KBR Renews Natural Gas Alliance with JGC

Alliance to continue providing cost-effective EPC solutions to the natural gas industry worldwide

HOUSTON – Aug. 26, 2005 - KBR announced today that it has renewed its Natural Gas Alliance with JGC Corporation, thereby enabling the two companies to continue working together to offer valuable engineering, procurement, construction, commissioning and start-up services to Liquefied Natural Gas (LNG) and Gas-to-Liquids (GTL) customers worldwide. KBR is the engineering, construction and services subsidiary of Halliburton (NYSE: HAL).

"KBR is the world's leading provider of design, engineering, construction, commissioning and start-up services to the gas monetization industry," said Andy Lane, Halliburton's executive vice president and chief operating officer. "This alliance demonstrates to our customers that we are committed to continuing to provide these best-in-class services to our customers across the globe."

The three-year alliance, which renews the previous agreement between KBR and JGC that began in 1999, enables the two companies to build upon their respective strengths and work together to pursue and execute the engineering and construction of base load LNG liquefaction plants, base load floating LNG plants, and GTL plants around the world. Under the previous agreement, KBR and JGC were awarded more than 15 front-end engineering design (FEED) and/or EPC contracts, including projects in Nigeria, Egypt, Australia, Angola, Peru, Yemen, Indonesia, Qatar, Oman and Malaysia. From 2000-2004, the two companies completed a total capacity of 19.75 million metric tons per annum (MTPA) of LNG plants.

"The combination of three global hubs-Houston, Yokohama and London-enables optimal utilization of engineering resources, including high value engineering centers, and strengthens geographical sales capabilities," said Kazuo Yamaga, JGC's executive vice president and chief marketing officer.

"KBR's history of successfully partnering with JGC to execute LNG and GTL projects in diverse, often remote geographic locations is key to this alliance," added Lou Pucher, senior vice president, KBR Energy and Chemicals. "Together, we have an impressive track record of meeting and exceeding our customers' expectations in what are often difficult and challenging environments."

JGC Corporation is an international engineering and construction company based in Yokohama, Japan, having multiple operating centers and executing large scale projects world-wide. JGC is currently executing projects in Nigeria, Algeria, Saudi Arabia, Oman, Indonesia, Vietnam, Qatar, China, Australia, and the United Arab Emirates. Established in 1928, JGC has a strong background in lump-sum turnkey operations of both hydrocarbon and non-hydrocarbon related projects, with annual sales turnover in excess of $3 billion. JGC's website can be accessed at http://www.jgc.co.jp.

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