On the agenda for next week's meeting of the Economic Development Trust, there is a resolution to approve $850,000 in job incentive funds to Baker Hughes Oilfield Operations.

They will be adding 475 jobs over the next five years and building a new facility on the SW corner of the Kilpatrick Turnpike and Broadway Extension.



All of the following is from the EDT agenda:


Background
The Company plans to add 475 new jobs in Oklahoma City over the next five (5) years. These jobs include new manufacturing jobs and other onsite jobs that will support its oil field service operations in the region. The average first year wage for these new jobs is estimated to be $51,660.
Baker Hughes is in need of expanding its manufacturing capacity for its Artificial Lift Systems (“ALS”) group and desires to invest in a state-ofthe-
art manufacturing facility using high tech robotics to manufacture motors used in the oil and gas services industry. Making these investments in Oklahoma City would bring manufacturing jobs back to the United States. Baker has an existing manufacturing facility located in Oklahoma City with 48 employees. The construction of these two new manufacturing facilities will bring an additional 250 ALS manufacturing jobs and 125 motor manufacturing jobs to the state. This, along with the 100 on-site support jobs represents a total of 475 new quality jobs to Oklahoma City over the next 5 years.

Company Background
Baker Hughes Incorporated was formed in 1987 with the merger of Baker International and Hughes Tool Company. Baker Hughes Incorporated creates value from oil and gas reservoirs with high-performance drilling, evaluation, completions and production technology services, integrated operations and reservoir consulting. Its solutions are designed to lower costs, reduce risk or improve productivity for the global oil and gas industry. The company is headquartered in Houston, Texas and has offices in throughout the United Sates. In 2012, Baker Hughes Incorporated generated revenues of $21.36 billion. Baker Hughes Incorporated has over 58,800 employees in more than 80 countries. This project is being undertaken by both Baker Hughes Oilfield Operations, Inc. (“BHOO”) and Baker Petrolite Corporation (“BPC”), both of which are subsidiaries of Baker Hughes Incorporated and will employee employees associated with this project.

Project Background
The Greater Oklahoma City Chamber and the City have worked with the Company since the middle of October, 2013. In evaluating its location
options for these new manufacturing facilities, Company management met with City and Chamber staff to discuss the needs of their planned operation. Based in part upon local incentives (city and state), the company has decided to locate this operation in Oklahoma City.

Economic Impact
The total estimated economic impact of this project is $299.6 million over the first four year period (based on total project impact, including capital investment, wages, state and local taxes). The estimated local sales tax and property tax revenue is expected to be $549,749 over the first four year period and $250,294 annually from the 5th year forward.