Baker Hughes 2004 Annual Report Download - page 127

Latin฀America
In฀Brazil,฀Baker฀Atlas฀
introduced฀the฀MREXSM฀logging฀
service฀and฀enhancements฀to฀
its฀RCISM฀sampling฀service,฀and฀
Hughes฀Christensen฀designed฀
Genesis®฀XT฀bits฀specifically฀
for฀the฀Albacore฀Leste฀field.฀In฀
Venezuela,฀Centrilift฀provided฀
abrasion-resistant฀ESP฀systems฀
to฀increase฀production฀from฀
deep,฀hot฀wells.฀
Gulf฀of฀Mexico
Baker฀Hughes฀Drilling฀Fluids฀
launched฀PERFORMAX™฀฀
water-based฀mud฀and฀new฀
GEO-TEQ™฀synthetic฀fluids.฀
Baker฀Oil฀Tools฀provided฀
completion฀systems฀on฀
several฀important฀deep-
water฀projects.฀And฀Hughes฀
Christensen฀accumulated฀
one฀million฀feet฀of฀hole฀with฀
its฀Ream-While-Drilling™฀tools.
฀
Africa
Hughes฀Christensen฀applied฀
HedgeHog™฀bit฀technology฀to฀
improve฀drilling฀performance฀
in฀Algeria.฀In฀Angola,฀Baker฀
Petrolite฀established฀a฀chemical฀
lab฀and฀mixing฀plant฀as฀part฀
of฀a฀new฀venture,฀and฀INTEQ฀
ran฀its฀first฀commercial฀“Penta-
Combo”฀LWD฀string฀as฀part฀of฀
an฀AutoTrak®฀G3฀assembly.฀
Asia฀Pacific
On฀Australia’s฀Northwest฀Shelf,฀
Baker฀Petrolite฀provided฀chemi-
cal฀programs฀for฀two฀major฀
projects,฀and฀Centrilift฀installed฀
dual฀ESP฀systems฀for฀two฀sub-
sea฀fields.฀In฀China’s฀Bohai฀Bay,฀
Baker฀Hughes฀bits,฀drilling฀and฀
evaluation฀systems,฀perforating฀
services,฀completions,฀and฀฀
ESP฀systems฀contributed฀to฀฀
successful฀projects.
North฀Sea
INTEQ฀drilled฀Best-in-Class฀
horizontal฀wells฀using฀AutoTrak®฀
X-treme®฀systems฀and฀the฀
TesTrak™฀formation฀tester.฀
Baker฀Atlas฀utilized฀high-end฀
wireline฀services฀and฀WellLink™฀
data฀communications.฀Baker฀
Oil฀Tools฀installed฀Intelligent฀
Well฀Systems™฀in฀Norway฀and฀
Denmark.฀Centrilift฀ESP฀systems฀
marked฀10฀years฀of฀continuous฀
operation฀in฀a฀UK฀field.
Russia/CIS
In฀Western฀Siberia,฀Centrilift฀
established฀an฀ESP฀repair฀
center.฀INTEQ฀and฀Baker฀Oil฀
Tools฀continued฀re-entry฀฀
sidetrack฀services฀in฀Siberia฀฀
and฀also฀provided฀drilling,฀
evaluation,฀liner฀hanger฀฀
and฀fishing฀services฀on฀฀
projects฀at฀Sakhalin฀Isand฀฀
and฀in฀the฀Caspian฀Sea.฀
Middle฀East
Baker฀Oil฀Tools฀completed฀฀
the฀world’s฀deepest฀฀
multilateral฀gas฀well฀฀
in฀Saudi฀Arabia,฀and฀฀
the฀world’s฀first฀under-฀
balanced฀coiled฀tubing฀฀
casing฀exit฀in฀Sharjah.฀฀
Centrilift฀established฀an฀฀
ESP฀repair฀center฀in฀Dubai฀฀
and฀expanded฀its฀PCP฀฀
business฀in฀Oman.฀
Best฀In฀Class
Baker฀Hughes
Baker฀Atlas฀
Baker฀Atlas฀provides฀wireline-conveyed฀
well฀logging,฀data฀analysis฀and฀perforat-
ing฀services฀for฀formation฀evaluation,฀
production฀and฀reservoir฀management.฀
Recent฀technology฀innovations฀include฀
the฀Magnetic฀Resonance฀ExplorerSM฀฀
service฀for฀acquiring฀quality฀nuclear฀฀
magnetic฀resonance฀data฀in฀less฀time฀
than฀earlier฀systems;฀the฀Earth฀ImagerSM฀
service฀for฀acquiring฀borehole฀images฀in฀
oil-based฀drilling฀fluids;฀and฀the฀Predator฀
XPSM฀perforating฀system฀to฀maximize฀
connectivity฀with฀the฀reservoir.
Baker฀Hughes฀Incorporated
Baker฀Hughes฀Incorporated฀serves฀the฀
worldwide฀oil฀and฀gas฀industry฀through฀
seven฀Best-in-Class฀divisions.฀At฀the฀
enterprise฀level,฀Baker฀Hughes฀provides฀
strategic฀direction,฀maintains฀capital฀
discipline,฀and฀sponsors฀long-term฀
R&D,฀while฀directing฀shared,฀back-
office฀services฀for฀administrative,฀IT,฀
Legal,฀Compliance,฀HS&E,฀and฀Human฀
Resources฀activities.฀Baker฀Hughes฀enter-
prise฀groups฀also฀direct฀the฀global฀sales฀
effort,฀manage฀integrated฀projects฀and฀
facilitate฀strategic฀entry฀into฀new฀geo-
graphic฀markets.
฀
Baker฀Oil฀Tools฀
Baker฀Oil฀Tools฀provides฀completion,฀
workover฀and฀fishing฀technology฀to฀
assure฀safe฀and฀efficient฀hydrocarbon฀
production.฀Packers,฀screens฀and฀gravel฀
packing฀systems฀enable฀selective,฀sand-
free฀production฀from฀oil฀and฀natural฀gas฀
zones.฀Flow฀control฀equipment฀–฀includ-
ing฀Intelligent฀Well฀Systems®฀–฀and฀safety฀
valves฀enable฀efficient฀flow฀while฀mini-
mizing฀risk.฀Workover฀and฀fishing฀ser-
vices฀provide฀cost-effective฀solutions฀for฀
well฀remediation฀and฀re-entry฀sidetracks.฀
Baker฀Hughes฀Drilling฀Fluids฀
Baker฀Hughes฀Drilling฀Fluids฀provides฀฀
fluids฀systems฀and฀services฀that฀help฀฀
optimize฀the฀drilling฀and฀completion฀฀
processes฀to฀maximize฀hydrocarbon฀฀
production,฀even฀in฀demanding฀฀
deep-water,฀high฀temperature฀and฀฀
hostile฀environments.฀The฀division฀฀
helps฀clients฀comply฀with฀environ-฀
mental฀regulations฀with฀products฀฀
like฀the฀SYN-TEQ®฀CF฀synthetic฀฀
emulsion฀system฀and฀PERFORMAXTM฀฀
high฀performance฀water-based฀system,฀
and฀with฀services฀that฀efficiently฀฀
handle฀and฀dispose฀of฀drilling฀waste.฀฀
INTEQ฀
INTEQ฀provides฀directional฀drilling,฀
measurement-while-drilling฀(MWD),฀
logging-while฀drilling฀(LWD)฀and฀well-
site฀information฀services.฀Its฀leading฀
AutoTrak®฀G3฀rotary฀steerable฀system฀
integrates฀with฀advanced฀LWD฀systems฀
to฀drill฀efficiently,฀obtain฀formation฀฀
measurements,฀and฀guide฀the฀well฀฀
within฀the฀reservoir.฀Recent฀innovations฀
include฀the฀Acoustic฀Properties฀eXplorerSM฀
system,฀the฀Testrak™฀formation฀pres-
sure฀tester,฀and฀the฀AutoTrak®฀X-treme®฀
rotary฀steerable฀system฀that฀is฀powered฀
by฀a฀downhole฀motor.
Centrilift฀
Centrilift฀provides฀electric฀submersible฀
pump฀(ESP)฀and฀progressing฀cavity฀฀
pump฀systems,฀applications฀engineering,฀
project฀management฀and฀well฀monitor-
ing฀services.฀Centrilift฀recently฀introduced฀
the฀GCS฀Electrospeed®฀II฀variable฀speed฀
control฀system฀and฀new฀MVP™฀pump฀
systems฀for฀wells฀with฀high฀gas฀content.฀
Centrilift’s฀highly฀reliable฀ESP฀systems฀also฀
can฀enhance฀production฀in฀subsea฀appli-
cations฀and฀replace฀gas฀lift฀completions฀฀
in฀deepwater฀wells.
Baker฀Petrolite฀
Baker฀Petrolite฀provides฀chemical฀tech-
nology฀solutions฀for฀hydrocarbon฀pro-
duction,฀transportation฀and฀processing.฀
During฀oil฀and฀natural฀gas฀production,฀
the฀division฀delivers฀laboratory฀services฀
and฀chemicals฀to฀control฀corrosion฀
and฀deposition฀and฀to฀treat฀produced฀
water.฀Flow฀enhancers฀increase฀pipeline฀
throughput,฀and฀inspection฀services฀
help฀assure฀pipeline฀system฀integrity.฀
Engineered฀chemical฀programs฀also฀
create฀value฀for฀refineries฀by฀improving฀
productivity,฀treating฀water,฀and฀resolv-
ing฀environmental฀issues.฀
Hughes฀Christensen฀
Hughes฀Christensen฀provides฀Tricone®฀
and฀PDC฀drill฀bits,฀ream-while-drilling฀
tools฀and฀drilling฀optimization฀services.฀
Its฀comprehensive฀Tricone฀bit฀line฀
includes฀UltraMax®฀metal-sealed฀bearing฀
bits,฀Mini-MX™฀bits฀for฀slimhole฀wells,฀
and฀HydraBoss®฀bits฀for฀efficient฀drilling฀
through฀shale.฀Genesis®฀XT฀PDC฀drill฀฀
bits,฀with฀advanced฀cutter฀and฀bit฀฀
stability฀technology,฀are฀specifi-
cally฀designed฀for฀each฀application.฀
HedgeHog™฀impregnated฀diamond฀
bits฀increase฀penetration฀rates฀through฀
harder฀formations.
Design:฀Savage฀Design฀Group,฀Inc.,฀Houston,฀Texas฀
Corporate฀Officers
Chad฀C.฀Deaton
Chairman฀and
Chief฀Executive฀Officer
James฀R.฀Clark
President฀and
Chief฀Operating฀Officer
David฀H.฀Barr
Vice฀President฀and฀Group฀
President,฀Baker฀Hughes฀
Drilling฀and฀Evaluation
Ray฀A.฀Ballantyne
Vice฀President฀and
President,฀INTEQ
Paul฀S.฀Butero
Vice฀President฀and
President,฀Hughes฀
Christensen
Martin฀S.฀Craighead
Vice฀President฀and
President,฀Baker฀Atlas
John฀A.฀O’Donnell
Vice฀President฀and
President,฀Baker฀Hughes฀
Drilling฀Fluids
Douglas฀J.฀Wall
Vice฀President฀and฀Group
President,฀Baker฀Hughes฀
Completions฀and฀Production
Chris฀P.฀Beaver
Vice฀President฀and
President,฀Baker฀Oil฀Tools
William฀P.฀Faubel
Vice฀President฀and
President,฀Centrilift
Edwin฀C.฀Howell
Vice฀President฀and
President,฀Baker฀Petrolite
฀
฀
฀
G.฀Stephen฀Finley
Senior฀Vice฀President฀–
Finance฀and฀Administration
and฀Chief฀Financial฀Officer
Douglas฀C.฀Doty
Vice฀President฀and฀
Treasurer
David฀E.฀Emerson
Vice฀President,฀Strategy฀
and฀Business฀Development
Alan฀J.฀Keifer
Vice฀President฀and฀
Controller
John฀H.฀Lohman,฀Jr.
Vice฀President,฀Tax
Alan฀R.฀Crain,฀Jr.
Vice฀President฀and
General฀Counsel
Sandra฀E.฀Alford
Corporate฀Secretary
Jay฀G.฀Martin
Vice฀President,฀Chief
Compliance฀Officer
and฀Senior฀Deputy฀฀
General฀Counsel฀
Greg฀Nakanishi
Vice฀President,
Human฀Resources
Board฀of฀Directors
Larry฀D.฀Brady
Chairman฀and฀Chief
Executive฀Officer,
UNOVA฀Inc.
Chad฀C.฀Deaton
Chairman฀and฀Chief
Executive฀Officer,
Baker฀Hughes฀Incorporated
Clarence฀P.฀Cazalot,฀Jr.
President฀and฀Chief
Executive฀Officer,
Marathon฀Oil฀Corporation
Edward฀P.฀Djerejian
Director,฀James฀A.฀Baker฀III
Institute฀for฀Public฀Policy,
Rice฀University
Anthony฀G.฀Fernandes
Former฀Chairman,฀President
and฀Chief฀Executive฀Officer,
Phillip฀Services฀Corporation
Claire฀W.฀Gargalli
Former฀Vice฀Chairman,
Diversified฀Search฀and
Diversified฀Health฀฀
Search฀Companies
James฀A.฀Lash
First฀Selectman,฀Greenwich,
Connecticut฀and฀Chairman,
Manchester฀Principal฀LLC
James฀F.฀McCall
Lt.฀General,฀U.S.฀Army
(Retired),฀Executive฀Director
of฀the฀American฀Society฀of
Military฀Comptrollers
J.฀Larry฀Nichols
Chairman฀and฀Chief
Executive฀Officer,฀Devon
Energy฀Corporation
H.฀John฀Riley,฀Jr.
Chairman฀and฀Chief฀
Executive฀Officer,
Cooper฀Industries,฀Ltd.
Charles฀L.฀Watson
Chairman,฀Eagle
Energy฀Partners
and฀Wincrest฀Ventures
Stockholder฀Information
Transfer฀Agent฀and
Registrar
Mellon฀Investor฀฀
Services,฀LLC
85฀Challenger฀Road
Ridgefield฀Park,฀NJ฀07660
(888)฀216-8057
Stock฀Exchange฀Listings
Ticker฀Symbol฀“BHI”
New฀York฀Stock
Exchange,฀Inc.
Pacific฀Exchange,฀Inc.
SWX฀Swiss฀Exchange
Investor฀Relations฀Office
Gary฀R.฀Flaharty
Director,฀Investor฀Relations
Baker฀Hughes฀Incorporated
P.O.฀Box฀4740
Houston,฀Texas฀77210-4740
[email protected]
Form฀10-K
Additional฀copies฀of฀the
company’s฀Annual฀Report฀to
the฀Securities฀and฀Exchange
Commission฀(Form฀10-K)฀are
available฀by฀writing฀to฀Baker
Hughes฀Investor฀Relations.
Annual฀Meeting
The฀company’s฀Annual
Meeting฀of฀Stockholders฀will
be฀held฀at฀9:00฀a.m.฀Central
Time฀on฀April฀28,฀2005฀at฀
the฀offices฀of฀the฀company:
3900฀Essex฀Lane,฀Suite฀210
Houston,฀Texas.
Corporate฀Office฀Location
and฀Mailing฀Address
3900฀Essex฀Lane
Houston,฀Texas฀77027-5177
Telephone:฀(713)฀439-8600
P.O.฀Box฀4740
Houston,฀Texas฀77210-4740
Website
www.bakerhughes.com
Baker฀Hughes
Information฀Systems
(888)฀408-4244
As฀a฀Baker฀Hughes฀stockholder,฀you฀are฀invited฀to฀take฀advantage฀of฀our฀convenient฀stockholder฀services฀or฀request฀more฀฀
information฀about฀Baker฀Hughes.฀
Mellon฀Investor฀Services,฀our฀transfer฀agent,฀maintains฀the฀records฀for฀our฀registered฀stockholders฀and฀can฀help฀you฀with฀฀
a฀variety฀of฀stockholder฀related฀services฀at฀no฀charge฀including:
฀•฀Change฀of฀name฀or฀address฀•฀Additional฀administrative฀services฀ •฀Dividend฀reinvestment฀enrollment฀
฀•฀Duplicate฀mailings฀ •฀Consolidation฀of฀accounts฀ •฀Transfer฀of฀stock฀to฀another฀person฀
฀•฀Lost฀stock฀certificates฀
Access฀your฀investor฀statements฀online฀24฀hours฀a฀day,฀7฀days฀a฀week฀with฀MLinkSM.฀For฀more฀information,฀go฀to฀฀
www.melloninvestor.com/ISD.
Our฀Core฀Values
Integrity฀–฀We฀believe฀integrity฀is฀the฀foundation฀of฀our฀individual฀and฀corporate฀actions.฀We฀are฀accountable฀for฀
our฀actions,฀successes฀and฀failures.฀
Teamwork฀–฀We฀believe฀teamwork฀leverages฀our฀individual฀strengths.฀We฀willingly฀share฀our฀resources฀as฀we฀work฀
toward฀common฀goals.
Performance฀–฀We฀believe฀performance฀excellence฀will฀differentiate฀us฀from฀our฀competitors.฀We฀work฀hard,฀฀
celebrate฀our฀successes฀and฀learn฀from฀our฀failures.
Learning฀–฀We฀believe฀a฀learning฀environment฀is฀the฀way฀to฀achieve฀the฀full฀potential฀of฀each฀individual฀and฀฀
the฀company.
Keys฀to฀Success
•฀ People฀contributing฀to฀their฀฀
full฀potential.
•฀ Delivering฀unmatched฀value฀to฀
our฀customers.
•฀ Being฀cost-efficient฀in฀everything฀
we฀do.
•฀ Employing฀our฀resources฀฀
effectively.