Baker Hughes Announces January 2006 Rig Counts

HOUSTON, Feb. 7 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated (NYSE: BHI; EBS) announced today that the international rig count for January 2006 was 905, down 43 or -5% from the 948 counted in December 2005, and up 45 or 5% from the 860 counted in January 2005. The international offshore rig count for January 2006 was 263, down one from the 264 counted in December 2005 and up 29 or 12% from the 234 counted in January 2005.

Beginning with this report, the company is discontinuing its rig count for Iran and Sudan. In the third quarter of 2005, our independent foreign subsidiaries initiated a process to prohibit any business activity that directly or indirectly involves or facilitates transactions in Iran, Sudan or with their governments, including government-controlled companies operating outside of these countries.

Excluding Iran and Sudan, the international rig count for January 2006 was 905, up 14 or 2% from the 891 counted in December 2005, and up 104 or 13% from the 801 counted in January 2005. The international offshore rig count for January 2006 was 263, up five or 2% from the 258 counted in December 2005 and up 39 or 17% from the 224 counted in January 2005.

The US rig count for January 2006 was 1,473 up three from the 1,470 counted in December 2005 and up 218 or 17% from the 1,255 counted in January 2005. The Canadian rig count for January 2006 was 660, up 85 or 15% from the 575 counted in December 2005 and up 110 or 20% from the 550 counted in January 2005.

The worldwide rig count for January 2006 was 3,038 up 45 or 2% from the 2,993 counted in December 2005 and up 373 or 14% from the 2,665 counted in January 2005. Excluding Iran and Sudan, the worldwide rig count for January 2006 was 3,038 up 102 or 3% from the 2,936 counted in December 2005 and up 432 or 17% from the 2,606 counted in January 2005.

    January 2006 Rotary Rig Counts

                     January 2006          December 2005    January 2005
                    Land   OS Total  Var. Land   OS Total  Land   OS  Total
    ------------------------------------------------------------------------
      Europe          27   54    81    7    25   49    74    24   33     57
      Middle East    182   28   210  -52   225   37   262   210   32    242
      Africa          38    9    47   -2    36   13    49    37   13     50
      Latin America  262   61   323   -4   263   64   327   246   61    307
      Asia Pacific   133  111   244    8   135  101   236   109   95    204
                     ---  ---   ---  ---   ---  ---   ---   ---  ---    ---
    International    642  263   905  -43   684  264   948   626  234    860

      United States 1396   77  1473    3  1393   77  1470  1152  103   1255
      Canada         656    4   660   85   571    4   575   547    3    550
                     ---  ---   ---  ---   ---  ---   ---   ---  ---    ---
    North America   2052   81  2133   88  1964   81  2045  1699  106   1805
    ------------------------------------------------------------------------
    Worldwide       2694  344  3038   45  2648  345  2993  2325  340   2665



    January 2006 Totals excluding Iran and Sudan

                     January 2006          December 2005    January 2005
                    Land   OS Total  Var. Land   OS Total  Land   OS  Total
    ------------------------------------------------------------------------
      Middle East    182   28   210    5   174   31   205   161   22    183
    International    642  263   905   14   633  258   891   577  224    801
      US            1396   77  1473    3  1393   77  1470  1152  103   1255
      Canada         656    4   660   85   571    4   575   547    3    550
                     ---  ---   ---  ---   ---  ---   ---   ---  ---    ---
    Worldwide
     Total          2694  344  3038  102  2597  339  2936  2276  330   2606


    January 2006 Workover Rig Counts

                      January 2006    Var.    December 2005    January 2005
    ------------------------------------------------------------------------
      United States        1506        12          1494            1264
      Canada                812        21           791             770
                            ---       ---           ---             ---
    North America          2318        33          2285            2034


    About the Baker Hughes Rig Counts

The Baker Hughes Rotary Rig Counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the United States, Canada and international markets. Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of US and Canadian drilling activity. Hughes initiated the monthly international rig count in 1975. In 1987, Baker Oil Tools began its monthly workover rig count.

North American rig count data is scheduled to be released at noon central time on the last working day of each week. The international rig count and North American workover rig counts are scheduled to be released on the 5th working day of the month. Additional detailed information on the Baker Hughes rig counts is available from our website at http://www.bakerhughes.com/investor/rig .

Baker Hughes is a leading provider of drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry.

NOT INTENDED FOR BENEFICIAL HOLDERS

Contacts:
Gary R. Flaharty (713) 439-8039
H. Gene Shiels (713) 439-8822

SOURCE: Baker Hughes Incorporated