Schlumberger to wind down Iran operations this year

Thu Jan 31, 2013 2:30pm EST

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Jan 31 (Reuters) - Schlumberger Ltd, the world's largest oilfield services company, said on Thursday it would wind down operations in Iran this year after booking $208 million in net income there in 2012.

While the company did not go into specifics, the decision comes as it faces a previously announced U.S. grand jury and regulatory probe of its activities in Iran, Syria, North Sudan and Cuba, which are all subject to government sanctions or restrictions.

Schlumberger said it had not bid on any new Iranian oilfield work since March 2009, though some non-U.S. affiliates had been doing work for the National Iranian Oil Co or its affiliates. Revenue in 2012 from this work totaled $418 million.

"Schlumberger intends to discontinue such activity in Iran in 2013 and is currently winding down its operations there," the company said in its annual report, released on Thursday.

Smith International, shortly before being taken over by Schlumberger, announced in 2010 it was actively pursuing the termination of all activities in Iran and Sudan because the U.S. government had imposed economic sanctions or other restrictions.

In the fourth quarter, Schlumberger recorded revenue relating to the Iran activity of $92 million and net income of $48 million. The company's overall fourth-quarter net income was $1.37 billion, on revenue of $11.17 billion.

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