Halliburton Says TSKJ Considered Bribing Nigerian Officials

Halliburton announced today that, as a result of its own continuing investigation into matters relating to the TSKJ Nigerian Bonny Island project, information has recently been uncovered suggesting that, at least 10 years ago, the members of TSKJ considered payments to Nigerian officials. Halliburton also confirmed that, commencing in 1995, TSKJ entered into a series of agency agreements in connection with the Nigerian project; however, Halliburton's on-going investigation has not found any evidence confirming that payments to Nigerian officials were ever made to obtain or retain business.

Halliburton is notifying the other owners of TSKJ of the recently uncovered information. TSKJ is a private limited liability company registered in Madeira, Portugal whose members are Technip SA of France, Snamprogetti Netherlands B.V., which is an affiliate of ENI SpA of Italy, JGC Corporation of Japan, and Kellogg Brown & Root (as successor to the January 1999 merger of M.W. Kellogg into Brown & Root), each of which owns 25% of the venture. As part of its continuing cooperation with governmental authorities, Halliburton, which acquired M.W. Kellogg as part of its 1998 acquisition of Dresser Industries, has also promptly provided this information to the United States Department of Justice, the Securities and Exchange Commission and the French magistrate investigating these matters, and is currently in the process of transmitting it to the appropriate Nigerian officials.

"There is much that we presently do not know. But we will continue aggressively to investigate this matter regardless of how old this conduct may be, even though so far the new information appears to relate to conduct that took place almost entirely before Halliburton acquired M.W. Kellogg," said Halliburton in a prepared statement.