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 every Interactive Data File required to be submitted 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 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)

	Three Months Ended March 31,					Second Quarter					Six Months
	2020			2019		2020			2019		2020			2019
Revenue
Services	$	5,426		$	5,906	$	3,721		$	6,153	$	9,147		$	12,059
Product sales		2,029			1,973		1,635			2,116		3,664			4,090
Total Revenue		7,455			7,879		5,356			8,269		12,811			16,149
Interest & other income		39			14		33			25		72			39
Expenses
Cost of services		4,727			5,111		3,383			5,308		8,109			10,422
Cost of sales		1,897			1,841		1,542			1,944		3,439			3,787
Research & engineering		173			173		142			179		315			351
General & administrative		127			112		81			114		208			225
Impairments & other		8,523			-		3,724			-		12,247			-
Interest		136			147		144			156		281			302
Income (loss) before taxes		(8,089	)		509		(3,627	)		593		(11,716	)		1,101
Tax expense (benefit)		(721	)		79		(199	)		99		(920	)		178
Net income (loss)		(7,368	)		430		(3,428	)		494		(10,796	)		923
Net income attributable to noncontrolling interests		8			9		6			2		14			10
Net income (loss) attributable to Schlumberger	$	(7,376	)	$	421	$	(3,434	)	$	492	$	(10,810	)	$	913

Basic earnings (loss) per share of Schlumberger	$	(5.32	)	$	0.30	$	(2.47	)	$	0.36	$	(7.79	)	$	0.66

Diluted earnings (loss) per share of Schlumberger	$	(5.32	)	$	0.30	$	(2.47	)	$	0.35	$	(7.79	)	$	0.65

Average shares outstanding:
Basic		1,387			1,385		1,388			1,384		1,388			1,385
Assuming dilution		1,387			1,397		1,388			1,395		1,388			1,396

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

	Three Months Ended March 31,						Second Quarter						Six Months
	2020			2019			2020			2019			2020			2019
Net income (loss)	$	(7,368	)	$	430		$	(3,428	)	$	494		$	(10,796	)	$	923
Currency translation adjustments
Unrealized net change arising during the period		(125	)		77			19			(37	)		(106	)		39
Cash flow hedges
Net loss on cash flow hedges		(203	)		(5	)
Net (loss) gain on cash flow hedges								(28	)		1			(231	)		(4	)
Reclassification to net income (loss) of net realized loss		1			2			4			1			5			4
Pension and other postretirement benefit plans
Amortization to net income (loss) of net actuarial loss		51			24			37			23			88			47
Amortization to net income (loss) of net prior service credit		(5	)		(3	)		8			(3	)		3			(6	)
Impact of curtailment								(69	)		-			(69	)		-
Income taxes on pension and other postretirement benefit plans		(4	)		-			14			(2	)		10			(2	)
Comprehensive income (loss)		(7,653	)		525			(3,443	)		477			(11,096	)		1,001
Comprehensive income attributable to noncontrolling interests		8			9			6			2			14			10
Comprehensive income (loss) attributable to Schlumberger	$	(7,661	)	$	516		$	(3,449	)	$	475		$	(11,110	)	$	991

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

	Mar. 31,						Jun. 30,
	2020			Dec. 31,			2020			Dec. 31,
	(Unaudited)			2019			(Unaudited)			2019
ASSETS
Current Assets
Cash	$	1,375		$	1,137		$	1,462		$	1,137
Short-term investments		1,969			1,030			2,127			1,030
Receivables less allowance for doubtful accounts (2020 - $249; 2019 - $255)		7,486			7,747
Receivables less allowance for doubtful accounts (2020 - $312; 2019 - $255)								5,808			7,747
Inventories		4,148			4,130			3,601			4,130
Other current assets		1,288			1,486			1,381			1,486
		16,266			15,530			14,379			15,530
Investments in Affiliated Companies		1,515			1,565			1,484			1,565
Fixed Assets less accumulated depreciation		8,550			9,270			7,729			9,270
Multiclient Seismic Data		556			568			356			568
Goodwill		12,924			16,042			12,954			16,042
Intangible Assets		3,673			7,089			3,622			7,089
Deferred Taxes		155			-
Other Assets		4,955			6,248			4,143			6,248
	$	48,594		$	56,312		$	44,667		$	56,312
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	10,168		$	10,663		$	9,824		$	10,663
Estimated liability for taxes on income		1,157			1,209			1,054			1,209
Short-term borrowings and current portion of long-term debt		1,233			524			603			524
Dividends payable		704			702			184			702
		13,262			13,098			11,665			13,098
Long-term Debt		15,409			14,770			16,763			14,770
Postretirement Benefits		936			967			905			967
Deferred Taxes		-			491			42			491
Other Liabilities		3,004			2,810			2,836			2,810
		32,611			32,136			32,211			32,136
Equity
Common stock		12,963			13,078			13,044			13,078
Treasury stock		(3,360	)		(3,631	)		(3,339	)		(3,631	)
Retained earnings		10,681			18,751			7,073			18,751
Accumulated other comprehensive loss		(4,723	)		(4,438	)		(4,738	)		(4,438	)
Schlumberger stockholders' equity		15,561			23,760			12,040			23,760
Noncontrolling interests		422			416			416			416
		15,983			24,176			12,456			24,176
	$	48,594		$	56,312		$	44,667		$	56,312

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

	Three Months Ended March 31,						Six Months Ended June 30,
	2020			2019			2020			2019
Cash flows from operating activities:
Net income (loss)	$	(7,368	)	$	430		$	(10,796	)	$	923
Adjustments to reconcile net income (loss) income to cash provided by operating activities:
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Impairments and other charges		8,523			-			12,247			-
Depreciation and amortization ⁽¹⁾		792			903			1,396			1,841
Deferred taxes		(781	)		(72	)		(1,050	)		(101	)
Stock-based compensation expense		108			108			213			194
Earnings of equity method investments, less dividends received		(10	)		3			(26	)		-
Change in assets and liabilities: ⁽²⁾
Decrease (increase) in receivables		233			(280	)		1,910			(581	)
Increase in inventories		(42	)		(197	)		(74	)		(332	)
Decrease (increase) in other current assets		15			(93	)		129			(57	)
(Increase) decrease in other assets		(7	)		2
Decrease (increase) in other assets								16			(16	)
Decrease in accounts payable and accrued liabilities		(640	)		(483	)		(2,204	)		(422	)
(Decrease) increase in estimated liability for taxes on income		(48	)		5
Decrease in estimated liability for taxes on income								(184	)		(68	)
Decrease in other liabilities		(37	)		(42	)		(42	)		(39	)
Other		46			42			52			92
NET CASH PROVIDED BY OPERATING ACTIVITIES		784			326			1,587			1,434
Cash flows from investing activities:
Capital expenditures		(407	)		(413	)		(658	)		(817	)
APS investments		(163	)		(151	)		(224	)		(332	)
Multiclient seismic data costs capitalized		(35	)		(45	)		(61	)		(109	)
Business acquisitions and investments, net of cash acquired								(30	)		(17	)
(Purchase) sale of investments, net		(941	)		420			(1,099	)		464
Net proceeds from asset divestitures		298			-			298			-
Other		(64	)		(41	)		(85	)		(63	)
NET CASH USED IN INVESTING ACTIVITIES		(1,312	)		(230	)		(1,859	)		(874	)
Cash flows from financing activities:
Dividends paid		(692	)		(692	)		(1,386	)		(1,385	)
Proceeds from employee stock purchase plan		85			85			85			85
Proceeds from exercise of stock options		-			22			-			21
Stock repurchase program		(26	)		(98	)		(26	)		(199	)
Proceeds from issuance of long-term debt		1,475			1,812			4,985			2,350
Repayment of long-term debt		(90	)		(1,368	)		(3,070	)		(1,413	)
Net increase (decrease) in short-term borrowings		34			(38	)		73			(22	)
Other		(9	)		(20	)		(51	)		32
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES		777			(297	)
Net increase (decrease) in cash before translation effect		249			(201	)
NET CASH PROVIDED BY (USED) IN FINANCING ACTIVITIES								610			(531	)
Net increase in cash before translation effect								338			29
Translation effect on cash		(11	)		(2	)		(13	)		4
Cash, beginning of period		1,137			1,433			1,137			1,433
Cash, end of period	$	1,375		$	1,230		$	1,462		$	1,466

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

										Accumulated																		Accumulated
										Other																		Other
	Common Stock						Retained			Comprehensive			Noncontrolling						Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2020 – March 31, 2020	Issued			In Treasury			Earnings			Loss			Interests			Total
January 1, 2020 – June 30, 2020																			Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2020	$	13,078		$	(3,631	)	$	18,751		$	(4,438	)	$	416		$	24,176		$	13,078		$	(3,631	)	$	18,751		$	(4,438	)	$	416		$	24,176
Net loss								(7,376	)					8			(7,368	)								(10,810	)					14			(10,796	)
Currency translation adjustments											(125	)		(3	)		(128	)											(106	)		(2	)		(108	)
Changes in fair value of cash flow hedges											(202	)					(202	)											(226	)					(226	)
Pension and other postretirement benefit plans											42						42												32						32
Vesting of restricted stock		(117	)		117												-			(131	)		131												-
Shares issued under employee stock purchase plan		(95	)		180												85			(95	)		180												85
Stock repurchase program					(26	)											(26	)					(26	)											(26	)
Stock-based compensation expense		108															108			213															213
Dividends declared ($0.50 per share)								(694	)								(694	)
Dividends declared ($0.625 per share)																										(868	)								(868	)
Other		(11	)											1			(10	)		(21	)		7									(12	)		(26	)
Balance, March 31, 2020	$	12,963		$	(3,360	)	$	10,681		$	(4,723	)	$	422		$	15,983
Balance, June 30, 2020																			$	13,044		$	(3,339	)	$	7,073		$	(4,738	)	$	416		$	12,456

	(Stated in millions, except per share amounts)

										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, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
April 1, 2020 – June 30, 2020	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, April 1, 2020	$	12,963		$	(3,360	)	$	10,681		$	(4,723	)	$	422		$	15,983
Net loss								(3,434	)					6			(3,428	)
Currency translation adjustments											19			1			20
Changes in fair value of cash flow hedges											(24	)					(24	)
Pension and other postretirement benefit plans											(10	)					(10	)
Vesting of restricted stock		(14	)		14												-
Stock-based compensation expense		105															105
Dividends declared ($0.125 per share)								(174	)								(174	)
Other		(10	)		7									(13	)		(16	)
Balance, June 30, 2020	$	13,044		$	(3,339	)	$	7,073		$	(4,738	)	$	416		$	12,456

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

										Accumulated																		Accumulated
										Other																		Other
	Common Stock						Retained			Comprehensive			Noncontrolling						Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2019 –March 31, 2019	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2019	$	13,132		$	(4,006	)	$	31,658		$	(4,622	)	$	424		$	36,586
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								421						9			430									492						2			494
Currency translation adjustments											77						77												(37	)					(37	)
Changes in fair value of cash flow hedges											(3	)					(3	)											2						2
Pension and other postretirement benefit plans											21						21												18						18
Shares sold to optionees, less shares exchanged		(25	)		47												22			(1	)		1												-
Vesting of restricted stock		(100	)		100												-			(26	)		26												-
Shares issued under employee stock purchase plan		(115	)		200												85
Stock repurchase program					(98	)											(98	)					(101	)											(101	)
Stock-based compensation expense		108															108			86															86
Dividends declared ($0.50 per share)								(693	)								(693	)								(692	)								(692	)
Other					1									(12	)		(11	)		(22	)		3									(2	)		(21	)
Balance, March 31, 2019	$	13,000		$	(3,756	)	$	31,386		$	(4,527	)	$	421		$	36,524
Balance, June 30, 2019																			$	13,037		$	(3,827	)	$	31,186		$	(4,544	)	$	421		$	36,273

			(Stated in millions)								(Stated in millions)

						Shares								Shares
	Issued		In Treasury			Outstanding			Issued		In Treasury			Outstanding
Balance, January 1, 2020		1,434		(49	)		1,385			1,434		(49	)		1,385
Vesting of restricted stock		-		2			2			-		2			2
Shares issued under employee stock purchase plan		-		2			2			-		2			2
Stock repurchase program		-		(1	)		(1	)		-		(1	)		(1	)
Balance, March 31, 2020		1,434		(46	)		1,388
Balance, June 30, 2020										1,434		(46	)		1,388

The accompanying unaudited consolidated financial statements of Schlumberger Limited and its subsidiaries (“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 ~~three-month~~six-month period ended ~~March 31,~~June 30, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020. The December 31, 2019 balance sheet information has been derived from the Schlumberger 2019 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, 2019, filed with the Securities and Exchange Commission on January 22, 2020.

~~In connection with the preparation of its first-quarter 2020 financial statements,~~ Schlumberger recorded the following ~~charges:~~

~~All~~charges and credits during 2020, all of ~~the pretax charges presented above~~which are classified in Impairments & other in the Consolidated Statement of Income (Loss).:

	(Stated in millions)

	Pretax			Tax			Net
First quarter:
Goodwill	$	3,070		$	-		$	3,070
Intangible asset impairments		3,321			(815	)		2,506
Asset Performance Solutions investments		1,264			4			1,268
North America pressure pumping impairment		587			(133	)		454
Workforce reductions		202			(7	)		195
Other		79			(9	)		70
Valuation allowance		-			164			164
Second quarter:
Workforce reductions		1,021			(71	)		950
Asset Performance Solutions investments		730			(15	)		715
Fixed asset impairments		666			(52	)		614
Inventory write-downs		603			(49	)		554
Right-of-use asset impairments		311			(67	)		244
Costs associated with exiting certain activities		205			25			230
Multiclient seismic data impairment		156			(2	)		154
Repurchase of bonds		40			(2	)		38
Postretirement benefits curtailment gain		(69	)		16			(53	)
Other		61			(4	)		57
	$	12,247		$	(1,017	)	$	11,230

Schlumberger had 11 reporting units with goodwill balances aggregating $16.0 billion. Schlumberger determined that the fair value of 4 of its reporting units, representing $4.5 billion of the goodwill, was substantially in excess of their carrying value. Schlumberger performed a detailed quantitative impairment assessment of the remaining 7 reporting units, which represented $11.5 billion of goodwill. As a result of this assessment, Schlumberger concluded that the goodwill associated with each of these seven reporting units was impaired, resulting in a $3.1 billion goodwill impairment charge. This charge primarily relates to goodwill associated with the Drilling and Production segments.

Following the $3.1 billion goodwill impairment charge relating to these seven reporting units, 6 of these reporting units had a remaining goodwill balance. These six reporting units had goodwill balances which ranged between $0.2 billion and $5.0 billion and aggregated to $8.4 billion as of March 31, 2020.

Schlumberger used the income approach to estimate the fair value of its reporting units, but also considered the market approach to validate the results. The income approach estimates the fair value by discounting each reporting unit’s estimated future cash flows using Schlumberger’s estimate of the discount rate, or expected return, that a marketplace participant would have required as of the valuation date. The market approach includes the use of comparative multiples to corroborate the discounted cash flow results. The market approach involves significant judgement involved in the selection of the appropriate peer group companies and valuation multiples.

Some of the more significant assumptions inherent in the income approach include the estimated future net annual cash flows for each reporting unit and the discount rate. Schlumberger selected the assumptions used in the discounted cash flow projections using historical data supplemented by current and anticipated market conditions and estimated growth rates. Schlumberger’s estimates are based upon assumptions believed to be reasonable. However, given the inherent uncertainty in determining the assumptions underlying a discounted cash flow analysis, particularly in the current volatile market, actual results may differ from those used in Schlumberger’s valuations which could result in additional impairment charges in the future.

The discount rates utilized to value Schlumberger’s reporting units were between 12.0% and 13.5%, depending on the risks and uncertainty inherent in the respective reporting unit as well as the size of the reporting unit. Assuming all other assumptions and inputs used in each of the respective discounted cash flow analysis were held constant, a 50-basis point increase or decrease in the discount rate assumptions would have changed the fair value of the 7 reporting units, on average, by less than 5%.

The fair value of these impaired assets was estimated based on the present value of projected future cash flows that the underlying assets are expected to generate. Such estimates included unobservable inputs that required significant judgment.

The fair value of the impaired intangible assets, fixed assets, APS investments, right-of-use assets and multiclient seismic data was estimated based on the present value of projected future cash flows that the underlying assets are expected to ~~record a~~generate. Such estimates included unobservable inputs that required significant ~~charge relating to severance during the second quarter of 2020. However, at this time the amount cannot be reasonably estimated. Additionally, as~~judgement.

As market conditions evolve and Schlumberger ~~further develops~~continues to develop its strategy to deal with such conditions, it may result in further restructuring and/or impairment charges in future periods relating to, among other things, ~~inventory,~~ fixed assets, facilities, workforce reductions and other assets.

There were 0 charges or credits recorded during the first ~~three~~six months of 2019.

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)

	2020								2019						2020								2019
	Schlumberger Loss			Average Shares Outstanding		Loss per Share			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
First Quarter
Second Quarter
Basic	$	(7,376	)		1,387	$	(5.32	)	$	421		1,385	$	0.30	$	(3,434	)		1,388	$	(2.47	)	$	492		1,384	$	0.36
Unvested restricted stock		-			-					-		12				-			-					-		11
Diluted	$	(7,376	)		1,387	$	(5.32	)	$	421		1,397	$	0.30	$	(3,434	)		1,388	$	(2.47	)	$	492		1,395	$	0.35


															2020								2019
															Schlumberger Net Loss			Average Shares Outstanding		Loss per Share			Schlumberger Net Income		Average Shares Outstanding		Earnings per Share
Six Months
Basic															$	(10,810	)	$	1,388	$	(7.79	)	$	913	$	1,385	$	0.66
Unvested restricted stock																-			-					-		11
Diluted															$	(10,810	)	$	1,388	$	(7.79	)	$	913	$	1,396	$	0.65

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)

	Three Months Ended March 31,				Second Quarter			Six Months
	2020		2019		2020	2019		2020	2019
Employee stock options		51		43	50	48		50		42
Unvested restricted stock		16		11	15		-	15		-

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)

	Mar. 31,		Dec. 31,		Jun. 30,		Dec. 31,
	2020		2019		2020		2019
Raw materials & field materials	$	1,949	$	1,857	$	1,677	$	1,857
Work in progress		542		515		481		515
Finished goods		1,657		1,758		1,443		1,758
	$	4,148	$	4,130	$	3,601	$	4,130

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

	Mar. 31,		Dec. 31,		Jun. 30,		Dec. 31,
	2020		2019		2020		2019
Property, plant & equipment	$	34,105	$	35,009	$	32,737	$	35,009
Less: Accumulated depreciation		25,555		25,739		25,008		25,739
	$	8,550	$	9,270	$	7,729	$	9,270

Depreciation expense relating to fixed assets was ~~$449 million and $512 million in the first quarter of 2020 and 2019, respectively.~~as follows:

The change in the carrying amount of multiclient seismic data for the ~~three~~six months ended ~~March 31,~~June 30, 2020 was as follows:

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

Balance at December 31, 2019	$	568		$	568
Capitalized in period		35			61
Charged to expense		(47	)		(96	)
Balance at March 31, 2020	$	556
Impairments (See Note 2)					(156	)
Other					(21	)
Balance at June 30, 2020				$	356

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

	(Stated in millions)												(Stated in millions)

	Mar. 31, 2020						Dec. 31, 2019						Jun. 30, 2020						Dec. 31, 2019
	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	$	1,758	$	442	$	1,316	$	3,779	$	868	$	2,911	$	1,751	$	458	$	1,293	$	3,779	$	868	$	2,911
Technology/technical know-how		1,387		512		875		2,498		779		1,719		1,387		538		849		2,498		779		1,719
Tradenames		772		146		626		1,885		264		1,621		770		153		617		1,885		264		1,621
Other		1,553		697		856		1,514		676		838		1,575		712		863		1,514		676		838
	$	5,470	$	1,797	$	3,673	$	9,676	$	2,587	$	7,089	$	5,483	$	1,861	$	3,622	$	9,676	$	2,587	$	7,089

Amortization expense charged to income was ~~$133 million during the first quarter of 2020 and $160 million during the first quarter of 2019.~~as follows:

Based on the net book value of intangible assets at ~~March 31,~~June 30, 2020, amortization charged to income for the subsequent five years is estimated to be: remaining ~~three~~two quarters of 2020—$~~237~~161 million; 2021—$307 million; 2022—$~~298~~302 million; 2023—$~~280~~291 million; 2024—$~~259~~261 million; and 2025—$254 million.

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

	Mar. 31,		Dec. 31,		Jun. 30,		Dec. 31,
	2020		2019		2020		2019
3.30% Senior Notes due 2021	$	1,598	$	1,597
3.65% Senior Notes due 2023		1,495		1,495	$	1,495	$	1,495
3.90% Senior Notes due 2028		1,445		1,444		1,447		1,444
2.40% Senior Notes due 2022		998		998
1.375% Guaranteed Notes due 2026						1,119		-
2.00% Guaranteed Notes due 2032						1,119		-
0.25% Notes due 2027		983		550		1,008		550
0.50% Notes due 2031		972		544		1,008		544
2.40% Senior Notes due 2022						999		998
4.00% Senior Notes due 2025		929		929		929		929
2.65% Senior Notes due 2030						892		-
4.30% Senior Notes due 2029		845		845		845		845
3.75% Senior Notes due 2024		746		746		746		746
1.00% Guaranteed Notes due 2026		656		665		671		665
3.30% Senior Notes due 2021						664		1,597
2.65% Senior Notes due 2022		598		598		598		598
0.00% Notes due 2024		548		551		560		551
3.63% Senior Notes due 2022		295		294		295		294
7.00% Notes due 2038		207		208		207		208
5.95% Notes due 2041		114		114		114		114
5.13% Notes due 2043		99		99		99		99
4.00% Notes due 2023		81		81		81		81
3.70% Notes due 2024		55		55		55		55
4.20% Senior Notes due 2021		-		600		-		600
Commercial paper borrowings		2,745		2,222		1,812		2,222
Other		-		135		-		135
	$	15,409	$	14,770	$	16,763	$	14,770

~~During the first quarter of 2020, Schlumberger issued €400 million of 0.25% Notes due 2027 and €400 million of 0.50% Notes due 2031.~~

The ~~estimated~~estimated fair value of Schlumberger’s Long-term Debt, based on quoted market prices at ~~March 31,~~June 30, 2020 and December 31, 2019, was ~~$15.1~~$17.3 billion and $15.3 billion, respectively.

During the second quarter of 2020, Schlumberger entered into a €1.54 billion committed revolving credit facility. This one-year facility can be extended at Schlumberger’s option for up to an additional year. NaN amounts have been drawn under this facility.

At ~~March 31,~~June 30, 2020, Schlumberger had separate committed credit facility agreements aggregating ~~$6.25~~$7.98 billion with commercial banks, of which ~~$3.5~~$6.17 billion was available and unused. These committed facilities support commercial paper programs in the United States and Europe, of which $1.73 billion matures in April 2021, $2.75 billion matures in February 2023, $1.5 billion matures in July 2024 and $2.0 billion matures in February 2025. Interest rates and other terms of borrowing under these lines of credit vary by facility.

~~Subsequent to the end of the first quarter of 2020, Schlumberger entered into a €1.2 billion committed revolving credit facility. This~~ ~~one-year~~ facility can be extended at Schlumberger’s option for up to an additional year. Schlumberger can potentially upsize this facility through syndication. As of April 22, 2020, 0 amounts have been drawn under this facility.

Borrowings under the commercial paper programs at ~~March 31,~~June 30, 2020 were ~~$2.75~~$1.81 billion, all of which was classified in Long-term debt in the Consolidated Balance Sheet. At December 31, 2019, borrowings under the commercial paper programs were $2.22 billion, all of which was classified in Long-term debt in the Consolidated Balance Sheet.

9.During the first quarter of 2020, Schlumberger issued €400 million of 0.25% Notes due 2027 and €400 million of 0.50% Notes due 2031.

During the second quarter of 2020, Schlumberger issued €1.0 billion of 1.375% Guaranteed Notes due 2026, $900 million of 2.65% Senior Notes due 2030 and €1.0 billion of 2.00% Guaranteed Notes due 2032.

During the second quarter of 2020, Schlumberger repurchased all $600 million of its 4.20% Senior Notes due 2021 and $935 million of its 3.30% Senior Notes due 2021. Schlumberger paid a premium of approximately $40 million in connection with these repurchases. This premium was classified in Impairments & other in the Consolidated Statement of Income (Loss). See Note 2 – Charge and Credits.

During the second quarter of 2020, Schlumberger established a €5.0 billion Guaranteed Euro Medium Term Note program that provides for the issuance of various types of debt instruments such as fixed or floating rate notes in euro, US dollar or other currencies. Schlumberger has not issued any debt under this program.

Schlumberger Limited fully and unconditionally guarantees the securities issued by certain of its subsidiaries, including securities issued by Schlumberger Investment SA, a wholly-owned subsidiary of Schlumberger.

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, to mitigate the exposure to changes in interest rates.

At ~~March 31,~~June 30, 2020, Schlumberger had fixed rate debt aggregating ~~$13.7~~$15.5 billion and variable rate debt aggregating ~~$2.9~~$1.9 billion.

As a multinational company, Schlumberger generates revenue in more than 120 countries. Schlumberger’s functional currency is primarily the US dollar. However, outside the United States, a significant portion of Schlumberger’s expenses are 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 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.

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 cross-currency swaps to provide a hedge against these cash flow risks.

During 2017, a Canadian-dollar functional currency subsidiary of Schlumberger issued $1.1 billion of 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 of 2.20% Senior Notes due 2020 and its $0.6 billion of 2.65% Senior Notes due 2022. These cross-currency swaps effectively convert the US-dollar denominated notes to Canadian-dollar denominated debt with fixed annual interest rates of 1.97% and 2.52%, respectively.

During 2019, a US-dollar functional currency subsidiary of Schlumberger issued €1.5 billion of Euro-denominated debt. Schlumberger entered into cross-currency swaps for an aggregate notional amount of €1.5 billion in order to hedge changes in the fair value of its €0.5 billion 0.00% Notes due 2024, €0.5 billion 0.25% Notes due 2027 and €0.5 billion 0.50% Notes due 2031. These cross-currency swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 2.29%, 2.51% and 2.76%, respectively.

During the first quarter of 2020, a US-dollar functional currency subsidiary of Schlumberger issued €0.8 billion of Euro-denominated debt. Schlumberger entered into cross-currency swaps for an aggregate notional amount of €0.8 billion in order to hedge changes in the fair value of its €0.4 billion of 0.25% Notes due 2027 and €0.4 billion of 0.50% Notes due 2031. These cross-currency swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 1.87% and 2.20%, respectively.

During the second quarter of 2020, a US-dollar functional currency subsidiary of Schlumberger issued €2.0 billion of Euro-denominated debt. Schlumberger entered into cross-currency swaps for an aggregate notional amount of €1.6 billion in order to hedge changes in the fair value of its €1.0 billion of 1.375% Guaranteed Notes due 2026 and €0.6 billion of 2.00% Guaranteed Notes due 2032. These cross-currency swaps effectively convert the swapped portion of the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 2.77% and 3.45%, respectively. Schlumberger hedged its exposure to currency fluctuations on the remaining €0.4 billion of Euro-denominated debt issued by using foreign currency forward contracts that are not designated as hedges for accounting purposes.

Schlumberger is exposed to changes in 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 hedges for accounting purposes. Instead, the fair value of the contracts is recorded on the Consolidated Balance Sheet, and changes in the fair value are recognized in the Consolidated Statement of Income (Loss) as are changes in fair value of the hedged item.

At ~~March 31,~~June 30, 2020, contracts were outstanding for the US dollar equivalent of ~~$7.3~~$9.8 billion in various foreign currencies, of which ~~$4.0~~$6.0 billion relates to hedges of debt denominated in currencies other than the functional currency.

At ~~March 31,~~June 30, 2020, Schlumberger recognized a cumulative ~~$202~~$260 million loss in Accumulated Other Comprehensive Loss relating to changes in the fair value of foreign currency forward contracts and cross-currency swaps.

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 (Loss) was as follows:

	(Stated in millions)													(Stated in millions)

	Gain (Loss) Recognized in Income (Loss)							Gain (Loss) Recognized in Income (Loss)
	First Quarter							Second Quarter						Six Months
	2020			2019			Consolidated Statement of Income (Loss) Classification	2020			2019			2020			2019			Consolidated Statement of Income (Loss) Classification
Derivatives designated as cash flow hedges:
Foreign exchange contracts	$	(1	)	$	(2	)	Cost of services/sales	$	(4	)	$	(2	)	$	(5	)	$	(4	)	Cost of services/sales
Cross currency swaps		58			(16	)	Interest expense		92			(22	)		150			(38	)	Interest expense
	$	57		$	(18	)		$	88		$	(24	)	$	145		$	(42	)
Derivatives not designated as hedges:
Foreign exchange contracts	$	(9	)	$	6		Cost of services/sales	$	11		$	(14	)	$	2		$	(8	)	Cost of services/sales

Schlumberger 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)

	First Quarter 2020						First Quarter 2019						Second Quarter 2020						Second Quarter 2019
				Income (Loss)						Income (Loss)						Income (Loss)						Income (Loss)
				Before						Before						Before						Before
	Revenue			Taxes			Revenue			Taxes			Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	1,311		$	184		$	1,459		$	281		$	1,052		$	185		$	1,558		$	317
Drilling		2,291			285			2,387			307			1,731			165			2,420			301
Production		2,703			212			2,890			217			1,615			25			3,077			235
Cameron		1,254			121			1,259			148			1,015			80			1,328			165
Eliminations & other		(104	)		(26	)		(116	)		(45	)		(57	)		(59	)		(114	)		(50	)
					776						908						396						968
Corporate & other ⁽¹⁾					(228	)					(273	)					(169	)					(238	)
Interest income ⁽²⁾					15						10						7						9
Interest expense ⁽³⁾					(129	)					(136	)					(137	)					(146	)
Charges and credits ⁽⁴⁾					(8,523	)					-						(3,724	)					-
	$	7,455		$	(8,089	)	$	7,879		$	509		$	5,356		$	(3,627	)	$	8,269		$	593

Certain prior period amounts have been reclassified to conform to the current period presentation.

				(Stated in millions)

	Six Months 2020						Six Months 2019
				Income (Loss)						Income (Loss)
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	2,363		$	369		$	3,017		$	598
Drilling		4,020			450			4,806			608
Production		4,318			237			5,967			453
Cameron		2,270			201			2,586			313
Eliminations & other		(160	)		(85	)		(227	)		(96	)
					1,172						1,876
Corporate & other ⁽¹⁾					(397	)					(511	)
Interest income ⁽²⁾					22						18
Interest expense ⁽³⁾					(266	)					(282	)
Charges and credits ⁽⁴⁾					(12,247	)					-
	$	12,811		$	(11,716	)	$	16,149		$	1,101

Certain prior period amounts have been reclassified to conform to the current period presentation.

	(Stated in millions)								(Stated in millions)

	First Quarter				Second Quarter				Six Months
	2020		2019		2020		2019		2020		2019
North America	$	2,279	$	2,738	$	1,183	$	2,801	$	3,463	$	5,539
Latin America		945		992		543		1,115		1,488		2,107
Europe/CIS/Africa		1,751		1,707		1,449		1,896		3,200		3,602
Middle East & Asia		2,425		2,338		2,146		2,452		4,572		4,790
Eliminations & other		55		104		35		5		88		111
	$	7,455	$	7,879	$	5,356	$	8,269	$	12,811	$	16,149

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

							(Stated in millions)												(Stated in millions)

	First Quarter 2020												Second Quarter 2020
	North						Eliminations						North						Eliminations
	America			International			& other			Total			America			International			& other			Total
Reservoir Characterization	$	199		$	1,107		$	5		$	1,311		$	165		$	880		$	7		$	1,052
Drilling		524			1,722			45			2,291			269			1,417			45			1,731
Production		1,066			1,637			-			2,703			408			1,205			2			1,615
Cameron		506			726			22			1,254			341			676			(2	)		1,015
Other		(16	)		(71	)		(17	)		(104	)		-			(40	)		(17	)		(57	)
	$	2,279		$	5,121		$	55		$	7,455		$	1,183		$	4,138		$	35		$	5,356


	First Quarter 2019												Second Quarter 2019
	North						Eliminations						North						Eliminations
	America			International			& other			Total			America			International			& other			Total
Reservoir Characterization	$	216		$	1,239		$	4		$	1,459		$	242		$	1,312		$	4		$	1,558
Drilling		578			1,755			54			2,387			552			1,819			49			2,420
Production		1,373			1,516			1			2,890			1,419			1,657			1			3,077
Cameron		581			621			57			1,259			600			754			(26	)		1,328
Other		(10	)		(94	)		(12	)		(116	)		(12	)		(79	)		(23	)		(114	)
	$	2,738		$	5,037		$	104		$	7,879		$	2,801		$	5,463		$	5		$	8,269

				(Stated in millions)

	Six Months 2020
	North						Eliminations
	America			International			& other			Total
Reservoir Characterization	$	365		$	1,988		$	10		$	2,363
Drilling		792			3,139			89			4,020
Production		1,475			2,842			1			4,318
Cameron		847			1,402			21			2,270
Other		(16	)		(111	)		(33	)		(160	)
	$	3,463		$	9,260		$	88		$	12,811


	Six Months 2019
	North						Eliminations
	America			International			& other			Total
Reservoir Characterization	$	458		$	2,552		$	7		$	3,017
Drilling		1,128			3,574			104			4,806
Production		2,792			3,173			2			5,967
Cameron		1,182			1,375			29			2,586
Other		(21	)		(175	)		(31	)		(227	)
	$	5,539		$	10,499		$	111		$	16,149

Revenue in excess of billings related to contracts where revenue is recognized over time was $0.2 billion at both ~~March 31,~~June 30, 2020 and December 31, 2019. 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~~$2.8 billion at ~~March 31,~~June 30, 2020, of which approximately 50% is expected to be recognized as revenue over the next 12 months.

Billings and cash collections in excess of revenue was $1.1 billion at ~~March 31,~~June 30, 2020 and $0.9 billion at December 31, 2019. 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)

	First Quarter												Second Quarter												Six Months
	2020						2019						2020						2019						2020						2019
	US			Int'l			US			Int'l			US			Int'l			US			Int'l			US			Int'l			US			Int'l
Service cost	$	15		$	37		$	14		$	32		$	16		$	37		$	13		$	32		$	31		$	74		$	27		$	64
Interest cost		37			75			45			83			38			75			46			83			75			150			91			166
Expected return on plan assets		(58	)		(147	)		(58	)		(150	)		(59	)		(147	)		(57	)		(148	)		(117	)		(294	)		(115	)		(298	)
Amortization of prior service cost		2			-			2			2			2			-			2			2			4			-			4			4
Amortization of net loss		11			40			8			16			11			39			8			15			22			79			16			31
	$	7		$	5		$	11		$	(17	)	$	8		$	4		$	12		$	(16	)	$	15		$	9		$	23		$	(33	)

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)

	First Quarter						Second Quarter						Six Months
	2020			2019			2020			2019			2020			2019
Service cost	$	9		$	8		$	9		$	7		$	18		$	15
Interest cost		10			12			10			12			20			24
Expected return on plan assets		(17	)		(16	)		(17	)		(17	)		(34	)		(33	)
Amortization of prior service credit		(7	)		(7	)		(7	)		(7	)		(14	)		(14	)
Curtailment gain								(69	)		-			(69	)		-
	$	(5	)	$	(3	)	$	(74	)	$	(5	)	$	(79	)	$	(8	)

Due to the actions taken by Schlumberger to reduce its global workforce during 2020, Schlumberger experienced a significant reduction in the expected aggregate years of future service of its employees in its US postretirement medical plan. Accordingly, Schlumberger recorded a curtailment gain of $69 million during the second quarter of 2020 relating to this plan. The curtailment gain includes recognition of the decrease in the benefit obligation as well as a portion of the previously unrecognized prior service credit, reflecting the reduction in expected years of future service. As a result of the curtailment, Schlumberger performed a remeasurement of the plan, which had an immaterial impact. This gain was classified in Impairments & other in the Consolidated Statement of Income (Loss). See Note 2 – Charge and Credits.

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

				(Stated in millions)												(Stated in millions)

	First Quarter 2020						Fourth Quarter 2019						Second Quarter 2020						First Quarter 2020
				Income (Loss)						Income (Loss)						Income (Loss)						Income (Loss)
				Before						Before						Before						Before
	Revenue			Taxes			Revenue			Taxes			Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	1,311		$	184		$	1,643		$	368		$	1,052		$	185		$	1,311		$	184
Drilling		2,291			285			2,442			303			1,731			165			2,289			285
Production		2,703			212			2,867			253			1,615			25			2,703			212
Cameron		1,254			121			1,387			126			1,015			80			1,254			121
Eliminations & other		(104	)		(26	)		(111	)		(44	)		(57	)		(59	)		(102	)		(26	)
					776						1,006						396						776
Corporate & other ⁽¹⁾					(228	)					(215	)					(169	)					(228	)
Interest income ⁽²⁾					15						8						7						15
Interest expense ⁽³⁾					(129	)					(138	)					(137	)					(129	)
Charges and credits⁽⁴⁾					(8,523	)					(209	)					(3,724	)					(8,523	)
	$	7,455		$	(8,089	)	$	8,228		$	452		$	5,356		$	(3,627	)	$	7,455		$	(8,089	)

~~First-quarter revenue~~The second quarter of $7.5 billion declined 9% sequentially and 5% year-on-year as the unprecedented global health and economic crisis sparked by the COVID-19 pandemic increasingly impacted industry activity during the quarter. The effect of this2020 was ~~amplified late in the quarter by a new battle for market share between the world’s largest oil producers. This created simultaneous shocks in oil supply and demand resulting in~~probably the most challenging ~~industry environment~~quarter in ~~many~~past decades. ~~The spread~~Second-quarter revenue of ~~COVID-19 has~~$5.4 billion declined 28% sequentially, caused more than 50 countries to implement lockdown measures affecting three billion people. Worldwide economic activity is falling sharply, and oil demand destruction is leading to an unprecedented supply-demand imbalance inby the ~~range of 20–30 million bbl/d. This is translating to near-term uncertainties in activity and budget projections.~~

~~Customer spending and drilling activity in North America declined as oil prices slipped early in the quarter before falling abruptly in March. This resulted in a 7% sequential~~significant decrease in North America activity, and international activity drop due to downward revisions to customer budgets accentuated by COVID-19 disruptions. The entire oil and gas industry was confronted with historic oil demand and supply imbalances caused by demand destruction from the global COVID-19 containment effort.

North America revenue declined 48% sequentially with land revenue falling 60% as customers dramatically cut back spending. International revenue declined 19% sequentially with Latin America and Africa experiencing the largest revenue declines due to ~~$2.3 billion. International~~COVID-19-related restrictions and the drop in deepwater activity. In addition, there was a production interruption in the Asset Performance Solutions (“APS”) projects in Ecuador caused by a major landslide that led to the rupture of the main pipeline.

Schlumberger has worked to protect its liquidity and cash positions and sustained resilient international margins while navigating the trough of this downcycle.

Despite the severe drop in international revenue and the effect of the APS production interruption in Ecuador, international margin was essentially flat compared to the previous quarter, due to Schlumberger’s swift and decisive actions to reduce operating costs, restructure, and rationalize its asset base. Schlumberger is working to permanently remove $1.5 billion of structural costs annually by reorganizing into a leaner and more responsive company that is better aligned with its customers’ workflows.

Looking at the macro view in the near-term, during the beginning of the third quarter of 2020 oil demand slowly started to normalize and is expected to continue to improve as government measures support consumption. However, subsequent waves of potential COVID-19 resurgence pose a negative risk to this outlook.

The conditions are set in the third quarter for a modest frac completion activity ~~which was~~increase in North America, though from a very low base. Internationally, markets may continue to be disrupted by the pandemic and will continue to adjust to budget levels set during the second quarter, but this is expected to be ~~seasonally lower sequentially, suffered from COVID-19-related activity disruptions and initial customer spending cuts in response to falling oil prices. International revenue~~mostly offset if there is a seasonal return of ~~$5.1 billion declined 10% sequentially.~~

~~The sequential international revenue decline was led by lower winter~~ activity in the ~~Europe/CIS/Africa area, particularly~~Northern Hemisphere and a rebound of Latin America from its second-quarter weakness. However, any further material COVID-19 disruption or significant setback in oil demand arising from a slower economic recovery could present downside risks to this outlook. Absent these risks, Schlumberger anticipates flat sequential revenue in the ~~Russia & Central Asia~~third quarter. Schlumberger expects its third quarter pretax segment operating income and ~~the United Kingdom & Continental Europe GeoMarkets. Latin America area revenue also decreased, mainly due~~margin to ~~reduced WesternGeco~~^® ~~multiclient seismic license sales. Middle East & Asia area revenue declined on lower product sales following strong year-end sales~~expand as a result of its restructuring efforts, improved activity mix, and a seasonal decline in activity. COVID-19-related activity disruptions during the quarter impacted our operations, particularly in China, Malaysia, Iraq, Italy, Romania, the United Kingdom, Gabon, Mozambique, Congo, Nigeria, Angola, and offshore North America.sustained benefits from technology adoption, including digital.

At this time, customer feedback and Schlumberger’s analysis indicate global capex spend is expected to decline by about 20% in 2020, with the largest share of the reduction affecting North America, which is estimated to drop by about 40%. In contrast, international E&P capex is expected to decline by about 15%. Final investment decision sanctions are expected to fall back to trough levels of 2015, which would indicate project delays to 2021 and beyond.

In this environment—the duration of which remains uncertain—Schlumberger has planned for a range of scenarios and has taken a number of actions. To protect its workforce in the wake of COVID-19, Schlumberger has taken steps to keep its people safe by supporting those affected, mandating that as many employees and contractors as possible work from home, and monitoring those who cannot do so and are required to be at work. To reinforce cost control and cash discipline, Schlumberger is reducing its structural and variable costs, and restructuring its organization to match activity where necessary, including furloughing personnel, cutting salaries, lowering headcount, and closing facilities. Additionally, Schlumberger's Board of Directors and executive officers have voluntarily agreed to reductions in their cash compensation. The capital investment program has been reduced by more than 30% and resources will be allocated to the more resilient markets while Schlumberger remains focused on capital stewardship and maintaining its commitment to a strong balance sheet.

The second quarter is likely to be the most uncertain and disruptive quarter the industry has ever seen. The extent to which Schlumberger’s future results are affected by COVID-19 will depend on various factors and consequences beyond the Company’s control, such as the duration and scope of the pandemic; additional actions by businesses and governments in response to the pandemic, and the speed and effectiveness of responses to combat the virus. COVID-19, and the volatile regional and global economic conditions stemming from the pandemic, could also aggravate the risk factors identified in Schlumberger’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. COVID-19 may also materially adversely affect Schlumberger’s results in a manner that is either not currently known or that Schlumberger does not currently consider to be a significant risk to its business. See also the risk factor relating to COVID-19 disclosed in Item 8.01 of Schlumberger’s Current Report on Form 8-K filed on April 17, 2020.

Reservoir Characterization revenue of ~~$1.3~~$1.1 billion decreased 20% sequentially. This ~~decrease~~ was ~~primarily~~mainly due to ~~seasonally~~ lower ~~sales of software and multiclient seismic licenses and reduced winter~~Wireline activity in North America land and the ~~Northern Hemisphere. Additionally, customers began~~Eastern Middle East and Sub-Sahara Africa GeoMarkets. Testing Services revenue was also lower mainly in the Sub-Sahara Africa GeoMarket as a result of projects that were completed in the prior quarter, as well as delayed and cancelled activities due to ~~cut both discretionary spend and activity toward the end of the quarter, which affected exploration activity in several GeoMarkets.~~COVID-19.

Reservoir Characterization pretax operating margin of ~~14% fell 839 basis points (“bps”)~~18% rebounded 357 bps sequentially ~~due to~~despite the ~~lower sales of software~~significant revenue decline. This margin expansion was driven by prompt cost reduction measures through headcount rationalization and ~~multiclient seismic licenses as well as the effects of lower exploration activity.~~furloughs.

Drilling revenue of ~~$2.3~~$1.7 billion decreased ~~6% sequentially with approximately half of the revenue decline attributable~~ 24% sequentially. This was primarily due to the divestiture of the businesses and associated assets of DRILCO, Thomas Tools, and Fishing & Remedial Services (the “Drilling Tools businesses”) which was completed at the end of the fourth quarter of 2019. Revenue also decreased due to seasonality effectsactivity decline in ~~the Northern Hemisphere. The~~ US land as rig count ~~was 6% lower sequentially including a 15% drop~~dropped more than 50%, while COVID-19 disruptions caused drilling activities to be cancelled or suspended in ~~the last two weeks of March.~~ several international GeoMarkets.

Drilling pretax operating margin of ~~12% was resilient, as it remained flat with the previous quarter despite the sequential revenue decline as profitability was boosted~~10% contracted by ~~the~~ ~~divestiture~~289 bps sequentially. Drilling & Measurements and M-I SWACO accounted for most of the ~~Drilling Tools~~ ~~businesses, which were previously dilutive~~margin decline and experienced the largest drop in activity due to ~~margins.~~their sizeable footprint in North America land.

Production revenue of ~~$2.7~~$1.6 billion ~~declined 6%~~decreased 40% sequentially.This was driven by ~~lower Well Services activity and weaker Artificial Lift Solutions sales~~the sharp drop in ~~the international markets.~~ OneStim^® pressure-pumping activity in North America land, lower APS revenue ~~grew slightly as its scale-to-fit strategy successfully generated higher fleet utilization, however activity fell sharply~~due primarily to the significant production interruption in ~~mid-March as customers cut their spending. OneStim began to stack more frac fleets in response~~Ecuador and ~~have reduced their active fleets by 27% during March.~~COVID-19 disruptions.

Production pretax operating margin of 8%2% contracted by 98630 bps ~~sequentially~~sequentially. The margin decline was due to reduced profitability in North America ~~while international margins were flat despite lower revenue.~~land from the dramatic fall in activity, which mostly impacted the OneStim margin, as well as the drop in APS revenue in Ecuador.

Cameron revenue of ~~$1.3~~$1.0 billion decreased ~~10% sequentially mostly due to~~19% sequentially. The decline was driven by lower revenue in North America from the short-cycle businesses of Surface Systems and Valves & Process Systems. Revenue was impacted by the temporary closure of manufacturing facilities in Italy and Malaysia caused by COVID-19-related disruptions that impacted OneSubsea^®, Surface Systems and Valves & Process Systems ~~activity.~~revenues in North America and lower Drilling Systems sales.

Cameron pretax operating margin of ~~10% improved slightly~~8% declined by ~~57 bps.~~180 bps sequentially primarily due to the significant revenue decline.

				(Stated in millions)												(Stated in millions)

	First Quarter 2020						First Quarter 2019						Second Quarter 2020						Second Quarter 2019
				Income (Loss)						Income (Loss)						Income (Loss)						Income (Loss)
				Before						Before						Before						Before
	Revenue			Taxes			Revenue			Taxes			Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	1,311		$	184		$	1,459		$	281		$	1,052		$	185		$	1,558		$	317
Drilling		2,291			285			2,387			307			1,731			165			2,420			301
Production		2,703			212			2,890			217			1,615			25			3,077			235
Cameron		1,254			121			1,259			148			1,015			80			1,328			165
Eliminations & other		(104	)		(26	)		(116	)		(45	)		(57	)		(59	)		(114	)		(50	)
					776						908						396						968
Corporate & other ⁽¹⁾					(228	)					(273	)					(169	)					(238	)
Interest income ⁽²⁾					15						10						7						9
Interest expense ⁽³⁾					(129	)					(136	)					(137	)					(146	)
Charges and credits⁽⁴⁾					(8,523	)					-						(3,724	)					-
	$	7,455		$	(8,089	)	$	7,879		$	509		$	5,356		$	(3,627	)	$	8,269		$	593

~~First-quarter~~Second-quarter 2020 revenue of ~~$7.5~~$5.4 billion ~~decreased 5% year-on-year as customers began~~was 35% lower compared to ~~cut spending in response to falling oil prices caused by~~ the ~~simultaneous shocks in oil supply and demand~~same period last year due to the ~~unprecedented global health and economic crisis sparked~~significant fall in North America activity, well as the international activity drop due to downward revisions to customer budgets accentuated by ~~the~~ COVID-19 ~~pandemic.~~disruptions. With market uncertainty weighing on demand outlook, North America revenue declined ~~17% year-on-year. The international business showed some resilience~~58% reflecting the continued capital discipline of North America operators, who reduced drilling and frac activity. International revenue decreased 24%. This decline was most prominent in Latin America and Africa due to COVID-19-related restrictions and the drop in deepwater activity, as ~~revenue increased 2% year-on-year against~~well as the ~~backdrop~~effect of ~~an increasingly difficult operating environment.~~the APS production interruption in Ecuador.

~~First-quarter~~Second-quarter 2020 revenue of ~~$1.3~~$1.1 billion ~~fell 10% year-on-year~~decreased 32% year-on-year. This was mainly due to lower Wireline and WesternGeco revenue as customers ~~began~~pulled back activity due to COVID-19 and cut discretionary spending ~~which caused a reduction~~and exploration in ~~exploration activity that impacted Wireline, WesternGeco, and Software Integrated Solutions (“SIS”). Activity was also lower in a number of countries affected by COVID-19-related disruptions.~~several international GeoMarkets.

Year-on-year, pretax operating margin ~~dropped 525~~decreased 273 bps ~~year-on-year~~ to ~~14%~~18% due to ~~lower high-margin exploration activity. Lower sales of SIS software~~reduced profitability, largely in Wireline and ~~WesternGeco multiclient seismic licenses also contributed to the year-on-year margin contraction.~~WesternGeco.

~~First-quarter~~ Second-quarter 2020 revenue of ~~$2.3~~$1.7 billion decreased ~~4% year-on-year largely~~28% year-on-year. This was primarily due to the activity decline in US land as rig count significantly decreased, while COVID-19 disruptions caused drilling activities to be cancelled or suspended in several international GeoMarkets. Revenue was also lower due to the divestiture of the Drilling Tools businesses at the end of the fourth quarter of 2019. Revenue also declined due to the significant drop in rig count in North America as customers reduced spending due to falling oil prices. Internationally, activity was also reduced in a number of countries in the Middle East & Asia and Europe/CIS/Africa areas impacted by COVID-19-related disruptions.

Year-on-year, pretax operating margin decreased 42288 bps to 10% due to the significant reduction in activity in North America.

Second-quarter 2020 revenue of $1.6 billion decreased 48% year-on-year. This revenue decrease was driven by the sharp drop in OneStim pressure pumping activity in North America land, lower APS revenue due primarily to the significant production interruption in Ecuador and COVID-19 disruptions.

Year-on-year, pretax operating margin decreased 612 bps to 2% due primarily to reduced profitability in OneStim in North America land.

Second-quarter 2020 revenue of $1.0 billion decreased 24% year-on-year. The decline was driven primarily by lower Valves & Process Systems and Surface Systems revenue in North America.

Year-on-year, pretax operating margin decreased 453 bps to 8% due to the significant revenue decline.

				(Stated in millions)

	Six Months 2020						Six Months 2019
				Income (Loss)						Income (Loss)
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	2,363		$	369		$	3,017		$	598
Drilling		4,020			450			4,806			608
Production		4,318			237			5,967			453
Cameron		2,270			201			2,586			313
Eliminations & other		(160	)		(85	)		(227	)		(96	)
					1,172						1,876
Corporate & other ⁽¹⁾					(397	)					(511	)
Interest income ⁽²⁾					22						18
Interest expense ⁽³⁾					(266	)					(282	)
Charges and credits ⁽⁴⁾					(12,247	)					-
	$	12,811		$	(11,716	)	$	16,149		$	1,101

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

Six-month 2020 revenue of $12.8 billion was 21% lower compared to the same period last year due to the significant fall in North America activity, as well as the international activity drop due to downward revisions to customer budgets accentuated by COVID-19 disruptions. With market uncertainty weighing on demand outlook, North America revenue declined 37% reflecting the continued capital discipline of North America operators, who reduced drilling and frac activity. International revenue decreased 12%. ~~While margins~~The decline was most prominent in Latin America and Africa due to COVID-19 related restrictions and the drop in deepwater activity, as well as the effect of the APS production interruption in Ecuador.

Six-month 2020 revenue of $2.4 billion decreased 22% year-on-year. This was mainly due to lower Wireline and WesternGeco revenue as customers pulled back activity due to COVID-19 and cut discretionary spending and exploration in several international GeoMarkets. Testing Services and Software Integrated Solutions revenue declined slightly.

Year-on-year, pretax operating margin decreased 421 bps to 16% due to reduced profitability largely in Wireline and WesternGeco.

Six-month 2020 revenue of $4.0 billion decreased 16% year-on-year. This was primarily due to the activity decline in US land as rig count significantly decreased while COVID-19 disruptions caused drilling activities to be cancelled or suspended in several

international GeoMarkets. Revenue was also lower due to the divestiture of the Drilling Tools businesses at the end of the fourth quarter of 2019.

Year-on-year, pretax operating margin decreased 145 bps to 11%. Margins were lower due to the decrease in revenue and COVID-19-related ~~disruptions, profitability was boosted by the divestiture of the Drilling Tools businesses which was previously dilutive to margins.~~

Six-month 2020 revenue of ~~$2.7~~$4.3 billion decreased ~~6% year-on-year~~28% year-on-year. This revenue decrease was driven primarily ~~due to lower~~by the sharp drop in OneStim ~~revenue as customers~~pressure pumping activity in North America land, ~~continued~~lower APS revenue due primarily to ~~decrease their investment spending resulting~~the significant production interruption in ~~the stacking of additional fleet capacity.~~Ecuador and COVID-19 disruptions.

Year-on-year, pretax operating margin ~~increased by 32~~decreased 211 bps to ~~8% as improved margins in Asset Performance Solutions (“APS”) internationally were largely offset by~~5% due primarily to reduced profitability in OneStim in North America land.

~~First-quarter~~Six-month 2020 revenue of ~~$1.3~~$2.3 billion decreased 12% year-on-year. The decline was ~~essentially flat compared to the same period in 2019, as revenue growth from the long cycle businesses of OneSubsea and Drilling Systems was offset~~driven primarily by ~~a revenue decline in~~lower Valves & Process ~~Systems.~~Systems and Surface Systems revenue in North America.

Year-on-year, pretax operating margin decreased ~~209~~322 bps to ~~10% primarily driven by reduced profitability in~~9% due to the ~~short cycle businesses of Surface Systems and Valves & Process Systems.~~significant revenue decline.

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

	First Quarter				Second Quarter				Six Months
	2020		2019		2020		2019		2020		2019
Equity in net earnings of affiliated companies	$	24	$	3	$	26	$	14	$	49	$	16
Interest income		15		11		7		11		23		23
	$	39	$	14	$	33	$	25	$	72	$	39

The increases in earnings from equity method investments primarily relates to higher income associated with Schlumberger's equity investments in rig- and seismic-related businesses.

Research & engineering and General & administrative expenses, as a percentage of Revenue, for the ~~first~~second quarter and six months ended ~~March 31,~~June 30, 2020 and 2019 were as follows:

	First Quarter						Second Quarter						Six Months
	2020			2019			2020			2019			2020			2019
Research & engineering		2.3	%		2.2	%		2.6	%		2.2	%		2.5	%		2.2	%
General & administrative		1.7	%		1.4	%		1.5	%		1.4	%		1.6	%		1.4	%

The effective tax rate for the ~~first~~second quarter of 2020 was 9%6%, as compared to 17% for the same period of 2019. The charges described in Note 2 to the Consolidated Financial Statements reduced the effective tax rate for the second quarter of 2020 by 17 percentage points as a significant portion of these charges were not tax-effective. Changes in the geographic mix of pretax earnings increased the effective tax rate for the second quarter of 2020 by six percentage points as compared to the same period of 2019.

The effective tax rate for first six months of 2020 was 8% as compared to 16% for the same period of 2019. The ~~lower effective tax rate was almost entirely due to the~~ charges described in Note 2 to the Consolidated Financial Statements ~~which~~reduced the effective tax rate for the first six months of 2020 by 10 percentage points as a significant portion of these charges were ~~primarily related to non-deductible goodwill.~~not tax-effective.

Schlumberger recorded the following charges ~~in connection with the preparation of its first quarter~~and credits during 2020, ~~financial statements,~~ which are fully described in Note 2 to the Consolidated Financial Statements:

(Stated in millions)

Pretax

Tax

Net

Goodwill
$
3,070

$
-

$
3,070

Intangible assets

3,321

(815
)

2,506

APS investments

1,264

4

1,268

North America pressure pumping

587

(133
)

454

Severance

202

(7
)

195

Other

79

(9
)

70

Valuation allowance

-

164

164

$
8,523

$
(796
)

$
7,727

	(Stated in millions)

	Pretax			Tax			Net
First quarter:
Goodwill	$	3,070		$	-		$	3,070
Intangible asset impairments		3,321			(815	)		2,506
Asset Performance Solutions investments		1,264			4			1,268
North America pressure pumping impairment		587			(133	)		454
Workforce reductions		202			(7	)		195
Other		79			(9	)		70
Valuation allowance		-			164			164
Second quarter:
Workforce reductions		1,021			(71	)		950
Asset Performance Solutions investments		730			(15	)		715
Fixed asset impairments		666			(52	)		614
Inventory write-downs		603			(49	)		554
Right-of-use asset impairments		311			(67	)		244
Costs associated with exiting certain activities		205			25			230
Multiclient seismic data impairment		156			(2	)		154
Repurchase of bonds		40			(2	)		38
Postretirement benefits curtailment gain		(69	)		16			(53	)
Other		61			(4	)		57
	$	12,247		$	(1,017	)	$	11,230

The first quarter 2020 results did not include any benefit from reduced depreciation and amortization expense as a result of the first quarter impairment charges. However, ~~going forward,~~commencing with the second quarter of 2020, depreciation and amortization expense ~~will be~~was reduced by approximately $95 million on a quarterly ~~basis.~~basis as a result of the first quarter impairment charges. Approximately $45 million of this quarterly reduction ~~will be~~is reflected in the Production segment, with the remaining $50 million reflected in the “Corporate & other” line item.

The second quarter 2020 results did not include any benefit from reduced expenses associated with the second quarter restructuring and impairment charges. However, going forward depreciation and amortization expense will be reduced by approximately $80 million and lease expense will be reduced by $25 million, on a quarterly basis. Approximately $70 million of this quarterly reduction will be reflected in the Production Segment, with the remaining $35 million reflected amongst the Reservoir Characterization, Drilling and Cameron segments.

There were no charges or credits recorded during the first ~~quarter~~six months of 2019.

~~Schlumberger expects to record a significant charge relating to severance during the second quarter of 2020. However, at this time the amount cannot be reasonably estimated.~~

The effects of the COVID-19 pandemic have resulted in a significant and swift reduction in international and U.S. economic activity. These effects have adversely affected the demand for oil and natural gas, as well as for Schlumberger’s products and services, and caused significant volatility and disruption of the financial markets. This period of extreme economic disruption, low oil prices and reduced demand for Schlumberger’s products and services has had, and is likely to continue to have, a material adverse impact on ~~our~~Schlumberger’s business, results of operations, financial condition and, at times, access to sources of ~~liquidity and financial condition.~~liquidity.

In view of the uncertainty of the depth and extent of the contraction in oil demand due to the COVID-19 pandemic combined with the weaker commodity price environment, Schlumberger has turned its strategic focus to cash conservation and protecting its balance sheet. As a result, in April 2020 Schlumberger ~~therefore reduced~~announced a 75% reduction to its ~~dividend by 75%, commencing with the next dividend payment in July 2020.~~quarterly dividend. The revised dividend supports Schlumberger’s value proposition through a balanced approach of shareholder distributions and organic investment, while providing the flexibility to weather the uncertain environment. This decision reflects the Company’s focus on its capital stewardship program as well as its commitment to maintain both a strong liquidity position and a strong investment grade credit rating that provides privileged access to the financial markets.

	(Stated in millions)									(Stated in millions)

	Mar. 31,			Mar. 31,			Dec. 31,			Jun. 30,			Jun. 30,			Dec. 31,
Components of Liquidity:	2020			2019			2019			2020			2019			2019
Cash	$	1,375		$	1,230		$	1,137		$	1,462		$	1,466		$	1,137
Short-term investments		1,969			925			1,030			2,127			882			1,030
Short-term borrowings and current portion of long-term debt		(1,233	)		(99	)		(524	)		(603	)		(98	)		(524	)
Long-term debt		(15,409	)		(16,449	)		(14,770	)		(16,763	)		(16,978	)		(14,770	)
Net debt ⁽¹⁾	$	(13,298	)	$	(14,393	)	$	(13,127	)	$	(13,777	)	$	(14,728	)	$	(13,127	)

Changes in Liquidity:	Three Months Ended Mar. 31,						Six Months Ended Jun. 30,
	2020			2019			2020			2019
Net income (loss)	$	(7,368	)	$	430		$	(10,796	)	$	923
Impairment and other charges		8,523			-			12,247			-
Depreciation and amortization ⁽²⁾		792			903			1,396			1,841
Earnings of equity method investments, less dividends received		(10	)		3			(26	)		-
Deferred taxes		(781	)		(72	)		(1,050	)		(101	)
Stock-based compensation expense		108			108			213			194
Increase in working capital ⁽³⁾		(482	)		(1,048	)		(423	)		(1,460	)
Other		2			2			26			37
Cash flow from operations		784			326			1,587			1,434
Capital expenditures		(407	)		(413	)		(658	)		(817	)
APS investments		(163	)		(151	)		(224	)		(332	)
Multiclient seismic data costs capitalized		(35	)		(45	)		(61	)		(109	)
Free cash flow ⁽⁴⁾		179			(283	)		644			176
Dividends paid		(692	)		(692	)		(1,386	)		(1,385	)
Proceeds from employee stock plans		74			106			69			106
Stock repurchase program		(26	)		(98	)		(26	)		(199	)
Net proceeds from asset divestitures		298			-			298			-
Business acquisitions and investments, net of cash acquired plus debt assumed		-			(5	)		(20	)		(17	)
Other		(4	)		(147	)		(229	)		(135	)
Increase in net debt		(171	)		(1,119	)		(650	)		(1,454	)
Net debt, beginning of period		(13,127	)		(13,274	)		(13,127	)		(13,274	)
Net debt, end of period	$	(13,298	)	$	(14,393	)	$	(13,777	)	$	(14,728	)

Key liquidity events during the first ~~three~~six months of 2020 and 2019 included:

Schlumberger recorded a $1.0 billion charge relating to severance during the second quarter of 2020. The vast majority of this charge is expected to be paid during the second half of 2020.

Schlumberger generates revenue in more than 120 countries. As of ~~March 31,~~June 30, 2020, ~~four~~six of those countries individually accounted for greater than 5% of Schlumberger’s net receivables balance, of which only the United States accounted for greater than 10% of such receivables.

As of ~~March 31,~~June 30, 2020, Schlumberger had ~~$3.3~~$3.6 billion of cash and short-term investments on hand. Schlumberger had separate committed debt facility agreements aggregating ~~$6.3~~$8.0 billion that support commercial paper programs, of which ~~$3.5~~$6.2 billion was available and unused. Additionally, subsequent to the end of the first quarter of 2020, Schlumberger entered into a €1.2 billion committed revolving credit facility. This one-year facility can be extended at Schlumberger’s option for up to an additional year. Schlumberger can potentially upsize this facility through syndication. 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 ~~March 31,~~June 30, 2020 were ~~$2.8~~$1.8 billion.

This ~~first-quarter~~second-quarter 2020 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 products or geographic areas within each segment); oil and natural gas demand and production growth; oil and natural gas prices; pricing; Schlumberger’s response to, and preparedness for, the COVID-19 pandemic; access to raw materials; improvements in operating procedures and ~~technology, including our transformation program;~~technology; capital expenditures by Schlumberger and the oil and gas industry; the business strategies of Schlumberger and Schlumberger’s customers; Schlumberger’s digital strategy; Schlumberger’s restructuring efforts and charges recorded as a result of such efforts; our

effective tax rate; Schlumberger’s APS projects, joint ventures, and alliances; future global economic and geopolitical conditions; and future results of operations. These statements are subject to risks and uncertainties, including, but not limited to, changing global economic conditions; ~~public health crises, such as the COVID-19 pandemic, and any related actions taken by businesses and governments;~~ changes in exploration and production spending by Schlumberger’s customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of Schlumberger’s customers and suppliers, particularly during extended periods of low prices for crude oil and natural gas; Schlumberger’s inability to sufficiently monetize assets; the extent of future charges; general economic, ~~political,~~geopolitical, and business conditions in key regions of the world; foreign currency risk; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays or cancellations; challenges in Schlumberger’s supply chain; production declines; Schlumberger’s inability to recognize intended benefits from its business strategies and initiatives, such as digital or new energy, as well as our restructuring and structural cost reduction plans; 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; the competitiveness of ~~alternate-energy~~alternative energy sources or product substitutes; and other risks and uncertainties detailed in this Form 10-Q and our most recent Form 10-K and ~~Form~~Forms 8-K filed with or furnished to the SEC. 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. Statements in this ~~first-quarter~~second-quarter 2020 Form 10-Q are made as of ~~April 22,~~July 29, 2020, and 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, 2019. Schlumberger’s exposure to market risk has not changed materially since December 31, 2019.

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—~~11—Contingencies, in the accompanying 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, 2019, other than the risk factor disclosed in Item 8.01 of Schlumberger’s Current Report on Form 8-K filed on April 17, 2020, which is hereby incorporated by reference into this Quarterly Report on Form 10-Q.

As of ~~March 31,~~June 30, 2020, Schlumberger had repurchased $1.0 billion of Schlumberger common stock under its $10 billion share repurchase program.

~~Schlumberger’s~~Schlumberger did not repurchase any of its common stock ~~repurchase activity for~~during the ~~three months ended March 31, 2020 was as follows:~~second quarter of 2020.

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 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 ~~first~~second quarter of 2020 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 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

		Page
PART I	Financial Information

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1721

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	2429

Item 4.	Controls and Procedures	2429

PART II	Other Information

Item 1.	Legal Proceedings	2530

Item 1A.	Risk Factors	2530

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2530

Item 3.	Defaults Upon Senior Securities	2530

Item 4.	Mine Safety Disclosures	2530

Item 5.	Other Information	2530

Item 6.	Exhibits	2631

	(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
January 2020		179.5	$	35.08		179.5	$	8,992,119
February 2020		596.7	$	33.43		596.7	$	8,972,172
March 2020		-	$	-		-	$	8,972,172
		776.2	$	33.81		776.2

		Schlumberger Limited (Registrant)
Date:	~~April 22,~~July 29, 2020	/s/ Howard Guild
		Howard Guild
		Chief Accounting Officer and Duly Authorized Signatory

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

	(Stated in millions)

	Reservoir
	Characterization			Drilling			Production			Cameron			Total
Balance at December 31, 2019	$	4,560		$	7,092		$	3,949		$	441		$	16,042
Impairment (See Note 2)		-			(1,659	)		(1,228	)		(183	)		(3,070	)
Impact of changes in exchange rates and other		(3	)		6			(21	)		-			(18	)
Balance at June 30, 2020	$	4,557		$	5,439		$	2,700		$	258		$	12,954

(Stated in millions, except per share amounts)

	Total cost		Total number		Average price
	of shares		of shares		paid per
	purchased		purchased		share
Three months ended March 31, 2020	$	26		0.8	$	33.81
Three months ended March 31, 2019	$	98		2.3	$	42.79