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1999 Press Releases
FOR IMMEDIATE RELEASE: June 02, 1999

Malampaya Strikes First Steel Ahead Of Schedule

DALLAS, Texas - Brown & Root Energy Services (BRES), a business unit of Halliburton Company (NYSE:HAL), announced today that its fabrication subcontractor for the landmark Malampaya gas to power project cut first steel on May 27, 1999. Brown & Root Energy Services signed contracts with the Malampaya project operator Shell Philippines Exploration B.V. (SPEX) for the design, procurement, fabrication, installation and commissioning of the platform thirteen months ago.

Safety messages flew above the 40mm plate steel as the first webs for the cellar deck girders were cut by SembCorp in one of its workshops which will be exclusively used for the Malampaya project. The steel was struck eight days ahead of schedule and to mark the commencement of fabrication a small blessing was held in accordance with Asian custom. At the blessing two sets of lion dancers bestowed good luck on the project and Prem Raj, Senior Vice President of SembCorp, Jan Veldwijk, Vice President of BRES and David Greer, Managing Director of SPEX spoke. Also in attendance at the blessing was Tang Kin Fei, President of SembCorp Engineering.

Brown & Root Energy Services awarded the contract to fabricate the Malampaya topsides to SembCorp in February 1999. As previously announced, the contract will involve the fabrication, onshore commissioning and load out of the three-level integrated deck together with a living quarters module with accommodation for 44 people. The topsides will measure 40 meters by 90 meters in plan and will measure 25 meters from the base of the cellar deck to the helideck. The lower deck or cellar deck will contain the major pumps, heavy wall vessels and workshops. The middle deck or production deck will contain the separation equipment and the electrical control module. The equipment on the top deck or weather deck will include two export gas compressors, three power generation gas turbines and a crane. In addition to the fabrication of the Malampaya topsides, SembCorp will also fabricate a transportation frame to support the topsides during its journey to the offshore site. The loadout weight of the topsides, excluding the transportation frame, will be 10,500 tonnes and as such this will be the heaviest single integrated topsides to be constructed by SembCorp.

SembCorp is fabricating the Malampaya topsides at its yard located in the north of Singapore. Onshore commissioning will be completed by February 2001 and the topsides will then be towed to the offshore site located 50 kilometers west of Palawan Island in the Philippines for installation onto a Concrete Gravity Sub-structure (CGS).

The CGS construction in Subic Bay, the Philippines is also on schedule. The CGS casting basin has been dug out to its final depth and the concrete batching plants are ready. The next significant milestone in the realization of the Malampaya platform is the pouring of the concrete for the first caisson base slab which will take place, on schedule, next week.

Malampaya will provide the Philippines with a clean indigenous source of fuel for power generation. The Malampaya gas to power project will involve an investment of some US$4.5 billion. SPEX will spend US$2 billion to bring natural gas from the deep water Malampaya reservoir to three power plants in the southern part of Luzon, the Philippines. Malampaya natural gas will account for one third of the Philippines power resource by the year 2002.

Brown & Root Energy Services supplies engineering, construction, operations and maintenance services to the upstream oil and gas industry worldwide. Its primary role is the engineering, project management, construction and operation of the facilities that are utilized for the production and transportation of oil and gas. Brown & Root Energy Services is a business unit of Halliburton Company, headquartered in Dallas, Texas.

Halliburton Company is the world's leading diversified energy services, engineering, energy equipment, maintenance and construction company. Founded in 1919, Halliburton provides a broad range of energy services and products, industrial and marine engineering and construction services.


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Wendy Hall Nantz
Hallburton Company
Americas
(p) 713.676.5227

Taryn Rock
Halliburton Company
Europe/Africa
(p) 44.1372.86.6693

Rell Hannah
Halliburton Company
Asia Pacific
(p) 61.3.9828.5331

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