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Schlumberger Acquires Stake in Premier Russian Oilfield Services
Company

Schlumberger (NYSE:SLB) announced today that it has signed an
agreement to acquire PetroAlliance Services Company Limited.
Schlumberger will initially acquire 26% of the company, with a further
25% to be acquired in the second quarter of 2005, and the remaining
interest one year later. Closing on the first 26% is expected in the
first quarter of 2004. Completion of each of the three stages is
subject to performance standards and other customary conditions. The
total acquisition price will be determined by a performance-based
formula, and paid one-third in cash and two-thirds in Schlumberger
stock.

"We are very pleased to have reached this agreement with PetroAlliance, the
leading independent Russian service provider," commented Andrew Gould, chairman
and chief executive officer of Schlumberger. "Advances in oilfield service
practices and technologies have already played significant roles in Russia, and
making new technology available through broader service options responds to a
growing need and expresses our confidence in the continuing development of the
Russian oil and gas industry."

PetroAlliance was established in 1995 and has steadily expanded its activities
to include seismic, wireline logging and perforating, directional drilling,
pumping, integrated project management, and information management and
IT-related services. PetroAlliance provides services to a number of both Russian
and international oil and gas operators.

Alexander Djaparidze, chairman and chief executive officer of PetroAlliance,
remarked, "We welcome this agreement with Schlumberger and believe that it
offers a significant opportunity for the continued growth of the company's
activities. This agreement will allow us to have access to the best oilfield
services technology on the market and position PetroAlliance to become the
leading player in provision of cutting-edge oilfield technology in Russia."

About Schlumberger

Schlumberger is a global oilfield and information services company with major
activity in the energy industry. The company employs 78,000 people of more than
140 nationalities working in 100 countries and comprises three primary business
segments. Schlumberger Oilfield Services is the world's premier oilfield
services company supplying a wide range of technology services and solutions to
the international oil and gas industry. WesternGeco, jointly owned with Baker
Hughes, is the world's largest and most advanced surface seismic company.
SchlumbergerSema is a leading supplier of IT consulting, systems integration,
and network and infrastructure services to the energy industry, as well as to
the public sector, telecommunications and finance markets. In 2002, Schlumberger
operating revenue was $13.2 billion. For more information, visit www.slb.com.

About PetroAlliance

PetroAlliance is Russia's largest independent oilfield service company and
provides a broad range of exploration and development services to international
standards. The company, formed in 1995, is independently owned. PetroAlliance
combines advanced technologies and state-of-the-art equipment from leading oil
industry manufacturers with local knowledge of well and reservoir conditions to
offer reliable and competitive services. The company employs 2,500 people. In
2002, operating revenues were $112 million. Visit www.petroalliance.com for more
information.