Halliburton And Schlumberger Pull Out Of Cooperation With Russia Due To US Energy Sanctions

Halliburton booth at the World Petroleum Congress in Houston, Texas, USA on December 6, 2021. REUTERS/Sabrina Valle

March 18 – U.S. oilfield services firms Halliburton Co (HAL.N) and Schlumberger said Friday they have suspended or halted operations in Russia in response to U.S. sanctions over Moscow’s invasion of Ukraine.

The disclosure follows a massive exit of energy, retail and consumer goods businesses, as well as a series of European Union and US bans on oil technology supplies to Russia or imports of its energy products.

Halliburton said it would immediately suspend future operations and wind down operations in Russia after it previously cut off deliveries of sanctioned parts and products to the country.

Schlumberger has stopped new investments and technology deployments while continuing existing operations in accordance with international laws and sanctions, the company said in a statement late Friday.

“We are calling for an end to the conflict and the restoration of security in the region,” said Schlumberger CEO Olivier Le Peuch.

Oilfield services provider Baker Hughes declined to comment on its operations in Russia.

Energy companies BP PLC, Shell, Equinor ASA (EQNR.OL) and Exxon Mobil have suspended or announced plans to withdraw from their operations in Russia.

Russia, which calls its invasion of Ukraine a “special military operation,” is one of the world’s largest oil and gas producers and exports between 7 million and 8 million barrels of crude oil and petroleum products a day.

Its energy operations rely heavily on local service providers.

Reporting by Chavi Mehta in Bangalore, additional reporting by Gary McWilliams and Liz Hampton; Edited by Arun Koyyur

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