Halliburton and Petrobras Reached Accord

Oil and gas service company Halliburton announced Wednesday it has reached an agreement in principle with Brazilian oil giant Petrobras to resolve all disputable questions concerning Barracuda-Caratinga offshore project in Brazil.

Problems with the project, including disputed cost overruns, led Halliburton to take charges in five of the last six quarters. Halliburton said the revised agreement in principle cancels a non-binding agreement reached with Petrobras in April.
Halliburton hopes the new deal would settle all claims and extend project deadlines. Terms were not disclosed.

Halliburton agreed to a $2.5 billion contract in July 2000 calling for the development of the Barracuda and Caratinga oilfields, with Petrobras as their concessionaire.