Risk Management

1. Risk Management University of Houston February 2010

2. Business Overview & Results Strategy Risk Management Q&A

3. Halliburton Overview Provides a broad suite of products and services to help explore for and produce oil and gas Two business segments Drilling & Evaluation Completion & Production 2009 sales of $14.7 billion Equity market capitalization of over $30 billion, as of Jan. 20, 2010 2009 Return on capital employed of 11.5%(1) 50,000+ employees in approximately 70 countries • (1) Return on capital employed defined as: (net income plus after-tax interest) / (average shareholders’ equity + average total debt)

4. 2009 Division Revenue Year Ended December 31, 2008 (in millions) Drilling and Evaluation Completion and Production Sperry Production Enhancement Wireline Cementing Baroid Completion Tools $7,256 $7,419 49% Security DBS Drill Bits 51% Software & Asset Solutions Testing & Subsea

5. 2009 Regional Revenue 39% 61% North America International 20% 39% 26% 15%

6. Business Overview & Results Strategy Risk Management Q&A

7. Global Energy Situation Weak petroleum demand Commodity price volatility and uncertainty Customer pressure on service pricing Contract re-tenders at lower price points 2008 Cycle International Rig Count (Indexed) 1997-1999 Cycle Number of weeks from peak 7

8. Real U. S. Natural Gas Prices • Three cycles are evident over the last 80+ years • Three uplegs: average duration 13 years, average price increase 292% • Three downlegs: average duration 18 years, average price decrease 40% 13 years Prices up 268% Demand up 5% 13 years Prices up 496% Demand down 20% 13 years Prices up 111% Demand up 167% 12 years Prices down 61% Demand up 32% Current spot price Real U.S. Wellhead Gas Price* (Lognormal Scale) 8 years Prices down 18% Demand up 59% 27 years Prices down 62% No demand data * Average wellhead price as reported by EIA, these prices were regulated from 1954 to 1978

9. North America vs International Spectrum of extremes North America Efficient (immediate response to commodity price changes) Transactional Extreme volatility International Longer terms Less transactional Dampens extremes 9

10. Halliburton Long-Term Strategy Continue developing talent and business leadership Anticipate North America structural change Invest in strategic growth areas Continue technology and capital investment Leverage packaged services Horizontal Rigs 48% of Total U.S. Rig Count* * Baker Hughes Rig Count

11. Near-Term Tactics Protect market position Lower input costs Maintain financial flexibility Live within cash flow Protect “A” credit rating Focus on return on capital employed ROCE ROCE = Net Income before after-tax interest annualized divided by average capital employed (shareholders’ equity + total debt) HAL Peer Average* * Average of SLB, BHI, WFT, SII

12. Market Share Change Product / Service Offering Market Position from 2008 Directional drilling 2 UP Logging-while-drilling 2 UP Logging 2 UP Drilling & Completion fluids 2 UP Drill bits 3 UP Data interpretation 1 UP Stimulation 1 UP Cementing 1 UP Completions 2 UP Coiled tubing services 2 UP Overall 2 UP Growing Market Leadership* * Based on Spears’ and Associates Sept., 2009 Oilfield Market Report and internal company data

13. Financial Headline Issues No exposure to auction-rate securities or variable-rate demand notes No subprime mortgage exposure No off balance sheet financing other than disclosed leases No ratings triggers Except revolver pricing grid and deferred compensation plan No speculative trading Manageable pension liability of ~$220 million, as of 12/31/2009 Halliburton Stock Fund closed, as of 12/31/2009

14. Business Overview & Results Strategy Risk Management Q&A

15. Risk Management Organization • Functional report to Treasury • Insurance Programs • Insurance and self-insurance procurement • Fronting programs and captives • Brokerage relationships • Global Claims • Occupational injury administration • Insurance recovery (all lines) • Claim services vendor relationships • Risk Management Information Systems • Data Management • Financial and executive reporting • Risk Management Accounting • Budget control • Cost allocation • Reserve management

16. Risk Management Responsibilities • Identify exposures to risk of loss • Support SEC risk compliance • Determine desired means of managing exposures to risk of loss • Obtain insurance required by and in accordance with applicable laws • Negotiate customer insurance terms and assure compliance • Support pursuit of new business opportunities • Support due diligence for acquisitions and mergers • Provide surety services • Maximize insurance assets through efficient claim recovery

17. Insurance Program Onshore Property Excess Liability Summary of Insurance As of 12/21/09 (not to scale) AIG / Starr Tech (ACE) Lloyds Swiss Re / Zurich / Liberty GL / AL / EL ACE (Bermuda) Arch / XL / AWAC Lloyds Munich D&O Liability Lloyds/Liberty Mutual Side A DIC ACE Arch Lexington Lloyds Axis Travelers AWAC RLI HCC Endurance ACE ACE Fiduciary Liability Work Comp Air Craft Vessels Well Control Offshore Property Cargo Arch Crime Freedom Specialty AWAC XL/Argo RSUI CNA Statutory Limits Ace VariousUSAIG PD Per Schedule P & I 5M Lloyds Various limits Lloyds Per Schedule Lloyds 15M Per Shipment Ace Max Re Lloyds Axis RLI AWAC AISLIC ELU Chartis HCC Travelers AIG Lloyds Hartford HCC 5M 10M 500K 2M Nil 500K 1M 250K 50K 1M 2.5M Deductible Type of Coverage

18. Enterprise Risk Management • Methods, framework, and processes utilized to manage risks by taking an integrated and holistic view of the various uncertainties involved across the organization. It is the process whereby an organization optimizes the manner in which it controls risks. • Required by SEC and NYSE • Evaluated and rated by rating agencies based on effectiveness of program. • ERM sponsored at highest levels of Halliburton • Direct and independent reporting to Audit Committee of BOD • Advisory committees comprised of all senior corporate officers • Sustainable monitoring plans for risks and controls • Cultural permeation

19. Enterprise Risk Management 1.0 • ERM 1.0: Complete • Halliburton’s Enterprise Risk Management group has completed an in-depth identification of enterprise-level risks • Assessments performed for 8 major operational and functional areas • 30 risk categories, based on commonality of triggers and controls • Each risk category assigned to Sr. Executive with reporting responsibility to Audit Committee Develop & Refine Risk Assessment Processes Senior Leadership Established Formal Strategy for Sustainability Assessments Updated and Validated Monitoring Processes Established Identification of Leading Risk Indicators 2005 2006 2007 2008 2009 2010 ERM 1.0 ERM 2.0

20. Enterprise Risk Management Leadership Board of Directors Halliburton Senior Management ERM Steering Committee Chairman: Sr VP & Treasurer Director Risk Management VP Internal Audit & Controls Chief Ethics & Compliance Officer Corporate Advisory Committee VP & Controller EVP Administration VP and Deputy General Counsel CIO VP Supply Chain VP Tax Operations Advisory Committee President Global Business Lines President Western Hemisphere President Eastern Hemisphere Sr Director Intellectual Asset Management Sr Director Operations Finance Subject Matter Experts (“SME”) Determined as needed ERM Working Team Risk Management, Internal Controls, Treasury, Audit, Law 20

21. Enterprise Risk Management 2.0 • ERM 2.0: In-Progress • Identification of Leading Risk Indicators • Can data can be gathered which is predictive of changing risk severity? • What 3rd party info could be used to buttress the Halliburton data? • Can the data be assimilated into a meaningful management tool? • ALP Project Scope • Pilot project involving one or two Risk Categories • Interview / poll organization to identify appropriate quantitative data • Access to Sr. Finance Management • Opportunity to interact with management across organization • Utilize 3rd party providers to augment data gathered within Halliburton • Construct dashboard identifying potential risk / control changes

22. Enterprise Risk Management – New Exposures • Formalized process for assessment of new exposures during 2009 Identify Evaluate Validate Incorporate Risk Activity to be analyzed by ERM Working Team and Subject Matter Experts Develop working document assessing risks and controls with Legal review prior to distribution Working document distributed to Advisory Committees for validation New Risk Activity incorporated into ERM Tool & monitoring plan established

23. New Risk Exposure Analysis Example • XX. Poorly designed / implemented compensation policies and practices • Description of Risk: • Designing and implementing compensation policies and practices which are reasonably likely to have a material negative impact on Halliburton. • Principal Risk Area • Non-Compliance with reporting requirements leading to restatement, fines or penalties levied by SEC or DOJ. • Improperly aligned compensation incentives leading to increased shareholder risk • Poor capital allocation choices due to misalignment of short / long term success factors • Manipulative conduct by executive management • Strategic Controls • Board of Directors Compensation Committee • Centralized Compensation Organization with global oversight • Accounting organization including External Reporting group • Disclosure Committee • Global policies and practices • Existing Controls • External Reporting group’s coordinated reporting process that includes multiple reviews by several levels of management • Disclosure Committee review of Company accounts, exposures and draft quarterly and annual reports along with the proxy • Contract Approval System with management review of capital allocation choices • Policy 3-90020 Executive Compensation Administration   • Risk Rating • Without controls, significance is _______ likelihood is _______. • With controls, significance is _______ likelihood is _______.

24. Health, Safety & Environment (“HSE”) Health & Safety Strategy Educate and Infuse Risk Management within the organization Review Global Standards and HSE Processes Involve Global HSE Team in the review of workplace Health and Safety data Develop systematic approach to managing our Employee's Driving Behavior* Environmental & Sustainable Development Strategy Maintain regulatory compliance Consistent waste management practices Meet the increasing demand for environmentally responsible chemicals Minimize resource consumption and operational costs Improve Control of returned products Develop a consistent message of "sustainability" internally and externally * Description of Journey Management Overview in Appendix

25. Health, Safety and Environment Statistics Recordable Vehicle Incident Rate – All Vehicles 2009 Year End * No industry comparables available

26. Health, Safety and Environment Statistics Employee Total Recordable Incident Rate2009 Year End * International Association of Drilling Contractors

27. Health, Safety and Environment Statistics Employee Lost Time Incident Rate 2009 Year End * International Association of Drilling Contractors

28. Additional Discussion

29. Appendix

30. Journey Management Program Purpose – Mitigate Risk and Eliminate Unnecessary Trips Individual Trip Risk Assessment Determine Driver Competency and Fit for Duty Management Approval Based on Trip Risk Level Follow Up Notification for Overdue Arrivals Early Results Deployed program in April 2009 20 U.S. Districts and 2 Russian locations fully deployed Deployed location results 102,223 total journeys tracked Vehicle Incident Rate before deployment = 0.27 Vehicle Incident Rate after deployment = 0.16

31. HSE Recognitions – Q3 and Q4 2009 Halliburton receives 2010 Diversity Leader Award from Profiles in Diversity Journal as one of top 38 U.S. based companies Kuwait Oil Company and Chevron award Halliburton with “A-Grade Contractor” designation for incident-free HSE performance Halliburton Malaysia’s Manufacturing Facility celebrates 2 years of injury-free for 214 employees Chevron Upstream Europe awards 3 UK PSLs (Baroid, Sperry and Cementing) with “Grade A” ranking for HSE performance and management systems TOTAL recognizes Congo Slickline Group for 3500 days without a lost time incident ExxonMobil recognizes Halliburton contribution on 4 projects receiving ExxonMobil’s “Nobody Gets Hurt” award