Halliburton inks deal on troubled Brazil project
Halliburton on Wednesday said it signed a revised agreement with Brazilian oil company Petrobras to resolve a dispute over the Barracuda-Caratinga oil project that has been dogged by cost overruns, delays and other problems.
The agreement in principle struck by the company's KBR subsidiary will settle outstanding claims and extend project deadlines, Halliburton said.If the parties are unable to strike a final agreement, then Halliburton said it would pursue arbitration of its claim.
The deal contemplates amending the existing agreements and releasing both parties from all existing claims, Halliburton said.Over the past two years, Halliburton, the No. 2 oilfield services company, has recorded a string of charges on the troubled oil drilling complex ordered by Petrobras.
The company's woes have included absorbing costs of delays and project changes. Halliburton has also been negotiating with Petrobras to resolve contract issues.
The deal was announced as the first of the two oil tankers converted into production and storage vessels began its journey to the deepwater oil and gas field in the Campos Basin. Oil production is expected to begin in early November.
Halliburton shares edged down more than 1 percent, or 43 cents, to $33.67 on the New York Stock Exchange early Wednesday afternoon.
(From Reuters, October 13, 2004)
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