Press Release

DALLAS, Jul 1, 2002 (BUSINESS WIRE) -- Halliburton Energy Services has been awarded a $44 million (US) contract by Pemex Exploracion y Produccion to supply drill bits and directional drilling, measurement-while-drilling (MWD), and logging-while-drilling (LWD) services for the Cantarell Bloque Sur Field project. This field, the largest in Mexico, is located in the south area of the Bay of Campeche and will be the first in the marine area to utilize state-of-the-art technology provided by the Sperry-Sun and Security DBS product service lines. Halliburton Energy Services is a business unit of Halliburton (NYSE:HAL).

"We are excited about the opportunity to build upon our relationship with Pemex and participate in the development of the largest offshore oil field in the world," said Manuel Palomo, country vice president for Mexico, Halliburton Energy Services Group. "This contract solidifies our position as a premier provider of state-of-the-art technology for Pemex."

Several of Halliburton's technologies will be utilized to complete the 55-well (25 complete wells and 30 well deepenings) project, such as Sperry-Sun's triple combo system, which includes the bi-modal acoustic (BAT(TM)) LWD sonic tool, and Security DBS' underreamers, bi-center bits, FM2000(R) and SE fixed cutter bits, and the X Series(TM) and Energy Balanced(TM) Series roller cone bits.

"This award reflects Halliburton's commitment to the Mexico region, as well as our ability to work closely with customers to provide advanced technology tools and improve drilling practices," said Kirk Credeur, country manager for Mexico, Sperry-Sun and Security DBS.

With this contract, all of Halliburton's product service lines have now been contracted to provide services and technologies in the Bay of Campeche.

Halliburton Energy Services provides products, services, and integrated solutions for oil and gas exploration, development, and production. Capabilities range from initial evaluation of producing formations to drilling, completion, stimulation, and well maintenance -- for a single well or an entire field. With more than 300 service centers in more than 90 countries, Halliburton possesses the global perspective that is increasingly important for energy exploration and production.

Halliburton, founded in 1919, is one of the world's largest providers 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.

CONTACT: Halliburton, Houston Beverly Scippa, 713/676-7926 Beverly.scippa@halliburton.com