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2003 Press Releases
FOR IMMEDIATE RELEASE: August 13, 2003

HALLIBURTON COMPLETES CONSTRUCTION OF BELANAK FPSO HULL IN DALIAN, CHINA

DALIAN, China - Halliburton announced today that construction of the hull for the ConocoPhillips Belanak floating, production, storage and offloading (FPSO) vessel is complete. Dresser Kellogg Energy Services (DKES), a Halliburton subsidiary, subcontracted construction of the hull to Dalian New Shipbuilding Heavy Industry Co. Ltd (DNS). Scope of work included construction of the 175,000 dwt hull, marine electrical module and living quarters. The hull will be towed by two ocean-going tugs from Dalian, China to Batam, Indonesia on 21 August 2003 with the journey expected to take approximately three weeks.

Construction of the hull commenced in March 2002 and was completed in 18 months. To date, over 10 million man-hours have been achieved without a lost-time incident (LTI), of which over 4.2 million have been achieved at the DNS yard.

This is the first time a Halliburton company has worked with a Chinese shipyard to build an FPSO hull. DKES and DNS have worked as an integrated team throughout the construction period, achieving high standards of performance in safety and quality.

"This is one of the most complex FPSOs executed to date and underscores our expertise in offshore engineering and technology, said Randy Harl, president and CEO of Halliburton's Engineering & Construction group. "The excellent safety record achieved is commendable and testimony of the commitment to international safety standards by both companies."

The hull has a storage capacity of one million barrels of oil. One of the largest hulls constructed for an FPSO, it measures 285m in length and 58m in width, with a depth of 26m and maximum displacement of 255,000 tonnes. The hull has been designed and built to last 30 years without the need for drydocking and all mechanical equipment has been specified to last for this period with routine maintenance offshore. Living quarters for 120 personnel are positioned at the aft of the vessel.

On arrival in Batam, Indonesia, the hull will berth at a new quayside, specifically built by PT McDermott Indonesia to accommodate the Belanak hull. Integration of the 25,000 tonnes process topsides onto the hull will then begin. The completed FPSO is expected to be towed to its installation site in the Belanak field, located in Indonesian waters in the South Natuna Sea Block B Production Sharing Contract (PSC) , approximately 200km northeast of Singapore in September 2004. First oil production from the PSC is expected before the end of 2004.

The Belanak FPSO project involves the construction of one of the most complex processing systems ever installed offshore. It will be the first offshore liquefied petroleum gas (LPG) facility on a floating vessel in the Asia Pacific region. The FPSO is expected to produce 7,800 standard barrels per day of butane (C4) and 14,700 standard barrels per day of propane (C3). The FPSO will be the central processing facility in Block B.

PT Brown & Root Indonesia in conjunction with Dresser Kellogg Energy Services, was awarded the contract to design, engineer, procure, construct and install the FPSO, moorings and flexible risers. All project management services and engineering are executed from Singapore and Indonesia. Initial hull design and engineering were performed in Leatherhead, U.K., and topsides engineering and procurement from Singapore. Fabrication of the topsides was subcontracted to PT McDermott Indonesia Ltd.

Halliburton, founded in 1919, is one of the world's largest providers 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. The company's World Wide Web site can be accessed at www.halliburton.com.


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