Moody's affirms Schlumberger

Moody's Investors Service said it affirmed the A1 senior unsecured rating of Schlumberger Ltd. and its rated guaranteed subsidiaries with a stable outlook in response to the company's announcement that its board of directors has approved an opportunistic share buyback program for up to 15 million shares. The program expires in December 2006.

The rating affirmation reflects Moody's view that while the share buyback program is sizeable (about $964 million based on the July 22 closing price of $64.26), it is not likely to weaken unduly Schlumberger's credit quality in light of the company's recent success in achieving its aggressive deleveraging plan, its substantial cash and investments balances, and the favorable near-term outlook for its earnings and cash flow based on the current uptrend in global demand for oilfield services.

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