Long-term Debt

9 Months Ended

Sep. 30, 2011

11. Long-term Debt

A summary of Long-term Debt follows:


	(Stated in millions)
	Sept. 30,		Dec. 31,
	2011		2010
3.30% Senior Notes due 2021	$	1,595	$	—
4.50% Guaranteed Notes due 2014		1,364		1,319
2.75% Guaranteed Notes due 2015		1,357		1,310
1.95% Senior Notes due 2016		1,099		—
4.20% Guaranteed Notes due 2021		1,099		—
5.25% Guaranteed Notes due 2013		682		659
2.65% Guaranteed Notes due 2016		498		—
3.00% Guaranteed Notes due 2013		450		450
Floating Rate Senior Notes due 2014		299		—
9.75% Senior Notes due 2019		—		776
8.625% Senior Notes due 2014		—		272
6.00% Senior Notes due 2016		—		218
Commercial paper borrowings		—		367
Other variable rate debt		287		133

		8,730		5,504
Fair value adjustment — hedging		10		13

	$	8,740	$	5,517

The fair value adjustment presented above represents changes in the fair value of the portion of Schlumberger’s fixed rate debt that is hedged through the use of interest rate swaps.

During the third quarter of 2011 Schlumberger issued $1.1 billion of 1.95% Senior Notes due 2016, $1.6 billion of 3.30% Senior Notes due 2021 and $300 million of Floating Rate Senior Notes due 2014 that bear interest at a rate equal to three-month LIBOR plus 55 basis points per year.

During the first quarter of 2011, Schlumberger repurchased all of the outstanding 9.75% Senior Notes due 2019, the 8.625% Senior Notes due 2014 and the 6.00% Senior Notes due 2016 for approximately $1.26 billion. These transactions did not result in any significant gains or losses.

During the first quarter of 2011, Schlumberger issued $1.1 billion of 4.20% Guaranteed Notes due 2021.

During the first quarter of 2011, Schlumberger issued $500 million of 2.65% Guaranteed Notes due 2016. Schlumberger entered into agreements to swap these dollar notes for euros on the date of issue until maturity, effectively making this a euro denominated debt on which Schlumberger will pay interest in euros at a rate of 2.39%.

At September 30, 2011, Schlumberger had separate committed debt facility agreements aggregating $5.6 billion with commercial banks, of which $3.4 billion was available and unused. This includes $5.0 billion of committed facilities which support commercial paper programs in the United States and Europe, of which $2.0 billion mature in December 2011 and $3.0 billion mature in July 2016. Interest rates and other terms of borrowing under these lines of credit vary from country to country. Borrowings under the commercial paper programs at September 30, 2011 were $2.0 billion ($1.9 billion at December 31, 2010). At September 30, 2011 all of the commercial paper borrowings were classified within Long-term debt — current portion in the Consolidated Balance Sheet.

The estimated fair value of Schlumberger’s Long-term Debt at September 30, 2011 and December 31, 2010, based on quoted market prices, was $9.0 billion and $5.6 billion, respectively.