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2004 Press Releases
FOR IMMEDIATE RELEASE: July 7, 2004

Lanzhou Petrochemical Company Selects KBR's SCORETM Technology for 600,000 Ton/Year Ethylene Plant

HOUSTON, TX - KBR (Kellogg Brown & Root) has been awarded a basic design engineering package for a new 360,000 ton/yr ethylene plant capacity expansion, which will be added to an existing 240,000 ton/yr unit for a total capacity of 600,000 ton/year by the Lanzhou Petrochemical Company, which operates under the auspices of PetroChina. The facility will be located in Lanzhou City, Gansu Province of the Peoples Republic of China and will utilize KBR's proprietary SCORETM (Selective Cracking Optimum REcovery) technology. Huanqiu Chemical Engineering and Construction Company (HQCEC) will perform the detailed engineering. KBR is the engineering and construction subsidiary of Halliburton (NYSE:HAL).

KBR's SCORE™ technology brings together the expertise and experience of KBR and ExxonMobil Chemical to provide the petrochemical industry with state-of-the art technology with both a design contractor's and ethylene producer's perspective. Safety, operability, and reliability are combined with low capital and energy costs to give producers the competitive edge in today's markets. Since 1995, KBR ethylene technology has been used in approximately 30 percent of the world's new olefins plant capacity and has built the reputation it continues to stand for.

"Being a world-famous engineering company, KBR has licensed its technology to many plants both inside and outside China, enjoying a high reputation in the international ethylene field," said Mr. Sun Li, president of PetroChina Company Limited.

"We are quite excited about this award as it represents the first application of KBR's entire SCORE™ technology in China," said Ray Orriss, vice president of Olefins at KBR. Orriss added that although SCORE™ cracking furnaces will be started up this year at Daqing, Lanzhou Petrochemical Company will be the first complex in China to use both the hot and cold section SCORE™ design. To add to the expansion of the SCORE™ facilities, two new SCORE™ grassroots ethylene plants will be starting up within the next year in Thailand and Saudi Arabia.

KBR is a global engineering, procurement and services company. Whether designing a chemical plant, serving as a defense industry contractor, or providing capital construction, KBR delivers world class service and performance. KBR employs 64,000 people in 43 countries around the world.

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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