Why Schlumberger Is Reducing Its Seismic Survey Fleet

The company expects to take an $800 million charge during Q4 related to the writedown in value of the fleet. Schlumberger also intends to modify some low-end vessels into source boats while also canceling most leases on vessels that it had hired from third parties. The move should help Schlumberger cut costs and better manage margins for its usually lucrative reservoir characterization segment, as the market for exploration services faces an increasingly uncertain outlook.