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Halliburton was established in 1919, under the name of its predecessor- Brown & Root (two brothers- George and Herman Brown, and their brother-in-law, Dan Root, started the firm). Incorporated in Delaware in 1924, Brown & Root started out as a cement company, but quickly expanded into manufacturing complex oil platforms, dams, and Navy warships. During this time, Earl Halliburton- an entreprenuer in Tennessee- was working on a new process called "oil well cementing," which involves sending cement down an oil well to create a wall to seal-out water and other unwanted contaminants.

In 1962, Halliburton Company, which at the time was a fast-growing oil-well construction and services firm, purchased Brown & Root, by then a renowned road construction company and general contractor. During the Vietnam War, Halliburton was awarded a government contract and took part in building approximately 85 per cent of the infrastructure needed by the Army.

Halliburton Company provides products and services to the petroleum and energy industries to aid in the exploration, development and production of natural resources. Halliburton KBR, which is the company's engineering and construction division, designs, builds and provides additional services to the energy industry and governments.

Business Segments

Halliburton can be broken down into five business segments: Drilling and Formation Evaluation, Fluids, Production Optimization, Landmark and Other Energy Services and the Engineering and Construction Group.

Drilling and Formation Evaluation

The Drilling and Formation Evaluation segment is primarily involved in drilling and evaluating the formations related to bore-hole construction and initial oil and gas formation evaluation. Major products and services offered include: drilling systems and services; drill bits; and logging and perforating. The Sperry-Sun business line provides drilling systems and services. These services include directional and horizontal drilling, measurement-while-drilling, logging-while-drilling, multilateral wells and related completion systems, and rig site information systems. The drilling systems feature bit stability, directional control, borehole quality, low vibration and high rates of penetration while drilling directional wells.

Drill bits, offered by the Security DBS business line, include roller cone rock bits, fixed cutter bits, coring equipment and services and other downhole tools used to drill wells. Logging and perforating products and services include the Magnetic Resonance Imaging Logging (MRIL(R)) and high-temperature logging, as well as traditional open-hole and cased-hole logging tools. MRIL(R) tools apply magnetic resonance imaging technology to the evaluation of subsurface rock formations in newly drilled oil and gas wells. Open-hole tools provide information on well visualization, formation evaluation (including resistivity, porosity, lithology and temperature), rock mechanics and sampling. Cased-hole tools provide cementing evaluation, reservoir monitoring, pipe evaluation, pipe recovery and perforating.


The Fluids segment focuses on fluid management and technologies to assist in the drilling and construction of oil and gas wells. This segment offers cementing and drilling fluids systems. Cementing is the process used to bond the well and well casing while isolating fluid zones and maximizing wellbore stability. Cement and chemical additives are pumped to fill the space between the casing and the side of the wellbore. The cementing service line also provides casing equipment and services.

The Baroid business line provides drilling fluid systems and performance additives for oil and gas drilling, completion and workover operations. In addition, Baroid sells products to a wide variety of industrial customers. Drilling fluids usually contain bentonite or barite in a water or oil base. Drilling fluids primarily improve wellbore stability and facilitate the transportation of cuttings from the bottom of a wellbore to the surface. Drilling fluids also help cool the drill bit, seal porous well formations and assist in pressure control within a wellbore. Drilling fluids are often customized by onsite engineers for optimum stability and enhanced oil production.

Also included in this segment is the equity method investment in Enventure Global Technology, LLC (Enventure), which is an expandable casing joint venture. In January 2004, Halliburton and Shell Technology Ventures (Shell, an unrelated party) agreed to restructure two joint venture companies, Enventure and WellDynamics B.V. (WellDynamics), in an effort to more closely align the ventures with near-term priorities in the core businesses of the venture owners. Enventure was owned equally by Halliburton and Shell. Shell acquired an additional 33.5% of Enventure, leaving Halliburton with 16.5% ownership in return for enhanced and extended agreements and licenses with Shell for its Poroflex(TM) expandable sand screens and a distribution agreement for its Versaflex(TM) expandable liner hangers, in addition to a one percent increase in the ownership of WellDynamics.

Production Optimization

The Production Optimization segment primarily tests, measures and provides means to manage and/or improve well production once a well is drilled and, in some cases, after it has been producing. This segment consists of: production enhancement;completion products; and tools and testing services.

Production enhancement optimizes oil and gas reservoirs through a variety of pressure pumping services, including fracturing and acidizing, sand control, coiled tubing, hydraulic workover and pipeline and process services. These services are used to clean out a formation or to fracture formations to allow increased oil and gas production.

Completion products include subsurface safety valves and flow control equipment, surface safety systems, packers and specialty completion equipment, production automation, well screens, and slickline equipment and services. Tools and testing services include underbalanced applications, tubing-conveyed perforating products and services, drill stem and other well testing tools, data acquisition services and production applications. Also included in this segment are the subsea operations conducted in the 50% owned company, Subsea 7, Inc.

Landmark and Other Energy Services

The Landmark and Other Energy Services segment provides integrated exploration and production software information systems, consulting services, real-time operations, smartwells and other integrated solutions.

Landmark Graphics is the leading supplier of integrated exploration and production software information systems as well as professional and data management services for the upstream oil and gas industry. Landmark Graphics software transforms vast quantities of seismic, well log and other data into detailed computer models of petroleum reservoirs. The models are used by the customers to achieve optimal business and technical decisions in exploration, development and production activities. Landmark Graphics' broad range of professional services enables the worldwide customers to optimize technical, business and decision processes. Data management services provides efficient storage, browsing and retrieval of large volumes of exploration and petroleum data. The products and services offered by Landmark Graphics integrate data workflows and operational processes across disciplines, including geophysics, geology, drilling, engineering, production, economics, finance and corporate planning, and key partners and suppliers.

This segment also provides value-added oilfield project management and integrated solutions to independent, integrated and national oil companies. Integrated solutions enhance field deliverability and maximize a customer's return on investment. These services make use of all of the products and technologies, as well as project management capabilities. Other services provide installation and servicing of subsea facilities and pipelines.

Also included in this segment is the equity method investment in WellDynamics, an intelligent well completions joint venture. As discussed above, in January 2004, Halliburton and Shell agreed to restructure the WellDynamics joint venture. Halliburton acquired an additional one percent of WellDynamics from Shell, giving Halliburton 51% ownership. With the resulting control of day-to-day operations, Halliburton will be able to achieve more natural opportunities to leverage existing complementary businesses, reduce costs, and ensure global availability.

Engineering and Construction Group

The Engineering and Construction Group segment, operating as KBR, provides a wide range of services to energy and industrial customers and government entities worldwide. KBR offers the following: onshore engineering and construction activities, including engineering and construction of liquefied natural gas, ammonia and crude oil refineries and natural gas plants; offshore deepwater engineering, marine technology, project management, and related worldwide fabrication capabilities; government operations, construction, maintenance and logistics activities for government facilities and installations; plant operations, maintenance and start-up services for both upstream and downstream oil, gas and petrochemical facilities as well as operations, maintenance and logistics services for the power, commercial and industrial markets; and civil engineering, consulting and project management services.

Kellogg, Brown and Root -- KBR -- had been a long time and essential DoD supplier of logistical support. KBR services include housing, food, transportation, training, and administrative support. The LOGCAP contract was awarded competitively; it has a 1-year base period and nine 1-year renewal options. Before KBR secured the contract, DynCorp held the LOGCAP contract. The current contract was awarded to Kellogg Brown & Root (KBR) in December 2001. The level of Logistical Civilian Augmentation [LOGCAP] contract support that DOD requested from KBR in Iraq beginning in April of 2003 was unprecedented.

By early 2005 KBR had 48,000 employees and subcontractors deployed to Kuwait and Iraq to support the U.S. military. Although KBR and its subcontractors have lost a number of their personnel to hostile actions, they continued to honor their commitment to ensure that the troops serving in Iraq have the best food, shelter, and quality of life possible.

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Page last modified: 05-07-2011 02:59:12 ZULU