The 100,000-square-meter facility, which houses laboratories, offices, repair and maintenance operations along with a remote collaboration center, is part of the company's expansion plans for the Kingdom.

Baker Hughes CEO Chad C. Deaton said the company has been active in Saudi Arabia for close to 70 years, but the pace of investment has increased over the last five years.

"The official opening of this new operations base in Dhahran represents a $35 million (SR132 million) investment," Deaton said.

According to him, the new base is indicative of the company's long-term commitment to the Kingdom. "For the first time all Baker Hughes product lines are housed in the same facility ... under one management team ... It will drive consistent standards to improve service quality and reliability," Deaton said.

"The Dhahran base also underscores our commitment to creating new jobs and empowering the local economy in line with the vision of the Kingdom's leaders."

The company will expand its footprint in Saudi Arabia again next year with construction of a multi-million-dollar research and technology center at KFUPM Dhahran Techno Valley.

"The Dhahran Technology Center will integrate the competencies of engineers and scientists from the Saudi oil and gas industry, King Fahd University of Petroleum and Minerals and Baker Hughes to develop application-specific technologies for complex (oil) reservoirs," he said.

Speaking at the opening ceremony, Amin H. Nasser, Saudi Aramco senior vice president for exploration & producing, recalled Baker Hughes' commendable history of service to Saudi Aramco and the Kingdom. "This history began with Saudi Arabia's first commercial oil discovery when, in 1938, the "Prosperity Well" - Dammam No. 7 - was drilled with Baker drill bits. The cooperation that started with the discovery of oil in the Dammam field has continued for more than 70 years."

Nasser said since those early days, the Baker companies have established deep roots here, becoming an integral part of Saudi Arabia's energy landscape.

"Baker Hughes has played a vital role in supporting Saudi Aramco's mission as a reliable supplier of hydrocarbons to the world. Since 1938, our needs for advanced technical services have increased vastly. Baker has responded by adding a wide range of new services and products including drilling fluids, drilling technologies, well logging, completion and production services, artificial lift, chemical technologies and reservoir consulting."

Nasser complimented the company for investing in the local work force. "We are aware of Baker Hughes' efforts to increase the number of Saudi employees .... We were pleased to see the percentage of Saudi citizens increased from 44 percent in May 2009 to 48 percent this month," Nasser said. "When fully staffed, the center will employ 475 professionals. We will give you our full support in your admirable effort to achieve the goal of 75 percent Saudization."

The new facility will allow Baker Hughes to better serve its Middle East clients. In addition to repair and maintenance capabilities, the Dhahran base's Beacon Center allows local teams to remotely manage and monitor operations in the region and to collaborate with clients and company technology experts worldwide.