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HALLIBURTON ANNOUNCES MAJOR MILESTONE
TOWARD COMPLETION OF BARRACUDA-CARATINGA PROJECT IN BRAZIL
- Company also signs revised agreement in principle with
Petrobras to resolve outstanding issues -
HOUSTON, Texas - Halliburton (NYSE:HAL) announced today
that its KBR subsidiary and Petrobras have achieved a significant
milestone in the development of the Barracuda and Caratinga offshore
fields in Brazil, as the first of the two oil tankers converted
into Floating Production, Storage and Offloading (FPSO) vessels
began its journey today, Wednesday, October 13, to the field in
the Campos Basin.
The Barracuda FPSO vessel, P-43, has left the quay at the Maua-Jurong
shipyard in Niteroi, Rio de Janeiro State, for sea trials and
final inspections before sailing to the deepwater oil and gas
field of the Campos Basin, which is located 160 kilometers east
of Macae, northeast of Rio de Janeiro. Upon arrival at its installation
site in the Campos Basin, the Barracuda FPSO vessel will be moored
and hook-up and offshore commissioning will commence, with the
first oil production expected in early November.
"We are proud to be part of this landmark project in South America,
which represents one of the largest offshore engineering, procurement,
installation and construction projects ever undertaken by a single
contractor," said Andy Lane, president and CEO of KBR, Halliburton's
Engineering and Construction group. "Halliburton is a company
dedicated to sustainable development, and the Barracuda-Caratinga
project has resulted in the creation of more than 8,000 new jobs
in the State of Rio de Janeiro. We take great pride in the fact
that we contributed to the transformation and rebirth of the offshore
and marine industry in Brazil."
The Barracuda-Caratinga project includes the sister field development
Caratinga. The Caratinga FPSO, P-48, is being converted in the
BRASFELS shipyard in Angra dos Reis, Brazil, and is one of the
first FPSO's to be built solely in Brazil. It is scheduled to
sail to its installation site in the Campos Basin in December
2004 and begin oil production in January 2005. Together, the Barracuda
and Caratinga fields cover an area of 493 km(2) in the Campos
Basin, in 800 and 1035 meters of water respectively. The fields
will produce close to 300,000 barrels of oil per day, approximately
20 percent of the current output from this offshore region. Each
vessel will also be able to store approximately two million barrels
of oil.
Halliburton also announced today that its KBR subsidiary has reached
a revised agreement in principle with Petrobras, as Construction
Manager for the project company, that will resolve outstanding
issues regarding the Barracuda-Caratinga project. This agreement
in principle cancels and replaces the previous non-binding agreement
reached with Petrobras in April 2004. The revised agreement in
principle, which is subject to project lender approval and final
agreement, will settle outstanding claims and extend project deadlines.
If the parties are unable to reach final agreement, then Halliburton
will pursue arbitration of its claim. The agreement in principle
contemplates amending the existing agreements and releasing both
parties from all existing claims.
Barracuda-Caratinga Project Background:
The Barracuda FPSO conversion from an oil trading tanker began
at the Jurong shipyard in Singapore. In July 2003, the Barracuda
vessel departed Singapore and arrived in Rio de Janeiro in October
2003. Barracuda's transformation includes:
- More than 12,000 tons of steel have been incorporated into
the vessel
- 16,000 tons of topsides have been installed on the deck
- 300 kilometers of cable have been installed
- More than 600 items of major equipment and 10,000 valves
have been installed in the vessel and topsides
- For both Barracuda and Caratinga, in excess of 100,000 engineering
documents have been issued.
The topside modules for both the Barracuda and Caratinga FPSOs
were built at four refurbished sites in Niteroi, Rio de Janeiro
State. Each FPSO has twelve modules, which contain the main process
and utility systems. A total of eight power generators and six
gas compressors will be employed on the two FPSOs, with each vessel
generating 92 megawatts of power.
In addition to transforming the two tankers into FPSOs to prepare
them for 20 years of reliable high volume oil and gas production,
Halliburton has installed over 400 kilometers of flexible subsea
pipelines in water depths up to 1,300 meters. Petrobras, acting
as a Halliburton subcontractor, has successfully drilled and completed
54 wells for both fields (Barracuda: 34 wells and Caratinga: 20
wells), and has had as many as six drilling rigs operating in
the fields at the same time. The project wells were drilled within
the budget of approximately $1 billion USD, on schedule and with
the expected productivity and injectivity rates.
KBR was awarded the $2.5 billion contract by Barracuda & Caratinga
Leasing Company (BCLC) on a full engineering, procurement, installation
and construction (EPIC) basis, including construction of 54 wells,
fabrication and installation of flowlines and risers, construction
and installation of the two FPSOs, and the commissioning, start-up
and operations support for both fields. All project management
services have been executed from KBR's project office in Rio de
Janeiro.
KBR is a global engineering, construction, technology and services
company. Whether designing an LNG facility, serving as a defense
industry contractor, or providing small capital construction,
KBR delivers world-class service and performance. KBR employs
more than 60,000 people in 43 countries around the world.
Currently celebrating its 85th anniversary, 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 and Engineering and Construction Groups. The company's
World Wide Web site can be accessed at www.halliburton.com.
Contact
Wendy Hall
wendy.hall@halliburton.com
Halliburton, Public Relations
(p) Houston 713.759.2605
Paul Koeller
paul.koeller@halliburton.com
Halliburton, Investor Relations
(p) Houston 713.759.2688
Employment Contact
Overseas & US Employment with KBR
www.kbrjobs.com
(p) 866.308.5239
US Employment with Halliburton
www.halliburton.com
Click on careers
Supplier/Procurement Contact
kbr_supplier_relations@halliburton.com
Supplier Diversity Contact
Linda Holloway
linda.holloway@halliburton.com
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