Baker Hughes Signs Strategic Framework Agreement with PetroChina Tarim Oilfield Co.

Baker Hughes to provide solutions for severe downhole conditions in the Tarim Field.

HOUSTON, TX – June 10, 2010 – Baker Hughes (NYSE: BHI) recently signed a strategic framework agreement with PetroChina Tarim Oilfield Co. to supply multiple services in the Tarim oil field in northwest China. The two-year agreement covers ultra-deep, high-pressure high-temperature formations as well as shallow zones. The agreement also includes provisions for joint development of solutions specifically designed to address the challenges in the Tarim oil field. PetroChina will fund any joint development.

Under the terms of the agreement, Baker Hughes will provide both directional and vertical drilling systems, formation evaluation services, completion systems and artificial lift technology for wells drilled into foothills formations greater than 7,500 meters (24,600 feet) deep with pressures greater than 20,000 psi (1379 bar) and bottomhole temperatures of approximately 160°C (320°F). Electrical submersible pumping (ESP) systems will be employed to dewater gas and condensate wells.

"We are pleased to partner with PetroChina to address the world-class exploration, drilling, development and production challenges encountered in the Tarim oil field," notes Richard Ward, president of Asia Pacific operations for Baker Hughes. "We can provide PetroChina packaged solutions for all the complex challenges encountered at Tarim."

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

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