Sabic Awards KBR Ethylene Plant in Saudi Arabia

1.35 million metric ton per year facility to be built in Jubail City

HOUSTON – Jul. 05, 2006 - KBR, the engineering, construction and services subsidiary of Halliburton (NYSE: HAL), announced today that it has been awarded a lump sum services contract by Saudi Kayan Petrochemical Company (a Saudi Basic Industries Corp. (SABIC) affiliate) for engineering, procurement and construction management of a 1.35 million ton per year ethylene plant to be built in Jubail City, Saudi Arabia.
  
The 1.35 million ton per year plant is the fourth grassroots cracker that will use KBR’s SCORE™ (Selective Cracking Optimum Recovery) technology. Front-end engineering and design work will take place in KBR’s Houston headquarters, while engineering and procurement activities will take place in the company’s Singapore facility.
 
SABIC was established in 1976 to add value to Saudi Arabia's natural hydrocarbon resources. Today, SABIC is among the leading petrochemical companies in terms of sales and product diversity. Headquartered in Riyadh, SABIC is the Middle East's largest non-oil industrial company.
 
KBR is a global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors. The company serves its customers with a broad range of products and services through two business segments, Energy and Chemicals, and Government and Infrastructure.

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