PTP Effectiveness for Sustainable Growth SPE Thailand Dinner Talk 26 th March 2008

High Oil Prices Source: International Energy Outlook 2007 – EIA DOE

Source: Baker Hughes Rig Count as of February % in 5 Yrs

*Petrotechnical Professionals = Geologists, Geophysicists & Petroleum Engineers **China excluded, Service companies excluded Recruitment targets for Petrotechnical Professionals Global Demand for Petrotechnical Professionals * Comparison between Recruitment targets of G&G and PE ** Source:2005 and 2007 Schlumberger Business Consulting O&G HR Benchmark

Competition for top universities remains fierce Source:2007 Schlumberger Business Consulting O&G HR Benchmark *85 universities selected by Schlumberger worldwide (China excluded) **Schlumberger estimates: 60% of Geosciences graduates enter E&P industry, 40% enter other industries; 80% of Petroleum Engineering graduates enter E&P industry, 20% enter other industries Geosciences Top University* Supply vs. Demand Petroleum Engineers Top University* Supply vs. Demand Demand for Geologists &Geophysicists Supply of G&G from “Schlumberger 85 universities” Net Supply of G&G (60% entering E&P Industry) 0 2,000 4,000 6,000 8,000 10, E2008E2009E2010E Actually entering E&P** 0 2,000 4,000 6,000 8,000 10, E2008E2009E2010E Demand for Petroleum Engineers Supply of PE from “Schlumberger 85 universities” Net Supply of PE (80% entering E&P Industry) Actually entering E&P**

A Big Crew Change A Young Company A Mature Company

Creating Expertise Tension New Project Difficulties Available Experiences

“Price War” for PTP Salary Inflation < 50% > 100% During Past 10 Years For New Graduates

Insufficient Experience Growth Time Growth PTP Number PTP Experience

Seeking Sustainable Growth Maximize Productivity Maximize Productivity of Experienced Expedite Development Expedite Development of New Recruits Optimize Deployment Optimize Deployment & Sharing

Maximize Productivity Technology to Increase Productivity Technology to Increase Productivity Work Processes Work Processes Workplace Environment Workplace Environment KM – Community of Practice KM – Community of Practice

Expedite Development KM – Knowledge Transfer KM – Knowledge Transfer Structured Training Programs Structured Training Programs Development Assignments Development Assignments Mentoring / Coaching Mentoring / Coaching

Accelerated Development

Optimize Deployment Expertise Inventories Expertise Inventories Priority Projects Priority Projects Growth vs. Producing Assets Growth vs. Producing Assets Restructuring for Synergy Restructuring for Synergy Outsourcing Work Outsourcing Work Mentoring Role for Retirees Mentoring Role for Retirees

Finally, Industry in a Bubble? New Expertise Not Realized Until Future Escalation of PTP Costs Huge Investments for Uncertain Future? Will We Have Too Many PTP? Will We Reach a Saturation Point? Contingency for Industry’s Downturn?

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