Weatherford Expands Russian Operations Despite Sanctions Impact

U.S. oilfield services provider Weatherford International has notably expanded its operations in Russia, continuing its business activities despite ongoing sanctions imposed by the European Union and the United States. According to a report from the Financial Times, Weatherford’s revenues from its Russian operations accounted for 7% of its total revenue of $2.4 billion in the first half of 2024, up from 5% during the same period in 2023.

By the end of June 2024, Weatherford had generated approximately $332 million in cash and assets from its Russian endeavors, a significant increase from $233 million a year prior. The report indicates that the company has also posted around 100 job openings for its Russian business since late February, which coincides with the introduction of U.S. sanctions targeting the oilfield services sector.

In its second-quarter financial results, Weatherford noted that heightened drilling activity in Russia had compensated for reduced activity in both North America and Latin America. Nevertheless, the company reported a decline in well construction activity in Russia during the second quarter, mirroring trends observed in North America.

Weatherford’s revenues from its Russian operations—including figures from its European and sub-Saharan African business—totaled $244 million in the second quarter. This marks a 23% increase from the first quarter of 2024, although it represents a 5% decrease compared to the same quarter in 2023.

As one of the few U.S. oilfield services companies still operating in Russia, Weatherford stands alongside SLB, formerly known as Schlumberger. Other major players, including Baker Hughes and Halliburton, divested their Russian interests to local firms following the onset of the war in Ukraine in 2022.

A senior fellow at the Carnegie Russia Eurasia Center, Sergey Vakulenko, suggested to the Financial Times that oilfield service providers like Weatherford might have restructured their operations to comply with sanctions. He noted that there is “at least a 50/50 chance that revenues generated within Russia stay in Russia and are reinvested there rather than flowing back to the parent company.”

As geopolitical dynamics continue to evolve, Weatherford’s actions may reflect a broader trend among international companies navigating the complexities of operating in sanctioned markets. The continued expansion of its operations in Russia indicates a strategic approach to maintaining business while adhering to regulatory frameworks.