Shell Awards Halliburton Contract for Integrated Drilling Services in

    Business Editors/Energy Editors

    HOUSTON--(BUSINESS WIRE)--May 2, 2005--Halliburton's (NYSE:HAL) Energy Services Group has been awarded a two-year contract, with the option for an additional year, by Shell Exploration & Production Company to provide 40 percent of Shell's integrated drilling services for their Gulf of Mexico activities. The value of the contract is estimated at $24 million for the fixed two-year duration and includes the provision of directional drilling, measurement-while-drilling (MWD), and logging-while-drilling (LWD).
    "Halliburton is very pleased to have been awarded this significant contract, which expands our important relationship with Shell," said Tim Probert, senior vice president, Halliburton's Drilling and Formation Division. "We have invested people, time, and money to stay at the forefront of technology development and ensure a sustainable future, aimed at meeting the current and future needs of our customers."
    "The Shell Halliburton Real Time Operations Center (RTOC) will be of major help in the successful execution of this contract," said Paul Goodfellow, Wells manager, Shell Exploration & Production Company. "The RTOC brings together drilling, exploration, and development teams to enable true multi-disciplinary well delivery. It is a world-class facility in which 24/7 well monitoring and the resulting interventions, real-time collaboration and decision-making are augmented with well planning for all Shell Gulf of Mexico rigs."
    "By selecting Halliburton for this important contract, Shell has demonstrated that we can help them achieve their growth strategy," said Brady Murphy, vice president, Halliburton. "We have been delivering integrated drilling and formation evaluation services in the Gulf of Mexico; the technology we will use will provide Shell with the best solution this industry has to offer and help them to meet their drilling challenges and maximize their reservoir deliverability at the most effective cost."
    The provision of the complete suite of drilling and formation evaluation services will provide synergies for Halliburton as service provider and for Shell in the planning, drilling, and evaluation of the wells.
    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 KBR. The company's World Wide Web site can be accessed at www.halliburton.com.

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CONTACT: Halliburton Public Relations, Houston Zelma Branch, 713-759-2601

KEYWORD: TEXAS INDUSTRY KEYWORD: OIL/GAS ENERGY MARKETING AGREEMENTS SOURCE: Halliburton

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