Ownership Submission
FORM 3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  Cancilla Russell J
2. Date of Event Requiring Statement (Month/Day/Year)
01/22/2009
3. Issuer Name and Ticker or Trading Symbol
BAKER HUGHES INC [BHI]
(Last)
(First)
(Middle)
2929 ALLEN PARKWAY, SUITE 2100
4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Vice President
5. If Amendment, Date Original Filed(Month/Day/Year)
01/26/2009
(Street)

HOUSTON, TX 77019
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)
2. Amount of Securities Beneficially Owned
(Instr. 4)
3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)
4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock, $1 Par Value 6,590
D
 

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)
2. Date Exercisable and Expiration Date
(Month/Day/Year)
3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)
4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)
6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Common Stock, $1 Par Value (1) (2) 06/19/2007 06/10/2016 Common Stock, $1 Par Value 1,003 $ 79.94 D  
Common Stock, $1 Par Value (1) (3) 01/24/2008 01/24/2017 Common Stock, $1 Par Value 900 $ 68.54 D  
Common Stock, $1 Par Value (1) (4) 07/25/2008 07/25/2017 Common Stock, $1 Par Value 900 $ 82.28 D  
Common Stock, $1 Par Value (1) (5) 01/23/2009 01/23/2018 Common Stock, $1 Par Value 1,016 $ 69.92 D  
Common Stock, $1 Par Value (1) (6) 08/11/2009 08/11/2018 Common Stock, $1 Par Value 923 $ 77.2 D  
Common Stock, $1 Par Value (1) (7) 01/21/2010 01/21/2019 Common Stock, $1 Par Value 2,419 $ 29.18 D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
Cancilla Russell J
2929 ALLEN PARKWAY
SUITE 2100
HOUSTON, TX 77019
      Vice President  

Signatures

Sandra E. Alford Attorney-in-Fact 07/13/2009
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Option granted pursuant to the terms of the Company's 2002 Employee Long-Term Incentive Plan.
(2) Option vests in three equal annual installments beginning June 19, 2007.
(3) Option vests in three equal annual installments, beginning January 24, 2008.
(4) Option vests in three equal annual installments beginning July 25, 2008.
(5) Option vests in three equal annual installments, beginning January 23, 2009.
(6) Option vests in three equal annual installments beginning August 11, 2009.
(7) Option vests in three equal annual installments, beginning January 21, 2010.

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