Wednesday, Aug 27, 2008

STAVANGER, Norway - Sperry Drilling Services, a brand of Halliburton’s (NYSE:HAL) Drilling and Evaluation Division, and TOTAL (NYSE:TOT) have signed a project development agreement to jointly develop an ultra-high-temperature measurement-while-drilling system capable of operating in temperatures of up to 450°F (230°C). TOTAL, on behalf of its partners on the Victoria project (Eni and StatoilHydro), and Halliburton will each contribute equally to the project.

The resulting system will enable TOTAL to effectively drill and exploit reserves in its Victoria field in the North Sea.

“This project represents a commitment from both companies to push the limits for extracting hydrocarbons from high-temperature and deeply buried reservoirs,” said Brady Murphy, vice president, Sperry Drilling Services. “We already have ultra-high-pressure tools rated to 30,000 pounds per square inch. By collaborating with TOTAL, we have a strategic ally that can help us accelerate the development of an ultra-high-temperature logging-while-drilling system.”

The two companies will be utilizing innovative, industry-first technologies to accomplish the goals of this 450°F project. These include a downhole refrigeration system, cold-plate technology, flasking and phase change material — all designed to function under the high shock and vibration encountered while drilling. The work may lead to an expanded suite of logging-while-drilling sensors capable of operating at these elevated temperatures.

Founded in 1919, Halliburton is one of the world’s largest providers of products and services to the energy industry. With more than 50,000 employees in approximately 70 countries, the company serves the upstream oil and gas industry throughout the life cycle of the reservoir - from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field. Visit the company’s Web site at www.halliburton.com.

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