SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (date of earliest event reported)
March 18, 2004
Halliburton Company
(Exact name of registrant as specified in its charter)
State or other Commission IRS Employer
jurisdiction File Number Identification
of incorporation Number
Delaware 1-3492 No. 75-2677995
1401 McKinney, Suite 2400
Houston, Texas 77010
(Address of principal executive offices)
Registrant's telephone number,
including area code - 713-759-2600
INFORMATION TO BE INCLUDED IN REPORT
Item 9. Regulation FD Disclosure
On March 18, 2004 registrant issued a press release entitled
"Halliburton Successes: Improving the Lives of Soldiers and Iraqis."
The text of the press release is as follows:
HALLIBURTON SUCCESSES: IMPROVING THE LIVES OF
SOLDIERS AND IRAQIS
HOUSTON, Texas -- Waiting. Not sure what is ahead, but prepared to make your
part happen. One year ago, March 20, 2003, a small group of people who did not
know what their lives would hold in the next year were waiting for the word to
carry out the plans before them. The military had entered Iraq the day before.
Halliburton's team -- multi-national employees from America, the United Kingdom,
Australia and eastern Europe -- were ready to start their assignments in Iraq.
Members of the Logistics Civil Augmentation Program (LOGCAP) team from
Halliburton stood ready to support our troops with meals, housing, laundry, mail
and communications to friends and loved ones back home. The Restore Iraqi Oil
(RIO) Team was prepared to put out fires and try to salvage what they could of
the Iraq Oil Infrastructure to get it back and functioning as quickly as
possible.
"Time is a critical factor in all these activities and deployments," said Dave
Lesar, Chairman, President and Chief Executive Officer, Halliburton. "Now it's
time to stand proud in our accomplishments over the last year, looking past the
political rhetoric, and see the real magnitude of what we're doing."
Halliburton's activities after one year show a record of success.
Currently, KBR has more than 24,000 employees and subcontracted personnel
working in the Kuwait-Iraq region under both the LOGCAP and RIO contracts,
utilizing more than 6,000 subcontractors in Iraq alone.
"I am extremely proud of all of Halliburton's more than 100,000 employees
worldwide and the great work they do in the difficult and harsh environments we
work in," explained Lesar. "I am especially proud of our employees in Iraq who
are risking their lives every day while rebuilding Iraq's oil infrastructure and
providing our troops housing, meals, mail and other vital services."
The loss of life tempers the success. As of March 18, 2004, Halliburton and its
subcontractors have lost about 30 personnel while performing services under the
LOGCAP and RIO contracts in the Kuwait-Iraq region.
"We are deeply saddened by the loss of our co-workers. The company's primary
concern is for the safety and security of all personnel," added Lesar,
"especially those working in such challenging environments."
Proud to Support our Troops
For the past year, standing shoulder-to-shoulder with our troops, the
Halliburton team has supported the U.S. military every step of the way. The
LOGCAP Team is civilians that voluntarily place themselves in a dangerous
environment to make our troops feel a little closer to home. Many sign up
because they feel they make a difference to U.S. soldiers and the Iraqi people.
During the past year, Halliburton employees have counted many success stories.
Every time a soldier thanks you for clean clothes or a hot meal, it feels like a
success story. But, Halliburton employees' collective accomplishments are the
true measure of success.
Here is what Halliburton employees have done in the past year in Iraq and Kuwait
to support military operations there:
- We entered Baghdad on April 20, 2003 -- eleven days before the end of the war
-- and immediately began our support for the Coalition Provisional Authority.
- We were tasked in May 2003 to build permanent facilities for troops in Iraq --
from establishing housing facilities to installing hot showers and opening
dining facilities to serve hot meals at 30 sites throughout the country. Within
180 days, KBR delivered and installed 34,000 living container units, 10,000
toilets and 10,000 showers to house 80,000 troops.
- Since May 2003, 64 Dining Facilities (DFACs) have opened throughout the
Kuwait-Iraq region, serving more than 40 million meals.
- Processed more than 1 million bundles of laundry.
- Hosted close to 5 million people in the Morale, Welfare and Recreation
facilities--letting the troops take advantage of breaks in the action.
- Collected and disposed of more than 1.5 million cubic meters of trash.
- Exterminated more than 8,000 tents and buildings.
- With more than 700 trucks on the roads of Kuwait and Iraq at any given time,
we drive roughly 3.3 million miles (5.3 million kilometers) per month.
Creating the transportation function alone would be a major accomplishment. How
major? It equals assembling enough personnel and equipment to parallel the
seventh largest trucking company in the United States.
What do we do with all those trucks? In the past year Halliburton has:
- Moved and delivered nearly 8 million bags (close to 13 million pounds or 5.9
million kilograms) of mail for soldiers.
- Transported more than 1.8 billion liters of fuel.
- Moved close to one million equipment and supply containers across Kuwait and
Iraq.
- Hired, mobilized and trained close to 1,500 certified heavy truck drivers to
complete these missions.
Competitively bid and awarded to KBR in December 2001, LOGCAP III is a 10-year
Task Order contract, with a one-year base period and nine one-year options. The
contract requires the contractor to deploy within 72 hours of notice and to
deliver Combat Support and Combat Service Support (CS/CSS) for 25,000 troops
within 15 days. KBR must be ready to furnish these warfighter services 24 hours
a day, 7 days a week, 365 days a year under any condition and at any location
around the globe.
As General Paul Kern, Commanding General, US Army Materiel Command, addressed
the LOGCAP contract in a March 11 Congressional Hearing:
"It provides a means for our war fighters and our nation to execute national
security missions. These contracts are around the world, not just in Iraq, and
they provide us extensive capability in each area we use them.
"When our forces go in, they carry with them everything that they have for life
support; the food, the water, the tents, and the laundry, they hope will not be
far behind. LOGCAP has provided us the capability to change the conditions in
which the soldiers and the support structure lives from lying on the ground and
eating MREs to one of being able to have shelter, sleep on cots, and to have hot
food prepared.
"If they want a shower, when they arrived in Iraq last year, they used a bucket
of water. Today, they have facilities to shower in.
"If they wanted a clean uniform, they used the same bucket of water. And today,
they have laundries that they can use.
"As many of the soldiers have reported to us, LOGCAP has changed the way that
they can live and survive in that theater."
Rich Oil Reserves, But No Fuel
The military witnessed first-hand the waste and destruction that Saddam Hussein
and his military inflicted on oil wells in Kuwait during the Gulf War in 1991.
The military had the foresight to ask for a plan in advance to help stem the
potential waste and environmental damage inflicted on the oil wells in Iraq. We
delivered the plan under the competitively bid LOGCAP contract.
The military assessment was correct. Halliburton professionals, working with the
Army Corps of Engineers, entered Iraq on the second day of the war and
immediately began the task of assessing wells. To date Halliburton success
stories include:
- Between the first week in April 2003 and the first week of September 2003, we
removed more than 46,000 barrels of oil (1.45 million gallons or 5.5 million
liters) from oil spills in Iraq.
- In our partnership with the US Army Corps of Engineers Southwestern Division
Task Force RIO and the Iraq Ministry of Oil, we had our first meeting with
Iraq's South Oil Company and our first link with Iraq's North Oil Company in
April 2003.
- After we assessed more than 600 oil infrastructure facilities in 30 days, the
first oil flowed from Iraq's southern oil fields in late April 2003.
- Our task was to begin the fuel delivery mission in May 2003 and the first fuel
arrived into Iraq three days later. In less than 96 hours, we mobilized the
first trucks of gasoline and liquid petroleum gas (LPG) toward Baghdad. As of
December 31, we had acquired, transported and delivered more than 1 billion
liters (264.2 million gallons) of gasoline, 350,000 metric tons (350 million
kilograms or 772 million pounds) of liquid petroleum gas (LPG), 250 million
liters (66 million gallons) of diesel and 190 million liters (50.2 million
gallons) of kerosene to support humanitarian efforts for the Iraqi people. This
monumental task requires more than 3,500 trucks moving everyday between Iraq and
Kuwait, Turkey and Jordan. The facts show KBR delivered fuel to Iraq at the best
value, the best price and the best terms. It is also important to understand the
difference between fact and allegations. It is not fact that KBR has
overcharged.
- The first oil to export from Iraq was from the Al Basra Oil Terminal in late
June 2003 -- a day ahead of schedule.
- We assisted in surpassing Iraq's prewar oil production levels of approximately
2 million barrels per day when production reached 2.4 million barrels per day in
December 2003 -- three months ahead of forecast.
After Halliburton doused well fires in southern Iraq, the Corps of Engineers
approved a "work over" of some of the destroyed wells to bring them back into
production. Delayed for security reasons until late August, we teamed with Iraqi
engineers from South Oil Company and introduced Iraqis to technology they had
never seen -- a hydraulic work over rig.
Accomplishing the work over task for one well 10 percent under budget and ahead
of schedule, this resulted in the following for one well:
- Increased production by nearly 700 percent, from prewar 900 barrels per day to
7,000 barrels per day now.
- Increased production from a prewar value of $27,000 per day to value of
approximately $210,000 per day to the Iraqi economy now.
- Completed four other work over wells and consistently increased prewar
production levels on each.
- Provided Iraqi engineers with an opportunity to work with up-to-date
technology and procedures and demonstrated efficiencies which may be gained in
their production levels.
Employee Perspective
"I've worked for KBR around the globe -- in Somalia and Algeria, for example --
and I never thought I'd be in Iraq. The first few days were exhausting and
nerve-racking. We were civilians in the middle of a war, but we knew what we had
to do in order to help the Iraqi people rebuild their country. When we crossed
into Iraq the day after the war started, the oil infrastructure sat in chaos.
Facilities had been rendered completely or partially inoperable due to years of
neglect and looting and sabotage by Ba'ath Party loyalists. In the span of less
than a year, and in a hostile and sometimes deadly environment, KBR and the
Corps of Engineers were able to help Iraq's Ministry of Oil and operating
companies repair their facilities and pipelines, restore oil production to
prewar levels, and resume exports to generate revenue for the newly liberated
country," explained Doug Fletcher, project general manager for KBR.
Halliburton has performed for the U.S. military for over 60 years in both
Democratic and Republican administrations. Our work with the military in Iraq
has made the troops more comfortable as they return a sense of normalcy and
security to the people of Iraq. We built warships for the Navy in World War II,
and supported troops in Somalia and Rwanda. Our support of troops continues in
the Balkans. In the first Gulf War, we helped bring half the oil wells under
control in Kuwait. Halliburton employees are prepared to meet the challenge
regardless of the difficulties and risks involved.
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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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HALLIBURTON COMPANY
Date: March 18, 2004 By: /s/ Margaret E. Carriere
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Margaret E. Carriere
Vice President and Secretary