Schlumberger Ltd. and rivals providing services to the oil industry can cope with challenges like rising costs and delays plaguing many crude developments, Chief Executive Officer Andrew Gould told Bloomberg News.

``We will cope but we're going to have to run very hard,'' Gould said at the World Petroleum Congress in Madrid. One of the main challenges is a lack of skilled workers, he said.

Equipment providers have 160 oil rigs under construction worldwide, with 68 planned for deep waters, he said, adding that he doesn't expect all to be delivered on time. When the rigs start work, demand and costs will rise for skilled engineers with more than 10 years of experience, he said.

Security costs have also risen for oil services providers as the risk of kidnapping and sabotage spreads to previously safe countries, becoming a significant part of rising project costs, Gould said. Material costs have stabilized,

Oil producers and service companies are facing increasing pressure from countries that hold reserves of crude oil and natural gas to invest in local infrastructure and staff, Gould and Transparency International's Chairwoman Huguette Labelle said today in a joint press conference on the industry's social responsibilities.

``The pressure to invest in infrastructure is clear,'' Labelle said. ``Investing in intellectual capital is the best way to leave something behind that can't be taken away.''

Schlumberger is also looking at potential acquisitions in Russia, Gould said, declining to comment on specific targets. The Houston-based company spends about $1 billion a year on acquisitions, he said, adding that recent initial share offerings among Russian oil-service providers have pushed prices up, making purchases less attractive.