BP Selects KBR for Refinery MTBE-TO-NExOCTANE Conversion

HOUSTON – Jun. 15, 2005 - KBR has been awarded a contract for a Licensor Engineering Package for conversion of BP West Coast Products, LLC's Carson, California refinery's MTBE unit to the production of iso-octene. Iso-octene is subsequently converted to iso-octane gasoline blend stock. KBR is the engineering, construction and services subsidiary of Halliburton (NYSE: HAL).

NExOCTANE technology was developed by Fortum Oil Oy in Finland and is available to U.S. refiners under direct license from KBR.

"Fortum's NExOCTANE technology provides a solution to refiner's problems resulting from the ban on the addition of MTBE to gasoline," said Tim Challand, Vice President of Technology for KBR's Energy and Chemicals division. "This contract represents the first sale of NExOCTANE technology to the refining industry, which is key in this emerging market of converting MTBE units."

"NExOCTANE technology is an ideal fit for converting MTBE units," added Ron Birkhoff, KBR's Senior Manager for Chemicals. "It utilizes existing equipment, minimizes changes and shutdowns, is easy to operate and allows an accelerated project schedule for the conversion."

KBR is a global engineering, construction, technology and services company. Whether designing an LNG facility, serving as a defense industry contractor, or providing small capital construction, KBR delivers world-class service and performance. KBR employs more than 60,000 people in 43 countries around the world.

CONTACT: Halliburton Public Relations, Houston
Melissa Norcross, 713-759-2601
Melissa.Norcross@Halliburton.com