Ballance Selects KBR Ammonia Technology for Revamp of New Zealand Facility

HOUSTON – Nov. 09, 2005 - KBR announced today that it has received a letter of intent (LOI) from Ballance Agri-Nutrients (Kapuni) Limited of New Zealand for engineering and license agreements for the revamp of Ballance’s 440 tonnes per day (tpd) ammonia production facilities in Kapuni, New Zealand. KBR’s proprietary Reforming Exchanger System (KRES) ammonia technology has been selected for the revamp. KBR is the engineering, construction and services subsidiary of Halliburton (NYSE: HAL).

This win follows on from KBR’s successful study of revamp options for Ballance in 2003 and represents the third implementation of KRES technology globally. KBR will provide the Basic Engineering and Design Package (BEPD) for the revamp and license the use of the company’s KRES technology. Following completion of the four-month BEPD phase, Ballance is expected to formally approve implementation of the revamp scope of work.

“We are delighted to receive this LOI from Ballance,” said Tim Challand, KBR’s vice president of technology. “KBR’s proprietary KRES technology offers Ballance significant efficiency savings and reductions in carbon dioxide emissions.”

From the revamp and selection of KRES technology, Ballance can expect its ammonia facility to produce an efficiency savings of more than 6 percent, reduce the load on the plant cooling water system by approximately 5 percent and reduce plant fuel gas consumption, and hence carbon dioxide emissions by approximately 14 percent. In addition, the revamp offers Ballance the ability to potentially offset carbon tax payments from the impending introduction of new carbon taxes by the New Zealand Climate Change office.

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