Sibneft and Halliburton Sign Framework Agreement

Moscow, 7 February 2002; Halliburton International Inc. and Sibneft have signed an agreement paving the way for Halliburton to provide a full range of oilfield services to Sibneft’s upstream division. Sibneft intends to use Halliburton’s new technologies to improve reservoir management, raise production from its existing well stock and carry out workovers of idle wells.

Halliburton intends to begin work at Sibneft’s fields in spring 2002. The company will initially provide directional drilling, sidetracking, logging and cementing services. The two companies will establish a joint engineering team to plan new projects.

Halliburton is currently a subcontractor for Sibneft’s horizontal drilling project with Pride Forasol at its Sugmut field, and is providing its Sperry-Sun and Baroid product service line applications. This latest agreement provides for the establishment of a direct relationship between Sibneft and Halliburton.

“The current and future services provided under this framework agreement will give Halliburton a broader geographic presence and increased market share in Russia. Collaboration with Sibneft will also allow Halliburton to introduce and implement technologies which are new to the region”, said Dave Lesar, chairman, president and CEO of Halliburton.

“Sibneft's strategy is aimed at maximizing its use of outsourcing,” said Sibneft president and CEO Eugene Shvidler. “The application of new technologies never before employed in Russia will enable Sibneft to retain its productivity lead over its peers. This agreement will also contribute to the development of a market for advanced oilfield services in Western Siberia.”

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 site can be accessed at www.halliburton.com.