CALCULATION OF REGISTRATION FEE
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Title of Each Class of
Securities Offered
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Amount
Registered
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Proposed
Maximum
Offering Price
Per Unit
(1)
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Proposed
Maximum
Aggregate
Offering
Price
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Amount of
Registration Fee
(2)
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common stock, par value $0.01 per share
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2,108,964
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$101.08
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$213,174,082
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$27,457
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(1)
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Estimated solely for purposes of calculating the registration fee in accordance with Rules 457(c) and 457(r) of the Securities Act of 1933, as amended (the Securities Act), and based upon the average of the
high and low sales price of a share of the Registrants common stock, as reported by the New York Stock Exchange on May 5, 2014.
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(2)
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Calculated in accordance with Rules 456(b) and 457(r) of the Securities Act.
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Filed pursuant to Rule 424(b)(7)
Registration No. 333-195342
PROSPECTUS SUPPLEMENT
To Prospectus dated April 17,
2014
Schlumberger N.V.
(Schlumberger Limited)
2,108,964 Shares
Common
Stock
This prospectus supplement relates to resales from time to time of up to 2,108,964 shares of our common stock by one or more stockholders who
acquired shares of our common stock in a private transaction in connection with our acquisition of the remaining shares in SES Holdings Limited (Saxon), a Calgary-based provider of international land drilling services, that we did not
previously own.
The selling stockholders, or their pledgees, donees, transferees or other successors in interest, may offer and sell the
shares through public or private transactions at prevailing market prices, at prices related to prevailing market prices or at privately negotiated prices by any of the methods described in this prospectus supplement under Plan of
Distribution.
Our common stock is traded on the New York Stock Exchange (the NYSE) under the symbol
SLB. Our common stock is also traded on the Euronext Paris, Euronext Amsterdam, London and SIX Swiss stock exchanges. On May 7, 2014, the closing sale price as reported by the NYSE was $101.88 per share.
You should carefully read this prospectus supplement and accompanying prospectus before you invest.
Investing in our securities involves risk. See Risk Factors on page S-5
.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of
this prospectus supplement is May 8, 2014
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS SUPPLEMENT AND THE ACCOMPANYING BASE
PROSPECTUS
This document is in two parts. The first part is this prospectus supplement, which describes the specific terms of this
offering of shares of our common stock. The second part is the accompanying base prospectus dated April 17, 2014, which contains and incorporates by reference important business and financial information about us, as well as other information about
this offering. This prospectus supplement may add to, update or change the information in the accompanying prospectus. If information in this prospectus supplement is inconsistent with information in the accompanying prospectus, this prospectus
supplement will apply and will supersede that information in the accompanying prospectus. Generally, when we refer only to the prospectus, we are referring to both parts of this document combined.
You will find more information about us in the registration statement and the documents incorporated by reference herein. Any statements made
in this prospectus supplement or the accompanying prospectus concerning the provisions of legal documents are not necessarily complete. You should read the documents that are filed as exhibits to the registration statement or otherwise filed with
the Securities and Exchange Commission, or the SEC, for a more complete understanding of the document or matter. It is important for you to read and consider all information contained or incorporated by reference in this prospectus supplement and
the accompanying prospectus before investing in our common stock. You should also read and consider the information in the documents to which we have referred you in Where You Can Find More Information in the accompanying prospectus.
You should rely only on the information contained or incorporated by reference in this prospectus supplement and the accompanying
prospectus or in any free writing prospectus. We have not, and none of the selling stockholders have, authorized anyone to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely
on it. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. Neither we nor any of the selling stockholders are making an offer or sale of these securities in any
jurisdiction where the offer or sale is not permitted.
You should not assume that the information contained in this prospectus supplement
is accurate as of any date other than the date on the front of this prospectus supplement or accompanying prospectus or that any document incorporated by reference into this prospectus supplement or accompanying prospectus is accurate as of any date
other than the date of such document. Our business, financial condition, results of operations and prospects may have changed since that date.
Unless otherwise indicated or the context otherwise requires, references in this prospectus supplement or the accompanying prospectus, to
Registrant, Company, Schlumberger, we or our are to Schlumberger Limited and its consolidated subsidiaries.
S-1
ABOUT THE COMPANY
Founded in 1926, Schlumberger is the worlds leading supplier of technology, integrated project management and information solutions to
the international oil and gas exploration and production industry. Having invented wireline logging as a technique for obtaining downhole data in oil and gas wells, the Company today provides the industrys widest range of products and services
from exploration through production.
Schlumberger is incorporated under the laws of Curaçao with principal executive offices in
Paris, Houston and The Hague. Our principal executive offices in the United States are located at 5599 San Felipe, 17th Floor, Houston, Texas 77056, and our telephone number is (713) 375-3400.
S-2
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This prospectus supplement, the accompanying prospectus, and the documents incorporated by reference herein and therein include
forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The opinions, forecasts, projections, or other statements other than statements of historical fact, are forward-looking
statements. Similarly, statements that describe future plans, objectives or goals or future revenues or other financial metrics are also forward-looking statements. Although we believe that the expectations reflected in such forward-looking
statements are reasonable, we can give no assurances that such expectations will prove to have been correct.
Statements that are
predictive in nature, that depend upon or refer to future events or conditions, or that include words such as would, should, plans, likely, expects, anticipates,
intends, believes, estimates, thinks, may and similar expressions, are forward-looking statements. The following important factors, in addition to those discussed under Risk
Factors in the documents incorporated by reference herein, could affect the future results of the energy industry in general, and Schlumberger in particular, and could cause those results to differ materially from those expressed in or implied
by such forward-looking statements:
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forecasts or expectations regarding business outlook;
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overall demand for and pricing of the products and services of Schlumberger;
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growth for Schlumberger as a whole and for each business segment (and for specified products or geographic areas within each business segment);
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oil and natural gas demand and production growth;
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oil and natural gas prices;
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improvements in operating procedures and technology;
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capital expenditures by Schlumberger and the oil and gas industry;
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the business strategies of Schlumbergers customers;
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Schlumbergers effective tax rate;
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regulatory, geopolitical and operational risks arising from the international nature of Schlumbergers operations;
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current and future global economic conditions;
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future results of operations;
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economic, political and business conditions in key regions of the world, including in Russia and the Ukraine;
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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;
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business strategy and other plans and objectives for future operations;
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weather and seasonal factors;
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unexpected liabilities, including environmental liabilities;
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loss of intellectual property rights;
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changes in exploration and production spending by Schlumbergers customers and changes in the level of oil and natural gas exploration and development;
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S-3
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production declines; and
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the inability of technology to meet new challenges in exploration.
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All subsequent written and
oral forward-looking statements attributable to Schlumberger or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking
statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any
forward-looking
statements except as required
by law.
S-4
RISK FACTORS
Investing in our securities involves risk. You should carefully consider the risks described in the documents incorporated by reference
herein, including the risks described in the Managements Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors sections of our Annual Report on Form 10-K for the fiscal year ended
December 31, 2013, and in Part II, Item 1A, under the heading Risk Factors included in our Quarterly Reports on Form 10-Q thereafter, which are incorporated by reference in this prospectus, and which may be amended,
supplemented or superseded from time to time by other reports we file with the SEC in the future.
The risks described in the documents
incorporated by reference could cause our business, properties, assets, financial condition, results of operations, cash flows or prospects to be materially adversely affected. Additional risks and uncertainties not currently known to us or that we
currently deem immaterial may also adversely affect our business and operations.
USE OF PROCEEDS
Because the selling stockholders will sell all of the shares offered under this prospectus supplement, we will not receive any cash proceeds.
S-5
SELLING STOCKHOLDERS
The shares of common stock covered by this prospectus are being registered pursuant to provisions of a certain registration rights agreement
by and among us and the selling stockholders. The shares were acquired by the selling stockholders from us in connection with our acquisition of the remaining shares in Saxon, a
Calgary-based
provider of
international land drilling services, that we did not previously own. The shares of common stock were issued without registration under the Securities Act, in reliance upon the exemption provided by Section 4(a)(2) of the Securities Act. As of
April 30, 2014, there were 1,300,545,324 shares of our common stock outstanding. The selling stockholders have not held any position or office or had any other material relationship with us within the past three years, other than their ownership of
shares of our common stock as described below.
The following table sets forth the total number of shares of our common stock held by each
selling stockholder named below as of the date of this prospectus supplement. No selling stockholder named in the table below owns more than 1% of our outstanding common stock before the offering. All information in the table below, as well as
information in the footnotes thereto, has been obtained solely from the relevant selling stockholders, and we have not independently verified this information.
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Name
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Number of shares of common stock
beneficially owned prior to the offering
(1)
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First Reserve Funds
(2)
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2,067,081
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J. Tim Braun
(3)
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13,839
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Michael McNulty
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15,536
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Darren Yausie
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421
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Katerina Marasco
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421
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R. Gregory Lightfoot
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212
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C. Mark Helmer and Aiga K. Helmer
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4,709
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Bev Tremblay
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3,153
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Dale E. Tremblay
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3,153
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Dean R. Miskiman
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439
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Total
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2,108,964
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(1)
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Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Shares of common stock subject to securities exercisable or
convertible into shares of common stock that are currently exercisable or exercisable within 60 days of May 5, 2014, are deemed to be beneficially owned by the person holding such securities for the purpose of computing the percentage of ownership
of such person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.
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(2)
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The First Reserve Funds are comprised of the following entities: FR SES Holdings Limited, a Cayman Islands exempted company (FR SES) and FR Parallel SES Holdings Limited, a Cayman Islands exempted company
(FR Parallel). Before the offering, 2,030,627 shares of Schlumberger common stock were owned by FR SES and 36,454 shares of Schlumberger common stock were owned by FR Parallel. FR SES is wholly owned by First Reserve Fund XII, L.P., a
Cayman Islands exempted limited partnership (FR XII). FR Parallel is wholly owned by FR XII-A Parallel Vehicle, L.P., a Cayman Islands exempted limited partnership (FR XII-A). First Reserve GP XII, L.P., a Cayman Islands
exempted limited partnership (FR XII GP), is the general partner of FR XII and FR XII-A. First Reserve GP XII Limited, a Cayman Islands exempted company (FR XII Limited), is the general partner of FR XII GP. The address of FR
XII, FR XII-A, FR XII GP and FR XII Limited is c/o First Reserve Management, L.P., One Lafayette Place, Greenwich, Connecticut 06830. William E. Macaulay is a director of FR XII Limited, and has the right to appoint a majority of the Board of
Directors of FR XII Limited. By virtue of Mr. Macaulays right to appoint a majority of the directors of FR XII Limited, Mr. Macaulay may be deemed to have the shared power to vote or direct the vote of, and the shared power to dispose of or
direct the disposition of, the shares held by each of FR SES and FR Parallel and therefore, Mr. Macaulay may be deemed to be a beneficial owner of such shares.
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S-6
(3)
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J. Tim Braun is comprised of J. Tim Braun and Old Rivers Water Hauling Ltd., a Canadian corporation. J. Tim Braun is the sole shareholder of Old Rivers Water Hauling Ltd. Before the offering, 11,852 shares
of Schlumberger common stock were owned by J. Tim Braun and 1,987 shares of Schlumberger common stock were owned by Old Rivers Water Hauling Ltd.
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We do not know when or in what amounts the selling stockholders may offer shares for sale. The selling stockholders may elect not to sell any
of the shares offered by this prospectus supplement. Because the selling stockholders may offer all or some of the shares pursuant to this offering, and because there are currently no agreements, arrangements or understandings with respect to the
sale of any of the shares that will be held by the selling stockholders after completion of the offering, we cannot estimate the number of the shares that will be held by the selling stockholders after completion of the offering.
S-7
PLAN OF DISTRIBUTION
The shares of our common stock covered by this prospectus may be offered and sold from time to time by the selling stockholders, including
their pledgees, donees, transferees or other successors in interest selling shares received after the date of this prospectus from one of the selling stockholders as a pledge, gift or other non-sale related transfer. To the extent required, this
prospectus may be amended and supplemented from time to time to describe a specific plan of distribution.
The selling stockholders will
act independently of us in making decisions with respect to the timing, manner and size of each sale. These sales may be made at a fixed price or prices, which may be changed, or at prices on the NYSE, and under terms then prevailing or at prices
related to the then-current market price. Sales may also be made in negotiated transactions at negotiated prices, including pursuant to one or more of the following methods:
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purchases by a broker-dealer as principal and resale by such broker-dealer for its own account pursuant to this prospectus;
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ordinary brokerage transactions and transactions in which the broker solicits purchasers;
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an exchange distribution in accordance with the rules of the NYSE or other exchange or trading system on which the shares are admitted for trading privileges;
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sales at the market to or through a market maker or into an existing trading market, on an exchange or otherwise, for the shares;
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sales in other ways not involving market makers or established trading markets;
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through put or call transactions relating to the shares;
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block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction; and
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in privately negotiated transactions.
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In connection with distributions of the shares or
otherwise, the selling stockholders may:
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enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the shares in the course of hedging the positions they assume;
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sell the shares short and redeliver the shares to close out such short positions;
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enter into option or other transactions with broker-dealers or other financial institutions which require the delivery to them of shares offered by this prospectus, which they may in turn resell; or
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pledge shares to a broker-dealer or other financial institution, which, upon a default, they may in turn resell.
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In addition, any shares that qualify for sale pursuant to Rule 144 may be sold under Rule 144 rather than pursuant to this prospectus. Subject
to certain conditions, shares of common stock that were issued in connection with the acquisition of the remaining shares in Saxon to someone who is not an affiliate of ours may be sold under Rule 144 without restriction after six months
from the time of issuance.
In effecting sales, broker-dealers or agents engaged by the selling stockholders may arrange for other
broker-dealers to participate. Broker-dealers or agents may receive commissions, discounts or concessions from the selling stockholders, in amounts to be negotiated immediately prior to the sale.
In offering the shares covered by this prospectus, the selling stockholders, and any broker-dealers and any other participating broker-dealers
who execute sales for the selling stockholders may be deemed to be underwriters within the meaning of the Securities Act in connection with these sales. Any profits realized by the selling stockholders and the compensation of such
broker-dealers may be deemed to be underwriting discounts and commissions.
S-8
In order to comply with the securities laws of certain states, the shares must be sold in those
states only through registered or licensed brokers or dealers.
The anti-manipulation rules of Regulation M under the Exchange Act
may apply to sales of shares in the market and to the activities of the selling stockholders and their affiliates. The selling stockholders may indemnify any broker-dealer that participates in transactions involving the sale of the shares against
certain liabilities, including liabilities arising under the Securities Act.
We have agreed to indemnify the selling stockholders against
certain liabilities, including certain liabilities under the Securities Act.
We have agreed with the selling stockholders to keep the
registration statement of which this prospectus constitutes a part effective until the earlier of such time as:
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all of the shares covered by this prospectus supplement (i) have been disposed of pursuant to the Registration Statement, (ii) may be resold by the selling stockholders under Rule 144 under the Securities Act
without any volume or manner-of-sale restrictions under Rule 144(e) and (f), or (iii) have otherwise been transferred and may be resold by the transferees of such shares without subsequent registration under the Securities Act; or
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we have removed any restrictive legends from such the shares covered by this prospectus supplement, cancelled any stop transfer orders and directed our transfer agent to deliver unlegended shares to the selling
stockholders.
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We will pay all expenses of the registration of the common shares pursuant to the registration rights
agreement including SEC filing fees, accounting and legal fees (other than legal fees and expenses of counsel to the selling stockholders), and other expenses. The selling stockholders will be responsible for any brokers commissions,
underwriters discounts or commissions, transfer taxes or fees and expenses of legal counsel to the selling stockholders, if any, incurred in connection with sales of their shares pursuant to this prospectus.
S-9
PROSPECTUS
Schlumberger N.V.
(Schlumberger Limited)
Debt Securities
Common
Stock
Guarantees of Debt Securities
We or selling
securityholders may, from time to time, offer to sell senior or subordinated debt securities, common stock or guarantees of debt securities. Each time we or a selling securityholder sells securities pursuant to this prospectus, we will provide a
supplement to this prospectus that contains specific information about the offering and the specific terms of the securities offered. You should read this prospectus and the applicable prospectus supplement carefully before you invest in our
securities.
Our common stock is listed on The New York Stock Exchange under the symbol SLB. Our common stock is also traded
on the Euronext Paris, Euronext Amsterdam, London and SIX Swiss stock exchanges.
Investing in our securities involves a high degree of
risk. See
Risk Factors
on page 4 of this prospectus and all other information included or incorporated by reference in this prospectus before you decide whether to buy our securities.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this
prospectus is April 17, 2014
TABLE OF CONTENTS
You should rely only on the information contained or incorporated by reference in this prospectus and in any accompanying prospectus
supplement or in any related free writing prospectus. We have not authorized any other person to provide you with different information with respect to this offering. This document may only be used where it is legal to sell these securities. You
should only assume that the information in this prospectus or in any prospectus supplement is accurate as of the date on the front of those documents. Our business, financial condition, results of operations and prospects may have changed since that
date. We are not making an offer of these securities in any state where the offer is not permitted.
ABOUT THIS PROSPECTUS
This prospectus is part of an automatic shelf registration statement that we filed with the Securities and Exchange Commission, or SEC, as a
well-known seasoned issuer as defined in Rule 405 under the Securities Act of 1933, as amended. By using an automatic shelf registration statement, we may, at any time and from time to time, sell securities under this prospectus in one
or more offerings in an unlimited amount. As allowed by the SEC rules, this prospectus does not contain all of the information included in the registration statement. For further information, we refer you to the registration statement, including its
exhibits. Statements contained in this prospectus about the provisions or contents of any agreement or other document are not necessarily complete. If the SECs rules and regulations require that an agreement or document be filed as an exhibit
to the registration statement, please see that agreement or document for a complete description of these matters.
This prospectus
provides you with a general description of the securities we may offer. Each time we use this prospectus to offer securities, we will provide you with a prospectus supplement that will describe the specific amounts, prices and terms of the
securities being offered. The prospectus supplement may also add, update or change information contained in this prospectus. Therefore, if there is any inconsistency between the information in this prospectus and the prospectus supplement, you
should rely on the information in the prospectus supplement.
To understand the terms of our securities, you should carefully read this
document and the applicable prospectus supplement. Together they give the specific terms of the securities we are offering. You should also read the documents we have referred you to under Where You Can Find More Information below for
information about us and our financial statements. You can read the registration statement and exhibits on the SECs website or at the SEC as described under Where You Can Find More Information.
Unless otherwise indicated or the context otherwise requires, references in this prospectus to Registrant, Company,
Schlumberger, we or our are to Schlumberger Limited and its consolidated subsidiaries.
ABOUT THE COMPANY
Founded in 1926, Schlumberger is the worlds leading supplier of technology, integrated project management
and information solutions to the international oil and gas exploration and production industry. Having invented wireline logging as a technique for obtaining downhole data in oil and gas wells, Schlumberger today provides the industrys widest
range of products and services from exploration through production.
Schlumberger is incorporated under the laws of Curaçao with
principal executive offices in Paris, Houston and The Hague. Our principal executive offices in the United States are located at 5599 San Felipe, 17th Floor, Houston, Texas 77056, and our telephone number is (713) 375-3400.
1
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This prospectus and the documents incorporated by reference herein include forward-looking statements within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. The opinions, forecasts, projections, or other statements other than statements of historical fact, are forward-looking statements. Similarly, statements that describe future plans, objectives
or goals or future revenues or other financial metrics are also forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurances that such expectations will
prove to have been correct.
Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that
include words such as would, should, plans, likely, expects, anticipates, intends, believes, estimates, thinks, may
and similar expressions, are forward-looking statements. The following important factors, in addition to those discussed under Risk Factors in the documents incorporated by reference herein, could affect the future results of the energy
industry in general, and Schlumberger in particular, and could cause those results to differ materially from those expressed in or implied by such forward-looking statements:
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forecasts or expectations regarding business outlook;
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overall demand for and pricing of the products and services of Schlumberger;
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growth for Schlumberger as a whole and for each business segment (and for specified products or geographic areas within each business segment);
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oil and natural gas demand and production growth;
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oil and natural gas prices;
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improvements in operating procedures and technology;
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capital expenditures by Schlumberger and the oil and gas industry;
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the business strategies of Schlumbergers customers;
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Schlumbergers effective tax rate;
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regulatory, geopolitical and operational risks arising from the international nature of Schlumbergers operations;
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current and future global economic conditions;
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future results of operations;
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economic, political and business conditions in key regions of the world, including in Russia and the Ukraine;
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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;
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business strategy and other plans and objectives for future operations;
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weather and seasonal factors;
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unexpected liabilities, including environmental liabilities;
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loss of intellectual property rights;
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changes in exploration and production spending by Schlumbergers customers and changes in the level of oil and natural gas exploration and development;
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production declines; and
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the inability of technology to meet new challenges in exploration.
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All subsequent written and
oral forward-looking statements attributable to Schlumberger or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking
statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements except as required by law.
3
RISK FACTORS
Investing in our securities involves risk. You should carefully consider the risks described in the documents incorporated by reference in
this prospectus, including the Managements Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors sections of our Annual Report on Form 10-K for the fiscal year ended December 31,
2013 before deciding whether to invest in our securities. These risks could cause our business, properties, assets, financial condition, results of operations, cash flows or prospects to be materially adversely affected. Additional risks and
uncertainties not currently known to us or that we currently deem immaterial may also adversely affect our business and operations.
4
USE OF PROCEEDS
Unless we otherwise state in the applicable prospectus supplement, we will use the net proceeds from the sale of the offered securities for
general corporate purposes. General corporate purposes may include repayment of debt, additions to working capital, capital expenditures, investments in our subsidiaries, possible acquisitions and the repurchase, redemption or retirement of
securities, including our common stock. The net proceeds may be temporarily invested or applied to repay short-term or revolving debt prior to use.
5
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth our historical ratios of earnings to fixed charges for the periods indicated. This information should be read
in conjunction with the consolidated financial statements and the accompanying notes incorporated by reference in this prospectus.
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Years Ended December 31,
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2013
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2012
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2011
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2010
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2009
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Ratios of earnings to fixed charges
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12.9
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x
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11.2
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x
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11.3
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x
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12.3
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x
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9.6
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x
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Earnings available for fixed charges represent earnings before income taxes, noncontrolling interests and
fixed charges excluding capitalized interest, net of amortization, reduced by undistributed earnings of our less than 50% owned affiliates. Fixed charges represent interest expense, capitalized interest, plus that portion of rental expense deemed to
be the equivalent of interest. Interest expense excludes interest related to uncertain tax positions, which has been included in the provision for income taxes.
6
DESCRIPTION OF DEBT SECURITIES
The following is a general description of the debt securities that we may offer from time to time. The particular terms of the debt securities
offered by any prospectus supplement and the extent, if any, to which the general provisions described below may apply to those securities will be described in the applicable prospectus supplement. We also may sell hybrid securities that combine
certain features of debt securities and other securities described in this prospectus. As you read this section, please remember that the specific terms of a debt security as described in the applicable prospectus supplement will supplement and may
modify or replace the general terms described in this section. If there are any differences between the applicable prospectus supplement and this prospectus, the applicable prospectus supplement will control. As a result, the statements we make in
this section may not apply to the debt security you purchase.
In this description of the debt securities, the words we,
us or our refer only to Schlumberger Limited and not to any of our subsidiaries. Capitalized terms used but not defined in this section have the respective meanings set forth in the applicable indenture.
General
The debt securities that we may
offer will be either senior debt securities or subordinated debt securities. Any senior debt securities will be issued under an indenture, which we refer to as the senior indenture, to be entered into between us and the trustee named in the
applicable prospectus supplement. Any subordinated debt securities will be issued under a different indenture, which we refer to as the subordinated indenture, to be entered into between us and the trustee named in the applicable prospectus
supplement. We refer to both the senior indenture and the subordinated indenture as the indentures, and to each of the trustees under the indentures as a trustee. In addition, the indentures may be supplemented or amended as necessary to set forth
the terms of the debt securities issued under the indentures. You should read the indentures, including any amendments or supplements, carefully to fully understand the terms of the debt securities. The forms of the indentures have been filed as
exhibits to the registration statement of which this prospectus is a part. The indentures are subject to, and are governed by, the Trust Indenture Act of 1939, as amended.
Any senior debt securities that we may issue will be our unsubordinated obligations. They will rank equally with each other and all of our
other unsubordinated debt, unless otherwise indicated in the applicable prospectus supplement. Any subordinated debt securities that we may issue will be subordinated in right of payment to the prior payment in full of our senior debt. See
Subordination of Subordinated Debt Securities. The subordinated debt securities will rank equally with each other, unless otherwise indicated in the applicable prospectus supplement. We will indicate in each applicable prospectus
supplement, as of the most recent practicable date, the aggregate amount of our outstanding debt that would rank senior to the subordinated debt securities.
The indentures do not limit the amount of debt securities that can be issued thereunder and provide that debt securities of any series may be
issued thereunder up to the aggregate principal amount that we may authorize from time to time. Unless otherwise provided in the applicable prospectus supplement, the indentures do not limit the amount of other indebtedness or securities that we may
issue. We may issue debt securities of the same series at more than one time and, unless prohibited by the terms of the series, we may reopen a series for issuances of additional debt securities without the consent of the holders of the outstanding
debt securities of that series. All debt securities issued as a series, including those issued pursuant to any reopening of a series, will vote together as a single class.
Reference is made to the prospectus supplement for the following and other possible terms of each series of the debt securities with respect
to which this prospectus is being delivered:
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the title of the debt securities;
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any limit upon the aggregate principal amount of the debt securities of that series that may be authenticated and delivered under the applicable indenture, except for debt securities authenticated and delivered upon
registration of transfer of, or in exchange for or in lieu of, other debt securities of that series;
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the date or dates on which the principal and premium, if any, of the debt securities of the series is payable;
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the rate or rates, which may be fixed or variable, at which the debt securities of the series shall bear interest or the manner of calculation of such rate or rates, if any, including any procedures to vary or reset
such rate or rates, and the basis upon which interest will be calculated if other than that of a
360-day
year of twelve 30-day months;
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the place or places where the principal of and interest, if any, on the debt securities of the series shall be payable, where the debt securities of such series may be surrendered for registration of transfer or
exchange and where notices and demands to or upon us with respect to the debt securities of such series and the applicable indenture may be served, and the method of such payment, if by wire transfer, mail or other means if other than as set forth
in the applicable indenture;
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the date or dates from which such interest shall accrue, the dates on which such interest will be payable or the manner of determination of such dates, and the record date for the determination of holders to whom
interest is payable on any such dates;
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any trustees, authenticating agents or paying agents with respect to such series, if different from those set forth in the applicable indenture;
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the right, if any, to extend the interest payment periods or defer the payment of interest and the duration of such extension or deferral;
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the period or periods within which, the price or prices at which and the terms and conditions upon which, debt securities of the series may be redeemed, in whole or in part, at our option;
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our obligation, if any, to redeem, purchase or repay debt securities of the series pursuant to any sinking fund or analogous provisions, including payments made in cash in anticipation of future sinking fund
obligations, or at the option of a holder thereof and the period or periods within which, the price or prices at which, and the terms and conditions upon which, debt securities of the series shall be redeemed, purchased or repaid, in whole or in
part, pursuant to such obligation;
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the form of the debt securities of the series including the form of the trustees certificate of authentication for such series;
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if other than denominations of $2,000 or integral multiples of $1,000 in excess thereof, the denominations in which the debt securities of the series shall be issuable;
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the currency or currencies in which payment of the principal of, premium, if any, and interest on, debt securities of the series shall be payable;
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if the principal amount payable at the stated maturity of debt securities of the series will not be determinable as of any one or more dates prior to such stated maturity, the amount which will be deemed to be such
principal amount as of any such date for any purpose, including the portion of the principal amount thereof that will be due and payable upon declaration of acceleration of the maturity thereof or upon any maturity other than the stated maturity or
that will be deemed to be outstanding as of any such date, or, in any such case, the manner in which such deemed principal amount is to be determined;
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the terms of any repurchase or remarketing rights;
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if the debt securities of the series shall be issued in whole or in part in the form of a global security or securities, the type of global security to be issued; the terms and conditions, if different from those
contained in the applicable indenture, upon which such global security or securities may be exchanged in whole or in part for other individual securities in definitive registered form; the depositary for such global security or securities; and the
form of any legend or legends to be borne by any such global security or securities in addition to or in lieu of the legends referred to in the indenture;
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whether the debt securities of the series will be convertible into or exchangeable for other securities, and, if so, the terms and conditions upon which such debt securities will be so convertible or exchangeable,
including the initial conversion or exchange price or rate or the method of calculation, how and when the conversion price or exchange ratio may be adjusted, whether conversion or exchange is mandatory, at the option of the holder or at our option,
the conversion or exchange period, and any other provision in addition to or in lieu of those described herein;
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any additional restrictive covenants or events of default that will apply to the debt securities of the series, or any changes to the restrictive covenants set forth in the applicable indenture that will apply to the
debt securities of the series, which may consist of establishing different terms or provisions from those set forth in the applicable indenture or eliminating any such restrictive covenant or event of default with respect to the debt securities of
the series;
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any provisions granting special rights to holders when a specified event occurs;
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if the amount of principal or any premium or interest on debt securities of a series may be determined with reference to an index or pursuant to a formula, the manner in which such amounts will be determined;
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any special tax implications of the debt securities, including provisions for original issue discount securities, if offered;
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whether and upon what terms debt securities of a series may be defeased if different from the provisions set forth in the applicable indenture;
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with regard to the debt securities of any series that do not bear interest, the dates for certain required reports to the trustee;
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whether the debt securities of the series will be issued as unrestricted securities or restricted securities, and, if issued as restricted securities, the rule or regulation promulgated under the Securities Act in
reliance on which they will be sold;
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any guarantees on the debt securities;
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the provisions, if any, relating to any security provided for the debt securities of the series;
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any depositaries, interest rate calculation agents, exchange rate calculation agents or other agents with respect to debt securities of such series if other than those appointed in the applicable indenture;
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if the debt securities are subordinated debt securities, the subordination terms of the debt securities; and
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any and all additional, eliminated or changed terms that shall apply to the debt securities of the series, including any terms that may be required by or advisable under United States laws or regulations, including the
Securities Act and the rules and regulations promulgated thereunder, or advisable in connection with the marketing of debt securities of that series.
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We will comply with Section 14(e) under the Exchange Act, to the extent applicable, and any other tender offer rules under the Exchange
Act that may then be applicable, in connection with any obligation to purchase debt securities at the option of the holders thereof. Any such obligation applicable to a series of debt securities will be described in the prospectus supplement
relating thereto.
Unless otherwise described in a prospectus supplement relating to any debt securities, there are no covenants or
provisions contained in the indentures that may afford the holders of debt securities protection in the event that we enter into a highly leveraged transaction.
The statements made hereunder relating to the indentures and any debt securities that we may issue are summaries of certain provisions thereof
and are qualified in their entirety by reference to all provisions of the indentures and the debt securities and the descriptions thereof, if different, in the applicable prospectus supplement.
9
Subordination of Subordinated Debt Securities
We will set forth in the applicable prospectus supplement the terms and conditions, if any, upon which any series of subordinated debt
securities is subordinated to debt securities of another series or to our other indebtedness. The terms will include a description of:
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the indebtedness ranking senior to the debt securities being offered;
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the restrictions, if any, on payments to the holders of the debt securities being offered while a default with respect to the senior indebtedness is continuing; and
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the provisions requiring holders of the debt securities being offered to remit some payments to the holders of senior indebtedness.
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Additional Amounts
All payments made by
us under or with respect to the debt securities will be made free and clear of and without withholding or deduction for, or on account of, any present or future tax, duty, levy, assessment or other governmental charge, including any related
interest, penalties or additions to tax (Taxes) unless the withholding or deduction of such Taxes is then required by law or by interpretation or administration of law. If any deduction or withholding for, or on account of, any Taxes
imposed or levied by or on behalf of (1) any jurisdiction in which we are then incorporated or organized or any political subdivision thereof or therein (each, a Company Tax Jurisdiction) or (2) any jurisdiction from or through
which payment is made by us or on our behalf (including the jurisdiction of any paying agent for the applicable debt securities) or any political subdivision thereof or therein (each, together with each Company Tax Jurisdiction, a Tax
Jurisdiction) will at any time be required to be made from any payments made by us under or with respect to any debt securities, including payments of principal, redemption price, interest or premium, we will pay such additional amounts (the
Additional Amounts) as may be necessary in order that the net amounts received with respect to such payments by each holder of the applicable debt securities after such withholding, deduction or imposition (including any such
withholding, deduction or imposition from such Additional Amounts) will equal the respective amounts that would have been received with respect to such payments in the absence of such withholding or deduction;
provided
,
however
, that
no Additional Amounts will be payable with respect to:
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(1)
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any Taxes, to the extent such Taxes would not have been imposed but for the existence of any actual or deemed present or former connection between the holder or the beneficial owner of such debt securities and the
relevant Tax Jurisdiction (including, without limitation, being or having been a national, resident or citizen of, being or having been engaged in a trade or business in, being or having been physically present in, or having or having had a
permanent establishment in, such jurisdiction for Tax purposes), other than the holding of such debt securities, the enforcement of rights under such debt securities or the receipt of any payments with respect to such debt securities;
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(2)
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any Taxes, to the extent such Taxes were imposed as a result of the presentation of such debt securities for payment (where presentation is required) more than 30 days after the relevant payment is first made available
for payment to the holder (except to the extent that the holder would have been entitled to Additional Amounts had the applicable debt securities been presented on the last day of such 30 day period);
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(3)
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any estate, inheritance, gift, sales, transfer, personal property or similar Taxes;
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(4)
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any Tax imposed on or with respect to any payment by us to the holder if such holder is a fiduciary, partnership, limited liability company or other person other than the sole beneficial owner of such payment to the
extent that Taxes would not have been imposed on such payment had such holder been the sole beneficial owner of such debt securities;
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(5)
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with respect to any Taxes imposed by the United States, any such Taxes imposed by reason of the failure of such holder to fulfill the statement requirements of sections 871(h) or 881(c) of the Internal Revenue Code
of 1986, as amended;
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(6)
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Taxes imposed on or with respect to a payment made to a holder or beneficial owner of such debt securities who would have been able to avoid such withholding or deduction by presenting such debt securities (where
presentation is required) to another paying agent;
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(7)
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any Taxes payable other than by deduction or withholding from payments under, or with respect to, such debt securities;
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(8)
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any Taxes to the extent such Taxes are imposed or withheld by reason of the failure of the holder or beneficial owner of such debt securities, to comply with any written request by us addressed to the holder or
beneficial owner to satisfy any certification, identification, information or other reporting requirements, whether required by statute, treaty, regulation or administrative practice of a relevant Tax Jurisdiction, as a precondition to exemption
from, or reduction in the rate of deduction or withholding of, Taxes imposed by the relevant Tax Jurisdiction (including, without limitation, a certification that the holder or beneficial owner is not resident in such Tax Jurisdiction), but in each
case, only to the extent the holder or beneficial owner is legally entitled to provide such certification or documentation; or
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(9)
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any combination of items (1) through (8) above.
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In addition to the foregoing, we
will also pay and indemnify the holder for any present or future stamp, issue, registration, court or documentary Taxes, or any other excise or property Taxes, charges or similar levies (including penalties, interest and any other reasonable
expenses related thereto) which are levied by a relevant Tax Jurisdiction with respect to the execution, delivery, issuance, or registration of the debt securities, or the related indenture or any other document or instrument referred to therein.
If we become aware that we will be obligated to pay Additional Amounts with respect to any payment under or with respect to the debt
securities, we will deliver to the trustee on a date that is at least 30 days prior to the date of that payment (unless the obligation to pay Additional Amounts arises fewer than 45 days prior to that payment date, in which case we shall notify the
trustee promptly thereafter) an officers certificate stating the fact that Additional Amounts will be payable and the amount estimated to be so payable. The officers certificate(s) must also set forth any other information reasonably
necessary to enable the paying agents to pay such Additional Amounts to holders on the relevant payment date. The trustee shall be entitled to rely solely on such officers certificate as conclusive proof that such payments are necessary.
We will make all withholdings and deductions required by law with respect to the debt securities, and will remit the full amount deducted or
withheld to the relevant Tax authority in accordance with applicable law. We will use our reasonable efforts to obtain Tax receipts from each Tax authority evidencing the payment of any Taxes so deducted or withheld. Upon reasonable written request,
we will furnish to the trustee (or to a holder or beneficial owner upon written request), within a reasonable time after the date the payment of any Taxes so deducted or withheld is made, certified copies of Tax receipts evidencing payment by us, or
if, notwithstanding our efforts to obtain receipts, receipts are not obtained, other evidence of such payments (reasonably satisfactory to the trustee).
Whenever in the indenture, any debt securities, or in this Description of Debt Securities there is mentioned, in any context, the
payment of amounts based upon the principal amount of the debt securities or of principal, interest or of any other amount payable under, or with respect to, any of the debt securities, such mention shall be deemed to include mention of the payment
of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof.
The above
obligations will survive any termination, defeasance or discharge of each indenture, any transfer by a holder or beneficial owner of the debt securities, and will apply,
mutatis mutandis
, to any jurisdiction in which any successor person to
us is incorporated or organized, or any jurisdiction from or through which payment is made by or on behalf of such person on the applicable debt securities and any political subdivision thereof or therein.
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Redemption
If specified in the applicable prospectus supplement, we may redeem the debt securities of any series, as a whole or in part, at our option on
and after the dates and in accordance with the terms established for such series, if any, in the applicable prospectus supplement. If we redeem the debt securities of any series, we also must pay accrued and unpaid interest, if any, to the date of
redemption on such debt securities.
Redemption Upon Changes in Tax Law
We may redeem the debt securities of any series, in whole but not in part, at our discretion at any time upon giving not less than 30 nor more
than 60 days prior notice to the holders of the debt securities of such series (which notice will be irrevocable), at a redemption price equal to 100% of the aggregate principal amount thereof, together with accrued and unpaid interest, if
any, to the date fixed by us for redemption (a Tax Redemption Date) and all Additional Amounts (if any) then due and which will become due on the Tax Redemption Date as a result of the redemption or otherwise (subject to the right of
holders of the debt securities of such series on the relevant record date to receive interest due on the relevant interest payment date and Additional Amounts (if any) in respect thereof), if on the next date on which any amount would be payable
with respect to the debt securities of such series, we are or would be required to pay Additional Amounts, and we cannot avoid any such payment obligation by taking reasonable measures available, and the requirement arises as a result of:
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any amendment to, or change in, the laws (or any regulations or rulings promulgated thereunder) of a relevant Tax Jurisdiction which change or amendment becomes effective on or after the issue date (or, if the
applicable Tax Jurisdiction became a Tax Jurisdiction on a date after the issue date, such later date), or
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any amendment to, or change in, an official interpretation or application of such laws, regulations or rulings (including by virtue of a holding, judgment, order by a court of competent jurisdiction or a change in
published administrative practice), which amendment or change becomes effective on or after the issue date (or, if the applicable Tax Jurisdiction became a Tax Jurisdiction on a date after the issue date, such later date).
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We will not give any such notice of redemption earlier than 90 days prior to the earliest date on which we would be obligated to make such
payment or withholding if a payment with respect to the debt securities of such series was then due, and the obligation to pay Additional Amounts must be in effect at the time such notice is given. Prior to the publication or, where relevant,
mailing of any notice of redemption of the debt securities of such series pursuant to the foregoing, we will deliver to the trustee an opinion of independent tax counsel to the effect that there has been such amendment or change which would entitle
us to redeem the debt securities of such series hereunder. In addition, before we publish or mail any notice of redemption as described above, we will deliver to the trustee an officers certificate to the effect that we cannot avoid our
obligation to pay Additional Amounts by taking reasonable measures available to us.
The trustee will accept and shall be entitled to rely
on such officers certificate and opinion of counsel as sufficient evidence of the existence and satisfaction of the conditions precedent as described above, in which event it will be conclusive and binding on the holders of the debt securities
of such series.
The foregoing will apply
mutatis mutandis
to any jurisdiction in which any successor person to us is incorporated
or organized, or any jurisdiction from or through which payment is made by or on behalf of such person on the debt securities of such series and any political subdivision thereof or therein.
Selection and Notice
If less than all of
the debt securities of a series are to be redeemed at any time, the trustee will select the debt securities of such series for redemption on a pro rata basis (or, in the case of debt securities issued in global form
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as discussed under Book-Entry, Delivery and Form, based on a method that most nearly approximates a pro rata selection as the trustee deems fair and appropriate) unless otherwise
required by law or applicable stock exchange or depository requirements.
No debt securities in principal amount of $2,000 or less can be
redeemed in part. Notices of redemption will be mailed by first class mail at least 30 but not more than 60 days before the redemption date to each holder of debt securities of such series to be redeemed at its registered address, except that
redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of the debt securities of such series or a satisfaction and discharge of the indenture or any supplement thereto.
If any debt security is to be redeemed in part only, the notice of redemption that relates to that debt security will state the portion
of the principal amount of that debt security that is to be redeemed. A new debt security in principal amount equal to the unredeemed portion of the original debt security will be issued in the name of the holder of the original debt security upon
cancellation of the original debt security. Debt securities called for redemption become due on the date fixed for redemption. On and after the redemption date, interest ceases to accrue on the debt securities or portions of the debt securities
called for redemption.
The trustee will not be liable for selections made by it as contemplated in this section. For any debt securities
which are represented by global securities held on behalf of DTC, Euroclear or Clearstream, notices may be given by delivery of the relevant notices to DTC, Euroclear or Clearstream for communication to entitled account holders in substitution for
the aforesaid mailing.
Reports
So
long as any debt securities are outstanding, we shall file with the trustee, within 15 days after we file with the SEC, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the
forgoing as the SEC may from time to time by rules and regulations prescribe) that we may be required to file with the SEC pursuant to Section 13 or Section 15(d) of the Exchange Act. We will be deemed to have complied with the previous
sentence to the extent that such information, documents and reports are filed with the SEC via EDGAR, or any successor electronic delivery procedure. Delivery of such reports, information and documents to the trustee is for informational purposes
only and the trustees receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including our compliance with any covenants under the indenture (as to
which the trustee is entitled to rely exclusively on officers certificates).
Events of Default
The following will be Events of Default with respect to debt securities of a particular series, except to the extent provided in
the supplemental indenture or resolution of our board of directors pursuant to which a series of debt securities is issued:
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failure to pay any interest on any of the debt securities of such series within 30 days after such interest becomes due and payable;
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failure to pay principal of any of the debt securities of such series at maturity, or if applicable, the redemption price, when the same become due and payable;
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failure to pay any sinking fund installment as and when the same shall become due and payable by the terms of the debt securities of such series, and continuance of such default for a period of 30 days;
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failure to comply with any of the covenants or agreements in any of the debt securities of such series or the indenture (other than an agreement or covenant that we included in the indenture solely for the benefit of
another series of debt securities) for 90 days after written notice by the trustee or by the holders of at least 25% in principal amount of all outstanding debt securities affected by that failure;
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certain events involving our bankruptcy, insolvency or reorganization; and
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any other Event of Default provided in the supplemental indenture or resolution of our board of directors under which such series of debt securities is issued or in the form of security for such series.
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A default under one series of debt securities issued under the indenture will not necessarily be a default under another
series of debt securities under the indenture. The trustee may withhold notice to the holders of a series of debt securities issued under such indenture of any default or event of default (except in any payment on the debt securities of such series)
if the trustee considers it in the interest of the holders of the debt securities of that series to do so.
If an event of default for a
series of debt securities occurs and is continuing, the trustee or the holders of at least 25% in principal amount of the debt securities of that series may require us to pay immediately the principal amount plus accrued and unpaid interest on all
the debt securities of that series. If an event of default relating to certain events of bankruptcy, insolvency or reorganization occurs with respect to us, the principal amount plus accrued and unpaid interest on the debt securities of that series
will become immediately due and payable without any action on the part of the trustee or any holder. The holders of a majority in principal amount of the debt securities of such series then outstanding may in some cases rescind this accelerated
payment requirement.
A holder of debt securities of any series may pursue any remedy under the indenture applicable to the debt
securities of that series only if:
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the holder gives the trustee written notice of a continuing event of default;
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the holders of at least 25% in principal amount of the debt securities of such series then outstanding make a written request to the trustee to pursue the remedy;
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the holder furnishes to the trustee indemnity reasonably satisfactory to the trustee;
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the trustee fails to act for a period of 60 days after receipt of notice and furnishing of indemnity; and
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during that 60-day period, the holders of a majority in principal amount of the debt securities of that series do not give the Trustee a direction inconsistent with the request.
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This provision does not, however, affect the right of any holder to sue for enforcement of any overdue payment with respect to the debt
securities of such series. In most cases, holders of a majority in principal amount of the debt securities of any series then outstanding may direct the time, method and place of:
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conducting any proceeding for any remedy available to the trustee with respect to the debt securities of such series; and
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exercising any trust or power conferred on the trustee not relating to or arising under an event of default with respect to the debt securities of such series.
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The indenture requires us to file with the trustee each year a written statement as to our compliance with the covenants contained in the
indenture.
Covenants
Other than the
restrictions on liens described below, the indenture and the debt securities will not contain any covenants or other provisions designed to protect holders of the debt securities in the event of a highly leveraged transaction. The indenture and the
debt securities also do not contain provisions that give holders of the debt securities the right to require us to repurchase any debt securities in the event of a decline in credit rating resulting from a takeover, recapitalization or similar
restructuring or otherwise.
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Limitation on Liens
We will not, and will not permit any of our subsidiaries to, incur, issue, assume or guarantee any notes, bonds, debentures or other similar
evidences of indebtedness for money borrowed, secured by a mortgage on any restricted property, or on any shares of stock, ownership interests in, or indebtedness of a restricted subsidiary, without effectively providing concurrently with the
incurrence, issuance, assumption or guarantee of such secured indebtedness that the debt securities (together with, if we shall so determine, any of our other indebtedness or the indebtedness of any such restricted subsidiary then existing or
thereafter created ranking on a parity with the debt securities) shall be secured equally and ratably with (or prior to) such secured indebtedness, so long as such secured indebtedness shall be so secured, unless, after giving effect thereto, the
aggregate amount of all such secured indebtedness (excluding any indebtedness secured by mortgages of the types referred to in clauses (1) through (10) below) would not exceed 20% of consolidated net worth as shown on our most recent
consolidated quarterly financial statements;
provided
,
however
, that these provisions shall not apply to:
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(1)
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mortgages existing on the date of original issuance of any debt securities;
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(2)
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mortgages on property or assets of, or on any shares of stock, ownership interests in or indebtedness of, any person existing at the time such person becomes our subsidiary (including a restricted subsidiary);
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(3)
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mortgages on property or assets existing at the time of acquisition thereof (including acquisition through merger or consolidation) or to secure the payment of all or any part of the purchase price or cost of
construction, development, expansion or improvement thereof or to secure any indebtedness incurred prior to, at the time of, or within 12 months after, the acquisition or completion of construction, development, expansion or improvement of such
property or assets or its commencement of commercial operations for the purpose of financing all or any part of the purchase price or cost of construction, development, expansion or improvement thereof;
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(4)
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mortgages in favor of us or any of our subsidiaries;
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(5)
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the mortgage of any of our property or assets or any property or assets of any of our restricted subsidiaries in favor of the United States of America or any other sovereign entity, or any state, province or other
political subdivision thereof, or any entity, department, agency, instrumentality or comparable authority thereof, to secure partial, progress, advance or other payments pursuant to the provisions of any contract, statute, law, rule or regulation;
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(6)
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the mortgage of any property or assets to secure indebtedness of the pollution control, industrial revenue or other revenue bond type;
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(7)
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mortgages incurred or deposits made (including mortgages and deposits securing letters of credit or similar financial assurance) to secure the performance of or in connection with bids, tenders, statutory, governmental
or private contractual or other obligations, surety, performance, completion, appeal or similar bonds, leases, return-of-money bonds and other obligations similar to any of the foregoing, in each case in the ordinary course of business;
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(8)
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mortgages arising by operation of law, including but not limited to mortgages for taxes, assessments or similar charges that are not yet due or the validity of which is being contested in good faith by appropriate
proceedings;
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(9)
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mortgages created in connection with the acquisition of property or assets, or a project financed with, non-recourse debt; and
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(10)
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any extension, renewal or replacement (or successive extensions, renewals or replacements), as a whole or in part, of any mortgage referred to in the foregoing clauses, inclusive; provided, that such extension, renewal
or replacement mortgage shall be limited to all or a part of the same property or assets that secured the mortgage extended, renewed or replaced, plus improvements on such property or assets.
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The foregoing covenant and certain other provisions of the indenture use the following defined
terms.
capital stock means (a) in the case of a corporation, corporate stock; (b) in the case of an association or
business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; (c) in the case of a partnership or limited liability company, partnership interests (whether general or
limited) or membership interests; and (d) any other interest or participation that confers on a person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing person, but excluding from all of the
foregoing any debt securities convertible into capital stock, whether or not such debt securities include any right of participation with capital stock.
consolidated net worth means the amount of total stockholders equity shown in our most recent quarterly consolidated
statement of financial position.
mortgage means and includes any mortgage, pledge, lien, security interest, conditional sale
or other title retention agreement or other similar encumbrance.
non-recourse debt means indebtedness as to which
(a) neither we nor any of our subsidiaries (x) provides credit support of any kind or (y) is directly or indirectly liable as a guarantor or otherwise and (b) as to which the lenders have been notified in writing that they will
not have any recourse to the stock or assets of Schlumberger or any of its subsidiaries.
person means any individual,
corporation, partnership, limited liability company, association, joint venture, trust, joint stock company or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.
restricted property means any real property, manufacturing plant, warehouse, office building or other physical facility, or any
item of marine, transportation or construction equipment or other like depreciable assets of Schlumberger or any of its restricted subsidiaries, whether owned on or acquired after the original issue date of the debt securities, unless, in the
opinion of our board of directors, such plant or facility or other asset is not of material importance to the total business conducted by Schlumberger and its restricted subsidiaries taken as a whole.
restricted subsidiary means any of our subsidiaries which owns a restricted property.
subsidiary means, with respect to any specified person, (a) any corporation, association or other business entity of which
more than 50% of the total voting power of shares of capital stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders agreement that effectively transfers voting power)
to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that person or one or more of the other subsidiaries of that person
(or a combination thereof); and (b) any partnership or limited liability company of which (x) more than 50% of the capital accounts, distribution rights, total equity and voting interests or general and limited partnership interests, as
applicable, are owned or controlled, directly or indirectly, by such person or one or more of the other subsidiaries of that person or a combination thereof, whether in the form of membership, general, special or limited partnership interests or
otherwise, and (y) such person or any subsidiary of such person is a controlling general partner or otherwise controls such entity.
Consolidation, Merger or Sale
We will
covenant not to consolidate with or merge into any other person or transfer or lease all or substantially all of our assets to any person unless any successor or purchaser expressly assumes our obligations under the debt securities by an indenture
supplemental to the indenture, and immediately after which, no event of default, and no event which, after notice or lapse of time, or both, would become an event of default, shall have happened and be continuing. An officers certificate and
an opinion of counsel will be delivered to the trustee, which will serve as conclusive evidence of compliance with these provisions.
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Modification and Waiver
Except as provided in the next two succeeding paragraphs, the indenture or the debt securities of any series may be amended or supplemented,
and waivers may be obtained, with the consent of the holders of at least a majority in aggregate principal amount of the debt securities of each series at the time outstanding that is affected (including, without limitation, additional debt
securities of such series, if any) voting as a single class (including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, debt securities of such series), and any existing default or Event
of Default (other than a default or Event of Default in the payment of the principal of, premium on, if any, interest or Additional Amounts, if any, on, debt securities of such series, except a payment default resulting from an acceleration that has
been rescinded) or compliance with any provision of such indenture or the applicable debt securities may be waived with the consent of the holders of at least a majority in aggregate principal amount of the debt securities of each series at the time
outstanding that is affected (including, without limitation, additional debt securities of such series, if any) voting as a single class (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange
offer for, such series). Without the consent of each holder of outstanding debt securities affected thereby, an amendment, supplement or waiver may not (with respect to any debt securities held by a non-consenting holder):
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reduce the amount of debt securities whose holders must consent to an amendment, supplement or waiver;
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reduce the rate of or change the time for payment of interest on the debt securities;
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reduce the principal or change the stated maturity of any debt securities of any series;
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reduce any premium payable on the redemption of any debt security or change the time at which any debt security may or must be redeemed;
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change any obligation to pay Additional Amounts on the debt securities;
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make payments on any debt security payable in currency other than as originally stated in such debt security;
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impair the holders right to institute suit for the enforcement of any payment on any debt security;
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make any change in the percentage of principal amount of the debt securities necessary to waive compliance with certain provisions of the indenture such debt securities were issued under or to make any change in this
provision for modification; or
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waive a continuing default or event of default regarding any payment on the debt securities.
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Notwithstanding the preceding, without the consent of any holder of debt securities, we and the trustee may amend or supplement the indenture
or the applicable debt securities in certain circumstances, including:
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to cure any ambiguity, omission, defect or inconsistency or to provide for the assumption of our obligations under the indenture by a successor upon any merger, consolidation or asset transfer;
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to provide for the assumption of our obligations under the indenture by a successor upon any merger, consolidation or asset transfer;
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to provide for uncertificated debt securities in addition to or in place of certificated debt securities;
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to provide any security for or guarantees of the debt securities or for the addition of an additional obligor on the debt securities;
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to comply with any requirement to effect or maintain the qualification of the indenture under the Trust Indenture Act of 1939, as amended, if applicable;
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to add covenants that would benefit the holders of any outstanding series of debt securities or to surrender any of our rights under the indenture;
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to add additional Events of Default with respect to any series of debt securities;
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to change or eliminate any of the provisions of the indenture,
provided
that any such change or elimination shall not become effective with respect to any outstanding debt security of any series created prior to
the execution of such supplemental indenture which is entitled to the benefit of such provision;
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to provide for the issuance of and establish forms and terms and conditions of a new series of debt securities;
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to permit or facilitate the defeasance and discharge of the debt securities;
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to issue additional debt securities of any series;
provided
that such additional debt securities have the same terms as, and be deemed part of the same series as, the applicable series of debt securities to the
extent required under the indenture;
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to make any change that does not adversely affect the rights of any holder of outstanding debt securities in any material respect; or
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to evidence and provide for the acceptance of appointment by a successor trustee with respect to the debt securities of one or more series and to add to or change any of the provisions of the indenture as shall be
necessary to provide for or facilitate the administration of the trust by more than one trustee.
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The holders of a majority
in principal amount of the debt securities of each series then outstanding that is affected, voting as a single class, may waive any existing or past default or event of default with respect to those debt securities. Those holders may not, however,
waive any default or event of default in any payment on any debt security.
A supplemental indenture that changes or eliminates any
covenant, Event of Default or other provision of the indenture that has been expressly included solely for the benefit of one or more particular series of securities, if any, or which modifies the rights of the holders of securities of such series
with respect to such covenant, Event of Default or other provision, shall be deemed not to affect the rights under the indenture of the holders of securities of any other series. It will not be necessary for the consent of the holders to approve the
particular form of any proposed supplement, amendment or waiver, but it shall be sufficient if such consent approves the substance of it.
Information
Concerning the Trustee
If an Event of Default occurs and is continuing, the trustee will be required to use the degree of care and
skill of a prudent man in the conduct of his own affairs. The trustee will become obligated to exercise any of its powers under the indenture at the request of any of the holders of any debt securities issued under the indenture only after those
holders have furnished the trustee indemnity reasonably satisfactory to it.
If the trustee becomes a creditor of ours, it will be subject
to limitations in the indenture on its rights to obtain payment of claims or to realize on certain property received for any such claim, as security or otherwise. The trustee is permitted to engage in other transactions with us. If, however, it
acquires any conflicting interest, it must eliminate such conflict, resign or obtain an order from the SEC permitting it to remain as trustee.
Paying
Agent, Registrar and Transfer Agent
We will maintain one or more paying agents (each, a Paying Agent) for any debt
securities we issue in the Borough of Manhattan, City of New York. We, upon written notice to the trustee accompanied by an officers certificate, may appoint one or more paying agents, other than the trustee, for all or any series of such debt
securities. If we fail to appoint or maintain another entity as paying agent, the trustee shall act as such. We or any of our subsidiaries, upon notice to the trustee, may act as paying agent.
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We will also maintain one or more registrars (each, a Registrar) with an office in
the Borough of Manhattan, City of New York. We, upon written notice to the trustee accompanied by an officers certificate, may appoint one or more registrars, other than the trustee, for all or any series of debt securities. If we fail to
appoint or maintain another entity as registrar, the trustee shall act as such. We or any of our subsidiaries, upon notice to the trustee, may act as registrar.
We will also maintain a transfer agent with an office in the Borough of Manhattan, City of New York. Each transfer agent shall perform the
functions of a transfer agent. We, upon written notice to the trustee accompanied by an officers certificate, may appoint one or more transfer agents, other than the trustee, for all or any series of debt securities. If we fail to appoint or
maintain another entity as transfer agent, the trustee shall act as such. We or any of our subsidiaries, upon notice to the trustee, may act as transfer agent.
The Registrar will maintain a register reflecting ownership of debt securities outstanding from time to time and the Paying Agents will make
payments on and facilitate transfer of debt securities on our behalf. We may change any Paying Agents, Registrars or transfer agents without prior notice to the holders of debt securities.
Governing Law
The indenture and any debt
securities issued thereunder shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of the State of New York without regard to conflicts of laws
principles that would require the application of any other law. The indenture is subject to the provisions of the Trust Indenture Act that are required to be part of the indenture and shall, to the extent applicable, be governed by such provisions.
Satisfaction and Discharge of Indenture
The indenture shall cease to be of further effect with respect to a series of debt securities when either:
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we have delivered to the trustee for cancellation all outstanding securities of such series, other than any securities that have been destroyed, lost or stolen and that have been replaced or paid as provided in the
indenture;
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all outstanding securities of such series have become due and payable or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to
the trustee for the giving of notice of redemption, and we shall have irrevocably deposited with the trustee as trust funds the entire amount, in funds or governmental obligations, or a combination thereof, sufficient, in the opinion of a nationally
recognized firm of independent public accountants, to pay at maturity or upon redemption all securities of such series; or
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we have properly fulfilled any other means of satisfaction and discharge that may be set forth in the terms of the securities of such series.
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In each case, we will also pay all other sums payable by us under the indenture with respect to the securities of such series.
Defeasance
The term defeasance means the
discharge of some or all of our obligations under the indenture. If we deposit with the trustee funds or government securities sufficient to make payments on any series of debt securities on the dates those payments are due and payable, then, at our
option, either of the following will occur:
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we will be discharged from our obligations with respect to the debt securities of such series (legal defeasance); or
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we will no longer have any obligation to comply with the restrictive covenants under the indenture, and the related events of default will no longer apply to us (covenant defeasance).
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If we defease any series of debt securities, the holders of the defeased debt securities of such series will not be entitled to the benefits
of the indenture under which such series was issued, except for our obligation to register the transfer or exchange of the debt securities of such series, replace stolen, lost or mutilated debt securities or maintain paying agencies and hold moneys
for payment in trust. In the case of covenant defeasance, our obligation to pay principal, premium and interest on the debt securities of such series will also survive. We will be required to deliver to the trustee an opinion of counsel that the
deposit and related defeasance would not cause the holders of the debt securities of such series to recognize income, gain or loss for federal income tax purposes. If we elect legal defeasance, that opinion of counsel must be based upon a ruling
from the United States Internal Revenue Service or a change in law to that effect.
Book-Entry, Delivery and Form
The debt securities of a series may be issued in whole or in part in the form of one or more global securities that will be deposited with, or
on behalf of, a depository (a Debt Depository) identified in the applicable prospectus supplement. Global securities may be issued in either registered or bearer form and in either temporary or permanent form. Unless otherwise provided
in such prospectus supplement, debt securities that are represented by a global security will be issued in denominations of $1,000 or any integral multiple thereof and will be issued in registered form only, without coupons.
We anticipate that any global securities will be deposited with, or on behalf of, The Depository Trust Company (DTC), and that
such global securities will be registered in the name of Cede & Co., DTCs nominee. We further anticipate that the following provisions will apply to the depository arrangements with respect to any such global securities. Any
additional or differing terms of the depository arrangements will be described in the prospectus supplement relating to a particular series of debt securities issued in the form of global securities.
Beneficial interests in the global securities will be represented through book-entry accounts of financial institutions acting on behalf of
beneficial owners as direct or indirect participants in DTC.
Investors may elect to hold their interests in the global securities through
either DTC (in the United States) or (in Europe) through Clearstream or through Euroclear. Investors may hold their interests in the global securities directly if they are participants of such systems, or indirectly through organizations that are
participants in these systems. Clearstream and Euroclear will hold interests on behalf of their participants through customers securities accounts in Clearstreams and Euroclears names on the books of their respective U.S.
depositaries, which in turn will hold these interests in customers securities accounts in the depositaries names on the books of DTC. Beneficial interests in the global securities will be held in denominations of $1,000 and multiples of
$1,000 in excess thereof. Except as set forth below, the global securities may be transferred, in whole and not in part, only to another nominee of DTC or to a successor of DTC or its nominee.
Debt securities represented by a global security can be exchanged for definitive securities in registered form only if:
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DTC notifies us that it is unwilling or unable to continue as depositary for that global security and we do not appoint a successor depositary within 90 days after receiving that notice;
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at any time DTC ceases to be a clearing agency registered or in good standing under the Securities Exchange Act of 1934, as amended (the Exchange Act), or other applicable statute or regulation and we do not
appoint a successor depositary within 90 days after becoming aware that DTC has ceased to be registered as a clearing agency; or
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we determine that that global security will be exchangeable for definitive securities in registered form and notifies the trustee of its decision.
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A global security that can be exchanged as described in the preceding sentence will be exchanged for definitive securities issued in
authorized denominations in registered form for the same aggregate amount. The definitive securities will be registered in the names of the owners of the beneficial interests in the global security as directed by DTC.
We will make principal and interest payments on all debt securities represented by a global security to the paying agent which in turn will
make payment to DTC or its nominee, as the case may be, as the sole registered owner and the sole holder of the debt securities represented by a global security for all purposes under the indenture. Accordingly, we, the trustee and any paying agent
will have no responsibility or liability for:
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any aspect of DTCs records relating to, or payments made on account of, beneficial ownership interests in a debt security represented by a global security; or
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any other aspect of the relationship between DTC and its participants or the relationship between those participants and the owners of beneficial interests in a global security held through those participants; or the
maintenance, supervision or review of any of DTCs records relating to those beneficial ownership interests.
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DTC has
advised us that its current practice is to credit participants accounts on each payment date with payments in amounts proportionate to their respective beneficial interests in the principal amount of such global security as shown on DTCs
records, upon DTCs receipt of funds and corresponding detail information. The underwriters or agents for the debt securities represented by a global security will initially designate the accounts to be credited. Payments by participants to
owners of beneficial interests in a global security will be governed by standing instructions and customary practices, as is the case with securities held for customer accounts registered in street name, and will be the sole
responsibility of those participants. Book-entry notes may be more difficult to pledge because of the lack of a physical note.
DTC
So long as DTC or its nominee is the registered owner of a global security, DTC or its nominee, as the case may be, will be considered
the sole owner and holder of the debt securities represented by that global security for all purposes of the debt securities. Owners of beneficial interests in the debt securities will not be entitled to have debt securities registered in their
names, will not receive or be entitled to receive physical delivery of the debt securities in definitive form and will not be considered owners or holders of debt securities under the indenture. Accordingly, each person owning a beneficial interest
in a global security must rely on the procedures of DTC and, if that person is not a DTC participant, on the procedures of the participant through which that person owns its interest, to exercise any rights of a holder of debt securities. The laws
of some jurisdictions require that certain purchasers of securities take physical delivery of the securities in certificated form. These laws may impair the ability to transfer beneficial interests in a global security. Beneficial owners may
experience delays in receiving distributions on their debt securities since distributions will initially be made to DTC and must then be transferred through the chain of intermediaries to the beneficial owners account.
We understand that, under existing industry practices, if we request holders to take any action, or if an owner of a beneficial interest in a
global security desires to take any action which a holder is entitled to take under the indenture, then DTC would authorize the participants holding the relevant beneficial interests to take that action and those participants would authorize the
beneficial owners owning through such participants to take that action or would otherwise act upon the instructions of beneficial owners owning through them.
Beneficial interests in a global security will be shown on, and transfers of those ownership interests will be effected only through, records
maintained by DTC and its participants for that global security. The conveyance of
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notices and other communications by DTC to its participants and by its participants to owners of beneficial interests in the debt securities will be governed by arrangements among them, subject
to any statutory or regulatory requirements in effect.
DTC has advised us that it is a limited-purpose trust company organized under the
New York Banking Law, a banking organization within the meaning of the New York Banking Law, a member of the Federal Reserve System, a clearing corporation within the meaning of the New York Uniform Commercial Code and a
clearing agency registered pursuant to Section 17A of the Exchange Act.
DTC holds the securities of its participants and
facilitates the clearance and settlement of securities transactions among its participants in such securities through electronic book-entry changes in accounts of its participants. The electronic book-entry system eliminates the need for physical
certificates. DTCs participants include both U.S. and non-U.S. securities brokers and dealers, including underwriters, banks, trust companies, clearing corporations and certain other organizations. DTC is a wholly-owned subsidiary of The
Depository Trust & Clearing Corporation (DTCC). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by
the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing corporations that clear through or maintain a custodial
relationship with a participant, either directly or indirectly. The rules applicable to DTC and its participants are on file with the SEC.
The information in this section concerning DTC and DTCs book-entry system has been obtained from sources that we believe to be reliable,
but we take no responsibility for the accuracy thereof.
Clearstream
Clearstream has advised us that it is incorporated under the laws of Luxembourg as a professional depositary. Clearstream holds securities for
its participating organizations, or Clearstream Participants, and facilitates the clearance and settlement of securities transactions between Clearstream Participants through electronic book-entry changes in accounts of Clearstream Participants,
thereby eliminating the need for physical movement of certificates. Clearstream provides to Clearstream Participants, among other things, services for safekeeping, administration, clearance and settlement of internationally traded securities and
securities lending and borrowing. Clearstream interfaces with domestic securities markets in several countries. As a registered bank in Luxembourg, Clearstream is subject to regulation by the Luxembourg Commission for the Supervision of the
Financial Sector (Commission de Surveillance du Secteur Financier). Clearstream Participants are recognized financial institutions around the world, including underwriters, securities brokers and dealers, banks, trust companies and clearing
corporations. In the U.S., Clearstream Participants are limited to securities brokers and dealers and banks. Indirect access to Clearstream is also available to others, such as banks, brokers, dealers and trust companies that clear through or
maintain a custodial relationship with a Clearstream Participant either directly or indirectly. Clearstream is an indirect participant in DTC.
Distributions with respect to debt securities held beneficially through Clearstream will be credited to cash accounts of Clearstream
Participants in accordance with its rules and procedures, to the extent received by the U.S. Depositary for Clearstream.
Euroclear
Euroclear has advised us that it was created in 1968 to hold securities for participants of Euroclear, or Euroclear Participants, and
to clear and settle transactions between Euroclear Participants through simultaneous electronic book-entry delivery against payment, thereby eliminating the need for physical movement of certificates and any risk from lack of simultaneous transfers
of securities and cash. Euroclear performs various other services, including securities lending and borrowing and interacts with domestic markets in several
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countries. The Euroclear System is owned by Euroclear Clearance System Public Limited Company (ECSplc) and operated through Euroclear Bank S.A/N.V., or the Euroclear Operator, a bank incorporated
under the laws of the Kingdom Belgium, under contract with Euroclear Clearance Systems S.C., a Belgian cooperative corporation, or the Cooperative. All operations are conducted by the Euroclear Operator, and all Euroclear securities clearance
accounts and Euroclear cash accounts are accounts with the Euroclear Operator, not the Cooperative. The Cooperative establishes policy for Euroclear on behalf of Euroclear Participants. Euroclear Participants include banks, including central banks,
securities brokers and dealers and other professional financial intermediaries. Indirect access to Euroclear is also available to other firms that clear through or maintain a custodial relationship with a Euroclear Participant, either directly or
indirectly.
The Euroclear Operator advises us that it is regulated and examined by the Belgian banking and Finance Commission and the
National Bank of Belgium.
Securities clearance accounts and cash accounts with the Euroclear Operator are governed by the Terms and
Conditions Governing Use of Euroclear and the related Operating Procedures of the Euroclear System, and applicable Belgian law, herein the Terms and Conditions. The Terms and Conditions govern transfers of securities and cash within Euroclear,
withdrawals of securities and cash from Euroclear, and receipts of payments with respect to securities in Euroclear. All securities in Euroclear are held on a fungible basis without attribution of specific certificates to specific securities
clearance accounts. The Euroclear Operator acts under the Terms and Conditions only on behalf of Euroclear Participants, and has no record of or relationship with persons holding through Euroclear Participants.
Distributions with respect to debt securities held beneficially through Euroclear will be credited to the cash accounts of Euroclear
Participants in accordance with the Terms and Conditions, to the extent received by the U.S. Depositary for Euroclear.
Euroclear has
further advised us that investors that acquire, hold and transfer interests in the debt securities by book-entry through accounts with the Euroclear Operator or any other securities intermediary are subject to the laws and contractual provisions
governing their relationship with their intermediary, as well as the laws and contractual provisions governing the relationship between such an intermediary and each other intermediary, if any, standing between themselves and the global securities.
Global Clearance and Settlement Procedures
Initial settlement for the debt securities will be made in immediately available funds. Secondary market trading between DTC participants will
occur in the ordinary way in accordance with DTC rules and will be settled in immediately available funds using DTCs Same-Day Funds Settlement System. Secondary market trading between Clearstream Participants and/or Euroclear Participants will
occur in the ordinary way in accordance with the applicable rules and operating procedures of Clearstream and Euroclear and will be settled using the procedures applicable to conventional eurobonds in immediately available funds.
Cross-market transfers between persons holding directly or indirectly through DTC, on the one hand, and directly or indirectly through
Clearstream Participants or Euroclear Participants, on the other, will be effected through DTC in accordance with DTC rules on behalf of the relevant European international clearing system by its U.S. Depositary; however, such cross-market
transactions will require delivery of instructions to the relevant European international clearing system by the counterparty in such system in accordance with its rules and procedures and within its established deadlines (European time). The
relevant European international clearing system will, if the transaction meets its settlement requirements, deliver instructions to its U.S. Depositary to take action to effect final settlement on its behalf by delivering or receiving debt
securities through DTC, and making or receiving payment in accordance with normal procedures for same-day funds settlement applicable to DTC. Clearstream Participants and Euroclear Participants may not deliver instructions directly to their
respective U.S. Depositaries.
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Because of time-zone differences, credits of debt securities received through Clearstream or
Euroclear as a result of a transaction with a DTC participant will be made during subsequent securities settlement processing and dated the business day following the DTC settlement date. Such credits or any transactions in such debt securities
settled during such processing will be reported to the relevant Euroclear Participants or Clearstream Participants on such business day. Cash received in Clearstream or Euroclear as a result of sales of debt securities by or through a Clearstream
Participant or a Euroclear Participant to a DTC participant will be received with value on the DTC settlement date but will be available in the relevant Clearstream or Euroclear cash account only as of the business day following settlement in DTC.
If the debt securities are cleared only through Euroclear and Clearstream (and not DTC), you will be able to make and receive through
Euroclear and Clearstream payments, deliveries, transfers, exchanges, notices, and other transactions involving any securities held through those systems only on days when those systems are open for business. Those systems may not be open for
business on days when banks, brokers, and other institutions are open for business in the United States. In addition, because of time-zone differences, U.S. investors who hold their interests in the securities through these systems and wish to
transfer their interests, or to receive or make a payment or delivery or exercise any other right with respect to their interests, on a particular day may find that the transaction will not be effected until the next business day in Luxembourg or
Brussels, as applicable. Thus, U.S. investors who wish to exercise rights that expire on a particular day may need to act before the expiration date.
Although DTC, Clearstream and Euroclear have agreed to the foregoing procedures in order to facilitate transfers of debt securities among
participants of DTC, Clearstream and Euroclear, they are under no obligation to perform or continue to perform such procedures and such procedures may be modified or discontinued at any time. Neither we nor any paying agent will have any
responsibility for the performance by DTC, Euroclear or Clearstream or their respective direct or indirect participants of their obligations under the rules and procedures governing their operations.
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DESCRIPTION OF COMMON STOCK
The following description of our share capital is a summary. This summary is not complete and is subject to the complete text of our Articles
of Incorporation and Amended and Restated By-Laws, each as amended to date. Our Articles of Incorporation and Amended and Restated By-Laws, each as amended, are incorporated by reference as exhibits to the registration statement of which this
prospectus forms a part.
Available, Issued and Treasury Shares
We may issue an aggregate of 4,500,000,000 shares of common stock, par value $0.01 per share. As of March 30, 2014, 1,434,212,164 shares
of common stock were issued, of which 1,302,192,028 shares were outstanding and 132,020,136 shares were held by us as treasury stock.
We
may also issue an aggregate of 200,000,000 shares of preferred stock, par value $0.01 per share, which may be issued in one or more separate series. Under our Articles of Incorporation, the preferred stock (1) may be issued for not less than
par value and not less than fair value taking into account the terms and conditions of such preferred stock, (2) would be subject to maximum and minimum dividend rates, (3) would be entitled to one vote per share, (4) would be
entitled to receive certain liquidation preferences, (5) may contain provisions allowing it to be converted into common stock or other securities, and (6) may contain optional or mandatory redemption provisions. No shares of preferred
stock have been issued as of the date of this prospectus.
Dividend Rights
All outstanding shares of common stock (i.e., shares not held by us) are entitled to participate equally and receive dividends that may be paid
out of available profits of the preceding fiscal year or years or distributions out of contributed surplus capital reserves. All accumulated and unpaid dividends payable on preferred stock (if issued and outstanding) must be paid prior to the
payment of any dividends on the common stock. The amount of dividends payable with respect to any fiscal year is determined by Schlumberger stockholders at the annual general meeting following such fiscal year, except that our board of directors may
allocate such part of the earnings to the retained earnings reserves as it deems fit and may declare interim dividends and may declare and make distributions out of retained earnings reserves or out of contributed surplus capital reserves. Any such
distribution can only occur if, at the time of distribution, our equity (i.e., our net asset value) at least equals the nominal capital (i.e., the aggregate par value of our outstanding shares) and as a result of the distribution will
not fall below the nominal capital.
Voting Rights
Entitlement to Vote.
Each holder of common stock and each holder of preferred stock (if issued and outstanding) is entitled to one vote
for each share registered in that holders name. Voting rights may be exercised in person or by proxy.
Quorum.
No action may
be taken at any general meeting of Schlumberger stockholders unless a quorum consisting of the holders of at least one-half of the outstanding shares entitling the holders thereof to vote at such meeting are present at such meeting in person or by
proxy. If a quorum is not present in person or by proxy at any general meeting of Schlumberger stockholders, a second general meeting will be called in the same manner as the original meeting of stockholders, to be held within two months, at which
second meeting, regardless of the number of shares represented (subject to certain limitations in the event of a disposition of our assets or our liquidation or the amendment of our Articles of Incorporation), valid resolutions may be adopted with
respect to any matter stated in the notice of the original meeting and also in the notice of the second meeting or which by law is required to be brought before Schlumberger stockholders despite the absence of a quorum.
Required Vote.
In general, any action requiring the approval of Schlumberger stockholders may be authorized by a majority of the votes
cast (excluding any abstentions) at any meeting at which a quorum is present (subject to the quorum exception described above).
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No action to amend our Articles of Incorporation or to dissolve us can be taken, however, unless
such action is approved by the holders of at least a majority of the shares outstanding and entitled to vote. In addition, holders of preferred stock (if issued and outstanding) would have additional rights to vote as a class on certain amendments
to our Articles of Incorporation that would adversely affect the preferred stock.
The sale or disposition of all or substantially all of
our assets must be approved by the holders of at least a majority of the shares outstanding and entitled to vote, except that under our Articles of Incorporation this requirement does not apply to a reorganization or rearrangement of us or any of
our subsidiaries or any of our assets in any transaction that does not result in any diminution of the beneficial interest of Schlumberger stockholders in our assets.
Under our Articles of Incorporation, our board of directors may move our corporate seat to, or convert us into a legal entity under the laws
of, another jurisdiction, and may change our corporate domicile from Curaçao to another jurisdiction to the extent allowed by applicable law. In certain cases, stockholder approval of such action may not be required under applicable law.
Preemptive and Other Rights
The shares
of common stock do not carry any preferential, preemptive or conversion rights, and there are no redemption provisions with respect to the common stock. The shares of preferred stock (if issued and outstanding) would not carry any preemptive rights,
but our board of directors could specify conversion rights, redemption provisions and (within limits) liquidation preferences with respect to one or more series of preferred stock. The board of directors may grant contract rights to acquire shares
of our capital stock.
Repurchases of Common Stock
We may for our own account purchase shares of common stock so long as one share of common stock remains outstanding and our equity before and
after such a purchase at least equals its nominal capital.
Election and Removal of Directors
Directors are elected at a general meeting of stockholders by a majority of votes cast by stockholders entitled to vote, except that directors
are to be elected by a plurality of voting power in certain elections where the number of nominees exceeds the number of directors to be elected. The number of directors constituting the whole board of directors may not be fewer than five nor more
than 24, as fixed and elected by the general meeting of Schlumberger stockholders. Our board of directors is authorized to appoint directors to fill vacancies on the board of directors, which appointment will be effective until the next general
meeting of stockholders. Directors may be suspended or dismissed at any general meeting of stockholders. A suspension automatically terminates if the person concerned has not been dismissed within two months after the day of suspension.
Stockholder Meetings
In accordance with
applicable law, all general meetings of Schlumberger stockholders must be held in Curaçao. The annual general meeting of Schlumberger stockholders is held on a date determined from year to year by the board of directors, for the purpose of
electing directors, reporting on the course of business during the preceding fiscal year, approving of the balance sheet and the profit and loss account for the preceding fiscal year and for any other purposes required by law or as may be stated in
the notice of such meeting. Special general meetings of Schlumberger stockholders may be called at any time upon the direction of the Chairman, the Vice Chairman, the Chief Executive Officer, the President or the board of directors. Special general
meetings of stockholders may also be called by one or more Schlumberger stockholders representing at least 10% of the votes that can be cast on the topics they wish to be addressed at such meeting and that have a reasonable interest in having such
meeting convened, by one or more holders of shares representing in the aggregate a majority of
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shares then outstanding and, in certain circumstances if all of the directors are prevented from or incapable of serving, by any person or persons holding in the aggregate at least 5% of the
outstanding shares of common stock for the purpose of electing a board of directors.
Stockholder Action by Written Consent
Under Curaçao law, stockholders may not act by written consent without a meeting, unless all stockholders entitled to vote on the matter
have cast a vote.
Buy-Out
Under our
Articles of Incorporation, any one person, or any two or more legal entities belonging to the same group, holding shares representing at least 90% of our equity can require the remaining stockholders to transfer their shares as provided by and in
accordance with the provisions of Curaçao law. This provision is somewhat similar to statutes that exist in Delaware and most U.S. states, which typically allow the owner or owners of 90% of a companys outstanding equity to effect a
short-form merger. In order to effect a compulsory share transfer, the owner or owners of 90% of our outstanding equity would have to institute an action in a Curaçao court and pay the transferring stockholders the value of the
shares to be transferred as determined by the judge (based on the advice of one or three experts). A judge can deny a request for a compulsory share transfer if a stockholder would suffer serious material damage through the transfer.
Rights Upon Liquidation
In the event of
liquidation, each share of common stock is entitled to equal rights after satisfaction of any preferred stock liquidation preference.
Listing,
Transfer Agent and Registrar
Our common stock is listed for trading on the NYSE, Euronext Paris, Euronext Amsterdam, the London Stock
Exchange and the SIX Swiss Exchange. The transfer agent and registrar for our common stock is Computershare Trust Company, N.A., Canton, Massachusetts.
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DESCRIPTION OF GUARANTEES OF DEBT SECURITIES
We will set forth in the applicable prospectus supplement a description of any guarantees of debt securities that may be offered pursuant to
this prospectus.
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PLAN OF DISTRIBUTION
We may sell the securities offered pursuant to this prospectus in any of the following ways:
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directly to one or more purchasers;
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through underwriters, brokers or dealers; or
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through a combination of any of these methods of sale.
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We will identify the specific plan of
distribution, including any underwriters, brokers, dealers, agents or direct purchasers and their compensation in a prospectus supplement.
In addition, to the extent this prospectus is used by any selling securityholder to resell common stock or other securities, information with
respect to the selling securityholder and the plan of distribution will be contained in a supplement to this prospectus, in a post-effective amendment or in filings we make with the SEC under the Exchange Act that are incorporated by reference.
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EXPERTS
The financial statements and managements assessment of the effectiveness of internal control over financial reporting (which is included
in Managements Report on Internal Control over Financial Reporting) incorporated in this prospectus by reference to the Annual Report on Form 10-K for the year ended December 31, 2013 have been so incorporated in reliance on the report of
PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.
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VALIDITY OF THE SECURITIES
Gibson, Dunn & Crutcher LLP, New York, New York, will pass upon the validity of the debt securities and guarantees, and STvB
Advocaten (Curaçao) N.V., Curaçao, will pass upon the validity of the common stock.
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WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports, proxy statements and other information with the SEC. You may read and copy any materials we
file with the SEC at the SECs public reference room:
Public Reference Room
100 F Street, N.E.
Washington,
D.C. 20549
For information regarding the operation of the Public Reference Room, you may call the SEC at
1-800-SEC-0330.
The SEC also maintains a website at www.sec.gov that contains reports, proxy and information statements and other information regarding Schlumberger and
other companies that file materials with the SEC electronically. Our filings are also available on our website at
www.slb.com
. You are encouraged to read the materials that we file with the SEC, which disclose important information about us.
This information includes any filing we have made with the SEC under Section
13(a), 13(c), 14 or 15(d) of the Exchange Act.
INCORPORATION BY REFERENCE
The SEC allows us to incorporate information into this prospectus by reference, which means that we can disclose important
information to you by referring you to another document that we filed separately with the SEC. The information incorporated by reference is deemed to be part of this prospectus, except for any information superseded by information contained directly
in this prospectus. These documents contain important information about us and our financial condition, business and results.
We are
incorporating by reference our filings listed below and any additional documents that we may file with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act on or after the date we file this prospectus and prior to the
termination of any offering; except we are not incorporating by reference any information furnished (but not filed) under Item 2.02 or Item 7.01 of any Current Report on Form 8-K, unless specifically noted below or in a prospectus
supplement:
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our Annual Report on Form 10-K for the year ended December 31, 2013 (including the portions of our proxy statement for our 2013 annual meeting of stockholders incorporated by reference therein);
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our Current Report on Form 8-K filed with the SEC on April 9, 2014; and
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The description of our common stock, par value $0.01 per share, contained in our Current Report on Form 8-K filed on April 29, 2005.
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We will provide, without charge, to each person to whom a copy of this prospectus has been delivered, including any beneficial owner, a copy
of any or all of the information that has been incorporated by reference into this prospectus but not delivered with the prospectus, if such person makes a written or oral request directed to:
Schlumberger Limited
5599 San
Felipe
17th Floor
Houston,
Texas 77056
Attention: Investor Relations
(713) 375-3535
YOU SHOULD RELY
ONLY ON THE INFORMATION CONTAINED OR INCORPORATED BY REFERENCE IN THIS PROSPECTUS AND ANY ACCOMPANYING PROSPECTUS SUPPLEMENT, OR TO WHICH WE HAVE REFERRED YOU, IN MAKING YOUR DECISIONS WHETHER TO INVEST IN
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THE SECURITIES. WE HAVE NOT AUTHORIZED ANYONE TO PROVIDE YOU WITH INFORMATION THAT DIFFERS FROM THAT CONTAINED IN THIS PROSPECTUS AND ANY ACCOMPANYING PROSPECTUS SUPPLEMENT. THIS PROSPECTUS IS
DATED APRIL 17, 2014. YOU SHOULD NOT ASSUME THAT THE INFORMATION CONTAINED IN THIS PROSPECTUS IS ACCURATE AS ANY DATE OTHER THAN THAT DATE, UNLESS WE OTHERWISE NOTE IN THIS PROSPECTUS OR ANY ACCOMPANYING PROSPECTUS SUPPLEMENT.
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