Navajo Refining Company Selects KBR'S ROSE® Solvent Deasphalting Technology for Its Artesia, New Mexico Refinery

HOUSTON – Oct. 12, 2005 - Navajo Refining Company, L.P., Inc. a subsidiary of Holly (NYSE: HOC) will utilize KBR's ROSE® Solvent Deasphalting Process at its 75,000 BPD refinery located in Artesia, New Mexico. The ROSE unit will deasphalt vacuum residue. The deasphalted oil (DAO) extracted by the ROSE process will be low in contaminants like sulfur, metals and Conradson carbon (CCR), and will be a premium feed for the refinery's fluid catalytic cracking (FCC) unit. KBR is the engineering, construction and services subsidiary of Halliburton (NYSE: HAL).

"The addition of KBR's ROSE process will provide the refinery a cost-effective means to produce FCC feedstock from asphalt," explained Tim Challand, vice president of technology for KBR's Energy & Chemicals division. "Through its ROSE technology, KBR offers solid, commercially proven and reliable solutions to refiners for processing heavier crude oils and converting low value fuel oils to high value transportation fuels."

Navajo Refining relocated the unit from Kansas to New Mexico after refurbishing the major equipment, acquiring the ROSE license and technology, and expanding the unit's capacity.

"The new ROSE unit will significantly improve the refinery's bottoms upgrading capacity and improve Holly's ability to profitably process a wider variety of crudes while improving its asphalt quality," explained Dave Lamp, vice president for Holly refinery operations.

KBR's ROSE technology is used by refineries for separating high value deasphalted oil (DAO) from heavy aromatic asphaltenes. The DAO is normally converted into valuable transportation fuels through cracking in FCC or hydroprocessing units. The asphaltene product can be used as fuel or for production of products such road asphaltene or roof shingles.

Holly Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel and jet fuel.

Holly operates through its subsidiaries a 75,000 bpd refinery in Artesia, New Mexico, a 26,000 bpd refinery in Woods Cross, Utah, and an 8,000 bpd refinery in Great Falls, Montana. Holly also owns a 45% interest (including the general partner interest) in Holly Energy Partners, L.P., which through subsidiaries owns or leases approximately 1,600 miles of refined product pipelines in the west Texas and New Mexico region and refined product terminals in several Southwest and Rocky Mountain states. Holly's Web site can be accessed at www.hollycorp.com.

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