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2003 Press Releases
FOR IMMEDIATE RELEASE: November 20, 2003

KBR PRODUCTION SERVICES EXPANDS IN NOVA SCOTIA

NOVA SCOTIA - KBR Production Services (Canada) has provided a complete engineering, procurement and construction (EPC) service to Eastern Canada since 1995. From its primary involvement in the project phases of Hibernia, Terra Nova and Sable Tier One, KBR has developed into the leading offshore brownfield EPC contractor.

Recognizing the changes in the Atlantic Canada brownfield market, KBR Production Services has restructured this part of its international operations organization. It now includes a Canada-based business manager, Lindsay Young, whose specific remit is to ensure that the company delivers on its mission - to provide the best people and technology delivering the right solutions. In this case, more specifically, to be the industry leader in safely delivering engineering, construction and operations & maintenance services to a broad base of upstream oil and gas clients.

Lindsay commented, "With the end of first generation support contracts for Hibernia and Terra Nova, we need to provide a different level of support to our clients. This effort needs to take account of our past successes, particularly those relating to safe delivery. It also needs to reflect future emphasis on value for money, operations and the potential to maximize synergies between different operations.

"We cannot over-emphasize the need for the future contracts to be founded on strong local capabilities. These capabilities are dependent upon the quality, experience and enthusiasm of the local workforce. We can link our ongoing successes to our achievement in rapidly establishing a strong local presence."

KBR Production Services operates in more than twenty countries, and is a business unit of Kellogg Brown & Root, one of the world's largest engineering and construction companies. With its Canadian operations, initially based in St. John's, Newfoundland, KBR Production Services has grown a local business of over 150 people, of whom over 95% are Atlantic Canadians. This has been one of the cornerstones of its development policy. Greg McKenney, KBR's General Manager said, "We have consistently aimed to develop local talent and realize opportunities to enhance the quality of our staff. We achieve this through attention to training and by rotation of personnel through other KBR locations".

Tracey Molloy, a 23-year old electrical engineer, is currently in KBR's High Potential Development Program. This will see Tracey spending six months in KBR's Aberdeen, Scotland, office. There she will gain increased exposure to her core discipline of electrical engineering, plus a wide commercial exposure, so that when she returns to St. John's, she will have a more varied and deeper skill set.

Another key feature of KBR growth is the working relationships that it has successfully developed with small and medium enterprises. These relationships are part of a considered subcontracting strategy of an integrated team approach. Atlantic XL is an example of one of the specialist local companies that form a part of this strategy. Atlantic XL provides KBR with much of its Canadian control system expertise, and it has been an integral part of the engineering team. As part of a commitment to sub-contractor development, KBR intends to continue its integrated team approach with the Nova Scotia office of Atlantic XL.

A further key element of KBR's local commitment is the strategic alliance KBR recently signed with EastPoint Engineering of Halifax. EastPoint brings its significant local knowledge and expertise to the alliance.

Having already established itself in EastPoint's Halifax offices, KBR plans to introduce its well-established Graduate Development Training Program to the alliance team in Nova Scotia.

Commenting on the alliance, John Bachynski, President of EastPoint Engineering said, "KBR is the world leader in offshore engineering. In Nova Scotia, we have demonstrated a unique local capability that has addressed a number of very significant engineering and construction challenges. This strategic relationship will provide significant technology transfer for the offshore industry to EastPoint Engineering and other local construction and engineering companies throughout Atlantic Canada."

Lindsay Young, KBR Production Services Business Manager, said, "we look forward to a long and successful relationship with EastPoint, whose commitments to HS&E, engineering and construction are fully aligned with our own. In the EastPoint team, we recognize the passion for excellence that the offshore industry demands."

KBR's Production Services group is a leading global onshore and offshore contracting organization with a world-wide reputation for providing highly skilled project management, engineering, maintenance and construction services to the oil, gas and process industries.

KBR provides global engineering, procurement, construction, logistics, operation and maintenance, program management and other technical services. Whether designing a chemical plant; serving as a defense industry contractor; or providing small capital construction, KBR delivers world class service and performance.

Founded in 1919, Halliburton 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 business segments. The company's World Wide Web can be accessed at www.halliburton.com.

Contact
Sarah Houston
sarah.houston@halliburton.com
KBR
Public Relations
(p) 44.1224.777194

Employment Contact
jobs@halliburton.com
(p) 800.888.7668
ext. 8005

Supplier/Procurement Contact
kbr_supplier_relations@halliburton.com

Supplier Diversity Contact
Erin Petkovich
supplier_diversity@halliburton.com

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