QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Registrant’s telephone number in the United States, including area code, is: (713) 513-2000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

	(Stated in millions, except per share amounts)										(Stated in millions, except per share amounts)

	Second Quarter					Six Months					Second Quarter				Six Months
	2018		2017			2018		2017			2019		2018		2019		2018
Revenue
Services	$	6,141	$	5,477		$	11,876	$	10,414		$	6,153	$	6,141	$	12,059	$	11,876
Product sales		2,162		1,985			4,255		3,942			2,116		2,162		4,090		4,255
Total Revenue		8,303		7,462			16,131		14,356			8,269		8,303		16,149		16,131
Interest & other income		40		62			82		108			25		40		39		82
Expenses
Cost of services		5,196		4,624			10,076		8,875			5,308		5,196		10,422		10,076
Cost of sales		1,983		1,844			3,904		3,669			1,944		1,983		3,787		3,904
Research & engineering		175		196			347		406			179		175		351		347
General & administrative		114		110			225		208			114		114		225		225
Impairments & other		184		510			184		510			-		184		-		184
Merger & integration		-		81			-		164
Interest		144		142			287		281			156		144		302		287
Income before taxes		547		17			1,190		351			593		547		1,101		1,190
Tax expense		106		98			219		148			99		106		178		219
Net income (loss)		441		(81	)		971		203
Net income (loss) attributable to noncontrolling interests		11		(7	)		16		(2	)
Net income (loss) attributable to Schlumberger	$	430	$	(74	)	$	955	$	205
Net income												494		441		923		971
Net income attributable to noncontrolling interests												2		11		10		16
Net income attributable to Schlumberger											$	492	$	430	$	913	$	955

Basic earnings (loss) per share of Schlumberger	$	0.31	$	(0.05	)	$	0.69	$	0.15
Basic earnings per share of Schlumberger											$	0.36	$	0.31	$	0.66	$	0.69

Diluted earnings (loss) per share of Schlumberger	$	0.31	$	(0.05	)	$	0.69	$	0.15
Diluted earnings per share of Schlumberger											$	0.35	$	0.31	$	0.65	$	0.69

Average shares outstanding:
Basic		1,384		1,387			1,385		1,390			1,384		1,384		1,385		1,385
Assuming dilution		1,392		1,387			1,393		1,397			1,395		1,392		1,396		1,393

(Stated in millions)	(Stated in millions)												(Stated in millions)

	Second Quarter						Six Months						Second Quarter						Six Months
	2018			2017			2018			2017			2019			2018			2019			2018
Net income (loss)	$	441		$	(81	)	$	971		$	203
Net income													$	494		$	441		$	923		$	971
Currency translation adjustments
Unrealized net change arising during the period		(121	)		(71	)		(81	)		(26	)		(37	)		(121	)		39			(81	)
Marketable securities
Unrealized loss arising during the period		(40	)		(21	)		(21	)		(25	)		-			(40	)		-			(21	)
Cash flow hedges
Net gain (loss) on cash flow hedges		(15	)		-			(10	)		11			1			(15	)		(4	)		(10	)
Reclassification to net income (loss) of net realized (gain) loss		(1	)		8			(5	)		8
Reclassification to net income of net realized (gain) loss														1			(1	)		4			(5	)
Pension and other postretirement benefit plans
Amortization to net income of net actuarial loss		37			36			94			79			23			37			47			94
Amortization to net income of net prior service (credit) cost		(1	)		20			(3	)		40
Amortization to net income of net prior service credit														(3	)		(1	)		(6	)		(3	)
Income taxes on pension and other postretirement benefit plans		(5	)		(1	)		(5	)		(2	)		(2	)		(5	)		(2	)		(5	)
Comprehensive income (loss)		295			(110	)		940			288
Comprehensive income (loss) attributable to noncontrolling interests		11			(7	)		16			(2	)
Comprehensive income (loss) attributable to Schlumberger	$	284		$	(103	)	$	924		$	290
Comprehensive income														477			295			1,001			940
Comprehensive income attributable to noncontrolling interests														2			11			10			16
Comprehensive income attributable to Schlumberger													$	475		$	284		$	991		$	924

(Stated in millions)	(Stated in millions)						(Stated in millions)

	Jun. 30,						Jun. 30,
	2018			Dec. 31,			2019			Dec. 31,
	(Unaudited)			2017			(Unaudited)			2018
ASSETS
Current Assets
Cash	$	1,461		$	1,799		$	1,466		$	1,433
Short-term investments		1,588			3,290			882			1,344
Receivables less allowance for doubtful accounts (2018 - $249; 2017 - $241)		8,606			8,084
Receivables less allowance for doubtful accounts (2019 - $238; 2018 - $249)								8,471			7,881
Inventories		4,120			4,046			4,389			4,010
Other current assets		1,125			1,278			1,125			1,063
		16,900			18,497			16,333			15,731
Investments in Affiliated Companies		1,487			1,519			1,558			1,538
Fixed Assets less accumulated depreciation		11,504			11,576			11,359			11,679
Multiclient Seismic Data		686			727			577			601
Goodwill		25,121			25,118			24,950			24,931
Intangible Assets		9,092			9,354			8,485			8,727
Other Assets		5,366			5,196			7,329			7,300
	$	70,156		$	71,987		$	70,591		$	70,507
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	9,367		$	10,036		$	9,851		$	10,223
Estimated liability for taxes on income		1,264			1,223			1,123			1,155
Short-term borrowings and current portion of long-term debt		3,736			3,324			98			1,407
Dividends payable		699			699			701			701
		15,066			15,282			11,773			13,486
Long-term Debt		13,865			14,875			16,978			14,644
Postretirement Benefits		971			1,082			1,119			1,153
Deferred Taxes		1,541			1,650			1,330			1,441
Other Liabilities		1,816			1,837			3,118			3,197
		33,259			34,726			34,318			33,921
Equity
Common stock		13,030			12,975			13,037			13,132
Treasury stock		(4,001	)		(4,049	)		(3,827	)		(4,006	)
Retained earnings		31,760			32,190			31,186			31,658
Accumulated other comprehensive loss		(4,305	)		(4,274	)		(4,544	)		(4,622	)
Schlumberger stockholders' equity		36,484			36,842			35,852			36,162
Noncontrolling interests		413			419			421			424
		36,897			37,261			36,273			36,586
	$	70,156		$	71,987		$	70,591		$	70,507

(Stated in millions)	(Stated in millions)						(Stated in millions)

	Six Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2019			2018
Cash flows from operating activities:
Net income	$	971		$	203		$	923		$	971
Adjustments to reconcile net income to cash provided by operating activities:
Impairments and other charges		184			674			-			184
Depreciation and amortization ⁽¹⁾		1,750			1,975			1,841			1,750
Stock-based compensation expense		176			180			194			176
Pension and other postretirement benefits funding		(74	)		(74	)
Earnings of equity method investments, less dividends received		(26	)		(30	)		-			(26	)
Change in assets and liabilities: ⁽²⁾
Increase in receivables		(284	)		(406	)		(581	)		(284	)
Increase in inventories		(71	)		(51	)		(332	)		(71	)
Decrease (increase) in other current assets		66			(123	)
Increase in other current assets								(57	)		66
Increase in other assets		(120	)		(140	)		(16	)		(120	)
Decrease in accounts payable and accrued liabilities		(1,015	)		(738	)		(422	)		(1,015	)
Decrease in estimated liability for taxes on income		(34	)		(21	)		(68	)		(34	)
Decrease in other liabilities		(10	)		(37	)		(39	)		(10	)
Other		42			102			(9	)		(32	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,555			1,514			1,434			1,555
Cash flows from investing activities:
Capital expenditures		(974	)		(884	)		(817	)		(974	)
SPM investments		(434	)		(328	)		(332	)		(434	)
Multiclient seismic data costs capitalized		(47	)		(190	)		(109	)		(47	)
Business acquisitions and investments, net of cash acquired		(47	)		(364	)		(17	)		(47	)
Sale of investments, net		1,692			2,245			464			1,692
Other		(20	)		(61	)		(63	)		(20	)
NET CASH PROVIDED BY INVESTING ACTIVITIES		170			418
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES								(874	)		170
Cash flows from financing activities:
Dividends paid		(1,385	)		(1,393	)		(1,385	)		(1,385	)
Proceeds from employee stock purchase plan		107			96			85			107
Proceeds from exercise of stock options		26			47			21			26
Stock repurchase program		(200	)		(770	)		(199	)		(200	)
Proceeds from issuance of long-term debt		14			625			2,350			14
Repayment of long-term debt		(467	)		(475	)		(1,413	)		(467	)
Net decrease in short-term borrowings		(106	)		(1,097	)		(22	)		(106	)
Other		(40	)		(2	)		32			(40	)
NET CASH USED IN FINANCING ACTIVITIES		(2,051	)		(2,969	)		(531	)		(2,051	)
Net decrease in cash before translation effect		(326	)		(1,037	)
Net increase (decrease) in cash before translation effect								29			(326	)
Translation effect on cash		(12	)		11			4			(12	)
Cash, beginning of period		1,799			2,929			1,433			1,799
Cash, end of period	$	1,461		$	1,903		$	1,466		$	1,461

⁽¹⁾~~Includes depreciation of property, plant and equipment and amortization of intangible assets, multiclient seismic data costs and SPM investments.~~

	(Stated in millions)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2019 – June 30, 2019	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2019	$	13,132		$	(4,006	)	$	31,658		$	(4,622	)	$	424		$	36,586
Net income								913						10			923
Currency translation adjustments											39						39
Pension and other postretirement benefit plans											39						39
Shares sold to optionees, less shares exchanged		(26	)		47												21
Vesting of restricted stock		(126	)		126												-
Shares issued under employee stock purchase plan		(115	)		200												85
Stock repurchase program					(199	)											(199	)
Stock-based compensation expense		194															194
Dividends declared ($1.00 per share)								(1,385	)								(1,385	)
Other		(22	)		5									(13	)		(30	)
Balance, June 30, 2019	$	13,037		$	(3,827	)	$	31,186		$	(4,544	)	$	421		$	36,273

	(Stated in millions)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2018 – June 30, 2018	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2018	$	12,975		$	(4,049	)	$	32,190		$	(4,274	)	$	419		$	37,261
Net income								955						16			971
Currency translation adjustments											(81	)		(1	)		(82	)
Changes in unrealized gain on marketable securities											(21	)					(21	)
Changes in fair value of cash flow hedges											(15	)					(15	)
Pension and other postretirement benefit plans											86						86
Shares sold to optionees, less shares exchanged		(27	)		53												26
Vesting of restricted stock		(52	)		52												-
Shares issued under employee stock purchase plan		(33	)		140												107
Stock repurchase program					(200	)											(200	)
Stock-based compensation expense		176															176
Dividends declared ($1.00 per share)								(1,385	)								(1,385	)
Other		(9	)		3									(21	)		(27	)
Balance, June 30, 2018	$	13,030		$	(4,001	)	$	31,760		$	(4,305	)	$	413		$	36,897

(Stated in millions)

Accumulated

Other

Common Stock

Retained

Comprehensive

Noncontrolling

January 1, 2017 – June 30, 2017
Issued

In Treasury

Earnings

Loss

Interests

Total

Balance, January 1, 2017
$
12,801

$
(3,550
)

$
36,470

$
(4,643
)

$
451

$
41,529

Net income

205

(2
)

203

Currency translation adjustments

(26
)

(26
)
Changes in unrealized gain on marketable securities

(25
)

(25
)
Changes in fair value of cash flow hedges

19

19

Pension and other postretirement benefit plans

117

117

Shares sold to optionees, less shares exchanged

(33
)

80

47

Vesting of restricted stock

(80
)

80

-

Shares issued under employee stock purchase plan

(12
)

108

96

Stock repurchase program

(770
)

(770
)
Stock-based compensation expense

180

180

Dividends declared ($1.00 per share)

(1,391
)

(1,391
)
Other

(13
)

3

(17
)

(27
)
Balance, June 30, 2017
$
12,843

$
(4,049
)

$
35,284

$
(4,558
)

$
432

$
39,952

(Stated in millions)

Shares

Issued

In Treasury

Outstanding

Balance, January 1, 2018

1,434

(50
)

1,384

Vesting of restricted stock

-

1

1

Shares issued under employee stock purchase plan

-

2

2

Stock repurchase program

-

(3
)

(3
)
Balance, June 30, 2018

1,434

(50
)

1,384

	(Stated in millions)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
April 1, 2019 – June 30, 2019	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, April 1, 2019	$	13,000		$	(3,756	)	$	31,386		$	(4,527	)	$	421		$	36,524
Net income								492						2			494
Currency translation adjustments											(37	)					(37	)
Changes in fair value of cash flow hedges											2						2
Pension and other postretirement benefit plans											18						18
Shares sold to optionees, less shares exchanged		(1	)		1												-
Vesting of restricted stock		(26	)		26												-
Stock repurchase program					(101	)											(101	)
Stock-based compensation expense		86															86
Dividends declared ($0.50 per share)								(692	)								(692	)
Other		(22	)		3									(2	)		(21	)
Balance, June 30, 2019	$	13,037		$	(3,827	)	$	31,186		$	(4,544	)	$	421		$	36,273

	(Stated in millions)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
April 1, 2018 – June 30, 2018	Issued			In Treasury			Earnings			Loss			Interests		Total
Balance, April 1, 2018	$	12,998		$	(3,937	)	$	32,022		$	(4,159	)	$	402	$	37,326
Net income								430						11		441
Currency translation adjustments											(121	)				(121	)
Changes in unrealized gain on marketable securities											(40	)				(40	)
Changes in fair value of cash flow hedges											(16	)				(16	)
Pension and other postretirement benefit plans											31					31
Shares sold to optionees, less shares exchanged		(7	)		13											6
Vesting of restricted stock		(23	)		23											-
Stock repurchase program					(102	)										(102	)
Stock-based compensation expense		87														87
Dividends declared ($0.50 per share)								(692	)							(692	)
Other		(25	)		2											(23	)
Balance, June 30, 2018	$	13,030		$	(4,001	)	$	31,760		$	(4,305	)	$	413	$	36,897

The accompanying unaudited consolidated financial statements of Schlumberger Limited and its subsidiaries ~~(Schlumberger)~~(“Schlumberger”) have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of Schlumberger management, all adjustments considered necessary for a fair statement have been included in the accompanying unaudited financial statements. All intercompany transactions and balances have been eliminated in consolidation. Operating results for the six-month period ended June 30, ~~2018~~2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, ~~2018.~~2019. The December 31, ~~2017~~2018 balance sheet information has been derived from the Schlumberger ~~2017~~2018 audited financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the Schlumberger Annual Report on Form 10-K for the year ended December 31, ~~2017,~~2018, filed with the Securities and Exchange Commission on January ~~24, 2018.~~

~~In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09,~~ ~~Revenue from Contracts with Customers~~. This ASU amended the existing accounting standards for revenue recognition and requires companies to recognize revenue when control of the promised goods or services is transferred to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. Schlumberger adopted this ASU on January 1, 2018 using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Prior period amounts have not been adjusted and continue to be reflected in accordance with Schlumberger’s historical accounting. The adoption of this ASU did not have a material impact on Schlumberger’s ~~Consolidated Financial Statements~~.

Schlumberger recognizes revenue upon the transfer of control of promised products or services to customers at an amount that reflects the consideration it expects to receive in exchange for these products or services. The vast majority of Schlumberger’s services and product offerings are short-term in nature. The time between invoicing and when payment is due under these arrangements is generally 30 to 60 days.

Revenue is occasionally generated from contractual arrangements that include multiple performance obligations. Revenue from these arrangements is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using expected costs plus margin.

Revenue is recognized for certain long-term construction-type contracts over time. These contracts involve significant design and engineering efforts in order to satisfy custom designs for customer-specific applications. Revenue is recognized as work progresses on each contract. Progress is measured by the ratio of actual costs incurred to date on the project in relation to total estimated project costs. The estimate of total project costs has a significant impact on both the amount of revenue recognized as well as the related profit on a project. Revenue and profits on contracts can also be significantly affected by change orders and claims. Due to the nature of these projects, adjustments to estimates of contract revenue and total contract costs may be required as work progresses. Progress billings are generally issued upon completion of certain phases of work as stipulated in the contract. Any expected losses on a project are recorded in full in the period in which they become probable.

~~Revenue in excess of billings related to contracts where revenue is recognized over time was $0.2 billion at June 30, 2018 and $0.3 billion at December 31, 2017. Such amounts are included within~~ ~~Receivables less allowance for doubtful accounts~~ ~~in the~~ ~~Consolidated Balance Sheet~~.

Due to the nature of its business, Schlumberger does not have significant backlog. Total backlog was $2.5 billion at June 30, 2018, of which approximately 56% is expected to be recognized as revenue over the next 12 months.

~~Billings and cash collections in excess of revenue was $0.8 billion at both June 30, 2018 and December 31, 2017. Such amounts are included within~~ ~~Accounts payable and accrued liabilities~~ ~~in the~~ ~~Consolidated Balance Sheet~~.

~~In February 2016, the FASB issued ASU No. 2016-02,~~ ~~Leases~~. This ASU requires lessees to recognize a right of use asset and lease liability on the balance sheet for all leases, with the exception of short-term leases. This ASU is effective for Schlumberger on

January 1, 2019, with early adoption permitted. Based on its current lease portfolio, Schlumberger estimates that the adoption of this ASU will result in approximately $1.2 billion of additional assets and liabilities being reflected on its ~~Consolidated Balance Sheet~~.23, 2019.

During the second quarter of 2018, Schlumberger recorded a $184 million pretax charge ($164 million after-tax) associated with headcount reductions, primarily to further streamline its support cost structure. This charge is classified in Impairments & other in the Consolidated Statement of Income ~~(Loss)~~.

~~Schlumberger recorded the following charges and credits during the first six months of 2017:~~

During the second quarter of 2017, Schlumberger also entered into discussions with another customer relating to certain of its outstanding accounts receivable. As a result of those discussions, Schlumberger recorded a charge of $50 million to adjust these receivables to their estimated net realizable value.

~~These charges are classified in~~ ~~Impairments & other~~ ~~in the~~ ~~Consolidated Statement of Income (Loss).~~

~~The following is a summary of the charges and credits recorded during the first six months of 2017:~~

~~Although the $76 million net charge represents a reasonable estimate of the impact of the income tax effects of the Act on Schlumberger’s~~ ~~Consolidated Financial Statements~~ as of December 31, 2017, it should be considered provisional. Once Schlumberger finalizes certain tax positions when it files its 2017 US tax return, it will be able to conclude whether any further adjustments are required. Any adjustments to these provisional amounts will be reported as a component of ~~Taxes on income~~ ~~in the reporting period in which any such adjustments are determined, which will be no later than the fourth quarter of 2018.~~

The following is a reconciliation from basic earnings ~~(loss)~~ per share of Schlumberger to diluted earnings ~~(loss)~~ per share of Schlumberger:

(Stated in millions, except per share amounts)	(Stated in millions, except per share amounts)														(Stated in millions, except per share amounts)

	2018						2017								2019						2018
	Schlumberger Net Income		Average Shares Outstanding		Earnings per Share		Schlumberger Net Loss			Average Shares Outstanding		Loss per Share			Schlumberger Net Income		Average Shares Outstanding		Earnings per Share		Schlumberger Net Income		Average Shares Outstanding		Earnings per Share
Second Quarter
Basic	$	430		1,384	$	0.31	$	(74	)		1,387	$	(0.05	)	$	492		1,384	$	0.36	$	430		1,384	$	0.31
Assumed exercise of stock options		-		1				-			-					-		-				-		1
Unvested restricted stock		-		7				-			-					-		11				-		7
Diluted	$	430		1,392	$	0.31	$	(74	)		1,387	$	(0.05	)	$	492		1,395	$	0.35	$	430		1,392	$	0.31


	2018						2017								2019						2018
	Schlumberger Net Income		Average Shares Outstanding		Earnings per Share		Schlumberger Net Income			Average Shares Outstanding		Earnings per Share			Schlumberger Net Income		Average Shares Outstanding		Earnings per Share		Schlumberger Net Income		Average Shares Outstanding		Earnings per Share
Six Months
Basic	$	955	$	1,385	$	0.69	$	205		$	1,390	$	0.15		$	913	$	1,385	$	0.66	$	955	$	1,385	$	0.69
Assumed exercise of stock options		-		1				-			2					-		-				-		1
Unvested restricted stock		-		7				-			5					-		11				-		7
Diluted	$	955	$	1,393	$	0.69	$	205		$	1,397	$	0.15		$	913	$	1,396	$	0.65	$	955	$	1,393	$	0.69

The number of outstanding options to purchase shares of Schlumberger common stock that were not included in the computation of diluted earnings per share, because to do so would have had an antidilutive effect, was as follows:

(Stated in millions)	(Stated in millions)				(Stated in millions)

	2018		2017		2019		2018
Second Quarter		38		49		48		38
Six Months		38		29		42		38

A summary of inventories, which are stated at the lower of average cost or net realizable value, is as follows:

(Stated in millions)	(Stated in millions)				(Stated in millions)

	Jun. 30,		Dec. 31,		Jun. 30,		Dec. 31,
	2018		2017		2019		2018
Raw materials & field materials	$	1,853	$	1,846	$	1,995	$	1,803
Work in progress		525		503		576		519
Finished goods		1,742		1,697		1,818		1,688
	$	4,120	$	4,046	$	4,389	$	4,010

(Stated in millions)	(Stated in millions)				(Stated in millions)

	Jun. 30,		Dec. 31,		Jun. 30,		Dec. 31,
	2018		2017		2019		2018
Property, plant & equipment	$	38,191	$	37,813	$	38,822	$	38,664
Less: Accumulated depreciation		26,687		26,237		27,463		26,985
	$	11,504	$	11,576	$	11,359	$	11,679

(Stated in millions)	(Stated in millions)				(Stated in millions)

	2018		2017		2019		2018
Second Quarter	$	525	$	592	$	514	$	525
Six Months	$	1,048	$	1,205	$	1,026	$	1,048

The change in the carrying amount of multiclient seismic data for the six months ended June 30, ~~2018~~2019 was as follows:

(Stated in millions)	(Stated in millions)			(Stated in millions)

Balance at December 31, 2017	$	727
Balance at December 31, 2018				$	601
Capitalized in period		47			109
Charged to expense		(88	)		(133	)
Balance at June 30, 2018	$	686
Balance at June 30, 2019				$	577

The gross book value, accumulated amortization and net book value of intangible assets were as follows:

	(Stated in millions)												(Stated in millions)

	Jun. 30, 2018						Dec. 31, 2017						Jun. 30, 2019						Dec. 31, 2018
	Gross		Accumulated		Net Book		Gross		Accumulated		Net Book		Gross		Accumulated		Net Book		Gross		Accumulated		Net Book
	Book Value		Amortization		Value		Book Value		Amortization		Value		Book Value		Amortization		Value		Book Value		Amortization		Value
Customer relationships	$	4,814	$	1,129	$	3,685	$	4,832	$	1,020	$	3,812	$	4,750	$	1,315	$	3,435	$	4,768	$	1,243	$	3,525
Technology/technical know-how		3,578		1,137		2,441		3,634		1,078		2,556		3,452		1,325		2,127		3,494		1,246		2,248
Tradenames		2,806		584		2,222		2,806		533		2,273		2,799		679		2,120		2,799		628		2,171
Other		1,325		581		744		1,295		582		713		1,394		591		803		1,404		621		783
	$	12,523	$	3,431	$	9,092	$	12,567	$	3,213	$	9,354	$	12,395	$	3,910	$	8,485	$	12,465	$	3,738	$	8,727

(Stated in millions)	(Stated in millions)				(Stated in millions)

	2018		2017		2019		2018
Second Quarter	$	174	$	167	$	164	$	174
Six Months	$	339	$	336	$	324	$	339

Based on the net book value of intangible assets at June 30, ~~2018,~~2019, amortization charged to income for the subsequent five years is estimated to be: remaining two quarters of ~~2018—$346 million;~~ 2019—$~~682~~347 million; 2020—$~~648~~663 million; 2021—$~~617~~633 million; 2022—$~~610~~623 million; 2023—$612 million; and ~~2023—~~2024—$~~600~~569 million.

(Stated in millions)	(Stated in millions)				(Stated in millions)

	Jun. 30,		Dec. 31,		Jun. 30,		Dec. 31,
	2018		2017		2019		2018
4.00% Senior Notes due 2025	$	1,742	$	1,741
3.30% Senior Notes due 2021		1,595		1,595	$	1,597	$	1,596
3.65% Senior Notes due 2023						1,494		1,493
3.90% Senior Notes due 2028						1,440		-
3.00% Senior Notes due 2020		1,595		1,593		1,196		1,596
3.65% Senior Notes due 2023		1,493		1,492
4.20% Senior Notes due 2021		1,100		1,100		1,100		1,100
2.40% Senior Notes due 2022		997		996		998		997
4.00% Senior Notes due 2025						929		1,742
4.30% Senior Notes due 2029						845		-
3.75% Senior Notes due 2024						745		-
1.00% Guaranteed Notes due 2026						677		678
3.63% Senior Notes due 2022		846		846		615		847
2.65% Senior Notes due 2022		598		598		598		598
2.20% Senior Notes due 2020		498		498		498		499
7.00% Notes due 2038		211		212		209		210
4.50% Notes due 2021		134		135		131		132
5.95% Notes due 2041		115		115		115		115
3.60% Notes due 2022		109		110		108		109
5.13% Notes due 2043		99		99		99		99
4.00% Notes due 2023		82		82		81		82
3.70% Notes due 2024		56		56		55		55
0.63% Guaranteed Notes due 2019		-		712
1.50% Guaranteed Notes due 2019		-		603
Commercial paper borrowings		2,200		1,694		3,193		2,433
Other		395		598		255		263
	$	13,865	$	14,875	$	16,978	$	14,644

In April 2019, Schlumberger completed a debt exchange offer, pursuant to which it issued $1.500 billion in principal of 3.90% Senior Notes due 2028 (the “New Notes”) in exchange for $401 million of 3.00% Senior Notes due 2020, $234 million of 3.63% Senior Notes due 2022 and $817 million of 4.00% Senior Notes due 2025. In connection with the exchange of principal, Schlumberger paid a premium of $48 million, substantially all of which was in the form of New Notes. This premium is being amortized as additional interest expense over the term of the New Notes.

The estimated fair value of Schlumberger’s Long-term Debt, based on quoted market prices at June 30, ~~2018~~2019 and December 31, ~~2017~~2018, was ~~$13.8~~$17.4 billion and ~~$15.2~~$14.6 billion, respectively.

At June 30, 2019, Schlumberger had separate committed credit facility agreements aggregating $6.5 billion with commercial banks, of which $3.3 billion was available and unused. These committed facilities support commercial paper programs in the United States and Europe, of which $1.0 billion matures in February 2020, $1.5 billion matures in November 2020, $2.0 billion matures in February 2023 and $2.0 billion matures in February 2024. Interest rates and other terms of borrowing under these lines of credit vary by facility.

Borrowings under Schlumberger’s commercial paper programs at June 30, 2019 and December 31, 2018 were ~~$2.9~~$3.2 billion and $2.4 billion, respectively, all of which ~~$0.7 billion was~~were classified in ~~Short-term borrowings and current portion of long-term debt~~Long-term Debt in the Consolidated Balance Sheet~~. At December 31, 2017, borrowings under the commercial paper programs were $3.0 billion of which $1.3 billion was classified in~~ ~~Short-term borrowings and current portion of long-term debt~~ ~~in the~~ ~~Consolidated Balance Sheet~~.

Schlumberger is exposed to market risks related to fluctuations in foreign currency exchange rates and interest rates. To mitigate these risks, Schlumberger utilizes derivative instruments. Schlumberger does not enter into derivative transactions for speculative purposes.

Schlumberger is subject to interest rate risk on its debt and its investment portfolio. Schlumberger maintains an interest rate risk management strategy that uses a mix of variable and fixed rate debt combined with its investment portfolio, and occasionally interest rate swaps, to mitigate the exposure to changes in interest rates.

During 2013, Schlumberger entered into a cross-currency swap for a notional amount of €0.5 billion in order to hedge changes in the fair value of Schlumberger’s €0.5 billion 1.50% Guaranteed Notes due 2019. Under the terms of this swap, Schlumberger will receive interest at a fixed rate of 1.50% on the euro notional amount and pay interest at a floating rate of three-month LIBOR plus approximately 64 basis points on the US dollar notional amount.

This cross-currency swap is designated as a fair value hedge of the underlying debt and is marked to market, with gains and losses recognized immediately in income to largely offset the effects on changes in the fair value of the hedged debt.

During 2017, a ~~Canadian dollar~~Canadian-dollar functional currency subsidiary of Schlumberger issued $1.1 billion of ~~US dollar~~US-dollar denominated debt. Schlumberger entered into cross-currency swaps for an aggregate notional amount of $1.1 billion in order to hedge changes in the fair value of its $0.5 billion 2.20% Senior Notes due 2020 and its $0.6 billion 2.65% Senior Notes due 2022. These cross-currency swaps effectively convert the ~~US dollar~~US-dollar notes to ~~Canadian dollar~~Canadian-dollar denominated debt with fixed annual interest rates of 1.97% and 2.52%, respectively.

These cross-currency swaps are designated as cash flow hedges. The changes in the fair values of the hedges are recorded on the Consolidated Balance Sheet and in Accumulated Other Comprehensive Loss. Amounts recorded in Accumulated Other Comprehensive Loss are reclassified to earnings in the same periods that the underlying hedged item is recognized in earnings.

At June 30, ~~2018,~~2019, Schlumberger had fixed rate debt aggregating $13.5 billion and variable rate debt aggregating ~~$4.1~~$3.6 billion, after taking into account the effect of interest rate swaps.

~~Short-term investments~~ ~~were $1.6 billion at June 30, 2018. The carrying value of these investments approximated fair value.~~

As a multinational company, Schlumberger ~~conducts its business~~generates revenue in more than 85120 countries. Schlumberger’s functional currency is primarily the US dollar. However, outside the United States, a significant portion of Schlumberger’s expenses isare incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which Schlumberger conducts business, the US dollar-reported expenses will increase (decrease).

Schlumberger is exposed to risks on future cash flows to the extent that the local currency is not the functional currency and expenses denominated in local currency are not equal to revenues denominated in local currency. Schlumberger is also exposed to risks on future cash flows relating to certain of its fixed rate debt denominated in currencies other than the functional currency. Schlumberger uses foreign currency forward contracts to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges, with the changes in the fair value of the hedge recorded on the Consolidated Balance Sheet and in Accumulated Other Comprehensive Loss. Amounts recorded in Accumulated Other Comprehensive Loss are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings.

~~At June 30, 2018,~~ Schlumberger ~~recognized a cumulative net $12 million loss~~is exposed to changes in ~~Accumulated Other Comprehensive Loss~~ ~~relating to revaluation~~the fair value of assets and liabilities that are denominated in currencies other than the functional currency. While Schlumberger uses foreign currency forward contracts and foreign currency options to economically hedge this exposure as it relates to certain currencies, these contracts are not designated as ~~cash flow~~ hedges for accounting purposes. Instead, the ~~majority~~fair value of ~~which~~the contracts is ~~expected to be reclassified into earnings within~~recorded on the ~~next 12 months.~~Consolidated Balance Sheet, and changes in the fair value are recognized in the Consolidated Statement of Income as are changes in fair value of the hedged item.

At June 30, ~~2018,~~2019, contracts were outstanding for the US dollar equivalent of ~~$4.7~~$4.4 billion in various foreign currencies, of which ~~$1.8~~$1.1 billion relates to hedges of debt denominated in currencies other than the functional currency.

At June 30, 2019, Schlumberger recognized a cumulative $13 million loss in Accumulated Other Comprehensive Loss relating to the revaluation of foreign currency forward contracts, cross-currency swaps and changes in the fair value of interest-rate swaps designated as cash flow hedges.

The effect of derivative instruments designated as fair value and cash flow hedges, and those not designated as hedges, on the Consolidated Statement of Income was as follows:

						(Stated in millions)												(Stated in millions)

	Gain (Loss) Recognized in Income (Loss)											Gain (Loss) Recognized in Income
	Second Quarter					Six Months						Second Quarter						Six Months
	2018			2017		2018			2017		Consolidated Statement of Income Classification	2019			2018			2019			2018			Consolidated Statement of Income Classification
Derivatives designated as fair value hedges:
Cross currency swap	$	(39	)	$	29	$	(12	)	$	47	Interest expense
Cross currency swaps												$	-		$	(39	)	$	-		$	(12	)	Interest expense

Derivatives designated as cash flow hedges:
Foreign exchange contracts	$	1		$	-	$	5		$	-	Cost of services/sales	$	(2	)	$	1		$	(4	)	$	5		Cost of services/sales
Cross currency swap		36			-		55			-	Interest expense
Cross currency swaps													(22	)		36			(38	)		55		Interest expense
	$	37		$	-	$	60		$	-		$	(24	)	$	37		$	(42	)	$	60
Derivatives not designated as hedges:
Foreign exchange contracts	$	4		$	1	$	32		$	7	Cost of services/sales	$	(14	)	$	4		$	(8	)	$	32		Cost of services/sales

Schlumberger ~~and its subsidiaries are~~is party to various legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a material loss with respect to any currently pending legal proceeding is remote. However, litigation is inherently uncertain and it is not possible to predict the ultimate disposition of any of these proceedings.

				(Stated in millions)												(Stated in millions)

	Second Quarter 2018						Second Quarter 2017						Second Quarter 2019						Second Quarter 2018
				Income						Income						Income						Income
				Before						Before						Before						Before
	Revenue			Taxes			Revenue			Taxes			Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	1,636		$	350		$	1,759		$	299		$	1,649		$	326		$	1,640		$	350
Drilling		2,234			289			2,107			302			2,421			300			2,234			289
Production		3,257			316			2,496			221			3,077			235			3,253			316
Cameron		1,295			166			1,265			174			1,237			156			1,295			166
Eliminations & other		(119	)		(27	)		(165	)		(46	)		(115	)		(49	)		(119	)		(27	)
Pretax operating income					1,094						950
Pretax segment operating income																	968						1,094
Corporate & other ⁽¹⁾					(239	)					(242	)					(238	)					(239	)
Interest income ⁽²⁾					11						28						9						11
Interest expense ⁽³⁾					(135	)					(128	)					(146	)					(135	)
Charges and credits ⁽⁴⁾					(184	)					(591	)					-						(184	)
	$	8,303		$	547		$	7,462		$	17		$	8,269		$	593		$	8,303		$	547

⁽¹⁾Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.

⁽²⁾~~Interest income excludes amounts which are included in the segments’ income ($1 million in 2018; $6 million in 2017).~~

⁽³⁾~~Interest expense excludes amounts which are included in the segments’ income ($9 million in 2018; $14 million in 2017).~~

(Stated in millions)

Six Months 2018

Six Months 2017

Income

Income

Before

Before

Revenue

Taxes

Revenue

Taxes

Reservoir Characterization
$
3,192

$
657

$
3,377

$
580

Drilling

4,360

582

4,092

531

Production

6,216

532

4,683

331

Cameron

2,605

332

2,494

336

Eliminations & other

(242
)

(35
)

(290
)

(71
)
Pretax operating income

2,068

1,707

Corporate & other ⁽¹⁾

(464
)

(480
)
Interest income ⁽²⁾

36

52

Interest expense ⁽³⁾

(266
)

(254
)
Charges and credits ⁽⁴⁾

(184
)

(674
)

$
16,131

$
1,190

$
14,356

$
351

⁽¹⁾	Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.

				(Stated in millions)

	Six Months 2019						Six Months 2018
				Income						Income
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	3,192		$	619		$	3,199		$	656
Drilling		4,808			608			4,360			582
Production		5,967			453			6,209			533
Cameron		2,412			292			2,605			332
Eliminations & other		(230	)		(96	)		(242	)		(35	)
Pretax segment operating income					1,876						2,068
Corporate & other ⁽¹⁾					(511	)					(464	)
Interest income ⁽²⁾					18						36
Interest expense ⁽³⁾					(282	)					(266	)
Charges and credits ⁽⁴⁾					-						(184	)
	$	16,149		$	1,101		$	16,131		$	1,190

⁽²⁾~~Interest income excludes amounts which are included in the segments’ income ($4 million in 2018; $11 million in 2017).~~

⁽³⁾~~Interest expense excludes amounts which are included in the segments’ income ($21 million in 2018; $27 million in 2017).~~

					(Stated in millions)								(Stated in millions)

	Second Quarter				Six Months				Second Quarter				Six Months
	2018		2017		2018		2017		2019		2018		2019		2018
North America	$	3,139	$	2,202	$	5,974	$	4,074	$	2,801	$	3,139	$	5,539	$	5,974
Latin America		919		1,039		1,790		1,991		1,115		919		2,107		1,790
Europe/CIS/Africa		1,778		1,750		3,482		3,401		1,896		1,784		3,602		3,496
Middle East & Asia		2,367		2,347		4,676		4,666		2,452		2,362		4,790		4,662
Eliminations & other		100		124		209		224		5		99		111		209
	$	8,303	$	7,462	$	16,131	$	14,356	$	8,269	$	8,303	$	16,149	$	16,131

North America and International revenue disaggregated by ~~Group~~segment was as follows:

							(Stated in millions)											(Stated in millions)

	Second Quarter 2018												Second Quarter 2019
	North						Eliminations						North					Eliminations
	America			International			& other			Total			America		International			& other			Total
Reservoir Characterization	$	269		$	1,233		$	134		$	1,636		$	242	$	1,316		$	91		$	1,649
Drilling		568			1,612			54			2,234			553		1,819			49			2,421
Production		1,695			1,560			2			3,257			1,419		1,657			1			3,077
Cameron		611			707			(23	)		1,295			558		702			(23	)		1,237
Other		(4	)		(48	)		(67	)		(119	)		29		(31	)		(113	)		(115	)
	$	3,139		$	5,064		$	100		$	8,303		$	2,801	$	5,463		$	5		$	8,269


	Second Quarter 2017												Second Quarter 2018
	North						Eliminations						North					Eliminations
	America			International			& other			Total			America		International			& other			Total
Reservoir Characterization	$	217		$	1,372		$	170		$	1,759		$	269	$	1,237		$	134		$	1,640
Drilling		485			1,565			57			2,107			568		1,612			54			2,234
Production		1,032			1,475			(11	)		2,496			1,695		1,556			2			3,253
Cameron		474			788			3			1,265			593		678			24			1,295
Other		(6	)		(64	)		(95	)		(165	)		14		(18	)		(115	)		(119	)
	$	2,202		$	5,136		$	124		$	7,462		$	3,139	$	5,065		$	99		$	8,303

			(Stated in millions)

	Six Months 2019
	North					Eliminations
	America		International			& other			Total
Reservoir Characterization	$	458	$	2,568		$	166		$	3,192
Drilling		1,130		3,574			104			4,808
Production		2,792		3,173			2			5,967
Cameron		1,118		1,269			25			2,412
Other		41		(85	)		(186	)		(230	)
	$	5,539	$	10,499		$	111		$	16,149


	Six Months 2018
	North					Eliminations
	America		International			& other			Total
Reservoir Characterization	$	491	$	2,436		$	272		$	3,199
Drilling		1,132		3,125			103			4,360
Production		3,195		3,011			3			6,209
Cameron		1,144		1,413			48			2,605
Other		12		(37	)		(217	)		(242	)
	$	5,974	$	9,948		$	209		$	16,131

Revenue in excess of billings related to contracts where revenue is recognized over time was $0.2 billion at June 30, 2019 and December 31, 2018. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.

Due to the nature of its business, Schlumberger does not have significant backlog. Total backlog was $3.0 billion at June 30, 2019, of which approximately 60% is expected to be recognized as revenue over the next 12 months.

(Stated in millions)

Six Months 2018

North

Eliminations

America

International

& other

Total

Reservoir Characterization
$
491

$
2,429

$
272

$
3,192

Drilling

1,132

3,125

103

4,360

Production

3,195

3,018

3

6,216

Cameron

1,180

1,461

(36
)

2,605

Other

(24
)

(85
)

(133
)

(242
)

$
5,974

$
9,948

$
209

$
16,131

Six Months 2017

North

Eliminations

America

International

& other

Total

Reservoir Characterization
$
448

$
2,639

$
290

$
3,377

Drilling

940

3,034

118

4,092

Production

1,770

2,927

(14
)

4,683

Cameron

919

1,581

(6
)

2,494

Other

(3
)

(123
)

(164
)

(290
)

$
4,074

$
10,058

$
224

$
14,356

Billings and cash collections in excess of revenue was $1.0 billion at June 30, 2019 and $0.9 billion at December 31, 2018. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet.

Net pension cost (credit) for the Schlumberger pension plans included the following components:

(Stated in millions)	(Stated in millions)																								(Stated in millions)

	Second Quarter												Six Months												Second Quarter												Six Months
	2018						2017						2018						2017						2019						2018						2019						2018
	US			Int'l			US			Int'l			US			Int'l			US			Int'l			US			Int'l			US			Int'l			US			Int'l			US			Int'l
Service cost	$	14		$	38		$	14		$	19		$	30		$	70		$	29		$	48		$	13		$	32		$	14		$	38		$	27		$	64		$	30		$	70
Interest cost		41			76			44			75			84			152			88			153			46			83			41			76			91			166			84			152
Expected return on plan assets		(63	)		(149	)		(62	)		(134	)		(125	)		(293	)		(122	)		(270	)		(57	)		(148	)		(61	)		(149	)		(115	)		(298	)		(125	)		(293	)
Amortization of prior service cost		3			3			3			24			6			5			6			48			2			2			3			3			4			4			6			5
Amortization of net loss		12			27			9			27			24			70			19			60			8			15			10			27			16			31			24			70
	$	7		$	(5	)	$	8		$	11		$	19		$	4		$	20		$	39		$	12		$	(16	)	$	7		$	(5	)	$	23		$	(33	)	$	19		$	4

The net periodic benefit credit for the Schlumberger US postretirement medical plan included the following components:

(Stated in millions)	(Stated in millions)												(Stated in millions)

	Second Quarter						Six Months						Second Quarter						Six Months
	2018			2017			2018			2017			2019			2018			2019			2018
Service cost	$	8		$	7		$	16		$	15		$	7		$	8		$	15		$	16
Interest cost		10			12			22			23			12			10			24			22
Expected return on plan assets		(16	)		(16	)		(32	)		(31	)		(17	)		(16	)		(33	)		(32	)
Amortization of prior service credit		(7	)		(7	)		(14	)		(14	)		(7	)		(7	)		(14	)		(14	)
	$	(5	)	$	(4	)	$	(8	)	$	(7	)	$	(5	)	$	(5	)	$	(8	)	$	(8	)

(Stated in millions)

Pension and

Currency

Other

Translation

Marketable

Cash Flow

Postretirement

Adjustments

Securities

Hedges

Benefit Plans

Total

Balance, January 1, 2018
$
(2,139
)

$
13

$
3

$
(2,151
)

$
(4,274
)
Other comprehensive loss before reclassifications

(81
)

(21
)

(10
)

-

(112
)
Amounts reclassified from accumulated other comprehensive loss

-

-

(5
)

86

81

Net other comprehensive income

(81
)

(21
)

(15
)

86

(31
)
Balance, June 30, 2018
$
(2,220
)

$
(8
)

$
(12
)

$
(2,065
)

$
(4,305
)

Pension and

Currency

Other

Translation

Marketable

Cash Flow

Postretirement

Adjustments

Securities

Hedges

Benefit Plans

Total

Balance, January 1, 2017
$
(2,136
)

$
21

$
(19
)

$
(2,509
)

$
(4,643
)
Other comprehensive gain (loss) before reclassifications

(26
)

(25
)

11

-

(40
)
Amounts reclassified from accumulated other comprehensive loss

-

-

8

117

125

Net other comprehensive income

(26
)

(25
)

19

117

85

Balance, June 30, 2017
$
(2,162
)

$
(4
)

$
-

$
(2,392
)

$
(4,558
)

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

				(Stated in millions)												(Stated in millions)

	Second Quarter 2018						Second Quarter 2017						Second Quarter 2019						First Quarter 2019
				Income						Income						Income						Income
				Before						Before						Before						Before
	Revenue			Taxes			Revenue			Taxes			Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	1,636		$	350		$	1,759		$	299		$	1,649		$	326		$	1,543		$	293
Drilling		2,234			289			2,107			302			2,421			300			2,387			307
Production		3,257			316			2,496			221			3,077			235			2,890			217
Cameron		1,295			166			1,265			174			1,237			156			1,174			137
Eliminations & other		(119	)		(27	)		(165	)		(46	)		(115	)		(49	)		(115	)		(46	)
Pretax operating income					1,094						950
Pretax segment operating income																	968						908
Corporate & other ⁽¹⁾					(239	)					(242	)					(238	)					(273	)
Interest income ⁽²⁾					11						28						9						10
Interest expense ⁽³⁾					(135	)					(128	)					(146	)					(136	)
Charges and credits⁽⁴⁾					(184	)					(591	)
	$	8,303		$	547		$	7,462		$	17		$	8,269		$	593		$	7,879		$	509

⁽²⁾~~Interest income excludes amounts which are included in the segments’ income ($1 million in 2018; $6 million in 2017).~~

⁽³⁾~~Interest expense excludes amounts which are included in the segments’ income ($9 million in 2018; $14 million in 2017).~~

⁽⁴⁾~~Charges and credits are described in detail in Note 2 to the~~ ~~Consolidated Financial Statements~~.

Second-quarter ~~2018~~ revenue of $8.3 billion increased ~~11% year-on-year. Production~~5% sequentially with North America revenue of $2.8 billion increasing 2% while international revenue of $5.5 billion increased 8%.

International revenue growth of 8% sequentially, was led by the Europe/CIS/Africa area, where revenue increased ~~30% due~~sequentially by 11% driven by activity that strengthened beyond the seasonal recovery in the Russia & Central Asia and United Kingdom & Continental Europe GeoMarkets. Sequential international growth was also driven by a 19% improvement in the Far East Asia & Australia GeoMarket and a 12% increase in the Latin America area, while revenue in the Middle East region grew 3%.

North America revenue improved 2% sequentially, driven by a 10% sequential increase in offshore revenue from stronger exploration-led activity driven mainly by WesternGeco^®multiclient seismic license sales. North America land revenue increased 1% sequentially despite the impact of the spring breakup in Canada, as OneStim^® activity was higher offset by weak hydraulic fracturing pricing and a general decrease in drilling activity.

From a macro perspective, Schlumberger expects oil market sentiments to remain balanced. The oil demand forecast for 2019 has been reduced slightly on trade war fears and current global geopolitical tensions, but Schlumberger does not anticipate a change in the ~~accelerated land activity~~structural demand outlook for the mid-term. On the supply side, Schlumberger continues to see US shale oil as the only near- to medium-term source of global production growth, albeit at a slowing growth rate, as exploration & production (E&P) operators continue to transition from an emphasis on growth to a focus on cash and returns, with consequent restraining effects on investment levels. These effects, combined with the decision by OPEC and Russia to extend production cuts through the first quarter of 2020, are likely to keep oil prices range bound around present levels. Although the markets are well supplied from production added by projects that were sanctioned before 2015, this added supply will begin to fall in 2020 and create risk for the future as the decline rates in many mature production basins become an increasingly significant challenge. In addition, while the number of new projects Schlumberger expects to receive final investment decision approval in 2019 is likely to increase again for the fourth consecutive year, their size and number account for supply additions far below the required global annual production replacement rates. Schlumberger therefore maintains its view that international E&P investment will grow 7% to 8% in 2019, further supported by the increase in international rig count. In contrast, spending in North America ~~while Drilling~~land is tracking Schlumberger's expectations of a 10% decline this year.

Reservoir Characterization revenue ~~was higher by 6%~~of $1.6 billion increased 7% sequentially due to higher ~~demand for directional drilling technologies on land~~activity beyond the seasonal rebounds from winter in ~~North America~~the Northern Hemisphere. Growth was driven by higher offshore exploration activity internationally benefiting Wireline and ~~the start-up of multiple new projects internationally. Cameron revenue increased by 2% while~~Testing Services. The increase in Reservoir Characterization revenue ~~declined 7%.~~was also driven by higher WesternGeco multiclient seismic license sales in the Mexico Bay of Campeche and the US Gulf of Mexico.

Second-quarter 2018 pretax operating margin was essentially flat year-on-year at 13% as margin expansion in Production and Reservoir Characterization was offset by margin declines in Drilling and Cameron. As a result of accelerated land activity in North America, Production pretax operating margin expanded 84 basis points (“bps”) to 10%.

Reservoir Characterization pretax operating margin of 20% was 81 basis points (bps) higher sequentially due to the seasonal recovery in higher-margin Wireline activity and stronger WesternGeco multiclient seismic license sales.

Drilling revenue of $2.4 billion increased ~~439 bps to 21%~~1% sequentially. Stronger international activity beyond the seasonal rebounds in the Northern Hemisphere was supported by the international rig count increase of 6%, but growth was offset by reduced shale drilling activity in North America land as ~~a result of reduced depreciation~~the US land rig count declined 5%. International growth was driven by higher activity benefiting M-I SWACO and ~~amortization following the WesternGeco impairment charges recorded during the fourth quarter of 2017.~~ Drilling & Measurements.

Drilling pretax operating margin of 12% declined ~~139~~45 bps ~~year-on-year~~sequentially as margin improvements internationally for Drilling & Measurements and M-I SWACO were more than offset by lower margins from Integrated Drilling Services (IDS) projects in the Middle East region.

Production revenue of $3.1 billion increased 6% sequentially driven primarily by higher international activity for Well Services. Increased artificial lift sales across the international areas, higher intelligent completions activity in Saudi Arabia, and increased Schlumberger Production Management (SPM) project activity mainly in Ecuador, all contributed to ~~13%,~~the increase in Production revenue. In North America land, despite the impact of the spring breakup in Canada, Production revenue was up 3% sequentially driven by ~~additional costs associated with~~higher cementing activity and improved OneStim hydraulic fracturing fleet utilization on increased market demand. These effects, however, were partially offset by softer hydraulic fracturing pricing.

Production pretax operating margin of 8% was essentially flat sequentially as the ~~start-up~~improvement in international margin from higher activity was offset by the effects of ~~multiple new integrated drilling projects.~~ pricing pressure in North America land.

Cameron revenue of $1.2 billion increased 5% sequentially driven by higher international revenue for OneSubsea, Surface Systems, and Drilling Systems. By geography, international revenue grew 24% sequentially while North America revenue was essentially flat.

Cameron pretax operating margin ~~declined also by~~of 13% increased 94 bps sequentially primarily due to ~~13%~~improved profitability in OneSubsea and Surface Systems.

				(Stated in millions)

	Second Quarter 2019						Second Quarter 2018
				Income						Income
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	1,649		$	326		$	1,640		$	350
Drilling		2,421			300			2,234			289
Production		3,077			235			3,253			316
Cameron		1,237			156			1,295			166
Eliminations & other		(115	)		(49	)		(119	)		(27	)
Pretax segment operating income					968						1,094
Corporate & other ⁽¹⁾					(238	)					(239	)
Interest income ⁽²⁾					9						11
Interest expense ⁽³⁾					(146	)					(135	)
Charges and credits⁽⁴⁾					-						(184	)
	$	8,269		$	593		$	8,303		$	547

Second-quarter 2019 revenue of $8.3 billion was essentially flat year-on-year as North America revenue declined 11% year-on-year, while international revenue increased by 8%. These results reflect the normalization in global E&P spend that Schlumberger anticipated as international investment increased in response to the accelerating decline in the mature production base, and North America land investment decreased due to E&P operator cash flow constraints.

Second-quarter ~~2018~~2019 revenue of $1.6 billion ~~decreased 7% year-on-year primarily due to~~was essentially flat year-on-year. Higher Wireline, Testing, and Software Integrated Solutions revenue from increased international activity was offset by reduced ~~WesternGeco multiclient seismic license sales, the continued wind down of WesternGeco marine seismic acquisition contracts and lower~~ OneSurface ~~revenue on long-term projects in the Middle East.~~ project revenue.

Year-on-year, pretax operating margin ~~increased 439~~decreased 153 bps to ~~21%~~20% primarily due to reduced profitability from OneSurface as ~~a result~~projects wound down at the end of ~~reduced depreciation and amortization following the WesternGeco impairment charges recorded during the fourth quarter of 2017.~~2018.

Second-quarter ~~2018~~2019 revenue of ~~$2.2~~$2.4 billion increased 6%8% year-on-year primarily due to higher demand for ~~directional~~ drilling ~~technologies on land~~services, largely in ~~North America and~~ the ~~start-up of new integrated drilling projects internationally.~~

~~Year-on-year, pretax operating margin declined by 139 bps to 13% primarily due to additional mobilization and start-up costs associated with the new integrated drilling projects.~~

Second-quarter 2018 revenue of $3.3 billion increased 30% year-on-year driven by the accelerated land activity growth in North America due to the deployment of additional capacity, market share gains and improved pricinginternational markets that benefited ~~the pressure pumping business.~~

~~Year-on-year, pretax operating margin increased 84 bps to 10% as a result of improved profitability in North America due to accelerated land activity and improved pricing.~~

Second-quarter 2018 revenue of $1.3 billion increased 2% year-on-year due to higher activity on land in North America benefiting the short-cycle businesses of Surface Systems and Valves & Measurement. This was largely offset by a declining project backlog for the long-cycle businesses of OneSubseaM-I SWACO, IDS, and Drilling ~~Systems.~~& Measurements.

Year-on-year, pretax operating margin decreased 9453 bps to ~~13%.~~12% despite higher revenue as margins were affected by competitive pricing, and start-up costs from a number of integrated contracts internationally.

(Stated in millions)

Six Months 2018

Six Months 2017

Income

Income

Before

before

Revenue

Taxes

Revenue

Taxes

Reservoir Characterization
$
3,192

$
657

$
3,377

$
580

Drilling

4,360

582

4,092

531

Production

6,216

532

4,683

331

Cameron

2,605

332

2,494

336

Eliminations & other

(242
)

(35
)

(290
)

(71
)
Pretax operating income

2,068

1,707

Corporate & other ⁽¹⁾

(464
)

(480
)
Interest income ⁽²⁾

36

52

Interest expense ⁽³⁾

(266
)

(254
)
Charges and credits ⁽⁴⁾

(184
)

(674
)

$
16,131

$
1,190

$
14,356

$
351

⁽²⁾~~Interest income excludes amounts which are included in the segments’ income ($4 million in 2018; $11 million in 2017).~~

⁽³⁾~~Interest expense excludes amounts which are included in the segments’ income ($21 million in 2018; $27 million in 2017).~~

⁽⁴⁾~~Charges and credits are described in detail in Note 2 to the~~ ~~Consolidated Financial Statements~~.

~~Six-month 2018~~Second-quarter 2019 revenue of $16.1 billion increased 12% year-on-year. International revenue was essentially flat in line with the flat rig count versus the same period last year. Production revenue increased 33% due to the accelerated land activity growth in North America, while Drilling revenue increased 7% due to higher demand for directional drilling technologies on land in North America and the start-up of multiple new projects internationally. Cameron revenue increased by 4% while Reservoir Characterization revenue declined 5%.

~~Six-month 2018 pretax operating margin increased 93~~ bps year-on-year to 13%, due to improved profitability in North America from the growth in land activity that benefited Production. As a result, the Production pretax operating margin expanded 149 bps to 9%. Drilling pretax operating margin was essentially flat at 13%, as the additional costs associated with the mobilization and start-up of the new projects restricted margin expansion. Reservoir Characterization pretax operating margin increased 342 bps to 21% primarily as a result of reduced depreciation and amortization following the WesternGeco impairments charges recorded during the fourth quarter of 2017. Cameron pretax operating margin was essentially flat at 13%.

~~Six-month 2018 revenue of $3.2~~$3.1 billion decreased 5% year-on-year ~~primarily~~with most of the revenue decline attributable to lower OneStim activity in North America as customers reduced spending due to higher cost of capital, lower ~~OneSurface revenue on long-term projects in the Middle East~~borrowing capacity and ~~reduced WesternGeco multiclient seismic license sales.~~ expectation of better returns from their shareholders.

Year-on-year, pretax operating margin ~~increased 342~~decreased 207 bps to ~~21% primarily as a result of reduced depreciation and amortization following the WesternGeco impairment charges recorded during the fourth quarter of 2017.~~

~~Six-month~~ ~~2018 revenue of $4.4 billion increased 7% year-on-year~~8% primarily due to ~~higher demand for directional drilling technologies on land~~reduced profitability in OneStim in North ~~America~~America.

Second-quarter 2019 revenue of $1.2 billion decreased 4% year-on-year due to lower revenue for OneSubsea, Drilling Systems, and ~~the start-up of new projects internationally.~~

				(Stated in millions)

	Six Months 2019						Six Months 2018
				Income						Income
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	3,192		$	619		$	3,199		$	656
Drilling		4,808			608			4,360			582
Production		5,967			453			6,209			533
Cameron		2,412			292			2,605			332
Eliminations & other		(230	)		(96	)		(242	)		(35	)
Pretax segment operating income					1,876						2,068
Corporate & other ⁽¹⁾					(511	)					(464	)
Interest income ⁽²⁾					18						36
Interest expense ⁽³⁾					(282	)					(266	)
Charges and credits ⁽⁴⁾					-						(184	)
	$	16,149		$	1,101		$	16,131		$	1,190

Six-month 2019 revenue of $16.1 billion was essentially flat year-on-year as international revenue increased 6% while North America land revenue declined 12%. These results reflect the normalization in global E&P spend that Schlumberger anticipated as international investment increases in response to the accelerating decline in the mature production base, and North America land investment decreases due to E&P operator cash flow constraints.

Six-month 2019 revenue of $3.2 billion was essentially flat year-on-year, driven primarily by higher Wireline and Testing from increased international activity that was offset by reduced OneSurface project revenue and the ~~additional costs associated with~~absence of WesternGeco marine seismic acquisition revenue following the ~~mobilization~~divestiture of this business during the fourth quarter of 2018.

Year-on-year, pretax operating margin decreased 112 bps to 19% due to lower profitability from OneSurface as projects wound down at the end of 2018.

Six-month 2019 revenue of $4.8 billion increased 10% year-on-year primarily due to higher demand for drilling services, largely in the international markets that benefited M-I SWACO, IDS, and Drilling & Measurements.

Year-on-year, pretax operating margin decreased 71 bps to 13% despite higher revenue as margins were affected by competitive pricing, and start-up costs from a number of ~~the new~~ integrated ~~drilling projects.~~contracts internationally.

Six-month ~~2018~~2019 revenue of ~~$6.2~~$6.0 billion ~~increased 33%~~decreased 4% year-on-year with most of the revenue ~~increase~~decline attributable to ~~the accelerated land~~lower OneStim activity ~~growth~~ in North America as customers reduced spending due to ~~the deployment~~higher cost of ~~additional~~capital, lower borrowing capacity, ~~market share gains~~ and ~~improved pricing that~~expectation of better returns from their shareholders. This decline was partially offset by higher production revenue internationally, which benefited ~~the pressure pumping business.~~all other technologies.

Year-on-year, pretax operating margin ~~increased 149~~decreased 100 bps to ~~9% as a result of improved~~8% primarily due to reduced profitability in OneStim in North ~~America~~America.

Six-month 2019 revenue of $2.4 billion decreased 7% year-on-year primarily due to ~~accelerated land activity and improved pricing.~~

~~Six-month 2018~~lower revenue ~~of $2.6 billion increased 4% year-on-year due primarily to higher activity on land in North America that benefited the short-cycle businesses of Surface Systems and Valves & Measurement.~~ for OneSubsea.

Year-on-year, pretax operating margin ~~of 13% was essentially flat.~~decreased 63 bps to 12% primarily due to the reduced profitability in OneSubsea.

(Stated in millions)	(Stated in millions)								(Stated in millions)

	Second Quarter				Six Months				Second Quarter				Six Months
	2018		2017		2018		2017		2019		2018		2019		2018
Equity in net earnings of affiliated companies	$	28	$	28	$	42	$	45	$	14	$	28	$	16	$	42
Interest income		12		34		40		63		11		12		23		40
	$	40	$	62	$	82	$	108	$	25	$	40	$	39	$	82

Research & engineering and General & administrative expenses, as a percentage of Revenue, for the second quarter and six months ended June 30, ~~2018~~2019 and ~~2017~~2018 were as follows:

	Second Quarter						Six Months						Second Quarter						Six Months
	2018			2017			2018			2017			2019			2018			2019			2018
Research & engineering		2.1	%		2.6	%		2.1	%		2.8	%		2.2	%		2.1	%		2.2	%		2.1	%
General & administrative		1.4	%		1.5	%		1.4	%		1.4	%		1.4	%		1.4	%		1.4	%		1.4	%

~~Research & engineering~~ ~~costs for the second quarter of 2018 and the first six months of 2018 have decreased as compared to the same periods in 2017 as a result of cost control measures.~~

The effective tax rate for the second quarter of ~~2018~~2019 was 17% compared to 19% ~~and 590%~~ for the same period of ~~2017. The~~2018 as charges described in Note 2 to ~~the~~ Consolidated Financial Statements increased the effective tax rate for the second quarter of 2018 by two percentage ~~points and 571 percentage points for the second quarter of 2017, as the majority of these charges were not tax-effective.~~points.

The effective tax rate for the first six months of ~~2018~~2019 was 16% as compared to 18% ~~and 42%~~ for the same period ~~in 2017.~~of 2018. The charges described in Note 2 to ~~the~~ Consolidated Financial Statements increased the effective tax rate for the first six months of 2018 by one percentage point ~~and 25 percentage points for~~while the ~~same period~~remaining decrease was primarily driven by the geographic mix of ~~2017, as the majority of these charges were not tax-effective.~~earnings.

~~Schlumberger recorded charges during the first and second quarters of 2017, which are are fully described in Note 2 to the~~ ~~Consolidated Financial Statements. The following is a summary of the charges recorded during the first six months of 2017:~~

	(Stated in millions)									(Stated in millions)

	Jun. 30,			Jun. 30,			Dec. 31,			Jun. 30,			Jun. 30,			Dec. 31,
Components of Liquidity	2018			2017			2017
Components of Liquidity:										2019			2018			2018
Cash	$	1,461		$	1,903		$	1,799		$	1,466		$	1,461		$	1,433
Short-term investments		1,588			4,315			3,290			882			1,588			1,344
Fixed income investments, held to maturity		-			13			-
Short-term borrowings and current portion of long-term debt		(3,736	)		(2,224	)		(3,324	)		(98	)		(3,736	)		(1,407	)
Long-term debt		(13,865	)		(16,600	)		(14,875	)		(16,978	)		(13,865	)		(14,644	)
Net debt ⁽¹⁾	$	(14,552	)	$	(12,593	)	$	(13,110	)	$	(14,728	)	$	(14,552	)	$	(13,274	)

Changes in Liquidity:	Six Months Ended Jun. 30,						Six Months Ended Jun. 30,
	2018			2017			2019			2018
Net income	$	971		$	203		$	923		$	971
Impairment and other charges		184			674			-			184
Depreciation and amortization ⁽²⁾		1,750			1,975			1,841			1,750
Earnings of equity method investments, less dividends received		(26	)		(30	)		-			(26	)
Stock-based compensation expense		176			180			194			176
Pension and other postretirement benefits funding		(74	)		(74	)
Increase in working capital ⁽³⁾		(1,338	)		(1,339	)		(1,460	)		(1,338	)
Other		(88	)		(75	)		(64	)		(162	)
Cash flow from operations		1,555			1,514			1,434			1,555
Capital expenditures		(974	)		(884	)		(817	)		(974	)
SPM investments		(434	)		(328	)		(332	)		(434	)
Multiclient seismic data costs capitalized		(47	)		(190	)		(109	)		(47	)
Free cash flow ⁽⁴⁾		100			112			176			100
Dividends paid		(1,385	)		(1,393	)		(1,385	)		(1,385	)
Proceeds from employee stock plans		133			143			106			133
Stock repurchase program		(200	)		(770	)		(199	)		(200	)
		(1,352	)		(1,908	)
Business acquisitions and investments, net of cash acquired plus debt assumed		(47	)		(364	)		(17	)		(47	)
Other		(43	)		(200	)		(135	)		(43	)
Increase in net debt		(1,442	)		(2,472	)		(1,454	)		(1,442	)
Net debt, beginning of period		(13,110	)		(10,121	)		(13,274	)		(13,110	)
Net debt, end of period	$	(14,552	)	$	(12,593	)	$	(14,728	)	$	(14,552	)

Key liquidity events during the first six months of ~~2018~~2019 and ~~2017~~2018 included:

The following table summarizes the activity under ~~these~~the share repurchase ~~programs:~~program:

(Stated in millions, except per share amounts)	(Stated in millions, except per share amounts)						(Stated in millions, except per share amounts)

	Total cost		Total number		Average price		Total cost		Total number		Average price
	of shares		of shares		paid per		of shares		of shares		paid per
	purchased		purchased		share		purchased		purchased		share
Six months ended June 30, 2019							$	199		4.8	$	41.40
Six months ended June 30, 2018	$	200		2.9	$	69.10	$	200		2.9	$	69.10
Six months ended June 30, 2017	$	770		10.2	$	75.40

Schlumberger ~~operates~~generates revenue in more than 85120 countries. As of June 30, ~~2018, only~~2019, four of those countries individually accounted for greater than 5% of Schlumberger’s net receivables balance, of which only ~~two (the~~the United States ~~and Saudi Arabia)~~ accounted for greater than 10% of such receivables.

As of June 30, ~~2018,~~2019, Schlumberger had ~~$3.0~~$2.3 billion of cash and short-term investments on hand. Schlumberger had separate committed debt facility agreements aggregating $6.5 billion that support commercial paper programs, of which ~~$3.6~~$3.3 billion was available and unused. Schlumberger believes these amounts are sufficient to meet future business requirements for at least the next 12 months.

Borrowings under the commercial paper programs at June 30, ~~2018~~2019 were ~~$2.9~~$3.2 billion.

This second-quarter ~~2018~~2019 Form 10-Q, as well as other statements we make, contain “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts, such as our forecasts or expectations regarding business outlook; growth for Schlumberger as a whole and for each of its segments (and for specified ~~technologies~~products or geographic areas within each segment); oil and natural gas demand and production growth; oil and natural gas prices; improvements in operating procedures and technology, including our transformation program; capital expenditures by Schlumberger and the oil and gas industry; the business strategies of Schlumberger’s customers; ~~the effects of US tax reform;~~ our effective tax rate; ~~the success of~~ Schlumberger’s SPM projects, ~~and~~ joint ventures and alliances; future global economic conditions; and future results of operations. These statements are subject to risks and uncertainties, including, but not limited to, global economic conditions; changes in exploration and production spending by Schlumberger’s customers and changes in the level of oil and natural gas exploration and development; general economic, political and business conditions in key regions of the world; foreign currency risk; pricing pressure; weather and seasonal factors; operational modifications, delays or cancellations; production declines; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services and climate-related initiatives; the inability of technology to meet new challenges in exploration; and other risks and uncertainties detailed in this second-quarter ~~2018~~2019 Form 10-Q and our most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. Schlumberger disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

For quantitative and qualitative disclosures about market risk affecting Schlumberger, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” of the Schlumberger Annual Report on Form 10-K for the fiscal year ended December 31, ~~2017.~~2018. Schlumberger’s exposure to market risk has not changed materially since December 31, ~~2017.~~2018.

Schlumberger has carried out an evaluation under the supervision and with the participation of Schlumberger’s management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), of the effectiveness of Schlumberger’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the CEO and the CFO have concluded that, as of the end of the period covered by this report, Schlumberger’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports that Schlumberger files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Schlumberger’s disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to its management, including the CEO and the CFO, as appropriate, to allow timely decisions regarding required disclosure. There was no change in Schlumberger’s internal control over financial reporting during the quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, Schlumberger’s internal control over financial reporting.

The information with respect to this Item 1 is set forth under Note 10—Contingencies, in the Consolidated Financial Statements.

As of the date of this filing, there have been no material changes from the risk factors disclosed in Part 1, Item 1A, of Schlumberger’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2017.~~2018.

As of June 30, ~~2018,~~2019, Schlumberger had repurchased ~~$524~~$922 million of Schlumberger common stock under its $10 billion share repurchase program.

Schlumberger’s common stock repurchase activity for the three months ended June 30, ~~2018~~2019 was as follows:

(Stated in thousands, except per share amounts)

Total number of shares purchased

Average price paid per share

Total number of shares purchased as part of publicly announced programs

Maximum value of shares that may yet be purchased under the programs

April 2018

502.9

$
66.87

502.9

$
9,545,236

May 2018

497.4

$
70.74

497.4

$
9,510,050

June 2018

495.7

$
67.75

495.7

$
9,476,468

1,496.0

$
68.45

1,496.0

	(Stated in thousands, except per share amounts)

	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced programs		Maximum value of shares that may yet be purchased under the programs
April 2019		744.6	$	45.09		744.6	$	9,144,906
May 2019		890.7	$	39.54		890.7	$	9,109,692
June 2019		876.5	$	36.51		876.5	$	9,077,694
		2,511.8	$	40.12		2,511.8

Our mining operations are subject to regulation by the federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this report.

In 2013, Schlumberger completed the ~~wind-down~~wind down of its service operations in Iran. Prior to this, certain non-US subsidiaries provided oilfield services to the National Iranian Oil Company and certain of its affiliates (“NIOC”).

Schlumberger’s residual transactions or dealings with the government of Iran during the second quarter of ~~2018~~2019 consisted of payments of taxes and other typical governmental charges. Certain non-US subsidiaries of Schlumberger maintain depository accounts at the Dubai branch of Bank Saderat Iran (“Saderat”), and at Bank Tejarat (“Tejarat”) in Tehran and in Kish for the deposit by NIOC of amounts owed to non-US subsidiaries of Schlumberger for prior services rendered in Iran and for the maintenance of such amounts previously received. One non-US subsidiary also ~~maintains~~maintained an account at Tejarat for payment of local expenses such as taxes. Schlumberger anticipates that it will discontinue dealings with Saderat and Tejarat following the receipt of all amounts owed to Schlumberger for prior services rendered in Iran.

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 thereunto duly authorized and in his capacity as Chief Accounting Officer.

CURAÇAO		52-0684746
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

42 RUE SAINT-DOMINIQUE
PARIS, FRANCE		75007

5599 SAN FELIPE
HOUSTON, TEXAS, U.S.A.		77056

62 BUCKINGHAM GATE
LONDON, UNITED KINGDOM		SW1E 6AJ

PARKSTRAAT 83 THE HAGUE,
THE NETHERLANDS		2514 JG
(Addresses of principal executive offices)		(Zip Codes)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
common stock, par value $0.01 per share	SLB	New York Stock Exchange

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐ ~~(Do not check if a smaller reporting company)~~	Smaller reporting company	☐
Emerging growth company	☐

Class	Outstanding at June 30, ~~2018~~2019
COMMON STOCK, $0.01 PAR VALUE PER SHARE	~~1,384,118,911~~1,383,005,073

		Page
PART I	Financial Information

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	2324

Item 4.	Controls and Procedures	2325

PART II	Other Information

Item 1.	Legal Proceedings	2325

Item 1A.	Risk Factors	2425

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2425

Item 3.	Defaults Upon Senior Securities	2426

Item 4.	Mine Safety Disclosures	2426

Item 5.	Other Information	2426

Item 6.	Exhibits	2527

	~~Certifications~~

			(Stated in millions)

						Shares
	Issued		In Treasury			Outstanding
Balance, January 1, 2018		1,434		(50	)		1,384
Vesting of restricted stock		-		1			1
Shares issued under employee stock purchase plan		-		2			2
Stock repurchase program		-		(3	)		(3	)
Balance, June 30, 2018		1,434		(50	)		1,384

	(Stated in millions)

					Noncontrolling
	Pretax		Tax		Interests		Net
Promissory note fair value adjustment and other	$	510	$	-	$	12	$	498
Merger & integration		164		31		-		133
	$	674	$	31	$	12	$	631

				(Stated in millions)

	Six Months 2018						Six Months 2017
				Income						Income
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	3,192		$	657		$	3,377		$	580
Drilling		4,360			582			4,092			531
Production		6,216			532			4,683			331
Cameron		2,605			332			2,494			336
Eliminations & other		(242	)		(35	)		(290	)		(71	)
Pretax operating income					2,068						1,707
Corporate & other ⁽¹⁾					(464	)					(480	)
Interest income ⁽²⁾					36						52
Interest expense ⁽³⁾					(266	)					(254	)
Charges and credits ⁽⁴⁾					(184	)					(674	)
	$	16,131		$	1,190		$	14,356		$	351

	(Stated in millions)

										Pension and
	Currency									Other
	Translation			Marketable			Cash Flow			Postretirement
	Adjustments			Securities			Hedges			Benefit Plans			Total
Balance, January 1, 2018	$	(2,139	)	$	13		$	3		$	(2,151	)	$	(4,274	)
Other comprehensive loss before reclassifications		(81	)		(21	)		(10	)		-			(112	)
Amounts reclassified from accumulated other comprehensive loss		-			-			(5	)		86			81
Net other comprehensive income		(81	)		(21	)		(15	)		86			(31	)
Balance, June 30, 2018	$	(2,220	)	$	(8	)	$	(12	)	$	(2,065	)	$	(4,305	)

	(Stated in thousands, except per share amounts)

	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced programs		Maximum value of shares that may yet be purchased under the programs
April 2018		502.9	$	66.87		502.9	$	9,545,236
May 2018		497.4	$	70.74		497.4	$	9,510,050
June 2018		495.7	$	67.75		495.7	$	9,476,468
		1,496.0	$	68.45		1,496.0

		Schlumberger Limited (Registrant)
Date:	July ~~25, 2018~~24, 2019	/s/ Howard Guild
		Howard Guild
		Chief Accounting Officer and Duly Authorized Signatory