Baker Hughes Awarded Contract Extensions in Norway

Contracts cover drilling and formation evaluation services on 10 to 12 rigs offshore Norway

FOR IMMEDIATE RELEASE

CONTACTS: Media Relations: Kathy Shirley, +1.713.439.8135, kathy.shirley@bakerhughes.com

Investor Relations: Gary R. Flaharty, +1.713.439.8039, gflaharty@bakerhughes.com

H. Gene Shiels, +1.713.439.8822, gene.shiels@bakerhughes.com

HOUSTON, TEXAS – January 26, 2010 – Statoil has awarded Baker Hughes (NYSE: BHI) two-year extensions on two contracts in Norway. The contracts are for the provision of drill bits, directional drilling, formation evaluation (measurement-while-drilling, logging-while-drilling and mud logging) and related services on 10 to 12 rigs operating in multiple fields offshore Norway. Valued at approximately $270 million, the award extends the contracts through October 2012.

The drilling and formation evaluation technology and services provided under the contract extensions help to optimize drilling efficiencies and enhance well placement in Statoil's offshore Norway fields. Baker Hughes has a long-term relationship with Statoil, and these contract extensions not only strengthen that business affiliation, but also drive ongoing technology collaboration between the firms.

"Together Statoil and Baker Hughes have developed innovative technologies to maximize the value of Norway's reservoirs," says Gary Rich, president, Baker Hughes Europe. "Statoil continues to play a leading role in new technology commercialization in both Norway and the wider oilfield sector."

Baker Hughes has been operating in Norway for 36 years. With more than 1,000 employees in Norway, the company provides its full range of products and services to national and international oil and gas companies. Baker Hughes works in close collaboration with customers to successfully deploy new technologies and innovative solutions to enhance reservoir performance in offshore Norway fields.

# # #

About Baker Hughes Baker Hughes provides reservoir consulting, drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry.