KBR Announces the Successful Completion of a Major Power Substation Pr

    Business Editors/Energy Editors

    ARLINGTON, Va.--(BUSINESS WIRE)--March 9, 2005--KBR, a subsidiary of Halliburton (NYSE:HAL), today announced the completion of its Al Ameen power substation project, the largest substation in Iraq, outside of Baghdad.
    The Al Ameen power substation, key to Iraq's ability to provide efficient power distribution throughout Baghdad and the rest of the country, is one of three competitively awarded reconstruction projects the Company has received as part of its Central Command (CENTCOM) contract with U.S. Army Corps of Engineers' Transatlantic Programs Center. Work on the Al Ameen substation project, valued at $59.4 million, began in March 2004 and was completed within budget and on schedule this month. The substation is now under the operation of Iraq's Ministry of Electricity.
    "The Al Ameen project's completion represents an important step forward in improving Iraq's electrical infrastructure, and the success embodies the best and most difficult aspects of Iraq reconstruction efforts in general -- completing work in a war zone without military force protection," said Bruce Stanski, senior vice president, KBR's Government & Infrastructure Division. "KBR is proud to have led the successful completion of such a critical project."

    Project Overview

    Now completed, Al Ameen is Iraq's largest substation and transforms high-voltage electricity produced at area power plants to a voltage level that can be distributed to smaller regional substations and ultimately to area homes. Because electricity is currently rationed throughout Baghdad, many Iraqis have waited years for electricity to be made available to them consistently and for extended hours. Some Iraqis receive electricity for only a few hours per day, if at all.
    Al Ameen immediately will make available electricity to the lower voltage substations supplying many residents of southeastern Baghdad -- about a quarter of the entire city -- and has the ultimate potential to distribute 1,000 megawatts of electricity. Iraq's power grid currently provides about 4,000 megawatts of electricity throughout the country.
    Al Ameen is more than a regional feeder to lower voltage substations. It also will function as a switching station to control the flow of high-voltage power throughout the region, thereby improving the reliability of the power grid that supplies all citizens of Baghdad with electricity.
    To accomplish this, the project scope required KBR to install some of the world's largest gas-insulated switchgear (GIS) substations and two overhead transmission lines, each approximately 24 kilometers long, through rural areas east of Baghdad. The fact that the switchgear is enclosed in pressurized gas-filled tubes means the substation has a more compact footprint than conventional open-air substations and is immune to the adverse effects of Iraq's powder-like sand and harsh, hot climate.
    KBR subcontracted Iraqi firm FCM to oversee the technical and engineering aspects of the construction process. French company VA Tech designed the substation and provided ongoing consulting support.

    Project Success Story

    As part of its practice of drawing from the local talent pool whenever possible, KBR involved Iraqis as craft managers, quality inspectors, material managers, GIS engineers and document clerks. The workforce included up to 650 local technicians, engineers and laborers. Consequently, Al Ameen is one of the first U.S. contractor-led projects to rely almost solely on the expertise and skills of local Iraqi professionals and workers: it's a substation built by Iraqis, for Iraqis.
    KBR's team model worked, as did a community outreach program conducted by KBR and FCM that involved local cleric and communities adjacent to the site. The project progressed on schedule and insurgent activity against the substation was surprisingly limited.
    "By focusing its role as the project manager, KBR was able to not only create immediate job opportunities for Iraqis, but also train them in western safety, first aid, quality and construction principles," said Howard Holland, KBR's Al Ameen project manger. "The new skills they learned at Al Ameen will benefit them in future employment opportunities."
    Holland added that completing Al Ameen, and knowing what the project team was collectively able to accomplish in a war zone, is evidence of the power of the human spirit and an unwavering commitment to see the project through to the end. "Al Ameen stands as a lasting legacy of successful teamwork among a span of countries united behind a single goal of making life better for the Iraqi people," he noted.

    About KBR's CENTCOM Contract

    The five-year CENTCOM contract gives KBR, along with nine other pre-qualified contractors, the opportunity to bid on a full range of engineering and construction task orders on a quick response basis within CENTCOM's 27 nations of operation. Such task orders may be used to support U.S. military operations, other U.S. government agencies, or friendly foreign governments under established agreements.

    About the Company

    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.

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CONTACT: KBR, Public Relations, Houston Jennifer W. Dellinger, 713-753-2092 jennifer.dellinger@halliburton.com

KEYWORD: VIRGINIA TEXAS INTERNATIONAL EUROPE AFRICA/MIDDLE EAST INDUSTRY KEYWORD: OIL/GAS ENERGY GOVERNMENT UTILITIES SOURCE: KBR

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