KBR and Partners Awarded Letter of Authorization for Grassroots LNG Project in Western Australia.

HOUSTON -- KBR, a subsidiary of Halliburton (NYSE:HAL), and its joint venture partners have been issued with a Letter of Authorisation (LOA) by ChevronTexaco Australia (Operator of the Gorgon project) to perform pre-FEED work for the Gorgon Downstream LNG project. The Gorgon project is a grassroots LNG facility to be located on Barrow Island in Western Australia, and will include two LNG processing trains, each with a capacity of 5 million tonnes per annum (MTPA). The Kellogg Joint Venture - Gorgon (KJV-G) includes KBR, JGC Corporation of Japan, and Australian-based partners Clough Projects Australia Pty Ltd. and Hatch Associates Pty Ltd.

Under the LOA, the Kellogg Joint Venture - Gorgon will perform pre-FEED activities for a fixed four-month period.

"This LOA reinforces KBR's capability and expertise within the LNG industry," said Lou Pucher, Senior Vice President of KBR's Energy & Chemicals division. "It also continues our long-term involvement and successful track record of LNG projects in Western Australia."

JGC Corporation is an international engineering and construction company based in Yokohama, Japan, having multiple operating centers and executing large scale projects world-wide. JGC is currently executing projects in Nigeria, Algeria, Libya, Egypt, Saudi Arabia, Oman, Abu Dhabi, Qatar, China, Australia, and other countries. Established in 1928, JGC has a strong background in lump-sum turnkey operations of both hydrocarbon and non-hydrocarbon related projects, with annual sales turnover in excess of $3 billion. JGC's website can be accessed at http://www.jgc.co.jp.

Clough is one of Australia's largest multi-disciplinary engineering and construction groups. Clough operates globally in industry sectors such as onshore and offshore oil and gas, petrochemicals, minerals, infrastructure and property and has a significant capability in project management and engineering. Clough's website can be accessed at www.clough.com.au.

Hatch is a leading global consulting, engineering, technologies, information systems, and project and construction management organisation. Hatch provides a full range of technology-driven, value-adding solutions and services to clients in the mining, minerals, metals, manufacturing, infrastructure and energy sectors through a network of 80 permanent offices worldwide. Hatch's website can be accessed at www.hatch.ca.

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.

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 and Engineering and Construction Groups. The company's World Wide Web site can be accessed at www.halliburton.com.