Halliburton KBR Awarded Egyptian LNG Project

Halliburton KBR and its joint venture partners have been awarded the engineering, procurement, and construction contract for a liquefied natural gas (LNG) project, in the port of Damietta, northern Egypt, by SEGAS, Union Fenosa's special purpose operating company in Egypt. The project, estimated at approximately $1 billion, calls for the development of a single train LNG complex (with an option for a second train) with a capacity of approximately 5 million tons per annum for the first train. The plant is expected to be operational by the fourth quarter 2004. Joint venture partners are JGC Corporation of Japan and Tecnicas Reunidas SA (TR) of Spain. Halliburton KBR is the engineering construction segment of Halliburton.

"This win reaffirms Halliburton KBR as the industry LNG leader," said Dave Lesar, chairman, president and chief executive officer of Halliburton. "LNG has been a major part of Halliburton KBR's business for over twenty five years and we are proud to remain in the forefront of this sector of industry."

In addition to being the largest capacity train and fastest developed LNG Baseload plant, this project is expected to generate substantial export earnings for Egypt and establish Union Fenosa as a significant player in the natural gas industry.

The work will be managed from Halliburton KBR's affiliate company, M.W.Kellogg Limited, in Greenford, London, U.K., and executed jointly from that office and the TR offices in Madrid, Spain, by an integrated team drawn from the resource strengths and experience of Halliburton KBR, JGC, TR and MWKL. In addition the JV will be utilizing the services of Soluziona (Union Fenosa's own services group), as well as employing the dedicated resources of Egyptian engineers ENPPI and contractors Petrojet.