SLB’s Russian Assets Remain Steady Amidst Declining Revenue
The United States’ leading oilfield services company, SLB, has revealed that its net assets in Russia stood at approximately $600 million as of the end of 2024, mirroring the previous year’s figure. However, revenue generated from the region has taken a hit.
Pressure to Exit Russia Intensifies
SLB has been facing mounting pressure to withdraw from Russia following the U.S. Treasury Department’s announcement of new sanctions on January 10. The updated executive order aims to sever Russia’s access to U.S. services related to crude oil and petroleum product extraction and production. As one of the few remaining Western firms in Russia since the country’s 2022 invasion of Ukraine, SLB’s presence has become increasingly scrutinized.
Declining Revenue from Russian Operations
According to SLB’s latest regulatory filing, revenue from its Russian operations has been steadily declining. In 2024, Russia accounted for a mere 4% of the company’s total revenue, down from 5% the previous year. This downward trend has sparked concerns about the company’s long-term prospects in the region.
A Challenging Landscape Ahead
As SLB navigates the complex and ever-changing landscape of international sanctions and geopolitical tensions, the company must weigh its options carefully. With its Russian assets remaining steady, SLB must now consider the potential risks and benefits of maintaining a presence in the region. One thing is certain – the road ahead will be fraught with challenges.
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