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The world's three largest oilfield service companies — Halliburton, Schlumberger, and Baker Hughes — are suspending operations in Russia

Mar 21, 2022, 02:03 IST
Business Insider
Left: Logo of Halliburton, and the front of the headquarters of Schlumberger in Houston.Richard Carson/Reuters
  • Oilfield services companies Halliburton, Schlumberger, and Baker Hughes are suspending operations in Russia.
  • The three companies announced their decisions on Friday and Saturday, stating they would take immediate effect.
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Three of the world's largest oilfield service companies have suspended their operations in Russia in response to US sanctions over the invasion of Ukraine.

Reuters and other outlets first reported the story.

Schlumberger and Halliburton each announced their decision in news releases on Friday, saying their policies would take immediate effect. Baker Hughes followed on Saturday, noting in a press statement the company would suspend all new investments in Russia.

According to Oil Industry Insight, Schlumberger is the world's largest oilfield company service, followed by Baker Hughes and Halliburton, respectively.

Olivier Le Peuch, the chief executive officer for Schlumberger, said in the news release it was suspending new investment and technology deployment to the company's operations in Russia. The company plans to fulfil any existing activity in full compliance with international laws and sanctions.

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"Safety and security are at the core of who we are as a company, and we urge a cessation of the conflict and a restoration of safety and security in the region," Le Peuch added.

In its news release, Halliburton said, while the company had halted all shipments of specific sanctioned parts and products to Russia several weeks ago, it has immediately suspended future business in compliance with sanctions that prohibit transactions and work.

Its chairman, president, and CEO Jeff Miller said: "The war in Ukraine deeply saddens us."

He added: "We have employees in both Ukraine and Russia, and the conflict greatly impacts our people, their families, and loved ones throughout the region. Since the start of this conflict, we prioritized employee safety and compliance with all relevant sanctions."

Baker Hughes CEO Lorenzo Simonelli said in a statement that the company is pulling all new investments in Russia and is "continuing to comply with applicable laws and sanctions as it fulfills current contractual obligations."

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"The crisis in Ukraine is of grave concern and we strongly support a diplomatic solution," Simonelli said in the statement. "We condemn violence and our hearts go out to the people and families of those impacted. The health and safety of our employees, customers, partners, and their families always remains our top priority."

Major companies such as ExxonMobil, BP, and Shell have pulled out of Russia, while McDonald's, which said it would close all stores, have been unable to do so.

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