Halliburton & Petrobras Work Out Barracuda-Caratinga Project

Halliburton's KBR subsidiary has finalized an agreement with Petrobras that resolves all outstanding issues regarding the Barracuda- Caratinga project.

"We are very happy to have this issue behind us and look forward to the sail away of the Caratinga vessel," said Andrew Lane, chief operating officer, Halliburton. "We take great pride in the fact that Halliburton has contributed to the transformation and rebirth of the offshore and marine industry in Brazil."

Terms of the agreement, which confirms the previously announced non- binding agreement in October 2004, include the release of all claims of all parties and the settlement of change orders and revisions of some project milestones.

KBR was awarded the $2.5 billion contract by Barracuda & Caratinga Leasing Company (BCLC) on a full engineering, procurement, installation and construction (EPIC) basis, including construction of 54 wells, fabrication and installation of flowlines and risers, construction and installation of the two FPSOs, and the commissioning, start-up and operations support for both fields. All project management services have been executed from KBR's project office in Rio de Janeiro.