SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (date of earliest event reported)
MAY 2, 2000
Halliburton Company
(Exact name of registrant as specified in its charter)
State or other Commission IRS Employer
jurisdiction File Number Identification
of incorporation Number
Delaware 1-3492 No. 75-2677995
3600 Lincoln Plaza
500 North Akard Street
Dallas, Texas 75201-3391
(Address of principal executive offices)
Registrant's telephone number,
including area code - 214/978-2600
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INFORMATION TO BE INCLUDED IN REPORT
Item 5. Other Events
The registrant may, at its option, report under this item any events,
with respect to which information is not otherwise called for by this form, that
the registrant deems of importance to security holders.
On May 2, 2000 registrant issued a press release entitled "Halliburton
Pioneers Revolutionary Drilling and Intervention System," pertaining to, among
other things, the announcement by registrant's business unit, Halliburton Energy
Services (HES), that the trials of HES' new technology, the Anaconda Advanced
Well Construction System, have successfully been completed. The system will have
a major impact on the exploration, development and production of oil and gas,
especially offshore, by enabling customers to find and develop isolated pockets
of oil and gas.
Item 7. Financial Statements and Exhibits
List below the financial statements, pro forma financial information
and exhibits, if any, filed as part of this report.
(c) Exhibits.
Exhibit 20 - Press release dated May 2, 2000.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HALLIBURTON COMPANY
Date: May 4, 2000 By: /s/ Susan S. Keith
-------------------------------
Susan S. Keith
Vice President and Secretary
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EXHIBIT INDEX
Exhibit Sequentially
Number Description Numbered Page
20 Press Release of 5 of 9
May 2, 2000
Incorporated by Reference
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FOR IMMEDIATE RELEASE CONTACT: Dirk Vande Beek or
May 2, 2000 Wendy Hall
Halliburton Company
(713) 676-4371 office
(713) 962-7281 cellular
(713) 598-6752 cellular
HALLIBURTON PIONEERS REVOLUTIONARY DRILLING
AND INTERVENTION SYSTEM
Real Time Solutions a Reality with Anaconda (TM) Technology
DALLAS, Texas - Halliburton Energy Services (HES) announced today that the
initial trials of its revolutionary new technology, the Anaconda Advanced Well
Construction System, have successfully been completed. Based on breakthrough
advances in composite materials, telemetry and control sciences, this system
will have a major impact on the exploration, development and production of oil
and gas, especially offshore. Halliburton Energy Services is a business unit of
Halliburton Company (NYSE: HAL).
Halliburton, along with Statoil of Norway, developed the first phase of
this unique technology to develop inaccessible reserves in Statoil's mature
North Sea Fields. In less than 27 months, Halliburton and Statoil produced a
complete fit-for-purpose system, called Anaconda. This digitally controlled
system uses a carbon-fiber composite umbilical tubing, called SmartPipe(TM) ,
and a downhole Advanced Drilling, Evaluation and Propulsion Tool (ADEPT)
assembly. The result is a true leap forward in well construction technology. It
is lighter, safer, requires less space and fewer people to operate than
alternative systems. Future, large-diameter Anaconda systems will be able to
drill more complex wellpaths and drill extended horizontal distances further
than any system ever developed.
-more-
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ANACONDA (TM) TECHNOLOGY\2
"We are pleased with our partnering efforts with Statoil on this
important project," said Dave Lesar, president, Halliburton Company. "Anaconda's
breakthrough technology will enable our customers to increase recoverable
reserves while reducing the cost of recovered hydrocarbon units. This is the
first real step change in well construction and intervention processes in over
20 years. The combination of several existing and many new technologies will
reduce our customers' operating costs and capital spending."
The System
With the Anaconda system, oil companies will have a new capability to
find and develop isolated pockets of oil and gas. The system is fully enabled
with Halliburton's real-time data transmission technology, so personnel will be
able to make instantaneous drilling decisions from anywhere in the world.
"Anaconda will change the way wells are drilled. Geologists and
geophysicists will participate in operations more than ever before by remotely
directing the path of the well. The amount of real time data is enormous,
several thousand times greater than is currently achievable, so precise
placement of the well bore will be possible within a given hydrocarbon zone. The
ability to transmit electrical power and commands through the pipe adds
tremendous versatility and control to the drilling process, so well control is
improved and many hazardous conditions can be avoided. This technology will
bring together formation evaluation experts, drilling engineers, reservoir
engineers, geologists and geophysicists to make better decisions, " said Jody
Powers, president, Halliburton Energy Services.
"Anaconda wells will be guided using real-time updates of the earth
model and, with the instantaneous control capability, we can make the assembly
almost turn on a dime, allowing us to probe for additional reserves or to access
multiple reservoirs. No one else can do that," added Powers.
-more-
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ANACONDA (TM) TECHNOLOGY\3
"Anaconda utilizes state-of-the-art information technology for system
control, telemetry and real-time communication which enables the oil companies
to make rapid decisions in real time from either the drilling location or
remotely. This makes possible the efficient real-time collaboration of
multidisciplinary teams regardless of their proximity to the drilling operation
such that reservoir assets are optimized through better decisions," said Jim
Terry, inventor and director of the Anaconda Project.
New Technology
The major components of the system are the fully automated surface
equipment, the SmartPipe with embedded conductors and the ADEPT bottomhole
assembly.
Surface equipment in the new system includes a control center,
SmartPipe injector and reel, a tower and pipehandling system, blowout
preventers, and a digital control and data-acquisition system. In the control
center a three-man team operates the entire system - a "pilot" to run the
equipment, a systems engineer to maintain system integrity and a "navigation
engineer" who interprets the sensor data, builds a detailed subsurface map and
guides the wellpath accordingly. When required, any of these functions can be
performed remotely.
Anaconda's SmartPipe, jointly developed by Halliburton and Fiberspar
Spoolable Products, is manufactured in a continuous coil using a tough laminate
of carbon-fiber and other advanced materials. Under most drilling conditions the
pipe is nearly buoyant, a big advantage in extended reach drilling applications.
Also, the reeled pipe eliminates many of the hazardous pipe-handling operations
common with jointed steel drill pipe. The first Anaconda system uses a 2-7/8 in.
Outer Diameter (OD) SmartPipe with embedded conductors that relay two-way data
between the control center and the subsurface assembly.
-more-
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ANACONDA (TM) TECHNOLOGY\4
The ADEPT bottomhole assembly measures borehole and formation parameters,
orients the borehole in 3D space, provides the mechanical forces to drill the
hole and uses the industry's first open system subsurface propulsion system.
With the propulsion system, no mechanical force is required from the surface
equipment to convey the pipe into or out of the well. Instead, the pipe can be
propelled by downhole hydraulic forces applied by the ADEPT assembly whenever
necessary.
Phases of the Project
Research resulted in a vision of three evolving systems, each one
progressively building on the technological accomplishments of the last. System
1, which was developed to meet Statoil's needs in the North Sea, uses a
2-7/8-in. OD SmartPipe and a 3-1/8 in. OD ADEPT assembly. Development will
commence soon on a system which will be capable of constructing larger well
diameters and achieving measured depths of up to 50,000 feet. Applications
for this system will include minimizing the number of offshore structures and
associated capital expenditures, drilling exploration wells in deepwater
environments, subsea development wells and minimum-diameter, high-rate
production wells.
"We feel confident this technology will change the way our customers
exploit reserves, increase ultimate recoveries and extend the life of mature
fields," said Terry. "The next phase of the project is to apply proven System 1
technology to the next generation of Anaconda which will be capable of drilling
and completing larger well bores. It will likely be funded in part by several
other interested operators. We look forward to working in close collaboration
with our customers in an effort to maximize the versatility and applicability of
the Anaconda system for their assets."
-more-
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ANACONDA (TM) TECHNOLOGY\5
Initial Testing of the System
The Anaconda well-construction system is undergoing extensive testing
at the Halliburton Research and Development Center in Duncan, Oklahoma, prior to
commercial deployment. To date, the system has successfully concluded eight
months of tests in a horizontal flow loop and in the test well. The SmartPipe
endured more than 50 times the number of stress cycles that are usually
considered acceptable for steel coiled tubing with equivalent diameter.
"The first commercial deployment will be in the Gulf of Mexico region,"
said Terry. "Statoil and Halliburton have agreed that the first few commercial
wells will be drilled in the U.S. to prove up all the components of the system
before going to Norway."
Halliburton Energy Services provides products, services, and integrated
solutions for oil and gas exploration, development, and production. Capabilities
range from the initial evaluation of producing formations to drilling,
completion, production enhancement, and well maintenance - for a single well or
an entire field. With over 300 service centers in more than 90 countries,
Halliburton possesses the global perspective that is increasingly important for
energy exploration and production.
Founded in 1919, Halliburton Company is the world's leading diversified
energy services, engineering, construction, maintenance and energy equipment
company. In 1999, Halliburton's consolidated revenues were $14.9 billion and it
conducted business with a workforce of approximately 100,000 in more than 120
countries. The company's World Wide Web site can be accessed at
http://www.halliburton.com.
# # #
Note: In accordance with the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995, Halliburton Company cautions that statements in
this press release which are forward looking and which provide other than
historical information involve risks and uncertainties that may impact the
company's actual results of operations. Please see Halliburton's Form 10-K for
the year ended December 31, 1999 for a more complete discussion of such risk
factors.
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