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EXHIBIT 99.1
NEWS RELEASE [BAKER HUGHES LOGO]
Contacts: Baker Hughes Incorporated
Gary R. Flaharty (713) 439-8039 P.O. Box 4740
[email protected] Houston, Texas 77210-4740
Kyle J. Leak (713) 439-8042
[email protected]
BAKER HUGHES AND SCHLUMBERGER SIGN DEFINITIVE
AGREEMENT FOR CREATION OF WESTERN GECO
HOUSTON, Texas September 7, 2000. Baker Hughes Incorporated (BHI - NYSE, PCX,
EBS) announced today the signing of a definitive agreement with Schlumberger
Limited that would create a seismic venture to be called Western GECO. The
transaction is expected to be completed before the end of the year and is
subject to regulatory approvals.
Under the terms of the definitive agreement, which was approved by the Baker
Hughes and Schlumberger Boards of Directors, the two companies would create a
venture that would own the seismic acquisition assets, data processing assets,
and multi-client seismic libraries and other assets of Western Geophysical and
GECO-Prakla. Upon formation of the venture, Baker Hughes would receive from
Schlumberger approximately $500 million in cash. The transaction would also
allow Baker Hughes to make certain working capital and asset reductions valued
at approximately $100 million. Baker Hughes and Schlumberger would respectively
own 30% and 70% of the venture, which would operate under the name Western GECO.
Baker Hughes and Schlumberger have made filings under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, and are responding to requests
for additional information from the Department of Justice. In addition, Baker
Hughes and Schlumberger intend to make additional filings with regulatory
authorities in certain European and other countries.
www.bakerhughes.com
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FORWARD LOOKING STATEMENTS
This news release and any oral statements made in connection with this release
contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. The words "intend," "would," "projected", "expected",
and similar expressions, are intended to identify forward-looking statements.
Baker Hughes' expectations regarding the impact on its estimated working capital
reductions, are only its forecasts regarding this matter. Changes in working
capital at Western Geophysical during the period prior to completion of the
transaction, could affect Baker Hughes' estimates of its net working capital
reduction resulting from the transaction.
Baker Hughes is a leading supplier of reservoir-centered products, services and
systems to the worldwide oil and gas industry.
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NOT INTENDED FOR BENEFICIAL HOLDERS
www.bakerhughes.com
