Baker Hughes Signs Service Contract With Sibneft

HOUSTON, Aug 27, 2002 -- Baker Hughes Incorporated (NYSE: BHI; PCX; EBS) and OAO Sibneft have signed agreements in which Baker Hughes is to provide well drilling and production products and services for the Noyabrsk area of Western Siberia.

The two companies have worked together to design a development plan that can enhance production from existing oil wells in the Noyabrsk area. The program will utilize a variety of Baker Hughes products and services for re-entry, directional and multi-lateral wells.

Baker Hughes has supplied drilling, completion and production equipment to the petroleum industry in the Russian Federation for more than a decade. The agreement with Sibneft represents the first service contract for which Baker Hughes will establish support bases and build the necessary operations capability to support multiple projects in Russia.

Mick Longton, Baker Hughes Director - Enterprise Operations, officiated at the signing ceremony. Sibneft officials in attendance included Alexander Korsik, Chief Operating Officer and Andrei Matevosov, Vice-President Upstream.

"Baker Hughes is excited about our working relationship with OAO Sibneft," said Andy Szescila, Baker Hughes' Chief Operating Officer. "The Noyabrsk project will demonstrate how our products, services and technology can enhance production from new and mature fields in Russia."

OAO Sibneft, a vertically integrated oil company, is Russia's fifth largest oil producer.

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.

Contact:
USA:
Gary R. Flaharty (713) 439-8039
gary.flaharty@bakerhughes.com
Kyle J. Leak (713) 439-8042
kyle.leak@bakerhughes.com
Russia:
Roy Fearnley, (095)-922-5252
Baker Hughes Business Development Manager
roy.fearnley@bakerhughes.com

SOURCE Baker Hughes Incorporated

URL: http://www.bakerhughes.com
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