The next oil major? Service firm Schlumberger bets big on production

Houston

THE world's largest oilfield services company, Schlumberger NV, is spending billions of dollars buying stakes in its customers' oil and gas projects - investing in the same ventures it supplies with equipment and expertise.

The new business model gives Schlumberger a say in drilling decisions, oilfield management and even on hiring other Schlumberger units for service contracts, the company has told investors.

The expanded operational authority saves Schlumberger from bidding for each of the many jobs that typically require separate contracts on a large drilling project - effectively locking out the firm's competitors.

Schlumberger's gamble could upend the service business model throughout the industry, as rivals including General Electric Co's unit Baker…