UPDATE 1-Schlumberger expects Q1 revenue to fall 15 pct from Q4

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March 21 (Reuters) - Schlumberger Ltd SLB.N , the world's
largest oilfield services provider, said revenue in the current
quarter is expected to fall 15 percent from the fourth, as
spending cuts by oil producers take a toll.
The company forecast revenue of $6.5 billion for the first
quarter ending March, lower than the average analyst estimate of
$6.94 billion, according to Thomson Reuters I/B/E/S.
"The third phase of E&P spending reductions that we are
currently experiencing will have a significant impact on our
earnings per share in the current and coming quarters," Chief
Executive Paal Kibsgaard said at an energy conference on Monday.
Kibsgaard, whose comments are closely watched, also called
for a change in the way the oil and gas industry operates.
There is an urgent need for a change in the way the energy
industry works given that oil prices are expected to be
"medium-for-longer", Kibsgaard said in his keynote address at
the Scotia Howard Weil Energy Conference.
The cost reductions by oil and natural gas producers over
the past 18 months were not linked to efficiency improvements,
Kibsgaard said, adding they were the result of pricing
concessions from oilfield services providers.
Under the current model, oil producers split drilling and
production work into smaller parts, and then seek bids from
service providers.
But this model has led to inefficiencies due to a lack of
collaboration between operators and suppliers, Kibsgaard said.
Schlumberger - which is buying equipment maker Cameron
International Corp CAM.N for $14.8 billion deal - is
developing total drilling and production systems to move away
from single components, Kibsgaard said.
Kibsgaard also hinted at more job cuts, saying the company
will continue to match costs and resources to activity.
Schlumberger has cut 34,000 jobs, or 26 percent of its
workforce, since November 2014.
The company's shares were marginally higher at $73.82 in
early trading.