KUALA LUMPUR, June 16 (Reuters) - All the facilities of

energy services firm Baker Hughes ( BKR ) are operating normally

in the Middle East, chief executive Lorenzo Simonelli told

Reuters on the sidelines of the Energy Asia conference on

Monday.

"Currently, all of our employees are safe, and the

facilities continue to run and operate," he said. "Hopefully

there's a de-escalation of tensions."

He said that it was still too early to say what impact the

fighting between Israel and Iran would have on energy supplies.

"It's a little early, and we've got to monitor the

situation," he said.

"What we know is that demand is resilient, and we continue

to see strong demand, and ... if there are constraints in supply

from one region, it will drive the supply opportunities from

other regions," he added.

Baker Hughes ( BKR ) has a substantial presence in the Middle East,

including an oil services hub in Saudi Arabia. The headquarters

of its surface pressure control business are located in Abu

Dhabi.

Simonelli said the company would continue to monitor and

review routes and ports in the region to ensure safety when

shipping equipment and providing services.

"We will not go into a location that is insecure for our

employees or also for ... supporting our operations," he said.

The company forecast in April steeper drops in spending by

global oil producers as tariffs dent demand expectations and

push down crude prices.

Tariffs on steel and aluminium imports to the United States

are due to kick in on July 9 after a series of delays.

"I think we're all monitoring the situation on tariffs," he

said, adding that higher commodity and raw material prices could

impact investment decisions on new projects.

"At this stage, we're not seeing any change in position from

our customers," he said.