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2001 Press Releases
FOR IMMEDIATE RELEASE: February 28, 2001

HALLIBURTON ENERGY SERVICES AND NORSK HYDRO TEAM UP TO DEVELOP AND INSTALL WORLD'S FIRST ITBS™ MULTILATERAL SYSTEM

DALLAS, Texas - Sperry-Sun Drilling Services, a product service line of Halliburton Energy Services, Inc., recently completed the installation of the industry's first ITBS™ Isolated Tie-Back System for Norsk Hydro's Y-22 well in the Troll Olje field from the semi-submersible "West Vanguard" in the Norwegian sector of the North Sea. The system, which was specifically designed to create a TAML (Technology Advancement for Multilaterals) level 5 for multilateral wells that require hydraulic pressure and mechanical integrity at the junction, has the ability to increase the reservoir exposure and to isolate the junction from sand production. Halliburton Energy Services, Inc. is a business unit of Halliburton Company (NYSE: HAL).

In an effort to maximize the operator's production per wellhead location, the Halliburton Energy Services' team, in conjunction with Norsk Hydro, successfully developed and installed the world's first ITBS system. The Norsk Hydro well was the latest in a series that had previously used Halliburton's 4503™ multilateral system and was completed in significantly less time than is typically seen with level 4 installations in the North Sea. The primary objective for Norsk Hydro, when using the ITBS system, was to quickly and efficiently produce oil from the thin oil rim before the reservoir "blew down." Once this occurs, the gas above the rim can then be produced.

"The installation of this first ITBS system is the latest in a series of successful multilateral installations accomplished by Halliburton in oil fields around the world," said Jody Powers, president, Halliburton Energy Services. "The ability to isolate the junction while controlling and maximizing flow from both the mainbore and lateral wellbores offers a cost-effective solution for our clients' reservoir development needs."

The Sperry-Sun ITBS system design incorporates a flexible hanger with two semi-circular sections to maximize the cross-sectional flow area and to assist with the elimination of sand production at the junction. The system also features Sperry-Sun's pre-milled RMLS™ Retrievable Multilateral System window joint, with orienting latch coupling, as well as a deflector with an internal sealing component and a vector block that allows for non-rig intervention with coiled tubing or wireline. The ITBS system is designed for use in new subsea and platform wells and offers the primary benefit of not requiring cementing operations to achieve hydraulic integrity at the junction.

The ITBS system is considered to be a minimal-trip system with a low operational risk. For instance, only four additional steps were required to complete the Y-22 well once the drilling whipstock was retrieved from the wellbore. "Norsk Hydro considers the ITBS installation at 31/2-Y-22 to be a major step forward in our use of multilateral technology on Troll Olje - both with respect to the time savings and the hydraulic isolated junction," said Tore Grønås, Norsk Hydro Project Leader, ITBS.

Other applications for the system include in-fill development; slot constrained platforms; access to discrete zones or blocks, and areas where environmental considerations (such as the North Sea) require a minimum number of wellhead sites. The ITBS system also offers through-tubing intervention and lateral re-entry capabilities for commingled production, as well as the ability to perform operations such as production logs, stimulations, clean out, water and gas isolation, and water and gas shut off.

Founded in 1930, Sperry-Sun Drilling Services is the world leader in multilateral technology with more than 280 installations worldwide and continues to lead the market in drilling, technology, and reservoir deliverability.

Halliburton Energy Services provides products, services, and integrated solutions for oil and gas exploration, development, and production. Capabilities range from initial evaluation of producing formations to drilling, completion, production enhancement, and well maintenance - for a single well or an entire field. With more than 300 service centers in more than 90 countries, Halliburton possesses the global perspective that is increasingly important for energy exploration and production.

Halliburton Company, founded in 1919, is the world's largest provider of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services Group and Engineering and Construction Group business segments.


Contact
Wendy Hagan
wendy.hagan@halliburton.com
Halliburton Company
Public Relations
(p) 713.676.5619

Wendy Hall
wendy.hall@halliburton.com
Halliburton Company
Corporate Relations
(p) 713.676.5227

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