Oil Search, Halliburton And KBR Sign Unique Agreement

Oil Search Limited has signed an agreement to form a strategic alliance with Halliburton and its subsidiary KBR. This alliance represents a unique arrangement between an independent operator and a major oil and gas contractor.

Halliburton and KBR will offer a range of services including subsurface oilfield services, development planning, engineering, construction, production and maintenance support to Oil Search's operations in Papua, New Guinea, where Oil Search is the industry leader in oil and gas exploration and development.

Oil Search Managing Director Peter Botten, who signed the alliance agreement with Halliburton ESG Vice President for Asia Pacific, Chas Charles, and KBR Senior Vice President for Asia Pacific, Andrew Fletcher, in Sydney on May 25th sees the companies as an excellent fit.

"This is unique - the scope of activities that can be included under the alliance covers everything from reservoir planning and well construction services to field operations and maintenance and project development. It's also got the potential to move beyond Papua, New Guinea to Oil Search operations in other parts of the world," Mr Botten said.

Mr. Charles echoed Mr. Botten's enthusiasm.

"Building on a successful business relationship spanning a number of years, the Oil Search, Halliburton and KBR alliance recognizes the mutual benefits we can achieve by forming a strategic working relationship to develop and grow a combined interest in oil and gas production in PNG and internationally," Mr. Charles said.

"The alliance will be managed by an integrated team comprising experienced, motivated and culturally aligned employees from the alliance parties - I am confident it will achieve and even exceed the expectation of stakeholders."

Mr. Fletcher said the alliance was a great opportunity for all three companies to grow and prosper.

"Halliburton and KBR are able to offer Oil Search an integrated cradle to grave service - from oil and gas prospect evaluation, through development into long term field operations support," he said.

"Our commitment is to do so in a safe, environmentally friendly and cost-effective manner, drawing on the best people for the task from each alliance member - we will be looking for innovation and elimination of inefficiencies.

"We're delighted to be working with Oil Search, a company that has made a great contribution."

The concept of the alliance developed out of Halliburton's long participation in Papua, New Guinea as a traditional oilfield service provider through its Energy Services Group (ESG). It now encompasses Halliburton's engineering and construction group (KBR) in a much closer relationship with Oil Search.