Schlumberger and Smith International, Inc.

to Merge

March, 2010

Filed

by

Schlumberger

N.V.

(Schlumberger

Limited)

Pursuant

to

Rule

425

of

the

Securities

Act

of

1933,

as

amended,

and

deemed

filed

pursuant

to

Rule

14a-12

of

the

Securities

Exchange

Act

of

1934,

as

amended

Schlumberger

N.V.

(Schlumberger

Limited)

(File

No.:

1-4601)

Subject

Company:

Smith

International,

Inc.

(File

No:

1-8514)

Forward-Looking Statements

This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities

Exchange Act of 1934, as amended. The opinions, forecasts, projections, or other statements other than statements of historical fact, are forward-looking statements. The

Company can give no assurance that such expectations will prove to have been correct. These statements are subject to, among other things, satisfaction of the closing

conditions to the merger, the risk that the contemplated merger does not occur, negative effects from the pendency of the merger, the ability to successfully integrate the merged

businesses and to realize expected synergies and other risk factors that are discussed in Schlumberger’s and Smith’s most recent 10-Ks as well as each company’s other filings

with the SEC available at the SEC’s Internet site (http://www.sec.gov).  Actual results may differ materially from those expected, estimated or projected. 

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any of them in light of new information, future

events or otherwise. 

Additional Information

STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND REGISTRATION STATEMENT REGARDING THE PROPOSED TRANSACTION

WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. These documents will contain

important information about the proposed transaction that should be read carefully before any decision is made with respect to the proposed transaction. These materials will be

made available to the shareholders of Smith at no expense to them. Investors and security holders will be able to obtain the documents (when available) free of charge at the

SEC’s web site, www.sec.gov. In addition, such materials (and all other documents filed with the SEC) will be available free of charge at www.smith.com or www.slb.com. Such

documents are not currently available. You may also read and copy any reports, statements and other information filed by Smith or Schlumberger with the SEC at the SEC public

reference room at 100 F Street N.E., Room 1580, Washington, D.C. 20549. Please call the SEC at (800) 732-0330 or visit the SEC’s website for further information on its public

reference room. 

Each company’s directors and executive officers and other persons may be deemed, under SEC rules, to be participants in the solicitation of proxies in connection with the

proposed transaction. Information regarding Schlumberger’s directors and officers can be found in its proxy statement filed with the SEC on March 4, 2010 and information

regarding Smith’s directors and officers can be found in its proxy statement filed with the SEC on April 13, 2009. Additional information regarding the participants in the proxy

solicitation and a description of their direct and indirect interests in the transaction, by security holdings or otherwise, will be contained in the proxy statement/prospectus and othe

relevant materials to be filed with the SEC when they become available. 

Higher levels of drilling will be necessary to sustain and increase world oil and

gas production

Drilling

intensity

and

well

complexity

will

continue

to

increase

due

to

areas

such

as deepwater sub-salt and shale gas

Geosteered

wells with complex geometries are key to increased recovery and

maximizing initial production

Combining our LWD, MWD & DD capabilities with the design and optimization of

the entire BHA (including bits, drilling tools and drilling fluids) will improve drilling

performance and reduce drilling risk

Industry Trends—Drilling

Smith Oilfield

Smith Fluids

Smith Distribution

2008A

2009A

Revenue:

$5,183

$4,224

Oper. Income:

840

541

Oper. Margin

16%

12%

2008A

2009A

Revenue:

$2,849

$2,225

Oper. Income:

747

254

Oper. Margin

26%

10%

2008A

2009A

Revenue:

$2,739

$1,769

Oper. Income:

180

(32)

Oper. Margin

7%

NM

Drilling Fluid Systems and Services

Environmental and Process Solutions

Completion Fluids

Production Chemicals

Drill Bits

Motors and Drilling Tools

Reamers and Hole Openers

Fishing and Casing Existing

Tubular Drill String Components

Completion and Artificial Lift Products

LWD, MWD, DD

Coiled Tubing, CH WL and Perforating

Pipe, Valves and Fittings

Mill, Safety and Maintenance Products

Supply Chain Services

Smith International, Inc.

Smith International Organization

Drilling Services Gap Analysis

Minority SLB JV interest

Majority JV with SLB

Complementary Services

–

Integrated fluid engineering and environmental solutions

–

IDEAS/i-Drill BHA modeling software

–

Fishing services

–

Window cutting and exiting services (Trackmaster)

–

Inspection and machine shop services

–

Rotating drilling heads—pressure containment

Drilling Services Offering

Surface

Control Systems

Enable SLB to provide a fully optimized drilling services offering:

–

Next generation of BHA offering

–

Industry leading bit/drillstring

software modeling

–

In-house drilling bit/motor/turbine engineering and manufacturing

–

surface control mechanisms for automation

–

Higher temperature MWD/LWD capabilities (175 degC)

Broaden

SLB

portfolio—re-entry drilling process

Enable SLB to add to completions offerings

Smith manufacturing and distribution channels

–

Vehicle for high volume business

Merger Rationale 

Merger

Rationale

(Continued)

–

Drilling Solutions—D&M, IPM

Integrated fluid engineering and RT hydraulics control (particularly for DW and HT)

Managed pressure

drilling

Wellbore stability  and well strengthening solutions

Loss circulation management while drilling solutions 

–

Zonal Isolation—Well Services

More efficient cement operations

Improved logistics/supply chain for chemicals and bulk products

–

Production Technologies—Well Services and Completions

Unique

completion and stimulation solutions

Shale gas environmental solutions—water management

–

Water Services

Environmental

solutions

Optimize interaction between MI-Swaco and SLB segments

Downhole system reliability—reduced blockage, abrasivity and chemical damage

1.

Create a drilling group to integrate our drilling services offering

–

Improved drilling performance—integrated BHA design and fluid engineering

–

Increased operational efficiency—new motor (Dyna-Drill) and turbine designs (Neyrfor)

–

Rotary Steerable Services integration with the bit, plus instrumented bits development

–

Bits, reamers and drilling tools on D&M and IPM projects, plus new business

–

Increase SLB exposure to vertical drilling—combined bit, PowerV* vertical drilling system and motors

–

Comprehensive

brownfield

reentry

drilling

package—fishing,

exiting

services

–

PathFinder

HT and mid tier LWD/MWD—expand footprint, access to new customers

–

Smith manufacturing and distribution channels—vehicle for high volume business

Synergy Realization

2.   Optimize

interaction

between

MI-Swaco

and

SLB

segments

–

Drilling Solutions—D&M, IPM

–

Integrated fluid engineering and RT hydraulics control

–

MPD and Wellbore stability solutions

–

Well Productivity—Well Services

–

Production Technologies—Reservoir Production new business opportunity

–

Environmental Solutions—Water Services

3.   Smith products and services complement SLB segment portfolios

–

Liner hangers—SLB Completions segment

–

Production packers—SLB Completions segment

–

SmithLift—SLB Artificial Lift segment

–

Coiled Tubing Services—SLB Well Services segment

–

Cased

hole

wireline—SLB

Wireline

segment

Synergy

Realization

(Continued)

Combines services and products into one focused drilling organization

Purpose of deal is to improve drilling performance for our customers

–

Optimized drilling system designs—range of drilling environments

–

New product development—evolving

drilling challenges

–

Improved total system reliability

Add to SLB completions offerings

Strengthens Smith brands

–

Increase access to new business

opportunities

–

Access to SLB R&D

Summary

©

2010 Schlumberger. All rights reserved.

An asterisk is used throughout this presentation to denote a mark of Schlumberger.

Other company, product, and service names are the properties of their respective owners.