Motiva Enterprises LLC Selects KBR to Participate in Design of Major Refinery Expansion

HOUSTON – Nov. 07, 2005 - Motiva Enterprises LLC, a joint venture between Shell Oil Company and Saudi Refining Inc, has selected KBR to provide conceptualization, planning and early design services for a major refinery expansion being considered by Motiva in the United States. This 325,000 barrel per day (BPD) capacity increase will be designed to process heavy sour crudes. KBR is the engineering, construction and services subsidiary of Halliburton (NYSE: HAL).

“KBR is proud to play a vital role in this important project for Motiva,” said Andy Lane, executive  vice president and chief operating officer, Halliburton. “KBR brings to the table our long-standing experience in heavy oil projects, along with our mega-project execution model. Our unparalleled capabilities in front-end and detailed engineering, procurement, construction and operations and maintenance will be key to helping Motiva realize its objectives.”   

As one of the first major U. S. refinery expansion projects in 30 years, this strategic initiative is part of Motiva’s plan announced in September 2005 to increase refining capacity at one or more of its petroleum product refineries. The company’s gulf coast refineries are strategically located to supplement additional transportation fuels needed to meet the growing demand in the U.S.

All three Motiva refineries have ready access to waterborne crude oil and major product pipelines, and are viable candidates for a refinery expansion. Motiva currently owns three refineries in the Gulf Coast area, located in Port Arthur, Texas; Convent, Louisiana; and Norco, Louisiana.

“In the past 10 years, KBR has been involved in the construction of more than 100 projects on the Gulf Coast,” said Lou Pucher, senior vice president, KBR Energy and Chemicals, “and we are well-qualified to assist Motiva in meeting its plans to increase refinery capacity.”

“Our business plan is dedicated to improving our asset portfolio through capital investment to further strengthen and extend our core assets,” said Mr. Bill Welte, Motiva President and Chief Executive Officer. “We are pleased to have KBR working with our Motiva project team, as we begin the process design and engineering phase for increasing refining capacity to meet the growing demand for transportation fuels.” 

Motiva Enterprises LLC owns and operates refineries capable of refining approximately 780,000 barrels per day, a distribution system including ownership interests in 47 product terminals, and a marketing network that supports more than 9,000 branded gasoline stations in the Eastern and Southern United States.

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