FOR IMMEDIATE RELEASE CONTACT:Guy T. Marcus
July 5, 2000 VP-Investor Relations
Halliburton Company
(214) 978-2691
Dirk Vande Beek or
Wendy Hall
Public Relations
Halliburton Company
(713) 676-4371 Houston
55 21 9219 8072 Rio de Janeiro
Marcia Figueiredo
Public Relations
Petrobras
55 21 9981 6521
HALLIBURTON COMPANY SIGNED $2.5 BILLION CONTRACT FOR DEVELOPMENT OF
BARRACUDA AND CARATINGA OIL FIELDS OFFSHORE BRAZIL
DALLAS, Texas and RIO DE JANEIRO - Halliburton Company (NYSE: HAL) and
Petrobras announced today that the two companies have signed contracts to
proceed with the development of both the Barracuda and the Caratinga offshore
oil fields in Brazil. The contracts are valued at more than $2.5 billion and
will be performed by Halliburton's Brown & Root Energy Services (BRES) and
Halliburton Energy Services (HES) business units, together with Petrobras'
Exploration and Production unit.
The principal agreement is a lump-sum engineering, procurement and
construction (EPC) contract between BRES and the Barracuda & Caratinga Leasing
Company B.V. (BCLCO), a special purpose company established by Japanese trading
-more-
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companies Itochu and Mitsubishi in connection with the project finance structure
negotiated by Petrobras for the development of the two fields. Petrobras is the
concessionaire of the fields. Work will commence in July 2000.
"The Barracuda and Caratinga awards represent an important recognition
of Halliburton's capability in the technically challenging development of
deepwater oil and gas resources," said Dave Lesar, president and chief operating
officer, Halliburton Company. "The contract capitalizes on Halliburton's unique
capabilities to supply its broad array of both oil field and engineering and
construction services. We look forward to working on this important project with
Petrobras."
The EPC contracts will be on a full engineering, procurement,
installation and construction basis, including work related to construction of
51 wells, fabrication and installation of flowlines and risers, construction and
installation of two floating production, storage and offloading vessels (FPSOs),
and the commissioning, start-up and operations support for both fields. Each of
the FPSOs will have a storage capacity of 2 million barrels and a production
capacity of 150,000 barrels of oil per day.
The Barracuda and Caratinga Fields are located in the Campos Basin,
offshore Brazil, in water depths varying between 600 and 1350 meters. Work
representing more than 40 percent of the value of the FPSOs' will be performed
in Brazil, including one of the ship's hull conversion.
Halliburton Energy Services provides products, services, and integrated
solutions for oil and gas exploration, development, and production. Capabilities
range from the initial evaluation of producing formations to drilling,
completion, production enhancement, and well maintenance - for a single well or
an entire field. With over 300 service centers in more than 90 countries,
Halliburton possesses the global perspective that is increasingly important for
energy exploration and production.
-more-
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Brown & Root Energy Services supplies engineering, construction,
operations and maintenance services to the upstream oil and gas industry
worldwide. Its primary role is the engineering, project management,
construction and operation of the facilities that are utilized for the
production and transportation of crude oil and natural gas. Brown & Root Energy
Services is a business unit of Halliburton Company, headquartered in Dallas,
Texas.
Founded in 1919, Halliburton Company is the world's largest diversified
energy services, engineering, construction and maintenance company. In 1999,
Halliburton's consolidated revenues were $14.9 billion and it conducted business
with a workforce of approximately 100,000 in more than 120 countries. The
company's world wide web site can be accessed at http://www.halliburton.com.
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