8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): July 21, 2006

SCHLUMBERGER N.V. (SCHLUMBERGER LIMITED)

(Exact name of registrant as specified in its charter)

Netherlands Antilles	1-4601	52-0684746
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

153 East 53^rd Street, 57^th Floor, New York, New York 10022-4624

42, rue Saint-Dominique, Paris, France 75007

Parkstraat 83, The Hague, The Netherlands 2514 JG

(Addresses of principal executive offices and zip or postal codes)

Registrant’s telephone number in the United States, including area code: (212) 350-9400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

The Second Quarter 2006 Press Release furnished as Exhibit 99.1 hereto, the Supplemental Information regarding Second Quarter 2006 Results furnished as Exhibit 99.2 hereto and the Supplemental Information regarding the WesternGeco Transaction furnished as Exhibit 99.3 hereto, were posted on the Schlumberger internet web site (www.slb.com/ir) on July 21, 2006.

In addition to financial results determined in accordance with generally accepted accounting principles (GAAP) that are included in the attached Second Quarter 2006 Press Release and Supplemental Information, these documents also include the following non-GAAP financial measures (as defined under the SEC’s Regulation G):

• Net debt: Net debt is gross debt less cash, short-term investments and fixed income investments held to maturity. Management believes that net debt provides useful information regarding the level of Schlumberger’s indebtedness by reflecting cash and investments that could be used to repay debt, and that the level of net debt provides useful information as to the results of Schlumberger’s deleveraging efforts.

• Income from continuing operations before credits and charges, diluted earnings per share before credits and charges, pretax return on sales before credits and charges, after tax before minority interest return on sales, effective tax rate before credits and charges and the accretive impact of the WesternGeco Transaction excluding charges: Management believes that the exclusion of credits and charges enables it to evaluate more effectively Schlumberger’s operations period over period and to identify operating trends that could otherwise be masked by the excluded items.

• Return on Capital Employed: Return on capital employed (ROCE) is computed as (1) net income from continuing operations excluding charges and credits plus minority interest plus interest expense minus interest income minus tax benefit on interest expense, divided by (2) the quarterly average of (stockholders’ equity plus net debt plus minority interest). Management believes that ROCE provides useful information regarding the value Schlumberger creates for the providers of capital, namely stockholders and bondholders, by reflecting the level of net income generated by continuing operations using a given level of capital.

The foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for, or superior to, total debt, net income, cash flows or other measures of financial performance prepared in accordance with GAAP as more fully discussed in Schlumberger’s financial statements and filings with the Securities and Exchange Commission.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The exhibits listed below are furnished pursuant to Item 9.01 of this Form 8-K.

99.1 Second Quarter 2006 Press Release dated July 21, 2006.

99.2 Supplemental Information regarding Second Quarter 2006 Results.

99.3 Supplemental Information regarding WesternGeco Transaction.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SCHLUMBERGER N.V.
(SCHLUMBERGER LIMITED)
By:	/s/ Howard Guild
	Howard Guild
	Chief Accounting Officer

Date: July 21, 2006

EX-99.1

Exhibit 99.1

Schlumberger Announces Second-Quarter 2006 Results

NEW YORK, July 21, 2006 – Schlumberger Limited (NYSE:SLB) today reported second-quarter 2006 operating revenue of $4.69 billion versus $4.24 billion in the first quarter of 2006 and $3.43 billion in the second quarter of last year.

Income from continuing operations, before charges and credits, reached $900 million—an increase of 25% sequentially and 90% year-on-year. Earnings-per-share diluted, before charges and credits, were $0.73, versus $0.59 in the previous quarter and $0.39 in the second quarter of last year.

Income from continuing operations, including charges and credits, was $0.69 per share-diluted versus $0.59 in the previous quarter and $0.39 in the second quarter of 2005. Net income was $857 million or $0.69 per share-diluted, compared to $0.59 in the previous quarter and $0.40 in the second quarter of 2005.

Oilfield Services revenue of $4.13 billion increased 11% sequentially and 36% year-on-year. Pretax business segment operating income of $1.12 billion increased 18% sequentially and 67% year-on-year.

WesternGeco revenue of $562 million increased 6% sequentially and 47% year-on-year. Pretax business segment operating income of $180 million increased 13% sequentially and 211% year-on-year.

Schlumberger Chairman and CEO Andrew Gould commented, “Led by increased demand for Q technology, seismic has now become the fastest growing Schlumberger Technology. WesternGeco revenue increased 47% year-on-year and the segment has the healthiest backlog in its history. This exploration-dominated growth demonstrates that our customers’ concerns are as much a longer-term preoccupation with the renewal of reserves through defining new reservoirs, as they are concerns with short-term production volumes. The accelerating growth rates of our reservoir characterization and well testing technology portfolios serve as confirmation of this trend.

The second-quarter growth patterns proved to be the opposite of the first quarter of 2006. Sequential growth in North America slowed as impressive results in US Land and exceptional performance in the US Gulf Coast were partially offset by a prolonged spring break-up in Canada. Outside North America, sequential growth rates improved dramatically as Russia recovered from the severe winter weather and other regions showed accelerating trends.

Many Schlumberger Technologies saw positive sequential growth rates worldwide with Seismic, Drilling & Measurements, Well Testing, Completion Systems, and Integrated Project Management being particularly strong, driven by a combination of increased activity, project demand, and technology-led pricing power.

During the quarter, we made several small but highly significant acquisitions that will add to our reservoir definition capability. We also completed the final stage of the acquisition of PetroAlliance whose performance over the past year has far exceeded our original expectations.

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Sequential growth rates for the remainder of 2006 will continue to be strong, particularly in the Eastern Hemisphere, albeit at slightly lower levels than the blistering pace of the second quarter. In North America some temporary slowing of natural gas drilling activity cannot be excluded though currently there are no clear signs of this.”

Other Events:

• On April 28, Schlumberger completed the acquisition of the 30% minority interest in WesternGeco held by Baker Hughes for $2.4 billion in cash. Excluding one-time charges of $21 million for in-process R&D and $9.4 million for liquidation of certain investments in connection with the funding of the transaction, the acquisition was approximately one-and-a-half cents accretive for the quarter, and is now expected to remain accretive in the future.

• On May 16, Schlumberger completed the final stage of the acquisition of PetroAlliance Service Company Limited for $165 million in cash and approximately 4.7 million shares of Schlumberger stock.

• As part of the new 40 million-share buy-back program announced in the first quarter of 2006, Schlumberger repurchased 3.6 million shares during the quarter for a total amount of $213 million, at an average price of $59 per share.

• During the quarter, after-tax charges totaling $42.8 million were recorded. These included the $21 million WesternGeco in-process R&D charge; a $9.4 million loss on the liquidation of certain investments to fund the WesternGeco transaction; WesternGeco visa settlement costs of $6.8 million; and other in-process R&D charges amounting to $5.6 million.

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Consolidated Statement of Income (Unaudited)

	(Stated in thousands except per share amounts)
	Second Quarter						Six Months
For Periods Ended June 30	2006			2005			2006			2005
Operating revenue	$	4,686,775		$	3,428,632		$	8,925,792		$	6,587,743
Interest and other income(1) (3)		63,590			46,220			129,082			234,773
Expenses
Cost of goods sold and services(3)		3,255,264			2,549,054			6,250,058			4,954,186
Research & engineering (3)		170,890			121,635			300,296			242,855
Marketing		14,274			12,196			27,440			22,258
General & administrative		107,376			90,895			204,600			176,317
Interest		61,421			50,437			109,265			96,999
Income from Continuing Operations before taxes and minority interest		1,141,140			650,635			2,163,215			1,329,901
Taxes on income(3)		278,419			162,123			535,070			299,819
Income from Continuing Operations before minority interest		862,721			488,512			1,628,145			1,030,082
Minority interest(3)		(5,821	)		(15,311	)		(48,734	)		(32,444	)
Income from Continuing Operations		856,900			473,201			1,579,411			997,638
Income from Discontinued Operations		—			9,000			—			7,972
Net Income	$	856,900		$	482,201		$	1,579,411		$	1,005,610
Diluted Earnings Per Share(3)
Income from Continuing Operations	$	0.69		$	0.39		$	1.28		$	0.82
Income from Discontinued Operations		—			0.01			—			0.01
Net Income	$	0.69		$	0.40		$	1.28		$	0.83
Average shares outstanding		1,184,357			1,177,482			1,182,351			1,178,074
Average shares outstanding assuming dilution		1,246,077			1,225,964			1,243,386			1,226,748
Depreciation & amortization included in expenses(2)	$	375,042		$	326,516		$	729,645		$	654,981

1) Includes interest income of:

a. Second quarter 2006 - $29 million (2005 - $23 million)

b. Six months 2006 - $65 million (2005 - $43 million)

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2) Including Multiclient seismic data costs.

3) Charges and credits:

							(Stated in millions except per share amounts)
	Pretax			Tax			Minority     Interest		Net			Diluted EPS effect (*)			Income Statement Classification
The second quarter of 2006 includes:
WesternGeco in-process R&D charge	$	(21.0	)	$	—		$	—	$	(21.0	)	$	(0.02	)	Research & engineering
Loss on sale of investments to fund the WesternGeco transaction		(9.4	)		—			—		(9.4	)		(0.01	)	Interest and other income
WesternGeco visa settlement		(9.7	)		(0.3	)		3.2		(6.8	)		(0.01	)	Cost of goods sold and services
Other in-process R&D charges		(5.6	)		—			—		(5.6	)		—		Research & engineering
	$	(45.7	)	$	(0.3	)	$	3.2	$	(42.8	)	$	(0.03	)
The first quarter of 2005 includes:
Gain on sale of Montrouge facility	$	145.7		$	—		$	—	$	145.7		$	0.12		Interest and other income
Real estate related charges		(12.1	)		0.8			—		(11.3	)		(0.01	)	Cost of goods sold and services
	$	133.6		$	0.8		$	—	$	134.4		$	0.11

(*) May not add due to rounding

There were no charges or credits in the first quarter of 2006 or the second quarter of 2005.

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Condensed Balance Sheet (Unaudited)

	(Stated in thousands)
Assets	Jun. 30, 2006		Dec. 31, 2005
Current Assets
Cash and short-term investments	$	2,108,283	$	3,495,681
Other current assets		5,758,601		5,058,232
		7,866,884		8,553,913
Fixed income investments, held to maturity		73,500		359,750
Fixed assets		4,767,445		4,200,638
Multiclient seismic data		243,129		222,106
Goodwill		4,736,182		2,922,465
Other assets		2,537,227		1,818,620
	$	20,224,367	$	18,077,492
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities	$	3,555,789	$	3,564,854
Estimated liability for taxes on income		1,180,949		1,028,571
Bank loans and current portion of long-term debt		1,212,998		796,578
Dividend payable		149,226		124,733
		6,098,962		5,514,736
Long-term debt		4,137,124		3,591,338
Postretirement benefits		725,575		707,040
Other liabilities		168,604		167,611
		11,130,265		9,980,725
Minority interest		—		505,182
Stockholders’ Equity		9,094,102		7,591,585
	$	20,224,367	$	18,077,492

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Net Debt (Unaudited)

Net debt represents gross debt less cash, short-term investments, and fixed-income investments, held to maturity. Management believes that “net debt” provides useful information regarding the level of Schlumberger indebtedness. Details of the net debt follow:

	(Stated in millions)
Six Months	2006
Net Debt, January 1, 2006	$	(532	)
Income from continuing operations		1,579
Depreciation and amortization		730
Charges & credits, net of minority interest and tax		43
Excess of equity income over dividends received		(76	)
US pension contribution		(200	)
Increase in working capital requirements		(443	)
Capital expenditures(1)		(1,088	)
Dividends paid		(271	)
Proceeds from employee stock plans		305
Stock repurchase program		(467	)
Acquisition of minority interest in WesternGeco		(2,406	)
Other business acquisitions and related payments		(305	)
Distribution to joint venture partner		(60	)
Other		62
Translation effect on net debt		(39	)
Net Debt, June 30, 2006	$	(3,168	)

	(Stated in millions)
Components of Net Debt	Jun. 30, 2006			Dec. 31, 2005
Cash and short-term investments	$	2,108		$	3,496
Fixed income investments, held to maturity		74			360
Bank loans and current portion of long-term debt		(1,213	)		(797	)
Long-term debt		(4,137	)		(3,591	)
	$	(3,168	)	$	(532	)

1. Including Multiclient seismic data expenditure.

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In addition to financial results determined in accordance with generally accepted accounting principles (GAAP), this Second-Quarter Earnings Press Release also includes non-GAAP financial measures (as defined under SEC Regulation G). The following is a reconciliation of these non-GAAP measures to the comparable GAAP measures:

	(Stated in millions except per share amounts)
	Second Quarter 2006
	Pretax		Tax			Min Int			Net		Diluted EPS
Income from Continuing Operations per Consolidated Statement of Income	$	1,141.1	$	278.4		$	(5.8	)	$	856.9	$	0.69
Add back Charges & Credits:
- WesternGeco in-process R&D charge		21.0		—			—			21.0		0.02
- Loss on sale of investments to fund the WesternGeco transaction		9.4		—			—			9.4		0.01
- WesternGeco visa settlement		9.7		(0.3	)		(3.2	)		6.8		0.01
- Other in-process R&D charges		5.6		—			—			5.6		—
Income from Continuing Operations before charges & credits	$	1,186.8	$	278.1		$	(9.0	)	$	899.7	$	0.73

Continuing operations	GAAP		Before charges & credits
Effective tax rate	24.4	%	23.4	%

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Business Review (Unaudited)

(Stated in millions)
	Second Quarter						Six Months
	2006		2005		% chg		2006		2005		% chg
Oilfield Services
Operating Revenue	$	4,127	$	3,044	36	%	$	7,838	$	5,823	35	%
Pretax Operating Income	$	1,124	$	674	67	%	$	2,072	$	1,232	68	%
WesternGeco
Operating Revenue	$	562	$	383	47	%	$	1,092	$	761	43	%
Pretax Operating Income	$	180	$	58	211	%	$	338	$	121	179	%

Pretax operating income represents the segments’ income before taxes and minority interest. The pretax operating income excludes corporate expenses, interest income, interest expense, amortization of certain intangible assets, interest on post-retirement benefits, stock-based compensation costs, and the charges and credits described on page 4, as these items are not allocated to the segments.

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Oilfield Services

Second-quarter revenue of $4.13 billion was 11% higher sequentially and 36% higher year-on-year.

Sequential revenue increases were highest in the US Land, US Gulf Coast, Mexico, North Sea, West Africa, Arabian, Gulf, and Russian GeoMarkets. All Technologies contributed to the strong growth with Drilling & Measurements, Well Testing, Integrated Project Management (IPM), and Completion Systems recording double-digit increases.

Pretax operating income of $1.12 billion increased 18% sequentially and 67% year-on-year. These results were driven by higher activity, increased pricing, stronger demand for higher-margin technologies, and operating efficiency improvements. The combination of these factors resulted in sequential growth of 160 basis points (bps) in pretax operating margins to reach 27.2%.

During the quarter, Schlumberger acquired TerraTek, Inc., a global leader in geomechanics measurements and analysis. TerraTek will become the Schlumberger Geomechanics Laboratory Center of Excellence—providing rock mechanics evaluations, unconventional gas reservoir analysis, large-scale drilling and completions performance testing, and log-to-core integration. This acquisition provides unparalleled expertise in technologies to reduce reservoir risk and uncertainty by delivering superior reservoir characterization.

North America

Revenue of $1.27 billion increased 3% sequentially and 40% year-on-year. Pretax operating income of $376 million was flat sequentially but increased 61% year-on-year.

Revenue growth in the Area was driven primarily by strong demand for Wireline, Drilling & Measurements, and Well Testing technologies, coupled with an increase in Completions technology product sales in the US Gulf Coast, and higher activity and continuing price increases in the US Land GeoMarket. Revenue growth in the Area was partially offset by Canada where the longer-than-expected spring break-up and continual heavy rains during the quarter caused the active rig count to fall 61% sequentially.

Sequential pretax operating income was driven by the favorable activity mix, price increases, and accelerated adoption of new technology in the US Gulf Coast and US Land GeoMarkets. This was offset by Canada with the absence of high-margin winter projects, lower Arctic revenues, and the impact of the prolonged spring break-up in the West.

In the US Gulf Coast, Schlumberger successfully completed multiple completion and well testing operations on Chevron’s Jack prospect well test. PowerFlow* tubing-conveyed perforating, IRIS* downhole testing, SenTREE* high-performance subsea well control test tree, Vx* multi-phase flow metering, and PVT Express* fluid sampling and analysis services were deployed, enabling ultra high-pressure completion and well testing. The Jack well was completed and tested in 7,000 ft of water at more than 20,000 ft beneath the sea floor, breaking the 2004 Tahiti discovery well record as the deepest well test in the Gulf of Mexico.

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Also in the US Gulf Coast, a new world record for subsea completions was established on Kerr-McGee’s Merganser #1 well. The SenTREE 7* well control and Commander* telemetry control and monitoring systems were deployed in 7,919 ft of water, the greatest depth in which a subsea completion has been installed from a dynamically positioned rig with a subsea completion tree. This operation surpasses the previous record of 7,209 ft set by Schlumberger on the Canyon Express project for Total and Marathon.

The REDA Hotline* electrical submersible pump (ESP) artificial lift system operating on the Firebag P2P1 well for Suncor Energy Inc. in Canada passed an operating milestone during the quarter. The system has now been working successfully for more than one year in a heavy oil reservoir under steam injection where temperatures regularly exceed 250 degrees Celsius.

Latin America

Revenue of $666 million increased 12% sequentially and 20% year-on-year. Pretax operating income of $128 million increased 33% sequentially and 53% year-on-year.

Sequential revenue growth in the Area was attributable primarily to the rising rig count and increased demand for PowerDrive* and Scope* Drilling & Measurements technologies. Increased activity on integrated projects in Mexico, stronger Artificial Lift technology product sales in the Peru/Colombia/Ecuador GeoMarket, and rising demand for Completions technology equipment in the Venezuela/Trinidad & Tobago GeoMarket also contributed to the growth.

The strong sequential gain in pretax operating margins of 300 bps was mainly driven by higher Drilling & Measurements and Well Services activity across the Area, combined with stronger pricing gains on product sales in the Latin America South GeoMarket and improved performance-related incentives on the Casabe integrated production management project in Colombia.

Discussions regarding the settlement of certain outstanding receivables for the PRISA contract in Venezuela were ongoing at the end of the quarter.

In Mexico, Pemex used the Sonic Scanner* acoustic scanning tool in combination with the MDT* Modular Formation Dynamics Tester fluid-sampling tool to accurately evaluate porosity type, fluid type, pressure, well design, and potential production. The customer’s deployment of this new measurement technique greatly reduced the uncertainty in the reservoir model and helped to successfully identify additional reserves in the asset.

In Peru, Repsol used a combination of artificial-lift and drill-stem testing technologies, together with the PowerJet Omega* deep-penetrating perforating charges, the PVT Express* well fluid analysis system, and EverGreen* burner technology, to successfully test their Delfin-1 exploration well. This integration of technology enabled Repsol to limit the rig time required for well testing and to obtain fast, accurate results on site.

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Europe/CIS/Africa

Revenue of $1.18 billion increased 18% sequentially and 43% year-on-year. Pretax operating income of $294 million increased 40% sequentially and 91% year-on-year.

Sequential revenue growth in the Area was mainly driven by higher activity across Russia following the end of the extreme winter weather conditions experienced in the previous quarter, and increased demand for IPM, Well Services, and Drilling & Measurements services. The North Sea GeoMarket achieved double-digit growth due primarily to higher exploration activity in Norway, accelerating demand for PURE* and Quicksilver Probe* Wireline technologies, and higher demand for Well Testing services. Double-digit growth was also recorded in the Continental Europe and Nigeria GeoMarkets due to increased activity, and in North Africa due to strong demand for Well Testing services.

Robust sequential gains in pretax operating margins of 390 bps resulted from strengthening pricing, higher efficiency, increased demand for Wireline and Drilling & Measurements new technologies, and the favorable activity mix in the developing exploration market.

During the quarter, Shell extended their pan-European contracts for Drilling & Measurements and Wireline logging services for a further two years at attractive commercial rates. The exceptional safety record, good service quality, and high level of support provided during the past three years led to these contract extensions.

The first espWatcher* system for Petrom was installed on their Gloria Platform offshore Romania. This data acquisition system for monitoring and surveillance of electrical submersible pumps has already led to significant production increases at levels above the client’s expectations. Other benefits realized by the customer include improvements in the economics of their artificial lift methods and a better understanding of the field.

Statoil and Schlumberger Information Solutions (SIS) announced the start of a three-year technology collaboration agreement to develop new production-optimization technologies to extend the life of oil and gas fields. In addition to new technology development, the agreement calls for standardizing and automating workflow processes with the goal of increasing oil recovery and accelerating production by identifying best practices and information management processes for the complete producing asset, including the processing facilities.

Middle East & Asia

Revenue of $975 million increased 13% sequentially and 33% year-on-year. Pretax operating income of $322 million increased 19% sequentially and 56% year-on-year.

The strong sequential revenue growth resulted from new exploration activity and higher rig count levels, coupled with improved pricing across the Middle East; sustained demand for new technology and higher coiled-tubing drilling activity in the U.A.E; increased activity in Australia and Vietnam; and higher activity and improved pricing in China.

Area pretax operating margins grew 170 bps sequentially—due primarily to stronger activity in higher margin Drilling & Measurements and Well Testing technologies, coupled with pricing gains in the Arabian GeoMarket and performance-related incentives on the Bokor integrated production management project. Pretax operating margins reached a new record level of 33% during the quarter.

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Demonstrating Schlumberger leadership in the field of rotary steerable technology, PowerDrive Xbow*, the new 3 ¹/4” fully rotational system, was deployed on a sidetrack for Saudi Aramco. Running for 140 circulating hours, the system drilled a record-breaking 3 ⁷/8” hole to a total length of 1,765 ft, while achieving the client’s directional objectives. The operation marked the smallest hole successfully drilled with a rotary steerable system. PowerDrive Xbow is designed for through-tubing rotary drilling and coil-tubing drilling applications.

Elsewhere in Saudi Arabia, the South Rub Al-Khali Company Limited (SRAK), a Shell/Total/Saudi Aramco gas Joint Venture, awarded Schlumberger an integrated well construction services contract to provide Drilling & Measurements, Well Services technologies, and IPM services in the Rub Al-Khali basin. The work scope comprises three remote gas exploration wells with an option for four additional wells.

In Australia, Woodside awarded Schlumberger a multi-well, multilateral Drilling & Measurements contract for the deepwater Vincent project off the Northwestern Shelf. In the first phase of the contract seven 9 ⁵/8” RapidX* multilateral systems will be installed. Phase two will consist of an additional 7 to 14 systems. Phase three is undergoing feasibility reviews.

PetroChina awarded Schlumberger a Drilling & Measurements Master Services Contract. Advanced Schlumberger well placement and performance drilling technologies will be deployed in wells across the Tarim, Jidong, Liaohe, Xinjiang, Sichuan, and other oilfields.

In India, Reliance Industries used the Rt Scanner* triaxial induction tool to markedly improve the accuracy of the hydrocarbon estimation in low-resistivity pay zones in the Krishna Godavari basin. Demonstrating its leading edge over conventional technology for the estimation of net pay, Rt Scanner also confirmed the presence of thin reservoir beds that were later seen on core images, and calculated dip and azimuth that correlated well with image logs.

Highlights

• Schlumberger acquired rights to Quorum Volume Management (QVM) software, a comprehensive field operations data-management application from Quorum Business Solutions. Used in combination with SIS products and services, QVM technology supports the vision of the digital oilfield by expanding the Schlumberger portfolio to include production operations, engineering, management, and accounting.

• Russia Petroleum, 62.89%-owned by TNK-BP, awarded Schlumberger contracts for directional drilling, LWD, cementing and wireline operations on the Kovykta field project in East Siberia. This giant gas field, with estimated reserves of 1.9 trillion cubic meters, necessitates the drilling of high-deviation wells with total vertical depths of 3,500 m.

• In Libya, the first StethoScope* operation for Eni was successfully run in an offshore extended-reach well with inclinations varying from 50 to 70 degrees. Quality formation-pressure data were difficult to obtain at these inclinations in previous wells using conventional technology. Deployment of StethoScope reduced the time of operation by two rig days.

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• In Mexico, Pemex awarded Schlumberger a two-year, multi-million dollar contract to perform surface testing services on their offshore fields in the Sonda de Campeche.

• In Trinidad & Tobago, BHP Billiton awarded Schlumberger a multi-million dollar contract to provide directional drilling, MWD, and LWD services for their ongoing exploration and development projects. Work will begin with the King Bird 1 exploration well, followed by work on development wells in the Greater Angostura field.

• The Quicksilver Probe wireline sampling technology, a method to deliver contamination-free samples during sampling of formation fluids in a fraction of the time it takes with conventional sampling techniques, was recognized during the quarter with two prestigious industry awards—a Hart’s Meritorious Engineering award and a 2006 Offshore Technology Conference Spotlight on New Technology award.

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WesternGeco

Second-quarter revenue of $562 million was 6% higher sequentially and 47% higher compared to the same period last year. Pretax operating income of $180 million improved 13% sequentially and 211% year-on-year.

Sequentially, Marine revenue increased to record levels with the vessel fleet utilization at 89%. Q* vessel utilization remained substantially flat at 91%. WesternGeco commissioned its sixth Q-Marine* vessel during the quarter with the upgrade of the Western Monarch to address increased industry demand for Q-Marine technology. The vessel has a backlog of contracts through May 2007. Land acquisition revenue increased with new crews added in the North Africa and the Middle East regions, coupled with improved efficiencies in operations in the South America region. Data Processing revenue increased with higher activity in both Asia and India linked to the recently opened Mumbai data processing and reservoir services center. Seasonal declines in Multiclient revenue, although less than expected due to a late surge in sales in the US, partially offset sequential gains in Marine, Land, and Data Processing.

Pretax operating margins improved sequentially by 200 bps to reach 32%. This was primarily driven by Marine due to higher utilization and improved pricing, coupled with Land activity increases in the South America, North Africa, and the Middle East regions, together with high-margin Q-data processing. These improvements were partially offset by the seasonal decline in Multiclient.

During the quarter, Schlumberger acquired Copenhagen-based Ødegaard A/S, the leader of advanced surface seismic data inversion software. The company, which will become part of WesternGeco, specializes in applications of seismic data to determine rock parameters critical to better reservoir characterization and improved oil and gas recovery. The integration of surface seismic data with key Schlumberger petrophysical and electromagnetic measurement technologies will lead to reduced reservoir uncertainty, particularly in the smaller and more complex reservoir targets of the future.

Revenue backlog is at an all-time high of $1.2 billion, an increase of 35% over the previous quarter reflecting strong and sustained Marine, Land, Multiclient, and Data Processing market positions.

Highlights

• Santos Ltd. contracted WesternGeco to conduct a high-resolution Q-Marine survey over its Mutineer-Exeter field in the Carnarvon basin, off Australia’s Northwest Shelf. The Mutineer-Exeter field is a core area of exploration for Santos Ltd.

• WesternGeco acquired the first rich-azimuth towed-streamer seismic project over the Shenzi field in the Gulf of Mexico. BHP Billiton jointly operates the field with partners Hess Corporation and BP. The rich-azimuth design, through the unique capabilities of Q-Marine, takes advantage of the varying angles and offsets of the receivers and sources to better illuminate beneath the complex salt canopy surface.

• Turkiye Petrolleri A.O. (TPAO), the Turkish state oil company, contracted WesternGeco to conduct two 3D Q-Marine seismic surveys over deep-water blocks 3922-Sinop and 3920-Kozlu in the Turkish sector of the Black Sea. The imaging results and datasets from these surveys are integral to the customer’s plans to identify significant hydrocarbon reserves in the geological plays of the Turkish Black Sea.

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• Abu Dhabi Company for Onshore Oil Operations awarded WesternGeco a contract to acquire a 3D land seismic survey covering approximately 1,500 sq km in Abu Dhabi, U.A.E. The survey acquisition started in March 2006 and will take approximately 18 months to complete.

• WesternGeco announced plans to acquire the first Multiclient wide-azimuth, towed-streamer seismic survey in the Gulf of Mexico, a major portion of which will be underwritten by Shell Exploration. The project covers a minimum of 200 Outer Continental Shelf blocks in the central Gulf of Mexico, about 125 miles off the coast of Louisiana in water depths of 4,400 ft.

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About Schlumberger

Schlumberger is the world’s leading oilfield services company supplying technology, information solutions, and integrated project management that optimize reservoir performance for customers working in the oil and gas industry. The company employs more than 66,000 people of over 140 nationalities working in more than 80 countries. Schlumberger supplies a wide range of products and services from seismic acquisition and processing; formation evaluation; well testing and directional drilling to well cementing and stimulation; artificial lift and well completions; and consulting, software, and information management. In 2005, Schlumberger operating revenue was $14.31 billion. For more information, visit www.SLB.com.

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* Mark of Schlumberger

Notes:

Schlumberger will hold a conference call to discuss the above announcement on Friday, July 21, 2006, at 9:00am New York City time (2:00pm London time/3:00pm Paris time). To access the call, which is open to the public, please contact the conference call operator at +1-800-230-1074 (toll free) for North America, or +1-612-234-9960 outside of North America, approximately 10 minutes prior to the scheduled start time. Ask for the “Schlumberger Earnings Conference Call.” A replay will be available through August 4, 2006, by dialing +1-800-475-6701 in North America, or +1-320-365-3844 outside of North America, and providing the access code 831645.

The conference call will be webcast simultaneously at www.SLB.com/irwebcast on a listen-only basis. Please log in 15 minutes ahead of time to test your browser and register for the call. A replay of the webcast will also be available through August 4, 2006 at the above web site.

Supplemental information in the form of a question and answer document on this press release and financial schedules are available at www.SLB.com/ir.

For more information, please contact:

Jean-Francois Poupeau, Vice President of Communications and Investor Relations

or

Debashis Gupta, Investor Relations Manager

+1-212-350-9432

investor-relations@slb.com

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EX-99.2

Exhibit 99.2

Second-Quarter 2006 Results—Supplemental Information

A) Oilfield Services

Q1) What was the Oilfield Services pretax return on sales for the quarter?

Oilfield Services pretax return on sales in the second quarter of 2006 was 27.2% versus 25.6% in the previous quarter.

Q2) What is the capex guidance for 2006?

The Oilfield Services capex is expected to approach $2.1 billion for the full year 2006, an increase of 51% over 2005.

B) WesternGeco

Q3) What amount of multiclient surveys was capitalized in the second quarter of 2006?

WesternGeco capitalized $38 million of multiclient surveys in the second quarter.

Q4) What multiclient sales were made in the quarter?

Multiclient sales, including transfer fees, were $147 million in the quarter.

Q5) What is the capex guidance for 2006?

The 2006 WesternGeco capex is expected to reach $341 million, excluding $173 million of significantly pre-funded multiclient surveys, versus $205 million and $60 million respectively in 2005.

C) Schlumberger Limited

Q6) What was the Schlumberger pretax and after-tax return on sales, before minority interest, for the quarter?

Schlumberger pretax return on sales from continuing operations, before charges and credits, for the second quarter of 2006 was 25.3% compared to 24.1% in the first quarter of 2006.

Schlumberger after-tax, before minority interest, return on sales from continuing operations, before charges and credits, for the second quarter of 2006 was 19.4% compared to 18.1% in the first quarter of 2006.

Q7) What was stock-based compensation expense for the second quarter of 2006 and what is it estimated to be for all of 2006?

Stock-based compensation expense for the second quarter of 2006 (including the impact of the adoption of SFAS 123R) was $28 million ($0.02 per share) versus $26 million in the first quarter of 2006.

Stock-based compensation expense in 2006 is currently estimated to be approximately $112 million ($0.09 per share) compared to $40 million in 2005. This increase reflects the full impact of the adoption of both SFAS 123 and SFAS 123R, as well as an increase in the fair value of stock-based awards due to the increase in Schlumberger stock price.

Q8) How did net debt^† increase during the quarter?

Net debt was $3.17 billion as of June 30, 2006, an increase of $2.37 billion in the quarter reflecting the $2.4 billion acquisition of Baker Hughes’ 30% share in WesternGeco.

†(Net debt is gross debt less cash, short term investments as well as fixed income investments held to maturity.)

Q9) What is included in Interest and Other Income?

Interest and Other Income for the second quarter of 2006 consisted of the following:

Interest Income	$	29 million
Equity in net earnings of affiliated companies	$	44 million
Loss on sale of investments related to acquisition of 30% minority interest held by Baker Hughes in WesternGeco	$	(9) million
	$	64 million

Q10) What were the changes in interest income and interest expense during the quarter?

Interest income of $29 million decreased $6.2 million sequentially but increased $5.7 million compared to the same quarter last year. Average return of 4.8% increased 0.8% sequentially and 1.5% year-on-year. Average investment balance of $2.5 billion decreased $1.1 billion sequentially and $425 million compared to the same quarter last year.

Interest expense of $61 million increased $13.6 million sequentially and $11.0 million from the same quarter last year. Average borrowing rates of 4.7% increased by 0.3% sequentially and by 0.2% over last year. Average debt balance of $5.3 billion increased $906 million sequentially and $776 million compared to the same quarter last year.

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Q11) What is the difference between Oilfield Services pretax income and the sum of the geographic areas?

The difference of $3.9 million in the quarter came from Oilfield Services headquarters projects and costs together with Oilfield Services consolidation eliminations.

Q12) What is the difference between Schlumberger pretax income, before charges and credits and interest, and pretax income of the two business segments?

The $85 million pretax difference during the quarter included items such as corporate expenses, amortization of certain identifiable intangibles, interest on post-retirement benefits and stock-based compensation costs.

Q13) How does Schlumberger compute basic and diluted EPS?

Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share are calculated by first adding back to net income the interest expense on the convertible bonds and then dividing this adjusted net income by the sum of unvested restricted stock units and weighted average number of common shares outstanding assuming dilution, the calculation of which includes the shares from the conversion of convertible bonds and assumes that all stock options which are in the money are exercised at the beginning of the period and that the proceeds are used by Schlumberger to purchase shares at the average market price for the period.

If adding the interest expense on the convertible bonds back to net income and including the shares from the assumed conversion of the convertible bonds has an anti-dilutive effect on the diluted EPS calculation, then the effects of the convertible bonds are excluded from the calculation.

The shares from the potential conversion of the convertible bonds amount to 38 million and the interest expense on the convertible bonds was $7.2 million in the second quarter.

Q14) What was the Schlumberger annualized Return On Capital Employed (ROCE†) for the quarter?

Annualized ROCE reached 34.3% in the second quarter of 2006 versus 34.1% in the first quarter of 2006 and 24.5% in the second quarter of 2005.

The acquisition of 30% minority interest of Baker Hughes in WesternGeco has resulted in a reduction of ROCE by 3.1%.

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† ROCE is computed as [Net Income from continuing operations excluding charges and credits + Minority Interest + Interest Expense - Interest Income - Tax benefit on interest expense] divided by the quarterly average of [Shareholders’ Equity + Net Debt + Minority Interest].

Q15) What was the effective tax rate for the quarter?

The effective tax rate from continuing operations before charges and credits in the second quarter was 23.4% compared to 25.1% in the prior quarter. This sequential decline is primarily attributable to the country mix of profitability combined with the impact of positive developments in various tax issues in certain geographies in the second quarter. For the full year 2006, Schlumberger expects the ETR, before charges and credits, to be in the mid-twenties range.

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In addition to financial results determined in accordance with generally accepted accounting principles (GAAP), this document also includes non-GAAP financial measures (as defined under SEC Regulation G). The following is a reconciliation of these non-GAAP measures to the comparable GAAP measures:

	(Stated in millions except per share amounts)
	Second Quarter 2006
	Pretax			Tax			Min Int			Net		Diluted EPS
Income from Continuing Operations per Consolidated Statement of Income	$	1,141.1		$	278.4		$	(5.8	)	$	856.9	$	0.69
Add back Charges & Credits:
-WesternGeco in-process R&D charge		21.0			—			—			21.0		0.02
- Loss on sale of investments		9.4			—			—			9.4		0.01
- WesternGeco visa settlement		9.7			(0.3	)		(3.2	)		6.8		0.01
- Other in-process R&D charges		5.6			—			—			5.6		—
Income from Continuing Operations before charges & credits	$	1,186.8		$	278.1		$	(9.0	)	$	899.7	$	0.73
	Second Quarter 2006
Continuing operations	GAAP			Before Charges & Credits
Pretax return on sales		24.3	%		25.3	%
After tax before minority interest return on sales		18.4	%		19.4	%
Effective tax rate		24.4	%		23.4	%

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This document, the second quarter 2006 earnings release and other statements we make contain forward looking statements, which include any statements that are not historical facts, such as our expectations regarding business outlook; growth for Schlumberger as a whole and for each of Oilfield Services and WesternGeco (and for specified products within each segment); oil and natural gas demand and production growth; operating margins; operating and capital expenditures by Schlumberger and the oil and gas industry; the business strategies of Schlumberger customers; the adoption of SFAS 123R and stock-based compensation expense; the effects of the WesternGeco transaction; the Schlumberger stock buy-back program; and future results of operations. These statements involve risks and uncertainties, including, but not limited to, the global economy; changes in exploration and production spending by Schlumberger customers and changes in the level of oil and natural gas exploration and development; general economic and business conditions in key regions of the world; political and economic uncertainty and socio-political unrest; and other factors detailed in our second quarter 2006 earnings release, our most recent Form 10-K and other filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Schlumberger disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

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EX-99.3

Exhibit 99.3

Acquisition of WesternGeco Minority Interest

On April 28, 2006 Schlumberger acquired the 30% minority interest in WesternGeco from Baker Hughes Inc. for $2.4 billion in cash. Schlumberger also incurred direct acquisition costs of $6 million in connection with this transaction. As a result of this transaction, Schlumberger owns 100% of WesternGeco. Approximately 50% of the purchase price was funded from Schlumberger cash and investments. The remaining 50% was financed through existing Schlumberger credit facilities.

The purchase price has been allocated to the proportionate share of net assets acquired based upon their estimated fair values. In doing so the following items were considered:

Technology, Customer Relationships, and Other Identifiable Intangible Assets

Approximately $495 million of the purchase price was allocated to technology (primarily representing WesternGeco proprietary Q technology), customer relationships, and other identifiable intangible assets. Amortization expense in the second quarter of 2006 relating to these items was approximately $5 million and is expected to be approximately $8 million per quarter commencing in the third quarter of 2006.

Vessels and Other Fixed Assets

Approximately $94 million of the purchase price was recorded as a fair value adjustment to increase the carrying value of WesternGeco vessels and other fixed assets. In analyzing the fair value of the vessels it was determined that the remaining estimated useful lives of these assets exceeded the remaining estimated life currently being used to calculate depreciation expense. Therefore, the estimated remaining useful lives of the vessels were extended an additional 4 years (on a weighted average basis) as of the date of the acquisition. The impact of the fair value adjustments for all fixed assets, combined with the change in estimate regarding the depreciable lives of the vessels, resulted in a net reduction of approximately $0.5 million in depreciation expense in the second quarter of 2006. These adjustments are currently estimated to result in a net reduction in depreciation expense of $0.8 million per quarter commencing in the third quarter of 2006.

Multiclient Seismic Data

The carrying value of the Multiclient library immediately after the acquisition increased to $243 million from $202 million, reflecting the impact of a $41 million fair value adjustment. These capitalized costs will be charged to “Cost of goods sold and services” based on the percentage of the total costs on the balance sheet to the estimated total revenue that Schlumberger expects to receive from the sales of such data. Schlumberger policy has been that, under no circumstance will an individual survey carry a net book value greater than a 4-year straight-line amortized value. After consideration of the estimated number of future years that revenues are expected to be derived from the Multiclient seismic data at the time of the acquisition, Schlumberger concluded that the remaining minimum

amortization period should be 3 years for all surveys in the Multiclient seismic library at the time of the transaction, effectively resetting the amortization period. Therefore, the $243 million of capitalized Multiclient seismic data costs will be charged to expense over a period no longer than the next 3 years. Surveys comprising the $202 million of Multiclient seismic data costs prior to this transaction had a weighted average remaining life for purposes of computing the minimum amortization of approximately 1.8 years. Given the current emphasis on requiring Multiclient projects to be significantly prefunded before the project commences, Schlumberger currently estimates that the majority of revenues to be derived from sales of new surveys will be achieved within a 4-year period. Therefore, Schlumberger will continue its policy that under no circumstance will an individual survey carry a net book value greater than a 4-year straight-line amortized value for all surveys added to the library after this transaction.

The net impact of the $41 million fair value adjustment combined with the resetting of the minimum amortization period resulted in an approximately $9 million net reduction in Multiclient amortization expense in the second quarter of 2006 as compared to what Multiclient amortization expense would have been had this transaction not been consummated. These adjustments are currently estimated to result in a net reduction in Multiclient amortization expense of approximately $10 million and $9 million in the third and fourth quarters of 2006, respectively.

Goodwill

The total amount of goodwill recorded as a result of this transaction is approximately $1.3 billion.

Impact of Transaction on Schlumberger Second-Quarter Results

	(amounts in millions)
WesternGeco net income for May & June 2006 (before purchase accounting adjustments)	$	99
30% of WesternGeco net income for May & June		30
Incremental depreciation and amortization as a result of fair value adjustments (after-tax)		(6	)
Impact of changes in estimate regarding vessel lives and multiclient amortization (after-tax)		8
Net interest impact of transaction (after-tax)		(15	)
Accretive impact on Schlumberger Q2 net income	$	17

As illustrated in the table above, excluding the impact of one-time charges relating to this transaction of $21 million for in-process research and development and the $9 million for liquidating certain investments in connection with the financing of this transaction, this acquisition was accretive to Schlumberger net income in Q2 (even before the impact of the changes in estimates regarding the vessels and multiclient library). This transaction is expected to remain accretive for the rest of 2006.

# # #

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This document contains forward looking statements, which include any statements that are not historical facts, such as our expectations regarding amortization expense, depreciation expense, policies regarding the net book value of individual surveys and accretion. These statements involve risks and uncertainties, including, but not limited to, those described in our most recent Form 10-K and other filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Schlumberger disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

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