This was supposed to be the model case history for Paal's new integration strategy but how can a strategy work if you don't get paid??? With 1.2 billion owed in Ecuador and another 1.5 billion owed in Venezuela it would seem that Schlumberger's new integrated strategies and rig of the future strategies require them to give services free in order for clients to use them. This is what happens when you get big fluffy ideas from Paal's executive team under the guise of a strategy. How long can we go on paying clients to give us business???
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Paal is a Norwegian Socialist, making money is not in his blood. Rather, give it away to subsidize Latin Marxists. He and his management team shouldn't receive a penny in bonus until these debts are collected. Putting Venezuela and Ecuador ahead of employees and shareholders is madness.
Is it OK to watch movies on my company laptop computer?
Clearly schlumberger management is not very good at risk assessment. However when you have a CEO who is desperate to show "results" from
his business strategies then inevitably his managers will give him those "results" regardless of the the price. In this case almost 3 billion USD of unrecoverable debt.
How can we be so stupid run such huge debts in Venezuela and Ecuador both of whom have crazy left wing governments. Surely someone would have saw the risk beforehand?
I'm sure that Schlumberger would never put this debt as an "asset" in their end of quarter 1 balance sheet. It would be sneaky to do so and somewhat misleading as there is Jack-all chance of it ever being paid.
Why don't we just lend them
Some more money so they can pay us for the services? It makes the profitability look good and the management still get a great bonus. Let's also call iit a transformation of our profits and get some kudos from Paal
By the time anybody finds out their will be a new country manager in place and he can be blamed for the the mess
A classic schlumberger management dirty trick straight out if the management manual
Aw heck, just lay off some more people. That'll fix anything.
clearly the management team are totally our of touch with business reality and the concept of making a profit
A similar question can be also asked for the following.
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Cameron acquisition
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Transformation
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Compensation raise for executives
If Paal and SLB management did not pursue the above stupid ideas, many careers could have saved.
why don't they use that money for keeping our employees onboard instead of giving it away to those latin american gangster oil companies - only Paal know the logic