Russia’s largest oilfield services (OFS) providers saw profits decline sharply in 2025 as sanctions, weaker drilling activity, and pressure from domestic oil producers squeezed margins across the sector.
Three of the so-called “Big Four” OFS companies operating in Russia — Burservis, Schlumberger, and Weatherford — reported significant declines in net profit despite relatively stable or growing revenues, according to Russian industry publication Oil and Capital. OFS Technologies (TOFS), the former Russian subsidiary of Baker Hughes, has not published financial results for 2024 or 2025, though analysts expect a similar trend.
Schlumberger, the Russian subsidiary of SLB, posted the steepest decline. Net profit fell by 80% in 2025 to 823 million roubles ($9.9 million), while revenue dropped 23.6% to 20.5 billion roubles ($246 million). Operating profit declined by a more moderate 11.3%, suggesting the company compressed margins to maintain market position as U.S. sanctions limited access to advanced Western technologies and equipment.
Burservis — the former Halliburton business in Russia acquired by local management in 2022 — reported a 19% decline in net profit to 11.4 billion roubles ($137 million), even as revenue increased 11.2% to 53.2 billion roubles ($638 million).
Weatherford’s Russian unit posted a 26.9% decline in net profit to 4.93 billion roubles ($59 million), while revenue remained broadly flat at 25.9 billion roubles ($311 million).
The deteriorating financial performance reflects mounting pressure across Russia’s upstream sector. Western sanctions, lower oil prices, and tighter financing conditions reduced profitability for Russian oil producers, prompting them to cut spending and negotiate lower service prices with contractors.
According to Deputy Prime Minister Alexander Novak, Russia’s crude exports declined only 1% in 2025 to 238 million tonnes, while exports of oil products fell 7%. However, federal oil and gas revenues dropped by 20% as discounts on the Urals crude blend widened sharply against Brent, reaching as much as $24 a barrel.
Industry analysts say Russian OFS companies were hit by several converging factors: restricted access to Western technology, slower drilling activity, high borrowing costs, and aggressive pricing pressure from large domestic producers.
Total drilling volumes in Russia fell 3.4% in 2025 to 29,140 kilometers, while several hard-to-recover reserve projects were postponed. Rosneft also delayed further expansion of its flagship Vostok Oil development in Eastern Siberia.
At the same time, Russia’s central bank maintained elevated interest rates to curb inflation and stabilize the rouble. Although the benchmark rate was reduced from 21% to 16.5% during the year, financing costs remained high, limiting investment across the oil, gas, and services sectors. Average Brent crude prices fell 14% year-on-year to $69.14 a barrel.
The market structure further intensified pressure on OFS providers. With the sector heavily dependent on a small number of major oil producers, service companies had limited pricing power and were forced to accept lower margins to preserve contracts and utilization rates.
Still, geopolitical developments in early 2026 may improve conditions for the sector. Supply disruptions following military escalation involving Iran and the temporary blockade of the Strait of Hormuz increased demand for alternative crude and LNG supplies, benefiting Russian exporters. The U.S. also temporarily eased restrictions on certain Russian energy imports, while European buyers increased purchases of Russian LNG despite plans to phase out Russian gas imports by the end of 2027.
If disruptions in the Middle East persist and oil prices remain elevated, stronger cash flows for Russian producers could eventually support renewed investment in upstream projects — potentially improving prospects for the domestic OFS market.
The Eurasian Links 