Press Release

DALLAS, and YOKOHAMA, China, Dec 11, 2001 /PRNewswire via COMTEX/ -- Halliburton KBR and JGC have been awarded a contract to provide Front-End Engineering Design (FEED) for the terminal portion of Guangdong LNG's (GLNG) Terminal and Trunkline Project's proposed Chinese Liquefied Natural Gas (LNG) project in the Guangdong Province in southern China. The overall project, estimated at approximately U.S. $600 million, comprises both an LNG receiving terminal with an initial capacity of 3 Mtpa (million tons per annum) and a 300km natural gas distribution pipeline system. Halliburton KBR is the engineering and construction segment of Halliburton (NYSE: HAL).

The contract will be executed in two phases. During the conceptual phase, the LNG terminal design will be optimised within the context of the overall project, and during the front-end engineering phase, the design for the terminal will be developed. Conceptual work will be undertaken in the London offices of M.W. Kellogg Limited while execution of the FEED phase will occur in JGC's offices in Yokohama, Japan. The FEED is scheduled for completion by first quarter 2002.

This project represents the first of its kind in China and reinforces KBR and JGC's position as the world's leading provider of LNG terminal design services.

"We are extremely pleased that the GDLNG Joint venture has selected the KBR / JGC Gas Alliance to work with them on this exciting project," M.W. Kellogg Limited Director Ken Oguri said. "We look forward to utilising our extensive LNG experience on such an important and exciting development."

Halliburton KBR is an international, technology-based engineering and construction company, which provides a full spectrum of industry-leading services for public infrastructure and to the hydrocarbon, chemical, energy, and forest products industries.

Halliburton Company, founded in 1919, is the world's largest provider of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services Group and Engineering and Construction Group business segments. The company's World Wide Web site can be accessed at www.halliburton.com .

JGC Corporation is one of Japan's leading internationally recognised engineering and construction contractors with global headquarters in Yokohama. In its seventy years history JGC has executed more than 10,000 projects, many on a lump sum, turn key basis, for a wide range of industries in over fifty countries.

SOURCE Halliburton Company

CONTACT: London, Rod Dean of M.W. Kellogg Limited, +44-208-872-7028, or Rod.Dean@mwkl.co.uk ; or Cindy Viktorin of Halliburton Company, +1-713-676-4371, or Cindy.viktorin@halliburton.com