SchlumbergerSema signs substation automation contract with LADWP

DENVER, Colo., Aug. 26, 2002 — SchlumbergerSema, a business unit of Schlumberger Ltd. announced it has signed a contract with the Los Angeles Department of Water and Power (LADWP) to furnish consulting, integration services and equipment to automate existing electrical substations.

The $56 million contract represents one of the world’s largest substation automation projects, and includes retrofit of 179 existing substations and supply of two development/testing systems and a training simulator system.

As lead aggregator, SchlumbergerSema will work together with technology provider Tasnet and subcontracted local minority business enterprises to provide all the services related to the system design, development, procurement, assembly and testing.

SchlumbergerSema will also assist with the installation and commissioning of each system, and will provide training services for system operation and maintenance. Deployment of the system is scheduled to begin in late 2002, and is expected to take up to five years to complete.

“SchlumbergerSema was selected after a detailed review process which was initiated over a year ago,” stated Mahmud Chaudhry, assistant general manager, Power Transmission and Distribution, LADWP. “Based on this comprehensive analytical evaluation, the SchlumbergerSema solution offered the best combination of technology, services and economy. They can provide the professional, specialized system integration services needed for a project this size and complexity.”

According to Jack Waizenegger, LADWP’s project manager, automating their substations utilizing the SchlumbergerSema solution will provide the following benefits:

— Maintain control system integrity by improving the Supervisory Control and Data Acquisition (SCADA)/Remote Terminal Unit (RTU) availability rate and providing expansion capacity

— Improve operating and maintenance efficiencies resulting in a good return on investment

— Improve customer reliability

— Enable easy access to valuable power system information, especially for planning and maintenance management

“We are excited about working with a progressive municipal utility like LADWP,” stated Don Sweet, president of the SchlumbergerSema North American Energy and Utilities Group.

“The SchlumbergerSema substation automation services enable our clients to address key business challenges related to operational efficiencies, reliability, service quality improvements and security. Our services are focused on helping our clients make critical decisions more accurately and quickly, enhancing the quality of service provided to their end customer, while optimizing the balance between optimal quality of supply, reliability and risk.”

SchlumbergerSema has adopted Tasnet’s substation automation solution to further broaden the digital enablement of transmission networks by providing a foundation layer for delivering critical information to the utility knowledge infrastructure and bringing essential real-time information into the energy community.

Utilizing the Tasnet system’s open architecture, utilities can quickly access vast amounts of real-time information crucial to network operation, allowing them to better resolve issues of capacity management and commodity access.

About SchlumbergerSema
SchlumbergerSema is one of two business segments of Schlumberger Limited, a global technology services company. With more than 30,000 employees serving customers in 65 countries, SchlumbergerSema aggregates IT consulting, systems integration, managed services and related products to the oil and gas, telecommunications, energy and utilities, finance, transport and public sector markets.

Leveraging the Schlumberger DeXa(a) Suite of Services, it also provides IP network connectivity, information security solutions, distributed computing support services and data center hosting services. In 2001, Schlumberger revenues were $13.7 billion. For more information, visit www.slb.com About Tasnet Providing solutions since 1982, Tasnet is an industry leader in PLC-based substation automation solutions.

The Tasnet Substation Integration (SI) System, using an open architecture, communicates to a variety of intelligent electronic devices including PLCs, RTUs, protective relays, meters, distribution automation devices and controllers. Tasnet’s solutions and products address various needs of the utility industry: customer retention, offset reduction in manpower, and reduced cost of control. For more information about Tasnet, please visit www.tasnet.com.

About Los Angles Department of Water and Power LADWP serves more than 3.6 million people in the nation’s second-largest city. Established nearly a century ago, the country’s largest municipal utility provides the water and electric needs of Los Angeles businesses and residents in a 465 square-mile area.

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