [removed: 2019] [added: 2020] and [removed: 68%] [added: 72%] in [removed: 2018.][added: 2019.]

| | • | trade and economic sanctions or other restrictions imposed by the European Union, the United States or other regions or [removed: countries;] [added: countries that could restrict or curtail our ability to operate in certain markets;] |

[removed: | | • | exposure under] [added: Our operations are subject to anti-corruption and anti-bribery laws and regulations, such as] the [removed: U.S.] Foreign Corrupt Practices [removed: Act (“FCPA”),] [added: Act,] the U.K. Bribery Act [removed: or similar anti-bribery] and [removed: anti-corruption legislation; |][added: other similar laws.]

| | • | currency [removed: exchange] [added: exchange,] rate fluctuations and devaluations. |

[removed: Severe] [added: Severe] weather, including extreme weather conditions associated with climate change, has in the past and may in the future adversely affect our operations and financial [removed: results.][added: results.]

Extreme weather conditions such as hurricanes, flooding and landslides have in the past resulted in, and may in the future result in, the evacuation of personnel, stoppage of services and activity disruptions at our facilities, in our supply chain, or at [removed: well-sites.][added: well-sites, or result in disruptions of our customers’ operations.]

In addition, [added: acute or chronic physical] impacts of climate change, such as sea level rise, coastal storm surge, inland flooding from intense rainfall and hurricane-strength winds may damage our facilities.

Any such extreme [removed: weather-related] [added: weather] events may result in increased operating costs or decreases in [removed: revenue] [added: revenue,] which could adversely affect our financial condition, results of operations and cash flows.

Our operations require us to comply with numerous laws and regulations, violations of which could have a material adverse effect on our [removed: operations,] financial [removed: condition] [added: condition, results of operations] or cash flows.

There is also increased [removed: focus, including] [added: focus] by governments and our customers, investors and other [removed: stakeholders,] [added: stakeholders] on [removed: these and other] [added: climate change,] sustainability and energy transition matters.

[removed: Existing] [added: Negative attitudes toward] or [removed: future legislation] [added: perceptions of our industry or fossil fuel products] and [removed: regulations related] [added: their relationship] to [removed: greenhouse gas emissions and climate change, as well as initiatives by] [added: the environment have led] governments, non-governmental organizations, and companies to [added: implement initiatives to] conserve energy [removed: or] [added: and] promote the use of alternative energy sources, [removed: and negative attitudes toward or perceptions of fossil fuel products and their relationship to the environment,] [added: which] may [removed: significantly curtail] [added: reduce the] demand for and production of oil and gas in areas of the world where our customers operate, and thus reduce future demand for our products and services.

[removed: This] [added: Any of these initiatives] may, in turn, adversely affect our financial condition, results of operations and cash flows.

We are subject to numerous laws and regulations relating to environmental protection, including those governing air [added: and GHG] emissions, water discharges and waste management, as well as the importation and use of hazardous materials, radioactive materials, chemicals and explosives.

and cleanup of potentially contaminated properties, and to claims alleging personal injury or property damage as [removed: the] [added: a] result of exposures to, or releases of, hazardous substances.

We could be subject to substantial liability claims, including [added: as a result of] well incidents, which could adversely affect our reputation, financial condition, results of operations and cash flows.

Any well incidents, including blowouts at a well [removed: site,] [added: site or any loss of containment or well control,] may expose us to additional liabilities, which could be material.

The [removed: oilfield services] [added: energy] industry is highly competitive.

Our business may be adversely affected if we fail to continue [removed: to develop] [added: developing] and [removed: produce competitive] [added: producing innovative] technologies in response to changes in the market, [added: including] customer [removed: requirements] and [removed: technology trends (including trends in favor of emissions-reducing technologies),] [added: government requirements,] or if we fail to deliver such technologies to our customers in a timely and cost-competitive [removed: manner in the various markets we serve.][added: manner.]

Furthermore, if [added: competing technology accelerates the obsolescence of any of] our [removed: equipment] [added: products] or [removed: proprietary technologies become obsolete,] [added: services,] the value of our intellectual property may be reduced, which could adversely affect our financial condition, results of operations and cash flows.

Third parties may claim that we have infringed [removed: upon, misappropriated] [added: upon] or otherwise violated their intellectual property rights.

The tools, techniques, methodologies, programs and components we use to provide our services and products may infringe [removed: upon, misappropriate] [added: upon] or otherwise violate the intellectual property rights of others or be challenged on that basis.

Failure to [removed: obtain] [added: attract] and retain [removed: skilled technical] [added: qualified] personnel could impede our operations.

Competition for the personnel [removed: required] [added: necessary] for our businesses intensifies as activity increases and technology evolves.

[removed: Our] [added: Our] operations are subject to [removed: cyber incidents that] [added: cyber incidents that] could have a material adverse effect on our business, financial condition and results of [removed: operations.][added: operations.]

We are [removed: increasingly] [added: highly] dependent on digital technologies and services to conduct our business.

We use these technologies for internal purposes, including data storage, processing and [removed: transmissions,] [added: transmission,] as well as in our interactions with our business associates, such as customers and suppliers.

In addition, we develop software and other digital products and services that store, retrieve, manipulate and manage our customers’ information and data, external data, [added: personal data,] and our own data.

In addition, the transition of the global energy sector from primarily a fossil fuel-based system to renewable energy sources could affect our customers’ levels of expenditures.

| | • | governmental laws, policies, regulations and subsidies, including initiatives to promote the use of renewable energy sources; |

| | • | extreme weather conditions, natural disasters, and public health or similar issues, such as pandemics and epidemics. |

The oil and gas industry has historically experienced periodic downturns, which have been characterized by diminished demand for our products and services and downward pressure on the prices that we are able to charge.

Sustained market uncertainty can also result in lower demand and pricing for our products and services.

A significant industry downturn, sustained market uncertainty, or increased availability of economical alternative energy sources could result in a reduction in demand for our products and services, which could adversely affect our business, financial condition, results of operations, cash flows and prospects.

Disruptions in the political, regulatory, economic, and social environments of the countries in which we operate could adversely affect our financial condition, results of operations and cash flows.

We generate revenue in more than 120 countries across the world.

Instability and unforeseen changes in any of the markets in which we operate could result in business disruptions that may have an adverse effect on the demand for our products and services or our financial condition, results of operations or cash flows.

These factors include, but are not limited to, the following:

Failure to effectively and timely address the energy transition could adversely affect our business, results of operations and cash flows.

Our long-term success depends on our ability to effectively address the energy transition, which will require adapting our technology portfolio to potentially changing government requirements and customer preferences, as well as engaging with our customers to develop solutions to decarbonize oil and gas operations.

If the energy transition landscape changes faster than anticipated or in a manner that we do not anticipate, demand for our products and services could be adversely affected.

Furthermore, if we fail or are perceived to not effectively implement an energy transition strategy, or if investors or financial institutions shift funding away from companies in fossil fuel-related industries, our access to capital or the market for our securities could be negatively impacted.

We operate in a highly competitive environment.

Existing or future laws, regulations, court orders or other initiatives to limit greenhouse gas emissions or relating to climate change may reduce demand for our products and services.

Continuing political and social attention to the issue of climate change has resulted in both existing and proposed international agreements and national, regional and local legislation and regulatory measures to limit GHG emissions.

The implementation of these agreements, including the Paris Agreement, the Europe Climate Law, and other existing or future regulatory mandates, may adversely affect the demand for our products and services, impose taxes on us or our customers, require us or our customers to reduce GHG emissions from our technologies or operations, or accelerate the obsolescence of our products or services.

In addition, increasing attention to the risks of climate change has resulted in an increased possibility of litigation or investigations brought by public and private entities against oil and gas companies in connection with their GHG emissions.

As a result, we or our customers may become subject to court orders compelling a reduction of GHG emissions or requiring mitigation of the effects of climate change.

In addition, initiatives by investors and financial institutions to limit funding to companies in fossil fuel-related industries may adversely affect our liquidity or access to capital.

General Risk Factors

The COVID-19 pandemic caused a significant and swift reduction in global economic activity during 2020, which significantly weakened demand for oil and gas, and in turn, for our products and services.

The pandemic is continuously evolving, and the extent to which our operating and financial results will continue to be affected will depend on various factors beyond our control, such as the ultimate duration, severity and sustained geographic resurgence of the virus; the emergence of new variants and strains of the virus; and the success of actions to contain the virus and its variants, or treat its impact, such as the availability and acceptance of vaccines.

prevent, respond to, or mitigate cybersecurity attacks.

Our aspirations, goals, and initiatives related to sustainability and emissions reduction, and our public statements and disclosures regarding them, expose us to numerous risks.

We have developed, and will continue to develop and set, goals, targets, and other objectives related to sustainability matters, including our net-zero target and our energy transition strategy.

Statements related to these goals, targets and objectives reflect our current plans and do not constitute a guarantee that they will be achieved.

Our efforts to research, establish, accomplish, and accurately report on these goals, targets, and objectives expose us to numerous operational, reputational, financial, legal, and other risks.

Our ability to achieve any stated goal, target, or objective, including with respect to emissions reduction, is subject to numerous factors and conditions, some of which are outside of our control.

Our business may face increased scrutiny from investors and other stakeholders related to our sustainability activities, including the goals, targets, and objectives that we announce, and our methodologies and timelines for pursuing them.

If our sustainability practices do not meet investor or other stakeholder expectations and standards, which continue to evolve, our reputation, our ability to attract or retain employees, and our attractiveness as an investment or business partner could be negatively affected.

Similarly, our failure or perceived failure to pursue or fulfill our sustainability-focused goals, targets, and objectives, to comply with ethical, environmental, or other standards, regulations, or expectations, or to satisfy various reporting standards with respect to these matters, within the timelines we announce, or at all, could adversely affect our business or reputation, as well as expose us to government enforcement actions and private litigation.

Our future success depends on our ability to recruit, train, and retain qualified personnel.

These expenditures are also sensitive to our customers’ views of future economic growth and the resulting impact on demand for oil and natural gas.

The continued low oil and gas prices have also caused a reduction in cash flows for our customers, which has had a significant adverse effect on the financial condition of some of our customers.

| --- | --- | --- |

| | • | oil and gas production levels in the United States and by other non-OPEC+ countries; |

| | • | changes in the level of demand resulting from actual or threatened public health emergencies, such as the COVID-19 pandemic, or from other events affecting the level of economic activity; |

| | • | governmental policies and subsidies; |

| | • | government initiatives to promote the use of renewable energy sources and public sentiment regarding alternatives to oil and gas; |

| | • | weather conditions. |

The oil and gas industry has historically been extremely cyclical.

However, there can be no assurance that the demand or pricing for oil and natural gas or for our products and services will follow historic patterns or recover meaningfully in the near or medium term.

The COVID-19 pandemic has significantly reduced demand for our services, and has had, and is likely to continue to have, a material adverse effect on our financial condition, results of operations and cash flows.

The effects of the COVID-19 pandemic, including actions taken by businesses and governments to contain the spread of the virus, have resulted in a significant and swift reduction in international and US economic activity.

In our industry, geopolitical events that increased the supply of low-priced oil to the global market occurred at the same time that demand weakened due to the worldwide effects of the pandemic, leading to a collapse in oil prices in March 2020.

These events together adversely affected the demand for oil and natural gas, as well as for our services and products, and caused significant volatility and disruption of the global financial markets.

This period of extreme economic disruption, low oil prices and reduced demand for our products and services has had, and is likely to continue to have, a material adverse effect on our financial condition, results of operations and cash flows.

The extent to which our operating and financial results will continue to be affected by the COVID-19 pandemic will depend on various factors and consequences beyond our control, such as the duration and scope of the pandemic; additional actions by businesses and governments in response to the pandemic; and the speed and effectiveness of responses to combat the virus, including vaccine development and distribution.

A significant portion of our revenue is derived from our non-US operations, which exposes us to risks inherent in doing business in the more than 120 countries in which we generate revenue.

In addition to the risks addressed elsewhere in this section, our operations in countries other than the United States are subject to various risks, including:

Our international operations are subject to anti-corruption and anti-bribery laws and regulations, such as the FCPA, the U.K. Bribery Act and other similar laws.

Demand for our products and services could be reduced by existing and future legislation, regulations and public sentiment.

Regulatory agencies and environmental advocacy groups in the European Union, the United States and other regions or countries have been focusing considerable attention on the emissions of carbon dioxide, methane and other greenhouse gases and their role in climate change.

Our business, reputation and demand for our stock could be negatively affected if we do not (or are perceived to not) act responsibly with respect to sustainability matters.

We incur, and expect to continue to incur, significant capital and operating costs to comply with environmental laws and regulations.

Intellectual Property and Technology Risks

[removed: 2020] [added: 2021] Executive Overview

[removed: These] [added: The divested] businesses accounted for approximately 25% of Schlumberger’s North America revenue in 2020.

Fourth Quarter [removed: 2020] [added: 2021] Results

| | | | | | (Stated in millions) | | | [removed: | | | | | | | |]

| | Fourth Quarter [removed: 2020] [added: 2021] | | | | | | | | Third Quarter [removed: 2020] [added: 2021] | | | | | | |

| Eliminations & other | | [removed: (63] [added: (104] | ) | | | [removed: (49] [added: (76] | ) | | | [removed: (64] [added: (104] | ) | | | [removed: (34] [added: (77] | ) |

| Interest income (2) | | | | | | [removed: 5] [added: 14] | | | | | | | | [removed: 3] [added: 8] | |

| Charges & credits (4) | | | | | | [removed: 81] [added: 18] | | | | | | | | [removed: (350] [added: 47] | [removed: )] |

| (2) | Excludes interest income included in the segments’ income (fourth quarter [removed: 2020: $-] [added: 2021: $1] million; third quarter [removed: 2020:] [added: 2021:] $- million). |

| (3) | Excludes interest expense included in the segments’ income (fourth quarter [removed: 2020: $7] [added: 2021: $4] million; third quarter [removed: 2020: $7] [added: 2021: $3] million). |

[removed: | (4) | Charges] [added: Schlumberger’s pension] and [removed: credits] [added: postretirement benefit obligations] are described in detail in Note [removed: 3] [added: 16] to the *Consolidated Financial Statements*. [removed: |]

[removed: Digital] [added: Digital] & [removed: Integration][added: Integration]

[removed: Well Construction][added: Well Construction]

Well Construction pretax operating margin of [removed: 10% improved by 42 bps] [added: 15% was essentially flat] sequentially.

Full-Year [removed: 2020] [added: 2021] Results

| | | | | | Income [removed: (Loss)] | | | | | | | | Income [removed: (Loss)] | | |

| Reservoir Performance | | [removed: 5,602] [added: 4,599] | | | | [removed: 353] [added: 648] | | | | [removed: 9,299] [added: 5,602] | | | | [removed: 992] [added: 353] | |

| Production Systems | | [removed: 6,650] [added: 6,710] | | | | [removed: 623] [added: 634] | | | | [removed: 8,167] [added: 6,650] | | | | [removed: 847] [added: 623] | |

| Eliminations & other | | [removed: (332] [added: (376] | ) | | | [removed: (172] [added: (253] | ) | | | [removed: (574] [added: (332] | ) | | | (172 | ) |

| Corporate & other (1) | | | | | | [removed: (681] [added: (573] | ) | | | | | | | [removed: (957] [added: (681] | ) |

| Interest income (2) | | | | | | 31 | | | | | | | | [removed: 33] [added: 31] | |

| Interest expense (3) | | | | | | [removed: (534] [added: (514] | ) | | | | | | | [removed: (571] [added: (534] | ) |

| Charges & credits (4) | | | | | | [removed: (12,515] [added: 65] | [removed: )] | | | | | | | [removed: (12,901] [added: (12,515] | ) |

| (2) | Excludes interest income included in the segments’ income [removed: (2020:] [added: (2021:] $2 million; [removed: 2019: $8] [added: 2020: $2] million). |

| (3) | Excludes interest expense included in the segments’ income [removed: (2020: $28] [added: (2021: $15] million; [removed: 2019: $38] [added: 2020: $28] million). |

Full-year [removed: 2020] [added: 2021] revenue of [removed: $23.6] [added: $8.7] billion [removed: decreased 28%] [added: increased 1%] year-on-year.

[removed: Year-on-year pretax operating] [added: Operating] margin increased [removed: 249 bps to 24% largely] due to improved [added: profitability from] APS [removed: margins] [added: projects] as a result of [added: higher oil prices and] reduced amortization expense following the asset impairment charges that were recorded [removed: in the second quarter of] [added: during] 2020 [removed: and the effects of cost cutting efforts.][added: relating to certain APS investments.]

| [removed: | | | | | Income (Loss) | | |] [added: Net income (loss)] | [added: $] | [added: 1,928] | | | [removed: Income] [added: $] | [added: (10,486] | [added: )] |

| Interest income [removed: (2)] | | [removed: | | | |] 33 | | | | [removed: | | | | 52] [added: 33] | |

[removed: Year-on-year] [added: Year-on-year,] pretax operating margin was essentially [removed: unchanged] [added: flat] at [removed: 10.4%.][added: 9%.]

| | | | | | [removed: | | | |] (Stated in millions) | | |

| Earnings of equity method investments | $ | [removed: 91 | | | $ | 45] [added: 40] | | | $ | [removed: 89] [added: 91] | |

| Unrealized gain on marketable securities | | [removed: 39 | | | | \-] [added: 47] | | | | [removed: \-] [added: 39] | |

[removed: The unrealized gain on marketable securities in 2020 relates to an investment in] [added: During the fourth quarter of 2020,] a start-up company that Schlumberger previously invested in [removed: that] completed an initial public [removed: offering during the fourth quarter of 2020.][added: offering.]

As a result, Schlumberger recognized an unrealized gain of $39 million to increase the carrying value of this investment to its fair [removed: value of $43 million as of December 31, 2020.]

| Research & engineering | | [removed: 2.5 | % | | | 2.2] [added: 2.4] | % | | | [removed: 2.1] [added: 2.5] | % |

| General & administrative | | 1.5 | % | | | [removed: 1.4 | % | | | 1.4] [added: 1.5] | % |

The Schlumberger effective tax rate was [removed: 7%] [added: 19%] in [removed: 2020] [added: 2021] as compared to [removed: 3%] [added: 7%] in [removed: 2019.][added: 2020.]

[removed: The] [added: These] charges and credits [removed: described in Note 3 to the *Consolidated Financial Statements*,] reduced the effective tax rate [added: in 2020] by [removed: approximately] 12 [removed: and 13] [added: percentage] points [removed: in 2020 and 2019, respectively,] as a significant portion of these charges were not [removed: tax effective.][added: tax-effective.]

The [removed: lower] [added: increase in the] effective tax rate was [removed: almost entirely] [added: primarily] due to the [removed: 2019] charges and credits described in Note 3 to the *Consolidated Financial [removed: Statements*, which primarily related to non-deductible goodwill.][added: Statements*.]

This section of the Form 10-K generally discusses 2021 and 2020 items and year-to-year comparisons between 2021 and 2020.

Discussions of 2019 items and year-to-year comparison between 2020 and 2019 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of Schlumberger’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Continuing a broad recovery that began in 2020, oil markets were generally positive throughout the year, with Brent oil price starting 2021 at the year’s low of $51 per barrel, reaching a high of $85 in November.

Sentiment in oil markets was largely positive as global demand recovered and supply was managed by a combination of the reassurance of continued intervention from OPEC+, and ongoing capital discipline by publicly traded operators in North America.

Within the context of strengthening fundamentals across the year, there were several instances where the potential impact of COVID-19 variants raised concerns regarding demand growth.

However, these periods were shorter lived than the prolonged decline in 2020, which was characterized by economic lockdowns, and oil prices soon rebounded.

Pricing was initially supported by OPEC+ production agreements that had come into effect in 2020 and remained resilient as those production targets were gradually increased in the second half of 2021, as crude and product stocks continued a multiyear downward trend.

International activity grew broadly across geographies in the second half of the year, including offshore and deepwater, with operators investing in projects to meet long-term objectives and regional demand growth.

Activity in North America land also rebounded, albeit from a very low base in 2020, but did not return to prepandemic levels, as investment and production were subdued as a result of continued capital discipline on the part of larger producers.

International natural gas pricing, while following the traditional seasonal pattern, was volatile, swinging from pandemic-driven lows in 2020 to record highs around the world.

Domestically, US Henry Hub natural gas prices rose dramatically, averaging $3.91 per million British thermal units on a monthly basis—as compared to $2.04 in 2020—and reaching a peak of $5.87 in October before ending the year at $3.73.

Against this backdrop, Schlumberger’s full-year 2021 revenue of $22.9 billion decreased 3% year-on-year as a result of the divestitures of the OneStim pressure pumping business and the North America low-flow artificial lift business during the fourth quarter of 2020.

These divestitures were consistent with Schlumberger’s strategy to focus on expanding margins, minimizing earnings volatility and focusing on less capital-intensive businesses by high-grading and rationalizing its business portfolio.

Excluding the impact of these divestitures, which generated $1.3 billion of revenue during 2020 (all of which was in North America), full-year 2021 global revenue grew 3% year-on-year, driven by an 8% increase in North America and a 2% increase in international revenue.

Financial performance in 2021 was driven by global oil and gas activity growth in the second half of the year as investment spending experienced double-digit growth year-on-year.

Consequently, Schlumberger’s revenue in the second half of 2021 grew 12% compared to the same period of 2020, and increased 18% when adjusted for the effects of the divestitures.

International revenue increased 12% year-on-year during the second half of 2021, and North America revenue increased 10%, or 44% when adjusted for the effects of the divestitures (which generated $0.5 billion of revenue during the second half of 2020).

Looking ahead into 2022, we believe the industry macro fundamentals are very favorable, due to the combination of projected steady demand recovery, an increasingly tight supply market, and supportive oil prices.

Schlumberger expects this to result in a material step up in industry capital spending with double-digit growth in both the international and North American markets.

Absent any further significant COVID-related disruption, oil demand is expected to exceed prepandemic levels before the end of the year and further strengthen in 2023.

We believe these favorable market conditions are similar to those experienced during the last industry supercycle, suggesting that resurgent global demand-led capital spending will result in an exceptional multiyear growth cycle.

Throughout 2021, Schlumberger continued to strengthen its core portfolio, enhanced its sustainability leadership, successfully advanced its digital journey, and expanded its new energy portfolio.

Schlumberger is well prepared to fully seize this growth ahead.

Schlumberger is entering this cycle in a position of strength, having reset its operating leverage, expanded peer-leading margins across multiple quarters, and aligned its technology and business portfolio with the new industry imperatives.

| Digital & Integration | $ | 889 | | | $ | 335 | | | $ | 812 | | | $ | 284 | |

| Reservoir Performance | | 1,287 | | | | 200 | | | | 1,192 | | | | 190 | |

| Well Construction | | 2,388 | | | | 368 | | | | 2,273 | | | | 345 | |

| Production Systems | | 1,765 | | | | 159 | | | | 1,674 | | | | 166 | |

| | | | | | | 986 | | | | | | | | 908 | |

| Corporate & other (1) | | | | | | (140 | ) | | | | | | | (145 | ) |

| Interest expense (3) | | | | | | (123 | ) | | | | | | | (127 | ) |

| | $ | 6,225 | | | $ | 755 | | | $ | 5,847 | | | $ | 691 | |

Fourth-quarter revenue of $6.22 billion increased 6% sequentially as a result of broad-based growth across all geographies and Divisions.

International revenue of $4.90 billion grew 5% sequentially, driven primarily by strengthening activity, increased digital sales, and early benefits of pricing improvements.

The sequential revenue increase was led by growth in Europe/CIS/Africa largely due to strong offshore activity in Africa.

This growth was complemented by project startups and activity gains in the Middle East & Asia and sustained activity growth in Latin America.

In North America, revenue of $1.28 billion grew 13% sequentially, outperforming the rig count growth.

The sequential growth was driven by strong offshore and land drilling activity and increased exploration data licensing.

Fourth-quarter pretax segment operating margin of 16% increased 31 basis points (bps) sequentially, reaching its highest quarterly level since 2015, largely as a result of the accretive effect of accelerating digital sales.

Fourth-quarter revenue of $889 million increased 10% sequentially, propelled by accelerated digital sales internationally, particularly in Europe/CIS/Africa and Middle East & Asia, and increased exploration data licensing sales in North America offshore and the Permian.

Global demand for oil dropped precipitously from January through April of 2020, in parallel with the expansion of the COVID-19 coronavirus outbreak, as governments around the world responded with lockdowns and travel decreased significantly.

Global stocks of crude and refined products increased as oil supply could not respond quickly enough to balance the market.

As a result, Brent crude oil experienced its highest price of the year—$70 per barrel—in January, with a low of $9 per barrel in mid-April.

Collaboration between OPEC and non-OPEC suppliers, including Russia, led to extraordinary supply intervention, resulting in the removal of more than eight million barrels per day (“bbl/d”) of oil supply from the markets between April and June.

This eased pressure on oil storage capacity and allowed the Brent price to stabilize in the $40 range until gaining strength in December, where it closed at $52 per barrel.

The OPEC-led supply alliance maintained production within an agreed quota and helped to maintain a relatively stable oil price, despite oil demand in the second half of 2020 being more than five million bbl/d lower than same period of 2019.

Demand for refined products, other than jet fuel, returned to within two million bbl/d of pre-crisis levels by end of 2020.

Oil price volatility in the first half of the year, compounded by uncertainty over the pace of COVID-19 recovery, caused producers to lay down more than 40% of the world’s drilling rigs in just six months.

This suggests that $40 oil is insufficient to stimulate meaningful drilling activity growth.

However, even with massive demand reduction, the drilling activity necessary to maintain supply is still significant.

In the US, operators laid down nearly 70% of active rigs between the first and third quarters of 2020, before adding a modest number of rigs in the fourth quarter.

As a result, US crude production fell by nearly two million bbl/d by the end of 2020.

However, the remaining rigs continued to drill in the highest quality reservoirs, which resulted in supply remaining flat over the second half of the year.

Though global gas demand also suffered in response to the pandemic’s effect on economic activity, its use for power generation, heating, and as a chemical feedstock made it more resilient than oil demand as the pandemic spread.

Gas demand for 2020 was down only approximately 5% as compared to 2019.

US Henry Hub natural gas price averaged $2.03 per million British thermal units (“mmbtu”) for the year, having also fallen in the first half of 2020.

Prices recovered in the second half on decreased tight-oil associated production in line with the reduction of active rigs.

International gas hub prices were more volatile.

Against this backdrop, Schlumberger’s full-year 2020 revenue of $23.6 billion declined 28% year-on-year.

North American revenue fell sharply by 48% to $5.5 billion.

This decrease was largely driven by weakness in the land market as operators reacted to oversupplied markets by making deep cuts to activity.

North America operators dropped drilling and pressure pumping activity quickly in the first quarter due to the effects of the pandemic on demand, adding a modest volume of completion activity toward the end of the year.

International revenue was more resilient, declining only 19% year-on-year.

This decline was most prominent in Latin America, Europe, and Africa due to downward revisions to customer budgets and COVID-19 disruptions.

Additionally, during the fourth quarter of 2020, Schlumberger completed two transactions: the contribution of its OneStim business in North America to Liberty Oilfield Services (“Liberty”) in exchange for a 37% stake in Liberty, and the divestiture of the North America low-flow rod-lift business in a cash transaction.

Consequently, the percentage of Schlumberger’s revenue that it generates in the international markets will increase significantly going forward.

The combination of Schlumberger’s fit-for-basin strategy, digital technology innovation, and scale puts the company in the best position to leverage the anticipated shift of spending growth toward the international markets.

From a macro perspective, oil prices have risen, buoyed by recent supply-led OPEC+ policy, the ongoing COVID-19 vaccine rollout, and multinational economic stimulus actions—driving optimism for a meaningful oil demand recovery throughout 2021.

We believe that this sets the stage for oil demand to recover to 2019 levels no later than 2023, or earlier as per recent industry analysts’ reports, reinforcing a multiyear cycle recovery as the global economy strengthens.

Absent a change to these macro assumptions, this will translate into meaningful activity increases both in North America and internationally.

In North America, spending and activity momentum is expected to continue in the first half of 2021 towards maintenance levels, albeit moderated by capital discipline and industry consolidation.

Internationally, following the seasonal effects of the first quarter of 2021, and as OPEC+ responds to strengthening oil demand, higher spending is expected from the second quarter onwards.

Accelerated

activity is not expected to extend beyond the short-cycle markets and will be broad, including offshore, as witnessed during the fourth quarter.

The quality of Schlumberger’s results in the fourth quarter of 2020 validates the progress of our performance strategy and the reinvention of Schlumberger in this new chapter for the industry.

Building from the swift execution and scale of our cost-out program, we exited the year with quarterly margins reset to 2019 levels as the upcycle begins.

Leveraging our high-graded and restructured business portfolio, we see a clear path to achieve double-digit margins in North America and visible international margin improvement in 2021.

Given the depth, diversity, and executional capability of our international business, we believe we are uniquely positioned to benefit as international spending accelerates in the near- and mid-term.

By leveraging our new structure, Schlumberger is fully prepared to capitalize on the growth drivers of the future of our industry, particularly as we accelerate our digital growth ambition and lead in the production and recovery market.

Finally, to meet our long-term ambition to bring lower carbon and carbon-neutral energy sources and technology to market, we are visibly expanding our New Energy portfolio, to contribute to the transformation of a more resilient, sustainable, and investable energy services industry.

Schlumberger is subject to market risks primarily associated with changes in foreign currency exchange [removed: rates and interest] rates.

Approximately [removed: 73%] [added: 70%] of Schlumberger’s revenue in [removed: 2020] [added: 2021] was denominated in US dollars.

A 10% appreciation in the US dollar from the December 31, [removed: 2020] [added: 2021] market rates would increase the unrealized value of Schlumberger’s forward contracts by [removed: $2] [added: $5] million.

Conversely, a 10% depreciation in the US dollar from the December 31, [removed: 2020] [added: 2021] market rates would decrease the unrealized value of Schlumberger’s forward contracts by [removed: $5] [added: $8] million.

At December 31, [removed: 2020,] [added: 2021,] contracts were outstanding for the US dollar equivalent of [removed: $8.6] [added: $7.7] billion in various foreign currencies, of which [removed: $6.4] [added: $6.0] billion related to hedges of debt balances denominated in currencies other than the functional currency.

[removed: This Form 10-K, as well as other statements we make, contains “forward-looking statements” within the meaning of the federal securities laws, which include any] [added: Forward-looking] statements [added: address matters] that [removed: are not historical facts,] [added: are, to varying degrees, uncertain,] such as [removed: our] [added: statements about Schlumberger’s financial and performance targets and other] forecasts or expectations [removed: regarding] [added: regarding, or dependent on, its] business outlook; growth for Schlumberger as a whole and for each of its Divisions (and for specified business [removed: lines or] [added: lines,] geographic areas [added: or technologies] within each Division); oil and natural gas demand and production growth; oil and natural gas prices; [removed: pricing; Schlumberger’s response to, and preparedness for, the COVID-19 pandemic] [added: forecasts or expectations regarding energy transition] and [removed: other widespread health emergencies;] [added: global climate change;] improvements in operating procedures and technology; capital expenditures by Schlumberger and the oil and gas industry; the business strategies of Schlumberger, including digital and “fit for basin,” as well as the strategies of Schlumberger’s customers; Schlumberger’s [removed: restructuring efforts and charges recorded as a result of such efforts; access to raw materials; Schlumberger’s] effective tax rate; Schlumberger’s APS projects, joint ventures, and other alliances; [added: Schlumberger’s response to the COVID-19 pandemic and its preparedness for other widespread health emergencies; access to raw materials;] future global economic and geopolitical conditions; future liquidity; and future results of operations, such as margin levels.

These statements are subject to risks and uncertainties, including, but not limited to, changing global economic conditions; changes in exploration and production spending by Schlumberger’s customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of Schlumberger’s customers and [removed: suppliers, particularly during extended periods of low prices for crude oil and natural gas;] [added: suppliers;] Schlumberger’s inability to achieve its financial and performance targets and other forecasts and expectations; Schlumberger’s inability to [removed: sufficiently monetize assets; the extent of future charges;] [added: achieve net-zero carbon emissions goals or interim emissions reduction goals;] general economic, geopolitical and business conditions in key regions of the world; foreign currency risk; pricing pressure; [added: inflation;] weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays or cancellations; challenges in Schlumberger’s supply chain; production declines; Schlumberger’s inability to recognize [added: efficiencies and other] intended benefits from its business strategies and initiatives, such as digital or Schlumberger New Energy, as well as its [removed: restructuring and structural] cost reduction [removed: plans;] [added: strategies;] changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, [removed: chemicals, hydraulic fracturing services] [added: chemicals] and climate-related initiatives; the inability of technology to meet new challenges in exploration; the competitiveness of alternative energy sources or product substitutes; and other risks and uncertainties detailed in this Form 10-K and other filings that we make with the SEC.

If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual [added: results or] outcomes may vary materially from those reflected in our forward-looking statements.

Statements in this Form 10-K are made as of January [removed: 27, 2021,] [added: 26, 2022,] and Schlumberger disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

This Form 10-K, as well as other statements we make, contains “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts.

Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “forecast,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “think,” “should,” “could,” “would,” “will,” “see,” “likely,” and other similar words.

Forward-looking and other statements in this Form 10-K regarding our environmental, social and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC.

In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.

Schlumberger is subject to interest rate risk on its debt and its investment portfolio.

Schlumberger maintains an interest rate risk management strategy that uses a mix of variable and fixed rate debt combined with its investment portfolio and occasionally interest rate swaps to mitigate the exposure to changes in interest rates.

At December 31, 2020, Schlumberger had fixed rate debt aggregating approximately $16.3 billion and variable rate debt aggregating approximately $0.6 billion.

Schlumberger’s exposure to interest rate risk associated with its debt is also partially mitigated by its investment portfolio.

*Short-term investments,* which totaled approximately $2.2 billion at December 31, 2020, are comprised primarily of money market funds, time deposits, certificates of deposit, commercial paper, bonds and notes, substantially all of which are denominated in US dollars.

The average return on investments was 1.5% in 2020.

The following table reflects the carrying amounts of Schlumberger’s debt at December 31, 2020 by year of maturity:

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Stated in millions) | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | 2021 | | | | 2022 | | | | 2023 | | | | 2024 | | | | 2025 | | | | 2026 | | | | 2027 | | | | 2028 | | | | Thereafter | | | | Total | | |

| Fixed rate debt | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| 3.30% Senior Notes | $ | 664 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 664 | |

| 2.65% Senior Notes | | | | | $ | 598 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 598 | |

| 3.63% Senior Notes | | | | | | 295 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 295 | |

| 2.40% Senior Notes | | | | | | 999 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 999 | |

| 3.65% Senior Notes | | | | | | | | | $ | 1,496 | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,496 | |

| 4.00% Notes | | | | | | | | | | 80 | | | | | | | | | | | | | | | | | | | | | | | | | | | | 80 | |

| 3.70% Notes | | | | | | | | | | | | | $ | 55 | | | | | | | | | | | | | | | | | | | | | | | | 55 | |

| 3.75% Senior Notes | | | | | | | | | | | | | | 746 | | | | | | | | | | | | | | | | | | | | | | | | 746 | |

| 0.00% Notes | | | | | | | | | | | | | | 611 | | | | | | | | | | | | | | | | | | | | | | | | 611 | |

| 1.40% Senior Notes | | | | | | | | | | | | | | | | | $ | 498 | | | | | | | | | | | | | | | | | | | | 498 | |

| 4.00% Senior Notes | | | | | | | | | | | | | | | | | | 930 | | | | | | | | | | | | | | | | | | | | 930 | |

| 1.375% Guaranteed Notes | | | | | | | | | | | | | | | | | | | | | $ | 1,221 | | | | | | | | | | | | | | | | 1,221 | |

| 1.00% Guaranteed Notes | | | | | | | | | | | | | | | | | | | | | | 736 | | | | | | | | | | | | | | | | 736 | |

| 0.25% Notes | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,100 | | | | | | | | | | | | 1,100 | |

| 3.90% Senior Notes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,450 | | | | | | | | 1,450 | |

| 4.30% Senior Notes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 846 | | | | 846 | |

| 2.65% Senior Notes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,250 | | | | 1,250 | |

| 0.50% Notes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,099 | | | | 1,099 | |

| 2.00% Guaranteed Notes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,214 | | | | 1,214 | |

| 7.00% Notes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 206 | | | | 206 | |

| 5.95% Notes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 114 | | | | 114 | |

| 5.13% Notes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 99 | | | | 99 | |

| Total fixed rate debt | $ | 664 | | | $ | 1,892 | | | $ | 1,576 | | | $ | 1,412 | | | $ | 1,428 | | | $ | 1,957 | | | $ | 1,100 | | | $ | 1,450 | | | $ | 4,828 | | | $ | 16,307 | |

| Variable rate debt | | 186 | | | | \- | | | | 293 | | | | \- | | | | 100 | | | | \- | | | | \- | | | | \- | | | | \- | | | | 579 | |

| Total | $ | 850 | | | $ | 1,892 | | | $ | 1,869 | | | $ | 1,412 | | | $ | 1,528 | | | $ | 1,957 | | | $ | 1,100 | | | $ | 1,450 | | | $ | 4,828 | | | $ | 16,886 | |

The fair value of the outstanding fixed rate debt was approximately $17.6 billion as of December 31, 2020.

The weighted average interest rate on the variable rate debt as of December 31, 2020 was 1.0%.

Schlumberger does not enter into derivatives for speculative purposes.

[removed: The new organization consists of four] [added: These] Divisions [removed: that] combine and integrate Schlumberger’s technologies, enhancing [removed: the portfolio of capabilities that] [added: our ability to] support the emerging long-term growth opportunities in each of these market segments.

Digital & Integration – Combines Schlumberger’s [removed: software] [added: digital workflow solutions] and seismic [added: data interpretation and management] businesses with its integrated offering of Asset Performance Solutions (“APS”).

| | • | *Multiclient seismic surveys and data processing:* WesternGeco® is a leading geophysical services supplier, providing comprehensive worldwide reservoir interpretation and data processing services. It provides a highly efficient and scientifically advanced imaging platform [removed: to its customers. Through access to the industry’s global marine fleet, it provides] [added: and] innovative and accurate subsurface imagery for multiclient [removed: surveys.] [added: surveys, also referred to as exploration data.] WesternGeco offers one of the industry’s most extensive multiclient libraries. |

APS creates alignment between Schlumberger and the asset holder and/or the operator [removed: by] [added: utilizing a commercial model whereby] Schlumberger [removed: receiving] [added: receives] remuneration in line with [removed: its] [added: the] value [removed: creation.][added: it creates.]

Schlumberger invests its [removed: own] services and products [removed: and, in certain historical cases, cash] into the field development activities and [removed: operations.][added: operations and is compensated on a fee-per-barrel basis or based on cash flow generated.]

| | • | *Testing:* Provides exploration and production pressure and flow-rate measurement services both at the surface and downhole. Testing has a network of laboratories that [removed: conduct] [added: facilitate] formation and fluid characterization. |

| | • | *Drill Bits:* Designs, manufactures and markets roller cone and fixed cutter drill bits for all [added: drilling] environments. |

| | • | *Drilling Tools*: Includes a wide variety of bottom-hole-assembly and [removed: borehole-enlargement] [added: borehole enlargement] technologies for drilling operations. |

| | • | *Well Cementing*: [removed: Supports] [added: Provides products] and [removed: protects] [added: services that secure and protect] well casings while isolating fluid zones and maximizing wellbore activity. |

| | • | *Rigs and Equipment*: Provides drilling equipment and services for shipyards, drilling contractors, energy companies and rental tool companies, as well as land drilling rigs and related services. Drilling equipment falls into two broad categories: pressure control equipment and rotary drilling equipment. These products are designed for either onshore or offshore applications and include drilling equipment packages, blowout [removed: preventers (“BOPs”), BOP] [added: preventers, blowout preventer] control systems, connectors, riser systems, valves and choke manifold systems, top drives, mud pumps, pipe handling equipment, rig designs and rig kits. |

| | • | *Surface:* Designs and manufactures onshore and offshore platform wellhead systems and processing solutions, including valves, chokes, actuators and [removed: Christmas] [added: surface] trees, and provides services to operators. |

| | • | *Processing:* Enables efficient monetization of subsurface assets using standard and custom-designed onshore, offshore and downstream processing and treatment systems, as well as unique, reservoir-driven, [removed: fit for purpose] [added: fit-for-purpose] integrated production systems for accelerating first production and maximizing project economics. |

[removed: Supporting the Divisions is a global network of research and engineering centers, through which] [added: Through these centers] Schlumberger advances its technology programs to [added: safely and sustainably] enhance industry [removed: efficiency and sustainability,] [added: efficiency,] lower finding and producing costs, improve productivity, maximize reserve recovery and increase asset [removed: value, while accomplishing these goals safely.][added: value.]

The Divisions are deployed around a geographical structure [removed: of] [added: within] five Basins: Americas Land, Offshore Atlantic, Middle East [removed: and] [added: &] North Africa, Asia, and Russia [removed: and] [added: &] Central Asia.

Schlumberger’s strategy is structured around three major [removed: themes:] [added: themes, all of which are focused on customer performance:] (i) strengthen the core; (ii) [removed: expand the] go-to-market; and (iii) [removed: next] horizons of growth.

[removed: The] [added: As a result, the] industry is witnessing a decoupling of the activity characteristics of each major region, resulting in a unique set of dynamics for each oil and gas basin across the world.

[removed: As basins around the world decouple, a] [added: A] key differentiator for Schlumberger [removed: will be] [added: is] its “fit-for-basin” approach and ability.

[removed: In-country] [added: At the same time, in-country] value enables regional efficiency and performance, while [removed: increasing local content] [added: creating opportunity] and aligning with the strategic priorities of our clients.

[removed: Next] Horizons of Growth

The application of digital technology [removed: in field operations has] [added: across] the [added: entire E&P value chain—from subsurface to drilling to production—has the] potential to deliver a step-change in operational workflows [removed: to] [added: that will] significantly elevate [removed: performance.][added: our customers’ performance sustainably.]

[added: Finally,] Schlumberger recognizes that its future will expand beyond oil and gas with [removed: the] energy transition, and [removed: consequently] the Company is positioning [added: itself] for [removed: significant] [added: long-term] growth [removed: opportunities for the long term.][added: opportunities.]

[removed: Schlumberger will utilize] [added: Schlumberger’s approach is to apply] its domain expertise in areas adjacent to its existing activities where it can [removed: deliver at scale with] [added: use] its global footprint and execution [removed: platform.][added: platform to deliver at scale.]

At December 31, [removed: 2020, Schlumberger employed] [added: 2021, Schlumberger’s workforce consisted of] approximately [removed: 86,000] [added: 92,000] people representing more than 160 nationalities.

Schlumberger believes that the diversity of its workforce is one of its greatest strengths and [removed: aims] [added: its ambition is] to maintain [removed: its employee population diversity in proportion] [added: a workforce nationality mix that is aligned] to [removed: the] [added: its geographical] revenue [removed: derived from the countries in which it works.][added: mix.]

[removed: |  | |  |][added: ]

As a [removed: service company,] [added: global company focused on creating and optimizing value for its customers,] Schlumberger believes it is critical for its people to communicate with [removed: its] customers in their native languages and to share the values of the people in the countries where it works.

Furthermore, Schlumberger’s diverse workforce [removed: is better able] [added: positions the Company] to [removed: respond to, and] [added: effectively] deliver services and products that meet the unique expectations and requirements of, its stakeholders, including customers, suppliers and [removed: stockholders.][added: shareholders.]

Schlumberger [removed: set] [added: has made significant progress towards achieving] its [removed: first] gender balance [removed: target in 1994, with the] goal of having women comprise [removed: 15%] [added: 25%] of [removed: its] [added: the Company’s] salaried workforce by [removed: 2015.][added: 2025.]

[removed: In 2020,] [added: As of December 31, 2021,] women made up approximately 23% of the Company’s salaried [removed: employee population.][added: workforce.]

Schlumberger strives to identify [removed: top] talent [removed: within the Company,] [added: early] and to provide opportunities for [added: those] employees who demonstrate exceptional [removed: competency and] performance [added: and potential] to progress to higher levels within the organization.

These [added: factors] vary geographically [removed: with respect to] [added: and are dependent upon] the different services and products that Schlumberger offers.

Schlumberger owns and controls a variety of intellectual property, including but not limited to patents, proprietary [removed: information] [added: information, trade secrets] and software tools and applications that, in the aggregate, are material to Schlumberger’s business.

Furthermore, customer spending patterns for multiclient data, software and other [removed: oilfield services and] products may result in higher activity in the fourth quarter of [removed: each] [added: the] year as clients seek to fully utilize their annual budgets.

Conversely, customer budget constraints [added: in North America] may lead to lower demand for our services and products in the fourth quarter of [removed: each] [added: the] year.

No single customer exceeded 10% of Schlumberger’s consolidated revenue during each of [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018.][added: 2019.]

Schlumberger is subject to numerous [removed: environmental, legal] [added: environmental] and other governmental and regulatory requirements related to its operations worldwide.

Risk [removed: Factors—Legal] [added: Factors – Legal] and Regulatory Risks”, which is incorporated by reference in this Item 1.

[removed: Schlumberger] [added: The Company is incorporated under the laws of Curaçao and] has executive offices in Paris, Houston, London and The Hague.

The following table sets forth, as of January [removed: 27, 2021,] [added: 26, 2022,] the names and ages of the executive officers of Schlumberger, including all offices and positions held by each for the past five years.

| Olivier Le Peuch | [removed: 57] [added: 58] | Chief Executive Officer and Director, since August 2019; Chief Operating Officer, February 2019 to July 2019; Executive Vice President, Reservoir and Infrastructure, May 2018 to February 2019; President, Cameron Group, February 2017 to May 2018; and President, Completions, October 2014 to January 2017. |

Schlumberger is organized under four Divisions operating in five distinct Basins that are aligned with critical hubs of activity.

As of December 31, 2021, Schlumberger’s APS portfolio primarily consisted of three field production projects in Ecuador and one in Canada.

As of December 31, 2021, Schlumberger had a 31% equity interest in Liberty.

Supporting the Divisions is a global network of research and engineering centers.

The Basins are configured around common regional characteristics to deploy fit-for-purpose technologies, operating models and skills and are focused on agility, responsiveness and competitiveness.

The Basins are comprised of GeoUnits, which can be a single country or made up of several countries.

With a strong focus on the customers, Basins identify opportunities for local growth.

Schlumberger’s strategy is designed to adapt the Company to an evolving industry landscape shaped by emerging drivers, including capital discipline, regionalization of supply and demand, an efficiency imperative, and resilience—defined by sustainability and lower carbon footprint.

This strategy is designed to magnify Schlumberger’s ability to improve customer performance, which is the differentiating factor that will help our industry meet higher stakeholder expectations.

Oil and gas will remain critical to economic activity and prosperity.

According to the most recent International Energy Agency Sustainable Development Scenario, oil and gas are expected to represent approximately 45% of the global energy mix through 2040.

Schlumberger’s role is twofold: to enable customers to produce these resources efficiently, cost effectively and with the lowest carbon footprint and to support the world’s transition to a more diversified energy mix.

The core of Schlumberger is how we work with customers and execute our business.

The elements in this theme—which include customer collaboration, the integrity and efficiency of our operations, and capital stewardship—are enabled by our people and technology.

As a service company, Schlumberger has always worked closely with customers.

We are exploring new ways to collaborate and help them overcome their challenges and improve performance.

Operations integrity and efficiency—core to Schlumberger’s culture—are enhanced by the digitization of our operations.

Just as Schlumberger is delivering digital solutions to our customers, we are advancing them in our own operations to capture value from our equipment and services businesses by integrating them into our digital structure.

Capital stewardship is a crucial factor for our industry.

Schlumberger has implemented a capital allocation framework that governs all investments, whether related to capital expenditures, mergers and acquisitions, or research and engineering.

The underlying principle behind this framework is that investment opportunities are prioritized based on returns and cash flow.

Our focus on capital stewardship also includes evolving certain businesses into innovative, less capital-intensive commercial models.

Go-to-Market

Industry markets have evolved into multiple, diverse regional markets that are increasingly competing with each other to meet global, regional, and domestic oil and gas demand.

Each of these regions has a set of resource plays—or basins—with localized economics and operational drivers.

This presents Schlumberger with opportunities that can be optimally addressed with a basin-specific approach.

Fit-for-basin describes the mindset Schlumberger has adopted toward technology development, in-country value, and market access.

In addition, technology access and performance models are highly strategic elements of our go-to-market strategy.

Technology access is fundamentally about making the right decisions with respect to our technology portfolio and how we go to market.

Performance models are focused on commercial and contractual innovations.

The elements of our go-to-market strategy enable Schlumberger to develop deeper partnerships with customers, expanding on their needs and challenges from a basin-specific perspective to provide technology and business models tailored to regional or individual customer requirements.

These elements allow us to share in the performance improvement we deliver for customers and partners.

The third strategic element positions Schlumberger to increase its share in existing markets and expand into new long-term markets in digital, production and recovery, and energy transition, including Schlumberger New Energy and Transition Technologies.

Digital capabilities are crucial to long-term performance and resilience.

Through its industry-leading digital platform, Schlumberger will enable digital transformation at scale, unlocking significant value, and leading innovation across the digital domain in the industry.

Schlumberger seeks to define the future of digital technology in the energy industry and has designed and built a secure and flexible digital industry platform centered around differentiated digital technologies.

Enabled by key partnerships with companies such as Google, IBM, Microsoft, Amazon Web Services, AVEVA and NOV, Schlumberger provides an open digital platform that takes advantage of on-demand, high-performance computing and makes digital capabilities such as embedded artificial intelligence or machine learning readily accessible to customers.

Digital technology can move technical workflows from the desktop to the cloud, creating data structures that enable artificial intelligence and machine learning to provide insights at scale across our customers’ operations.

Production and recovery is about positioning Schlumberger to take advantage of two key trends shaping the market.

The first trend relates to accelerating gas discovery, development and production, as Schlumberger expects to see significant growth in gas demand over the next two decades as the world seeks to decarbonize its energy mix.

Organizational Structure

During 2020, Schlumberger restructured its organization in order to prepare for a changing industry future.

This new structure is aligned with customer workflows and is directly linked to Schlumberger’s corporate strategy, a key element of which is customer collaboration.

The role of the Divisions is to support Schlumberger in executing its customer-centric performance strategy and maintaining its industry leadership role in technology development and services integration.

The Divisions are collectively responsible for driving performance throughout their respective business lines; overseeing operational processes, resource allocation and personnel; and delivering superior financial results.

Although in certain arrangements Schlumberger is paid for a

portion of the services or products it provides, generally Schlumberger will not be paid at the time of providing its services or upon delivery of its products.

Instead, Schlumberger is generally compensated based on cash flow generated or on a fee-per-barrel basis.

The Basins are a collection of GeoUnits, which consist of a single country to several countries, that each have common themes in terms of strategy, economic and operational drivers, and technology needs.

With a strong focus on the customer and growth, the Basins are responsible for defining a Basin strategy in line with Schlumberger’s corporate strategy and identifying opportunities for future growth.

Schlumberger’s ambition is to be its customers’ “performance partner” of choice, by putting the customer at the center of everything it does and by being the company that defines performance in the energy services industry.

Strengthening the core is focused on developing our people, collaborating with our customers and enhancing our technology performance to enable Schlumberger’s vision of customer performance.

Maintaining capital discipline is also a key element of strengthening the core—such as evaluating all investment decisions through the lens of return on capital rather than growth and evolving certain businesses into innovative models that are less capital intensive.

Expand the Go-to-Market

Schlumberger believes that a key shift in the industry is the greater prominence and interplay of regional, or basin-specific, supply and demand.

There are four main regions increasingly competing against each other for market access to meet global, regional and domestic energy demand: North America Land; Middle East; Russia and Central Asia; and offshore.

These regions correspond to a different set of resource plays or basins, each facing different economic and operational drivers, which translates into different activity levels and cycles.

Current geopolitical uncertainties and trade conflicts will only amplify this trend, resulting in the transition from a global market toward a more localized supply and demand dynamic.

Basins have significantly different dynamics, including technological needs, in-country value, and market or technology access.

Additionally, by employing different business models, Schlumberger will evolve the way it goes to market in certain regions.

Schlumberger will seek to monetize its technology advantage by deploying alternative operating models such as selling or leasing selected technologies to regional service providers with a license to operate in these specific markets.

Schlumberger expects this approach to expand its total addressable market.

Schlumberger’s history and culture have been based on leadership, science and innovation since its founders invented wireline logging as a technique for obtaining downhole data in oil and gas wells.

Continuing this tradition, Schlumberger will focus its future growth in two areas: digital innovation and new energy.

Schlumberger seeks to define the future of digital technology in the energy industry.

To take the next step in performance that our customers need to deliver energy in today’s competitive environment, Schlumberger is developing and using digital solutions, focused on generating richer data and better insights, that will achieve performance not previously possible across the energy industry.

Schlumberger is leveraging its portfolio of proprietary digital technologies as well as technologies that have transformed other industries to enable our customers to make better and faster decisions.

Integrating digital technology into exploration and production (“E&P”) workflows requires extensive domain expertise in upstream hardware and software technologies and in the management and interpretation of vast amounts of subsurface and production data.

Schlumberger will continue to lead the digital transformation of the energy industry by applying its unique data and digital expertise to every facet of the E&P life cycle.

Through its New Energy portfolio, Schlumberger is investing in low carbon and carbon-neutral energy technologies that will provide a platform for future sustainable growth.

Schlumberger New Energy is taking a business venture approach that will focus on energy efficiency and energy storage as a priority, aimed at developing unique positions in adjacent markets and introducing breakthrough technologies in energy verticals beyond oil and gas.

In addition to national and cultural diversity, achieving improved gender balance has been a focus of policy and action in Schlumberger since the late 1970s, when it began recruiting women for field operations roles.

Since then, Schlumberger has continued to expand opportunities for women across its field operations, technology, business and management roles.

Schlumberger believes that these gender diversity initiatives help it maintain its competitive advantage.

This goal was achieved ahead of schedule in 2011.

Schlumberger’s current gender balance goal is to have women comprise 25% of the Company’s salaried workforce by 2025.

Additionally, approximately 21% of management roles were held by women in 2020.

Schlumberger is proud of its meritocratic culture, its commitment to early responsibility and internal promotion, and its “borderless career” philosophy.

Schlumberger seeks to nurture its talent pool to maximize each employee’s developmental potential through a combination of training and experience.

Schlumberger’s “borderless career” philosophy means it supports flexible career paths, helping employees develop their skills across different functions, businesses and geographies.

Legal Proceedings is set forth in Note [removed: 15—*Contingencies*,] [added: 14 – *Contingencies*,] in the accompanying *Consolidated Financial Statements*.

For the fiscal year ended December 31, [removed: 2020][added: 2021]

| 62 Buckingham [removed: Gate,] [added: Gate] London, United Kingdom | | SW1E 6AJ |

| Parkstraat [removed: 83,] [added: 83] The Hague, The Netherlands | | 2514 JG |

As of June 30, [removed: 2020,] [added: 2021,] the aggregate market value of the common stock of the registrant held by non-affiliates of the registrant was approximately [removed: $25.50] [added: $44.72] billion.

As of December 31, [removed: 2020,] [added: 2021,] the number of shares of common stock outstanding was [removed: 1,392,325,960.][added: 1,403,381,685.]

Certain information required to be furnished pursuant to Part III of this Form 10-K is set forth in, and is incorporated by reference from, Schlumberger’s definitive proxy statement for its [removed: 2021] [added: 2022] Annual General Meeting of Stockholders, to be filed by Schlumberger with the Securities and Exchange Commission (“SEC”) pursuant to Regulation 14A within 120 days after December 31, [removed: 2020] [added: 2021] (the [removed: “2021] [added: “2022] Proxy Statement”).

[removed: SCHLUMBERGER LIMITED][added: SCHLUMBERGER LIMITED]

| Item 1A. | [Risk Factors](#ITEM_1A_RISK_FACTORS) | [removed: 10] [added: 11] |

| Item 1B. | [Unresolved Staff Comments](#ITEM_1B_UNRESOLVED_STAFF_COMMENTS) | [removed: 14] [added: 15] |

| Item 2. | [Properties](#ITEM_2_PROPERTIES) | [removed: 14] [added: 15] |

| Item 3. | [Legal Proceedings](#ITEM_3_LEGAL_PROCEEDINGS) | [removed: 14] [added: 15] |

| Item 4. | [Mine Safety Disclosures](#ITEM_4_MINE_SAFETY_DISCLOSURES) | [removed: 14] [added: 15] |

| Item 5. | [Market for Schlumberger’s Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities](#ITEM_5_MARKET_FOR_SCHLUMBERGERS_COMMON_S) | [removed: 15] [added: 16] |

| Item 7A. | [Quantitative and Qualitative Disclosures About Market Risk](#ITEM_7A_QUANTITATIVE_QUALITATIVE_DISCLOS) | [removed: 31] [added: 29] |

| Item 8. | [Financial Statements and Supplementary Data](#ITEM_8_FINANCIAL_STATEMENTS_SUPPLEMENTAR) | [removed: 34] [added: 30] |

| Item 9. | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#ITEM_9_CHANGES_IN_DISAGREEMENTS_WITH_ACC) | [removed: 75] [added: 68] |

| Item 9A. | [Controls and Procedures](#ITEM_9A_CONTROLS_PROCEDURES) | [removed: 75] [added: 68] |

| Item 9B. | [Other Information](#ITEM_9B_OR_INFORMATION) | [removed: 76] [added: 68] |

| Item 10. | [Directors, Executive Officers and Corporate Governance of Schlumberger](#Item_10_Governance) | [removed: 77] [added: 69] |

| Item 11. | [Executive Compensation](#ITEM_11_EXECUTIVE) | [removed: 77] [added: 69] |

| Item 12. | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#ITEM_12_SECURITY_OWNERSHIP_CERTAIN_BENEF) | [removed: 77] [added: 69] |

| Item 13. | [Certain Relationships and Related Transactions, and Director Independence](#ITEM_13_CERTAIN_RELATIONSHIPS_RELATED_TR) | [removed: 77] [added: 69] |

| Item 14. | [Principal Accounting Fees and Services](#ITEM_14_PRINCIPAL_ACCOUNTING_FEES_SERVIC) | [removed: 77] [added: 69] |

| Item 15. | [Exhibits and Financial Statement Schedules](#Item_15_Exhibits) | [removed: 78] [added: 70] |

| Item 16. | [Form 10-K Summary](#ITEM_16_FORM_10K_SUMMARY) | [removed: 82] [added: 74] |

| | [Signatures](#SIGNATURES) | [removed: 83] [added: 75] |

| Item 6. | [\[Reserved\]](#ITEM_6_RESERVED) | 16 |

| Item 9C. | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#ITEM_9C_Disclosure_Regarding) | 68 |

| | | |

| Item 6. | [Selected Financial Data](#ITEM_6_SELECTED_FINANCIAL_DATA) | 16 |

As of December 31, [removed: 2020,] [added: 2021,] there were [removed: 24,592] [added: 23,753] stockholders of record.

It assumes $100 was invested on December 31, [removed: 2015] [added: 2016] in Schlumberger common stock, in the S&P 500 Index and in the Philadelphia Oil Service Index, as well as the reinvestment of dividends on the last day of the month of payment.

[removed: ][added: ]

Schlumberger had repurchased $1.0 billion of its common stock under this program as of December 31, [removed: 2020 but did not repurchase any of its common stock during the three months ended December 31, 2020.][added: 2021.]

Schlumberger did not repurchase any of its common stock during 2021.

The following selected consolidated financial data should be read in conjunction with both “Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8.

Financial Statements and Supplementary Data” of this Form 10-K in order to understand factors, such as business combinations and charges and credits, which may affect the comparability of the Selected Financial Data.

| | (Stated in millions, except per share amounts) | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | | | |

| | Year Ended December 31, | | | | | | | | | | | | | | | | | | |

| | 2020 | | | | 2019 | | | | 2018 | | | | 2017 | | | | 2016 | | |

| Revenue | $ | 23,601 | | | $ | 32,917 | | | $ | 32,815 | | | $ | 30,440 | | | $ | 27,810 | |

| Net income (loss) attributable to Schlumberger | $ | (10,518 | ) | | $ | (10,137 | ) | | $ | 2,138 | | | $ | (1,505 | ) | | $ | (1,687 | ) |

| Diluted earnings (loss) per share of Schlumberger | $ | (7.57 | ) | | $ | (7.32 | ) | | $ | 1.53 | | | $ | (1.08 | ) | | $ | (1.24 | ) |

| Cash | $ | 844 | | | $ | 1,137 | | | $ | 1,433 | | | $ | 1,799 | | | $ | 2,929 | |

| Short-term investments | $ | 2,162 | | | $ | 1,030 | | | $ | 1,344 | | | $ | 3,290 | | | $ | 6,328 | |

| Working capital | $ | 2,428 | | | $ | 2,432 | | | $ | 2,245 | | | $ | 3,215 | | | $ | 8,868 | |

| Fixed income investments, held to maturity | $ | \- | | | $ | \- | | | $ | \- | | | $ | \- | | | $ | 238 | |

| Total assets | $ | 42,434 | | | $ | 56,312 | | | $ | 70,507 | | | $ | 71,987 | | | $ | 77,956 | |

| Long-term debt | $ | 16,036 | | | $ | 14,770 | | | $ | 14,644 | | | $ | 14,875 | | | $ | 16,463 | |

| Total debt | $ | 16,886 | | | $ | 15,294 | | | $ | 16,051 | | | $ | 18,199 | | | $ | 19,616 | |

| Schlumberger stockholders' equity | $ | 12,071 | | | $ | 23,760 | | | $ | 36,162 | | | $ | 36,842 | | | $ | 41,078 | |

| Cash dividends declared per share | $ | 0.88 | | | $ | 2.00 | | | $ | 2.00 | | | $ | 2.00 | | | $ | 2.00 | |

During 2018, Schlumberger adopted ASU No. 2016-02, *Leases,* which requires lessees to recognize an operating lease asset and a lease liability on the balance sheet, with the exception of short-term leases.

Prior year amounts reflected in the table above have not been adjusted and continue to be reflected in accordance with Schlumberger’s historical accounting.

| Year Ended December 31, | [removed: 2020] [added: 2021] | | | | [removed: 2019] [added: 2020] | | | | [removed: 2018] [added: 2019] | | |

| Services | $ | [removed: 16,533] [added: 15,602] | | | $ | [removed: 24,358] [added: 16,533] | | | $ | [removed: 24,296] [added: 24,358] | |

| Product sales | | [removed: 7,068] [added: 7,327] | | | | [removed: 8,559] [added: 7,068] | | | | [removed: 8,519] [added: 8,559] | |

| Total Revenue | | [removed: 23,601] [added: 22,929] | | | | [removed: 32,917] [added: 23,601] | | | | [removed: 32,815] [added: 32,917] | |

| Interest & other income | | [removed: 163] [added: 148] | | | | [removed: 86] [added: 163] | | | | [removed: 149] [added: 86] | |

| Gains on sales of businesses | | [removed: 104] [added: \-] | | | | [removed: 247] [added: 104] | | | | [removed: 215] [added: 247] | |

| Cost of services | | [removed: 14,675] [added: 13,129] | | | | [removed: 20,828] [added: 14,675] | | | | [removed: 20,618] [added: 20,828] | |

| Cost of sales | | [removed: 6,325] [added: 6,142] | | | | [removed: 7,892] [added: 6,325] | | | | [removed: 7,860] [added: 7,892] | |

| Research & engineering | | [removed: 580] [added: 554] | | | | [removed: 717] [added: 580] | | | | [removed: 702] [added: 717] | |

| General & administrative | | [removed: 365] [added: 339] | | | | [removed: 474] [added: 365] | | | | [removed: 444] [added: 474] | |

| Impairments & other | | [removed: 12,658] [added: \-] | | | | [removed: 13,148] [added: 12,658] | | | | [removed: 356] [added: 13,148] | |

| Interest | | [removed: 563] [added: 539] | | | | [removed: 609] [added: 563] | | | | [removed: 575] [added: 609] | |

| Income (loss) before taxes | | [removed: (11,298] [added: 2,374] | [removed: )] | | | [removed: (10,418] [added: (11,298] | ) | | | [removed: 2,624] [added: (10,418] | [added: )] |

| Tax expense (benefit) | | [removed: (812] [added: 446] | [removed: )] | | | [removed: (311] [added: (812] | ) | | | [removed: 447] [added: (311] | [added: )] |

| Net income (loss) | | [removed: (10,486] [added: 1,928] | [removed: )] | | | [removed: (10,107] [added: (10,486] | ) | | | [removed: 2,177] [added: (10,107] | [added: )] |

| Net income attributable to noncontrolling interests | | [removed: 32] [added: 47] | | | | [removed: 30] [added: 32] | | | | [removed: 39] [added: 30] | |

| Net income (loss) attributable to Schlumberger | $ | [removed: (10,518] [added: 1,881] | [removed: )] | | $ | [removed: (10,137] [added: (10,518] | ) | | $ | [removed: 2,138] [added: (10,137] | [added: )] |

| Basic earnings (loss) per share of Schlumberger | $ | [removed: (7.57] [added: 1.34] | [removed: )] | | $ | [removed: (7.32] [added: (7.57] | ) | | $ | [removed: 1.54] [added: (7.32] | [added: )] |

| Diluted earnings (loss) per share of Schlumberger | $ | [removed: (7.57] [added: 1.32] | [removed: )] | | $ | [removed: (7.32] [added: (7.57] | ) | | $ | [removed: 1.53] [added: (7.32] | [added: )] |

| Basic | | [removed: 1,390] [added: 1,400] | | | | [removed: 1,385] [added: 1,390] | | | | 1,385 | |

| Assuming dilution | | [removed: 1,390] [added: 1,427] | | | | [removed: 1,385] [added: 1,390] | | | | [removed: 1,393] [added: 1,385] | |

| Net income (loss) | $ | [removed: (10,486] [added: 1,928] | [removed: )] | | $ | [removed: (10,107] [added: (10,486] | ) | | $ | [removed: 2,177] [added: (10,107] | [added: )] |

| Net change arising during the period | | [removed: (239] [added: 83] | [removed: )] | | | [removed: 67] [added: (239] | [added: )] | | | [removed: (191] [added: 67] | [removed: )] |

| [removed: Marketable] [added: Unrealized gain on marketable] securities | [added: $] | [added: (47] | [added: )] | | [added: $] | [added: (11] | [added: )] | | [added: $] | [added: (36] | [added: )] |

| [removed: Unrealized loss] [added: Actuarial gain (loss)] arising during the period | | [removed: \-] [added: 1,075] | | | | [removed: \-] [added: (247] | [added: )] | | | [removed: (11] [added: 127] | [removed: )] |

| Net loss on cash flow hedges | | [removed: (90] [added: (12] | ) | | | [removed: (32] [added: (90] | ) | | | [removed: (16] [added: (32] | ) |

| Reclassification to net income (loss) of net realized [added: (income)] loss | | [removed: 54] [added: (3] | [added: )] | | | [removed: 10] [added: 54] | | | | [removed: 1] [added: 10] | |

| Amortization to net income (loss) of net actuarial loss | | [removed: 200] [added: 271] | | | | [removed: 94] [added: 200] | | | | [removed: 187] [added: 94] | |

| Amortization to net income (loss) of net prior service (credit) cost | | [removed: (17] [added: (23] | ) | | | [removed: (11] [added: (17] | ) | | | [removed: (5] [added: (11] | ) |

| Impact of curtailment | | [removed: (69] [added: \-] | [removed: )] | | | [removed: \-] [added: (69] | [added: )] | | | \- | |

| Income taxes on pension and other postretirement benefit plans | | [removed: (38] [added: (74] | ) | | | [removed: (71] [added: (38] | ) | | | [removed: (18] [added: (71] | ) |

| Comprehensive income (loss) | | [removed: (10,932] [added: 3,242] | [removed: )] | | | [removed: (9,923] [added: (10,932] | ) | | | [removed: 1,938] [added: (9,923] | [added: )] |

| Comprehensive income attributable to noncontrolling interests | | [removed: 32] [added: 47] | | | | [removed: 30] [added: 32] | | | | [removed: 39] [added: 30] | |

| Comprehensive income (loss) attributable to Schlumberger | $ | [removed: (10,964] [added: 3,195] | [removed: )] | | $ | [removed: (9,953] [added: (10,964] | ) | | $ | [removed: 1,899] [added: (9,953] | [added: )] |

| [added: Year Ended] December 31, | [added: 2021] | [added: | | |] 2020 | | | | 2019 | | |

| Cash | | $ | [removed: 844] [added: 1,757] | | | $ | [removed: 1,137] [added: 844] | |

| Short-term investments | | | [removed: 2,162] [added: 1,382] | | | | [removed: 1,030] [added: 2,162] | |

| Receivables less allowance for doubtful accounts [removed: (2020] [added: (2021] - [removed: $301; 2019] [added: $319; 2020] - [removed: $255)] [added: $301)] | | | [removed: 5,247] [added: 5,315] | | | | [removed: 7,747] [added: 5,247] | |

| Inventories | | | [removed: 3,354] [added: 3,272] | | | | [removed: 4,130] [added: 3,354] | |

| Other current assets | | | [removed: 1,312] [added: 928] | | | | [removed: 1,486] [added: 1,312] | |

| December 31, | | 2021 | | | | 2020 | | |

| | | | 12,654 | | | | 12,919 | |

| Other Assets | | | 4,183 | | | | 4,193 | |

| | | $ | 41,511 | | | $ | 42,434 | |

| | | | 26,225 | | | | 29,945 | |

| | | | 15,286 | | | | 12,489 | |

| | | $ | 41,511 | | | $ | 42,434 | |

| Year Ended December 31, | 2021 | | | | 2020 | | | | 2019 | | |

| Net income (loss) | $ | 1,928 | | | $ | (10,486 | ) | | $ | (10,107 | ) |

| Proceeds from sale of Liberty shares | | 109 | | | | \- | | | | \- | |

| Net income | | | | | | | | | | | 1,881 | | | | | | | | 47 | | | | 1,928 | |

| Vesting of restricted stock | | | (281 | ) | | | 281 | | | | | | | | | | | | | | | | \- | |

| Shares issued under employee stock purchase plan | | | (377 | ) | | | 514 | | | | | | | | | | | | | | | | 137 | |

| Deconsolidation of subsidiary | | | | | | | | | | | | | | | | | | | (123 | ) | | | (123 | ) |

| Balance, December 31, 2021 | | $ | 12,608 | | | $ | (2,233 | ) | | $ | 8,199 | | | $ | (3,570 | ) | | $ | 282 | | | $ | 15,286 | |

| | | | | | | | | | | | | |

| Basic | | $ | 1,881 | | | | 1,400 | | | $ | 1.34 | |

| Diluted | | $ | 1,881 | | | | 1,427 | | | $ | 1.32 | |

| Gain on sale of Liberty shares | | (28 | ) | | | (4 | ) | | | (24 | ) |

| Early repayment of bonds | | 10 | | | | \- | | | | 10 | |

| | $ | (65 | ) | | $ | (15 | ) | | $ | (50 | ) |

Third quarter 2021:

| | • | During the third quarter of 2021, a start-up company that Schlumberger previously invested in was acquired. As a result of this transaction, Schlumberger’s ownership interest was converted into shares of a publicly traded company. Schlumberger recognized an unrealized pretax gain of $47 million to increase the carrying value of this investment to its estimated fair |

| | | value of approximately $55 million. This unrealized gain is reflected in *Interest & other income* in the *Consolidated* *Statement of Income (Loss)*. |

Fourth quarter 2021:

As of December 31, 2021, Schlumberger had a 31% equity interest in Liberty.

| | • | On November 30, 2021, Schlumberger deposited sufficient funds with the trustee for its $1.0 billion of 2.40% Senior Notes due 2022 (including payment of the February 1, 2022 interest payment) to satisfy and discharge all of its obligations relating to such notes. As a result of this transaction, Schlumberger recorded a charge of $10 million. This charge is reflected in *Interest* in the *Consolidated Statement of Income (Loss)*. |

| | • | On December 31, 2020, Schlumberger contributed its OneStim business to Liberty in exchange for a 37% equity interest in Liberty. As a result of this transaction, Schlumberger recognized a gain of $104 million. This gain is classified in *Gains on sales of businesses* in the *Consolidated Statement of Income (Loss)*. |

| Third quarter: | | | | | | | | | | | |

| Fourth quarter: | | | | | | | | | | | |

| | 2021 | | | | 2020 | | |

| | $ | 3,272 | | | $ | 3,354 | |

| | 2021 | | | | 2020 | | |

| | | 29,077 | | | | 29,744 | |

| | $ | 6,429 | | | $ | 6,826 | |

| Acquisitions | | 18 | | | | \- | | | | \- | | | | \- | | | | 18 | |

| Balance, December 31, 2021 | $ | 2,052 | | | $ | 3,804 | | | $ | 6,281 | | | $ | 853 | | | $ | 12,990 | |

| | 2021 | | | | | | | | | | | | 2020 | | | | | | | | | | |

| | $ | 5,240 | | | $ | 2,029 | | | $ | 3,211 | | | $ | 5,283 | | | $ | 1,828 | | | $ | 3,455 | |

| | 2021 | | | | 2020 | | |

| Actuarial gain (loss) arising during the period | | (247 | ) | | | 127 | | | | (186 | ) |

| | | | 12,919 | | | | 15,530 | |

| Other Assets | | | 3,876 | | | | 6,248 | |

| | | $ | 42,434 | | | $ | 56,312 | |

| | | | 10,491 | | | | 13,098 | |

| | | | 29,945 | | | | 32,136 | |

| | | | 12,489 | | | | 24,176 | |

| Proceeds from sale of WesternGeco marine seismic business, net of cash divested | | \- | | | | \- | | | | 579 | |

| --- | --- |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Balance, January 1, 2018 | | $ | 12,975 | | | $ | (4,049 | ) | | $ | 32,190 | | | $ | (4,274 | ) | | $ | 419 | | | $ | 37,261 | |

| Net income | | | | | | | | | | | 2,138 | | | | | | | | 39 | | | | 2,177 | |

| Stranded tax related to US pension | | | | | | | | | | | 109 | | | | (109 | ) | | | | | | | \- | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Shares sold to optionees, less shares exchanged | | | \- | | | | 1 | | | | 1 | |

| Stock repurchase program | | | \- | | | | (7 | ) | | | (7 | ) |

| Shares sold to optionees, less shares exchanged | | | \- | | | | 6 | | | | 6 | |

| Stock repurchase program | | | \- | | | | (1 | ) | | | (1 | ) |

Schlumberger adopted Accounting Standards Update (“ASU”) 2014-09, *Revenue from Contracts with Customers* on January 1, 2018.

This ASU amended the existing accounting standards for revenue recognition and requires companies to recognize revenue when control of the promised goods or services is transferred to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services.

Under the transition method selected by Schlumberger, this ASU was applied only to those contracts which were not completed as of January 1, 2018.

Prior period amounts were not adjusted and were reflected in accordance with Schlumberger’s historical accounting.

The adoption of this ASU did not have a material impact on Schlumberger’s *Consolidated Financial Statements*.

Although in certain arrangements Schlumberger is paid for a portion of the services or products it provides, generally Schlumberger will not be paid at the time of providing its services or upon delivery of its products.

Instead, Schlumberger is generally compensated based on cash flow generated or on a fee-per-barrel basis.

Amortization expense relating to these capitalized investments was $396 million, $731 million and $568 million in 2020, 2019 and 2018, respectively.

The unamortized portion of Schlumberger’s investments in APS projects was $1.713 billion and $3.724 billion at December 31, 2020 and 2019, respectively.

These amounts are included within *Other Assets* in Schlumberger’s *Consolidated Balance Sheet.*

| 2018: | | | | | | | | | | | | |

| Basic | | $ | 2,138 | | | | 1,385 | | | $ | 1.54 | |

| Diluted | | $ | 2,138 | | | | 1,393 | | | $ | 1.53 | |

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation.

| | • | During the second quarter of 2020, Schlumberger repurchased certain Senior Notes (see Note 9 – *Long-term Debt*), which resulted in a $40 million charge. |

Such estimates included unobservable inputs that required significant judgement.

As market conditions evolve and Schlumberger continues to develop its strategy to deal with such conditions, it may result in further restructuring and/or impairment charges in future periods.

The fair value of certain of the assets impaired during the fourth quarter of 2019 was estimated based on the present value of projected future cash flows that the underlying assets are expected to generate.

| | • | During the fourth quarter of 2019, Schlumberger repurchased certain Senior Notes (see Note 9 – *Long-term Debt*), which resulted in a $22 million charge. |

2018

| Gain on sale of marine seismic acquisition business | $ | (215 | ) | | $ | (19 | ) | | $ | (196 | ) |

There has been no change in Schlumberger’s internal control over financial reporting that occurred during the fourth quarter of [removed: 2020] [added: 2021] that has materially affected, or is reasonably likely to materially affect, Schlumberger’s internal control over financial reporting.

Schlumberger’s residual transactions or dealings with the government of Iran in [removed: 2020] [added: 2021] consisted of payments of taxes and other typical governmental charges.

PART III

None.

PART III

Business—Information About Our Executive Officers” of this Report for [removed: Item 10] information regarding [added: the] executive officers of Schlumberger.

The information set forth under the captions “Election of Directors,” [removed: “Stock Ownership Information—Delinquent Section 16(a) Reports,”] “Corporate [removed: Governance—Identifying Candidates] [added: Governance—Process] for [removed: Director Nominations”] [added: Selecting New Directors”] and “Corporate Governance—Board [removed: Responsibilities, Committees and Attendance—Committees—Audit Committee”] [added: Committees”] in Schlumberger’s [removed: 2021] [added: 2022] Proxy Statement is incorporated herein by reference.

The information set forth under the caption “Stock Ownership Information—Delinquent Section 16(a) Reports” in Schlumberger’s 2022 Proxy Statement is incorporated herein by reference to the extent any disclosure is required.

The information set forth under the captions “Compensation [added: Committee Report,” “Compensation] Discussion and Analysis,” “Executive Compensation [removed: Tables and Accompanying Narrative,” “Compensation Discussion and Analysis—Compensation Committee Report”] [added: Tables”] and “Director [removed: Compensation in Fiscal Year 2020”] [added: Compensation”] in Schlumberger’s [removed: 2021] [added: 2022] Proxy Statement is incorporated herein by reference.

The information under the captions “Stock Ownership Information—Security Ownership by [removed: Certain Beneficial Owners,”] [added: Management and Our Board,”] “Stock Ownership Information—Security Ownership by [removed: Management”] [added: Certain Beneficial Owners”] and [removed: “Equity] [added: “Executive] Compensation [added: Tables—Equity Compensation] Plan Information” in Schlumberger’s [removed: 2021] [added: 2022] Proxy Statement is incorporated herein by reference.

The information under the captions “Corporate Governance—Director Independence” and “Corporate [removed: Governance—Other Key Governance Policies and Practices—Policies] [added: Governance—Certain Relationships] and [removed: Procedures for Approval of] Related Person Transactions” in Schlumberger’s [removed: 2021] [added: 2022] Proxy Statement is incorporated herein by reference.

The information under the caption “Ratification of Appointment of Independent Auditors for [removed: 2021”] [added: 2022”] in Schlumberger’s [removed: 2021] [added: 2022] Proxy Statement is incorporated herein by reference.

[removed: PART IV][added: PART IV]

| | [Consolidated Statement of Income (Loss) for the three years ended December 31, [removed: 2020](#CONSOLIDATED_STATEMENT_INCOME_LOSS)] [added: 2021](#CONSOLIDATED_STATEMENT_INCOME_LOSS)] | [removed: 34] [added: 30] |

| | [Consolidated Statement of Comprehensive Income (Loss) for the three years ended December 31, [removed: 2020](#CONSOLIDATED_STATEMENT_COMPREHENSIVE_INC)] [added: 2021](#CONSOLIDATED_STATEMENT_COMPREHENSIVE_INC)] | [removed: 35] [added: 31] |

| | [Consolidated Balance Sheet at December 31, [removed: 2020] [added: 2021] and [removed: 2019](#CONSOLIDATED_BALANCE_SHEET)] [added: 2020](#CONSOLIDATED_BALANCE_SHEET)] | [removed: 36] [added: 32] |

| | [Consolidated Statement of Cash Flows for the three years ended December 31, [removed: 2020](#CONSOLIDATED_STATEMENT_CASH_FLOWS)] [added: 2021](#CONSOLIDATED_STATEMENT_CASH_FLOWS)] | [removed: 37] [added: 33] |

| | [Consolidated Statement of Stockholders’ Equity for the three years ended December 31, [removed: 2020](#CONSOLIDATED_STATEMENT_STOCKHOLDERS_EQUI)] [added: 2021](#CONSOLIDATED_STATEMENT_STOCKHOLDERS_EQUI)] | [removed: 38] [added: 34] and [removed: 39] [added: 35] |

| | [Notes to Consolidated Financial Statements](#Notes_to_Financial_Statements) | [removed: 40] [added: 36] to [removed: 70] [added: 64] |

| | [Report of Independent Registered Public Accounting Firm](#REPORT_INDEPENDENT_REGISTERED_PUBLIC_ACC) [added: (PCAOB ID 238)] | [removed: 72] [added: 66] |

| (2) | Financial Statement Schedules not [removed: required] [added: required.] | |

| | | Exhibit | [added: |]

| [Articles of Incorporation of Schlumberger Limited (Schlumberger N.V.) (incorporated by reference to Exhibit 3.1 to Schlumberger’s Current Report on Form 8-K filed on April 6, 2016)](http://www.sec.gov/Archives/edgar/data/87347/000119312516532046/d176097dex31.htm) | | 3.1 | [added: |]

| [Amended and Restated By-Laws of Schlumberger Limited (Schlumberger N.V.) (incorporated by reference to Exhibit 3 to Schlumberger’s Current Report on Form 8-K filed on July 22, 2019)](http://www.sec.gov/Archives/edgar/data/87347/000119312519198989/d763655dex3.htm) | | 3.2 | [added: |]

| [Description of Common Stock of Schlumberger Limited [removed: (*)](https://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex41_56.htm)] [added: (incorporated by reference to Exhibit 4.1 to Schlumberger’s Annual Report on Form 10-K filed on January 27, 2021)](http://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex41_56.htm)] | | 4.1 | [added: |]

| [Indenture dated as of December 3, 2013, by and among Schlumberger Investment SA, as issuer, Schlumberger Limited, as guarantor, and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.1 to Schlumberger’s Current Report on Form 8-K filed on December 3, 2013)](http://www.sec.gov/Archives/edgar/data/87347/000119312513460494/d637672dex41.htm) | | 4.2 | [added: |]

| [First Supplemental Indenture dated as of December 3, 2013, by and among Schlumberger Investment SA, as issuer, Schlumberger Limited, as guarantor, and The Bank of New York Mellon, as trustee (including form of global notes representing 3.650% Senior Notes due 2023) (incorporated by reference to Exhibit 4.2 to Schlumberger’s Current Report on Form 8-K filed on December 3, 2013)](http://www.sec.gov/Archives/edgar/data/87347/000119312513460494/d637672dex42.htm) | | 4.3 | [added: |]

| [Second Supplemental Indenture dated as of June 26, 2020, by and among Schlumberger Investment SA, as issuer, Schlumberger Limited, as guarantor, and The Bank of New York Mellon, as trustee (including form of global notes representing 2.650% Senior Notes due 2030) (incorporated by reference to Exhibit 4.1 to Schlumberger’s Current Report on Form 8-K filed on June 26, 2020)](http://www.sec.gov/Archives/edgar/data/87347/000119312520180957/d925505dex41.htm) | | 4.4 | [added: |]

| [Officers’ Certificate dated as of August 11, 2020, executed by Schlumberger Investment SA, as issuer, and Schlumberger Limited, as guarantor (including form of global notes representing 2.650% Senior Notes due 2030) (incorporated by reference to Exhibit 4.1 to Schlumberger’s Current Report on Form 8-K filed on August 11, 2020)](http://www.sec.gov/Archives/edgar/data/87347/000119312520216304/d926535dex41.htm) | | 4.5 | [added: |]

| [Indenture dated as of September 18, 2020, by and among Schlumberger Finance Canada Ltd., as issuer, Schlumberger Limited, as guarantor, and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.1 to Schlumberger’s Current Report on Form 8-K filed on September 18, 2020)](http://www.sec.gov/Archives/edgar/data/87347/000119312520248823/d75000dex41.htm) | | 4.6 | [added: |]

| [First Supplemental Indenture dated as of September 18, 2020, by and among Schlumberger Finance Canada Ltd., as issuer, Schlumberger Limited, as guarantor, and The Bank of New York Mellon, as trustee (including form of global notes representing 1.400% Senior Notes due 2025) (incorporated by reference to Exhibit 4.2 to Schlumberger’s Current Report on Form 8-K filed on September 18, 2020)](http://www.sec.gov/Archives/edgar/data/87347/000119312520248823/d75000dex42.htm) | | 4.7 | [added: |]

| [Indenture dated as of December 21, 2015, by and between Schlumberger Holdings Corporation, as issuer, and The Bank of New York Mellon, as trustee [removed: (*)](https://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex48_1034.htm)] [added: (incorporated by reference to Exhibit 4.8 to Schlumberger’s Annual Report on Form 10-K filed on January 27, 2021)](http://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex48_1034.htm)] | | 4.8 | [added: |]

| [First Supplemental Indenture dated as of December 21, 2015, by and between Schlumberger Holdings Corporation, as issuer, and The Bank of New York Mellon, as trustee [removed: ( including] [added: (including] forms of global notes representing 3.625% Senior Notes due 2022 and 4.000% Senior Notes due 2025) [removed: (*)](https://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex49_1035.htm)] [added: (incorporated by reference to Exhibit 4.9 to Schlumberger’s Annual Report on Form 10-K filed on January 27, 2021)](http://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex49_1035.htm)] | | 4.9 | [added: |]

| [Second Supplemental Indenture dated as of February 4, 2019, by and between Schlumberger Holdings Corporation, as issuer, and The Bank of New York Mellon, as trustee (including forms of global notes representing 3.750% Senior Notes due 2024 and 4.300% Senior Notes due 2029) [removed: (*)](https://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex410_981.htm)] [added: (incorporated by reference to Exhibit 4.10 to Schlumberger’s Annual Report on Form 10-K filed on January 27, 2021)](http://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex410_981.htm)] | | 4.10 | [added: |]

| [Third Supplemental Indenture dated as of April 11, 2019, by and between Schlumberger Holdings Corporation, as issuer, and The Bank of New York Mellon, as trustee (including form of global notes representing [removed: 3.750%] [added: 3.900%] Senior Notes due 2028) [removed: (*)](https://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex411_982.htm)] [added: (incorporated by reference to Exhibit 4.11 to Schlumberger’s Annual Report on Form 10-K filed on January 27, 2021)](http://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex411_982.htm)] | | 4.11 | [added: |]

| [Schlumberger Limited 2004 Stock and Deferral Plan for Non-Employee Directors, as amended and restated effective January [removed: 17, 2019] [added: 21, 2021] (incorporated by reference to Exhibit [removed: 10.1] [added: 10.3] to Schlumberger’s Current Report on Form 8-K filed on April [removed: 3, 2019) (+)](http://www.sec.gov/Archives/edgar/data/87347/000119312519096693/d729562dex101.htm)] [added: 7, 2021) (+)](http://www.sec.gov/Archives/edgar/data/87347/000119312521109039/d128317dex103.htm)] | | [removed: 10.4] [added: 10.21] |

| [Schlumberger [removed: 2005] [added: 2010 Omnibus] Stock Incentive Plan, as amended and restated as of July 19, 2017 (incorporated by reference to Exhibit [removed: 10.6] [added: 10.8] to Schlumberger’s Annual Report on Form 10-K for the year ended December 31, 2018) [removed: (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019000928/slb-ex106_546.htm)] [added: (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019000928/slb-ex108_547.htm)] | | [removed: 10.5] [added: 10.4] |

| [Schlumberger [removed: 2008] [added: 2013 Omnibus] Stock Incentive Plan, as amended and restated as of July 19, 2017 (incorporated by reference to Exhibit [removed: 10.7] [added: 10.15] to Schlumberger’s Annual Report on Form 10-K for the year ended December 31, 2018) [removed: (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019000928/slb-ex107_551.htm)] [added: (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019000928/slb-ex1015_548.htm)] | | [removed: 10.6] [added: 10.8] |

| [removed: [Schlumberger 2010 Omnibus] [added: [Addendum to Restricted] Stock [added: Unit Award Agreements, Performance Share Unit Agreements,] Incentive [removed: Plan, as amended] [added: Stock Option Agreements,] and [removed: restated as of] [added: Non-Qualified Stock Option Agreements Issued Prior to] July 19, 2017 (incorporated by reference to Exhibit [removed: 10.8] [added: 10.27] to Schlumberger’s Annual Report on Form 10-K for the year ended December 31, 2018) [removed: (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019000928/slb-ex108_547.htm)] [added: (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019000928/slb-ex1027_1834.htm)] | | [removed: 10.7] [added: 10.13] |

| [2018 Rules of the Schlumberger 2010, 2013 and 2017 Omnibus Incentive Plans for Employees in France (incorporated by reference to Appendix B to Schlumberger's Definitive Proxy Statement on Schedule 14A filed with the SEC on March 2, 2018) (+)](http://www.sec.gov/Archives/edgar/data/87347/000130817918000016/lslb2018_def14a.htm) | | [removed: 10.9] [added: 10.7] |

| [Form of Option Agreement (Employees in France), Incentive Stock Option, under Schlumberger 2010 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.10 to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013) (+)](http://www.sec.gov/Archives/edgar/data/87347/000119312513299983/d550034dex1010.htm) | | [removed: 10.10] [added: 10.5] |

| [Form of Option Agreement (Employees in France), Non-Qualified Stock Option, under Schlumberger 2010 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.11 to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013) (+)](http://www.sec.gov/Archives/edgar/data/87347/000119312513299983/d550034dex1011.htm) | | [removed: 10.11] [added: 10.6] |

| [removed: [Schlumberger 2013] [added: [Form of Restricted Stock Unit Award Agreement under Schlumberger 2017] Omnibus Stock Incentive [removed: Plan, as amended and restated as of July 19, 2017] [added: Plan] (incorporated by reference to Exhibit [removed: 10.15] [added: 10.4] to Schlumberger’s [removed: Annual] [added: Quarterly] Report on Form [removed: 10-K] [added: 10-Q] for the [removed: year] [added: quarter] ended [removed: December] [added: March] 31, [removed: 2018) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019000928/slb-ex1015_548.htm)] [added: 2017) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459017007214/slb-ex104_112.htm)] | | 10.12 |

| [Form of Option Agreement, Incentive Stock Option, under Schlumberger 2013 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to the Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459015005555/slb-ex101_758.htm) | | [removed: 10.13] [added: 10.9] |

| [Form of Restricted Stock Unit Award Agreement under Schlumberger 2013 Omnibus Stock Incentive Plan (three-year vesting) (incorporated by reference to Exhibit 10.2 to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459015005555/slb-ex102_624.htm) | | [removed: 10.14] [added: 10.10] |

| [Form of Restricted Stock Unit Award Agreement under Schlumberger 2013 Omnibus Stock Incentive Plan (ratable vesting) [removed: (*)(+)](https://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex1015_106.htm)] [added: (incorporated by reference to Exhibit 10.15 to Schlumberger’s Annual Report on Form 10-K filed on January 27, 2021) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459021002477/slb-ex1015_106.htm)] | | [removed: 10.15] [added: 10.11] |

| [Schlumberger Discounted Stock Purchase Plan, as amended and restated effective [removed: as of] January [removed: 19, 2017] [added: 1, 2021] (incorporated by reference to [removed: Appendix C] [added: Exhibit 10.2] to Schlumberger’s [removed: Definitive Proxy Statement] [added: Current Report] on [removed: Schedule 14A] [added: Form 8-K] filed on [removed: February 21, 2017) (+)](http://www.sec.gov/Archives/edgar/data/87347/000130817917000018/lslb2017_def14a.htm)] [added: April 7, 2021) (+)](http://www.sec.gov/Archives/edgar/data/87347/000119312521109039/d128317dex102.htm)] | | [removed: 10.16] [added: 10.20] |

| [Schlumberger 2017 Omnibus Stock Incentive Plan, as amended and restated [removed: as of July 19, 2017] [added: effective January 21, 2021] (incorporated by reference to Exhibit [removed: 10.20] [added: 10.1] to Schlumberger’s [removed: Annual] [added: Current] Report on Form [removed: 10-K for the year ended December 31, 2018) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019000928/slb-ex1020_550.htm)] [added: 8-K filed on April 7, 2021) (+)](http://www.sec.gov/Archives/edgar/data/87347/000119312521109039/d128317dex101.htm)] | | [removed: 10.17] [added: 10.19] |

| [Form of [removed: Incentive Stock Option] [added: 2021 Performance Share Unit Award] Agreement [added: (Based on Relative TSR Performance)] under [removed: 2017] [added: the] Schlumberger [added: 2017] Omnibus Stock Incentive Plan (incorporated by reference to Exhibit [removed: 10.6] [added: 10.3] to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended March 31, [removed: 2017) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459017007214/slb-ex106_162.htm)] [added: 2021) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459021021157/slb-ex103_163.htm)] | | 10.18 |

| [Form of [removed: Restricted Stock] [added: 2021 Performance Share] Unit Award Agreement [added: (Based on Return on Capital Employed Performance)] under [added: the] Schlumberger 2017 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit [removed: 10.4] [added: 10.1] to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended March 31, [removed: 2017) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459017007214/slb-ex104_112.htm)] [added: 2021) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459021021157/slb-ex101_161.htm)] | | [removed: 10.19] [added: 10.16] |

| [Form of [removed: Non-Qualified Stock Option] [added: 2021 Performance Share Unit Award] Agreement [added: (Based on Free Cash Flow Margin Performance)] under [added: the] Schlumberger 2017 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit [removed: 10.5] [added: 10.3] to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended March 31, [removed: 2017) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459017007214/slb-ex105_161.htm)] [added: 2021) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459021021157/slb-ex102_162.htm)] | | [removed: 10.20] [added: 10.17] |

| [Form of [removed: 2017 Two-Year] [added: 2020 Three-Year] Performance Share Unit Award Agreement [added: (with relative TSR modifier)] under Schlumberger [removed: 2013] [added: 2017] Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended March 31, [removed: 2017) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459017007214/slb-ex101_114.htm)] [added: 2020) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459020017823/slb-ex101_230.htm)] | | [removed: 10.21] [added: 10.15] |

| [Form of [removed: 2017 Three-Year] [added: 2020 Two-Year] Performance Share Unit Award Agreement [added: (with relative TSR modifier)] under Schlumberger [removed: 2013] [added: 2017] Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.2 to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended March 31, [removed: 2017) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459017007214/slb-ex102_115.htm)] [added: 2020) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459020017823/slb-ex102_231.htm)] | | [removed: 10.22] [added: 10.14] |

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| | [Quarterly Results (Unaudited)](#QUARTERLY_RESULTS) | 75 |

| | | |

| [Cameron International Corporation Equity Incentive Plan, as amended and restated as of January 1, 2013 (incorporated by reference to Exhibit 10.16 to Schlumberger’s Annual Report on Form 10-K for the year ended December 31, 2016) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459017000589/slb-ex1016_1235.htm) | | 10.8 |

| [Addendum to Restricted Stock Unit Award Agreements, Performance Share Unit Agreements, Incentive Stock Option Agreements, and Non-Qualified Stock Option Agreements Issued Prior to July 19, 2017 (incorporated by reference to Exhibit 10.27 to Schlumberger’s Annual Report on Form 10-K for the year ended December 31, 2018) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019000928/slb-ex1027_1834.htm) | | 10.23 |

| [Form of 2019 Two-Year Performance Share Unit Award Agreement (with relative TSR modifier) under Schlumberger 2017 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019012635/slb-ex101_528.htm) | | 10.24 |

| [Form of 2019 Three-Year Performance Share Unit Award Agreement (with relative TSR modifier) under Schlumberger 2017 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.2 to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019012635/slb-ex102_527.htm) | | 10.25 |

| [Form of 2020 Two-Year Performance Share Unit Award Agreement (with relative TSR modifier) under Schlumberger 2017 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.2 to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459020017823/slb-ex102_231.htm) | | 10.26 |

| [Form of 2020 Three-Year Performance Share Unit Award Agreement (with relative TSR modifier) under Schlumberger 2017 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459020017823/slb-ex101_230.htm) | | 10.27 |

| [Employment, Non-Competition and Non-Solicitation Agreement effective as of August 1, 2019, by and between Schlumberger Limited and Paal Kibsgaard (incorporated by reference to Exhibit 10.1 to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459019037505/slb-ex101_161.htm) | | 10.28 |

| [Employment, Non-Competition and Non-Solicitation Agreement effective as of January 22, 2020, by and between Schlumberger Limited and Simon Ayat (incorporated by reference to Exhibit 10.30 to Schlumberger’s Annual Report on Form 10-K for the year ended December 31, 2019) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459020001578/slb-ex1030_550.htm) | | 10.29 |

| [Employment, Non-Competition and Non-Solicitation Agreement effective as of September 1, 2020, by and between Schlumberger Limited and Patrick Schorn (incorporated by reference to Exhibit 10.3 to Schlumberger’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020) (+)](http://www.sec.gov/Archives/edgar/data/87347/000156459020017823/slb-ex103_690.htm) | | 10.30 |

| | | | | Exhibit | |

| --- | --- | --- | --- | --- | --- |

| | | | | | |

| Date: | | January [removed: 27, 2021] [added: 26, 2022] | | | SCHLUMBERGER LIMITED |

| /s/ Dianne B. Ralston | | January [removed: 27, 2021] [added: 26, 2022] |

| Peter Coleman | | |

| Samuel Leupold | | |

| Vanitha Narayanan | | |

| * | | Director |

| * | | Director |

| Ulrich Spiesshofer | | |

| | | |

| | | |

| Lubna S. Olayan | | |

| Leo Rafael Reif | | |