Sustainability Report - Halliburton

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look beneath the surface 2012 Corporate Sustainability Report look beneath the surface 2012 Corporate Sustainability Report

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Look Beneath the Surface

Transcript of Sustainability Report - Halliburton

Page 1: Sustainability Report - Halliburton

HALLIBURTON

281.871.2699www.halliburton.com

© 2013 Halliburton. All Rights Reserved.Printed in the USAH09979

look beneath the surface H

allibu

rton

2012 Corporate Sustainability report

look

beneath the

surface

2012 Corporate Sustainability Report

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Previous reportsIntegrating Sustainability - Expanding Our Commitment

calendar year 2011Sustainability is in Our DNA

calendar year 2010

report ParametersReporting period: Calendar Year 2012Published date of previous report: March 2012Reporting cycle: Annual Printed on FSC®-certified paper that contains 10o percent post-consumer recovered fiber. FSC® certification ensures that this paper meets Forest Stewardship CouncilTM standards for responsible forest management.

For more informationFor additional copies, please contact:

Halliburton Global Director of Sustainability 10200 Bellaire Boulevard 1NE-42A Houston, Texas 77072 United States

Email: [email protected] our GRI Index Response webpage at www.halliburton.com/sustainability

Halliburton is a publicly traded corporation registered in Delaware. There were no significant changes to the size, structure or ownership of the Company in 2012.

In this report, only the financial data encompasses all of our product service lines, countries, joint ventures and non-wholly owned subsidiaries.

This report contains descriptions of our 2012 sustainability initiatives. Wherever possible, assessments of performance trends from 2010 to 2012 are provided to better highlight the trends’ significance over time. Topics covered in this report are those most pertinent to our business sector, and they arise from the context and expectations of the sector. Our analysis of the significance of topics relates to the Company’s short- and long-term strategies, and takes into consideration:

• Issuesincludedinsurveyssenttocompaniesbysustainabilityindexesandfinancialratingagencies for the assessment of sustainability performances

• Publicinformationcomingfrominstitutions,governments,nongovernmentorganizations(NGOs) and associations, at both international and local levels

• Benchmarkanalysisandmonitoringoftheoilandgassector.

The boundaries of this report correspond to those of the 2012 Halliburton Annual Report. The data included in this report come from the Company’s official management and reporting systems for the various functions described in this document.

The 2012 Corporate Sustainability Report was drafted in accordance with the Reporting Guidelines of the Global Reporting Initiative, version G3.

report information

XX% Total Recycled Fiber

XX% Total Recycled Fiber

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Sustainability is at the core of the Company’s long-term success and embedded throughout our business.

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csr table of contents

1. stakeholder letter & overview 1To Our Stakeholders ...........................................................................................................1

Overview ................................................................................................................................. 2

2. guiding principles for sustainability 4

3. corporate governance 6Board of Directors – Statement of Purpose .............................................................. 7

Corporate Overview ...........................................................................................................8

Organizational Structure ..................................................................................................8

Chief Operating Officer ....................................................................................................9

Board Governance and Structure .................................................................................9

Ethics and Equality ............................................................................................................ 10

Policies and Business Practices ..................................................................................... 11

4. financial performance 14Financial Overview ............................................................................................................15

Financial Achievements ...................................................................................................15

5. health, safety & environment 18Our Journey to ZERO ...................................................................................................... 19

Key Achievements ............................................................................................................ 19

Ongoing Focus .................................................................................................................... 19

Halliburton Management System ............................................................................... 19

Health and Safety Performance ................................................................................. 20

Environmental Performance .........................................................................................22

Service Quality ...................................................................................................................25

HSE Awards and Recognition .......................................................................................25

Post-Macondo Activities ................................................................................................25

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6. technology, innovation & resources 26Technology Fellows Program ........................................................................................27

Technology Highlights .....................................................................................................28

Mergers and Acquisitions ................................................................................................31

Technology and Remote Operating Centers ..........................................................32

7. employees & communities 34Our Employees ...................................................................................................................35

Our Communities ............................................................................................................. 41

8. communications & reports 46Board of Directors Reports ............................................................................................47

Technical Transparency and Disclosure .................................................................. 48

HSE Transparency and Disclosure ............................................................................. 49

9. stakeholder engagement 50Shareholder Engagement ................................................................................................51

Technology Collaboration ..............................................................................................52

Employee Engagement ...................................................................................................52

Industry Engagement .......................................................................................................52

Public Engagement ...........................................................................................................53

10. GRI Index 54

II

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stakeholder letter& overview

Every Halliburton employee is expected to be attentive to our sustainability principles.

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As an industry leader in innovation and technology, Halliburton naturally sets high standards for its global operations. We strive to use our resources responsibly, and regard our Guiding Principles of Sustainability as key components to the Company’s long-term success. Sustainability is at the core of the Company’s long-term success, and it is embedded throughout our business. Halliburton continually strives to be at the forefront of corporate sustainability best practices, and this report will enable you to look beneath the surface of our operations to see how the Company conducts itself as a member of the global community.

A few examples of our accomplishments for 2012 tell the story of our exceptional results:

Increased demand for our services, combined with solid execution, led to record revenue of $28.5 billion, an increase of $3.7 billion, or 15 percent, over 2011. We delivered superior growth and returns, while strengthening our position for future growth in the years ahead.

We are making a positive environmental impact with game-changing technology. For example, our Frac of the FutureTM initiative is the most efficient and effective hydraulic-fracturing delivery system available. Our dual-fuel fleet leads the industry in making operations more efficient and less pollutive. Through ongoing innovation, we are able to reduce our environmental footprint at wellsites, maximize well productivity and reduce cost for our customers.

As part of our strong commitment to our local communities, in 2012, Halliburton provided nearly $1.8 billion in cash contributions and in-kind donations to nonprofit organizations and educational institutions throughout the world.

This report provides you with an opportunity to see the true culture of this Company. You will see how we strive to conduct our business effectively, sustainably, and with integrity. At Halliburton, every decision, action and plan is determined with sustainability as a core component. Our Guiding Principles represent the very essence of our culture.

We thank our board of directors, employees, customers, suppliers and shareholders, who have also embraced these Guiding Principles, and who are helping us achieve our global vision for sustainability.

to our stakeholders

Jeffrey A. MillerExecutive Vice President and Chief Operating Officer

David J. LesarChairman of the Board, President and Chief Executive Officer

Albert O. Cornelison, Jr.Executive Vice President and General Counsel

Mark A. McCollumExecutive Vice President and Chief Financial Officer

Timothy J. ProbertPresident of Strategy and Corporate Development

Lawrence J. PopeExecutive Vice President of Administration and Chief Human Resources Officer

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2012 highlightsFinancial

• Record revenue of $28.5 billion, an increase of $3.7 billion, or 15 percent, over 2011

• New product revenue up 8 percent to $10.9 billion compared with $10.1 billion in 2011; up 38 percent compared with 2010

Technology• We made wide-ranging advances in hydraulic

fracturing and water management.

• We continue to globalize our footprint in research and development.

Citizenship• We continue to place diversity and inclusion

alongside safety, technology and integrity – the core values that define us.

• We are building productive relationships in communities by fostering trust and ensuring mutual benefit with these groups.

Environmental• We introduced technologies, such as

our CleanSuite™ line, that improve the environmental performance of our operations.

To sustain our position as a leading energy services company, we continue to execute on our objectives to: leverage our existing strengths; improve our global platform of products, services and technology; build our presence in underserved markets; and establish a distinctive competitive position that provides sustainable growth over time. We remain committed to incorporating sustainable practices into our everyday operations to reduce our impact on the environment, and we are continuously working to build strong relationships in the communities where we work and live.

Key Strategic Opportunities: Our industry is always evolving—shifting with variable energy demands, impacted by the arrival of new technologies, seeking to discover new resources. As Halliburton responds to today’s trends and anticipates tomorrow’s challenges, our three key strategic opportunities remain unchanged: Lead in global unconventional resource development, expand our position within the deepwater market, and help customers maximize recovery from mature fields. Delivering on these key strategic opportunities provides the foundation for superior growth.

Unconventional Resources: Halliburton has an enviable position in unconventional gas and oil development in North America. Globally, 2012 was a successful year for expansion in unconventionals, and included the rollout of our Frac of the FutureTM initiative. Setting new standards for efficient and effective hydraulic fracturing delivery systems, Frac of the Future maximizes well productivity and helps reduce cost per barrel of oil equivalent (BOE) for our customers. In addition to providing services on several of the first commercial unconventional wells in Australia and China, we expanded our service footprint in key markets such as Saudi Arabia, Mexico and Argentina.

Deepwater: In deepwater, we made significant investments in infrastructure to support our position in deepwater formation evaluation and reservoir analysis. We secured key contract wins and made market share gains in areas such as Malaysia, Mozambique, Tanzania, Kenya and Brazil. Our value proposition for deepwater remains centered on reducing risk for our customers by providing comprehensive, accurate data to help them better characterize their reservoirs, and by improving reliability and integrity in well construction and completion activities. As new deepwater rigs are delivered over the next few years, we believe our deepwater technology portfolio, expanding market position, and service quality reputation will improve our competitive position.

overview

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Mature Assets: In mature fields, we continue to build our capabilities, focusing on improving our customers’ production, improving recovery rates, and providing solutions that optimize performance over the life of the field. We apply our consulting expertise in geology and geophysics to the distinctive challenges of mature assets.

We have seen great success in the critical acquisitions we made in the areas of specialty chemicals and artificial lift. These investments, along with those of our Boots & Coots product service line, have enabled us to more than double our mature field business over the last two years.

Technology and Innovation: Underpinning our strategies is a continued investment in new technology. We have more than doubled our technology spend over the last few years, and, in 2013, we expect to continue the trend of growing technology spending at a rate faster than revenue growth. We continue to globalize our research and development footprint. All these steps are designed to accelerate and deepen our ability to provide pragmatic technology solutions to our customers.

We support our technology strategy by globalizing our technology footprint, using regional technology centers (often co-funded with customers) to solve regional problems, and creating a series of technical-solutions teams staffed by experts. These efforts help ensure that we can execute consistently wherever we operate around the globe.

Integration: Halliburton is a leader in providing what our industry refers to as “integrated solutions” – the ability to provide services that customers require through collaboration among our product service lines in common workflows.

Employee and Community Investment: Consistent with our strategy, we are committed to building the kind of productive relationships that will help ensure our success and endurance well into the future. We are proactively working with communities (comprising of governments, families and businesses) to foster trust and ensure mutual benefit with these groups in the communities where we have a presence.

We participate in dialogues with governments and community organizations in answering questions and providing clarity around issues and concerns that arise as we build operations in a community. We seek out opportunities to demonstrate that we are as diligent in corporate citizenship as we are strong and prudent in business.

We take to heart the well-being of our employees. Our Companywide emphasis on safety, our extensive training programs, our quality-of-life benefits – all these are ways we maintain and develop the one asset that makes every success possible: the world-class Halliburton team.

2012 highlightsAwards

• For the third consecutive year, Halliburton was named to the Dow Jones Sustainability Indexes in the Global Oil Equipment and Services sector.

• Halliburton received World Oil awards in two categories:

The Frac of the Future equipment suite won in Best Health, Safety, Environment/Sustainable Development Onshore.

DecisionSpace® Well Planning software won in the Best Visualization and Collaboration category.

• The Company also garnered eight nominations from World Oil for leadership in innovation and technology.

• Fortune magazine named Halliburton to its annual “World’s Most Admired Companies” list for 2012.

Transparency • We are providing information in a transparent

manner and are striving to become a model for our sector.

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financial performanceDeliver superior value for our shareholders

To outperform our competitors by delivering superior growth, margins and returns to our shareholders

Pr

inc

iPl

ein

Te

nT To advance on our “Journey

to ZERO” health, safety, environment and service quality incidents

safety and environmental responsibilityConduct operations that are safe and environmentally responsible

As we work with our customers and suppliers to develop global energy resources, sustainability is an integral part of our business strategy. our innovative technologies and our operational experience and expertise are enabling us to favorably impact our environmental footprint and improve our management of the risks and social challenges that are inherent in our industry.

our principles provide the foundation and the structure on which we are building our Company’s future. it is, therefore, important that we match our principles with action. For each principle, we have a clearly defined intent.

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guiding principles for sustainability

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s $28.5 billion in total revenueOn the strength of our international business, Halliburton delivered industry-leading revenue growth and record total revenues of $28.5 billion, an increase of $3.7 billion, or 15 percent, over 2011.8 percent increase in new product revenueNew product revenue up 8 percent to $10.9 billion, compared with $10.1 billion in 2011, up 38 percent compared with 20105 out of 13In operating income, we set records in our Latin America Region and in five of our 13 product service lines.

15 percent improvement in TRIR15 percent improvement in total recordable incident rates (TRIR); this TRIR performance is the Company’s best since 200930 percent reduction in LTIR30 percent reduction in our lost-time incident rate (LTIR)MOC rolloutIn 2012, the Management of Change (MOC) process was rolled out to the organization.6 percent decrease in emissionsWe decreased our global carbon dioxide emissions by 6 percent in 2012.

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To be a preferred employer and make a positive impact in the communities where we live and work

global citizenshipEnhance the economic and social well-being of our employees and the communities in which we operate

To provide our stakeholders with thorough and timely information on our progress

transparencyBe transparent in reporting and validating our progress

To develop technological solutions that give our customers economic access to new hydrocarbon resources and maximize the value of their existing assets

technology and innovationLead the industry in innovation, technology development, and conscientious stewardship of global resources

To actively communicate with key stakeholders to help achieve mutual objectives whenever possible

mutual collaborationEngage our stakeholders to help achieve results that are compatible with our stated principles

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$3.4 millionIn 2012, employees in 17 participating countries pledged more than $3.4 million to assist their local communities.$1.7 BillionHalliburton made in-kind donations of software through the Landmark Software and Services product service line with a value of $1.7 billion.$2.6 millionIn 2012, the Halliburton Foundation contributed more than $2.6 million to schools.

global systemIn 2012, we began harmonizing our material safety data sheet system using the new United Nations Globally Harmonized System of Classification and Labeling of Chemicals.74,844The Halliburton website houses 74,844 documents – a valuable source of information for the public, our employees and our customers.

3,224 and 2893,224 active U.S. patents, 289 of which were granted in 2012Frac of the FutureTM

We elevated our service offering by rolling out our Frac of the Future initiative.1515 research and development technology centers spread throughout the world.new frontiersWe provided services on several of the first commercial unconventional wells in Australia and China.

220 – 118 – 15Our second annual Supplier Day was held in 2012; the event drew 220 representatives from 118 suppliers in 15 countries.> 40,000Since going live in October 2010, our Hydraulic Fracturing microsite has had more than 40,000 homepage visits and approximately 164,000 total page views by external visitors.9Company executives participated prominently in nine major industry-related events in 2012.

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corporategovernance

Guiding the Company in its business, and in its way of doing business

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Board of Directors – Statement of PurposeAs members of the Halliburton board of Directors, our job is simply defined: Guide the Company in its business, and in its way of doing business. However, our accountability goes beyond the decisions and choices we make today. by overseeing and directing the Company’s performance in fulfilling its responsibilities to communities, shareholders, employees and the environment, we guide the Company along the path to sustainability.

Key measures of our effectiveness are contained in this report: the Company’s progress in building a diverse workforce and supplier base; recognition, such as its top rating from the Dow Jones Sustainability Indexes; and the integration of sustainability into its business strategy, as well as into its performance management system.

As social and environmental factors become increasingly important to shareholder value, their impact on Halliburton’s long-term success broadens. On behalf of all stakeholders, it is our purpose and intent to ensure that the impact continues to be positive and substantial.

NANCE K. DICCIANIRetired President and Chief

Executive Officer, Honeywell International Specialty

Materials

ABDALLAH S. JUM’AHRetired President and Chief Executive Officer of Saudi

Arabian Oil Company

DAVID J. LESARChairman of the Board,

President and Chief Executive Officer of

Halliburton since 2000

MILTON CARROLLChairman of the Board,

CenterPoint Energy, Inc.

JAMES R. BOYDRetired Chairman of the

Board, Arch Coal, Inc.

ALAN M. BENNETTRetired President and Chief

Executive Officer, H&R Block, Inc.

DEBRA L. REEDChairman and Chief

Executive Officer, Sempra Energy

ROBERT A. MALONE President and Chief

Executive Officer, The First National Bank of Sonora,

Texas

MURRY S. GERBERRetired Executive Chairman

of the Board, EQT Corporation

S. MALCOLM GILLISUniversity Professor, Rice

University since 2004; President, Rice University,

1993-2004

J. LANDIS MARTINFounder and Managing

Director, Platte River Ventures, LLC.

corporate governance

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Corporate OverviewHalliburton is one of the world’s largest providers of products and services to the global energy industry. it has corporate headquarters in Houston, Texas, and Dubai, united Arab Emirates, with more than 72,000 employees representing 140 nationalities in more than 80 countries. The Company serves the upstream oil and natural gas industry throughout the life cycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, to well construction and completion, and optimizing production through the life of the field.

Halliburton was founded in 1919 by Erle P. Halliburton as a cementing company, and it has extended its scope of services in the oil and gas sector over the years. In 2007, Halliburton spun off Kellogg, Brown and Root (KBR), the contracting, engineering and construction unit of the Company, to focus exclusively on energy services.

Organizational Structure Halliburton comprises 13 product service lines (PSLs) that operate in two divisions: Drilling and Evaluation, and Completion and Production. Our Consulting and Project Management PSL works across both divisions and is the spearhead of our integrated-services strategy. Its financial results are included in the Drilling and Evaluation Division. PSLs are primarily responsible and accountable for strategy, technology development, process development, people development and capital allocation.

The Company is organized into four regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. The regional teams, with their close knowledge of customers and local conditions, are primarily responsible for sales, and for the execution of our services and service quality (SQ). They share with the PSLs the responsibility for executing our health, safety and environment (HSE) strategy.

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product service linesDrilling and Evaluation Division

Baroid

Drill Bits and Services

Landmark Software and Services

Sperry Drilling

Testing and Subsea

Wireline and Perforating

Completion and Production DivisionArtificial Lift

Boots & Coots

Cementing

Completion Tools

Multi-Chem

Production Enhancement

Supporting Both DivisionsConsulting and Project Management

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Chief Operating OfficerIn 2012, Halliburton created the position of Chief Operating Officer (COO). With the Company’s recent growth, this role will centralize execution of our day-to-day operations and business strategy. In addition to operations, the position oversees the business development; marketing; and HSE aspects of Halliburton operations, and reports directly to the Company’s Chairman, President and Chief Executive Officer.

Jeff Miller was appointed to Chief Operating Officer, after 15 years with the Company. Prior to this appointment, Miller served Halliburton in the roles of PSL Vice President, Country Vice President for two different countries, Senior Vice President of the former Gulf of Mexico Region, and most recently, Senior Vice President of Global Business Development and Marketing.

Board Governance and StructureBoard and Diversity Our board of directors provides broad oversight of the management and governance of our Company. In 2012, Halliburton’s board of directors comprised 11 members. All directors stand for election at our annual meeting of shareholders, and all directors are independent as defined by the New York Stock Exchange guidelines, except the chairman of the board. The board of directors has determined that, at this time, the interests of our shareholders are best met through combining the positions of chairman of the board and chief executive officer (CEO). This decision is reviewed annually. The board retains the authority to separate the positions of chairman and CEO, should it deem that change to be appropriate in the future.

Halliburton and its board of directors are committed to maintaining diversity in gender, race, ethnicity, experience, expertise and nationality. The board’s Nominating and Corporate Governance Committee annually reviews the Company’s director criteria and the composition of the board of directors to evaluate skills, experience, qualifications, diversity profiles and talents to ensure breadth of perspectives. The committee also performs assessments of the board, committees and directors. The assessment examines directors’ skills and their contributions to their committees and the board as a whole. Halliburton holds annual elections for the entire slate of directors, which is proposed by the Nominating and Corporate Governance Committee and affirmed by the full board of directors. The committee considers recommendations from shareholders and directors, and also engages a third-party executive-search firm to identify appropriate director candidates.

Board Oversight and Committees The board of directors is guided by the Halliburton Corporate Governance Guidelines, which are reviewed annually. This regular review ensures that the guidelines are timely and comprehensive, and that they effectively support the board’s oversight and accountability on behalf of all stakeholders. Corporate citizenship, governance and corporate sustainability topics are routinely reviewed at the board and committee meetings. (In fact, in support of

world’s most admired companiesFortune magazine named Halliburton to its annual “World’s Most Admired Companies” list for 2012. Halliburton is rated as fourth in the world for the “Oil and Gas Equipment Services” sector. Companies are evaluated based on innovation, people management, social responsibility and global competitiveness, among other attributes. The rankings are based on a survey of about 15,000 senior executives, outside directors and industry analysts.

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the Company’s commitment to sustainability, the board now uses an electronic portal as its source for board and committee materials, substantially eliminating the use of paper.) The board and committees also carry out ongoing reviews of HSE performance, financial results and current risks facing the Company. In 2012, the board of directors met six times, and our Audit, Compensation, Nominating and Corporate Governance, and HSE committees met between four to eight times. All directors have the ability to call executive sessions or to request a special meeting of the board or a committee.

Communication with Board of DirectorsHalliburton management and our board of directors encourage open and transparent communication with shareholders and employees. On the Corporate Governance page of the Halliburton website, we list phone numbers, a physical address, and a link for email to facilitate communication. In 2012, there were 14 instances of stakeholder communication with the board.

Executive CompensationInvestment in our workforce is the key to Halliburton’s success. We believe that success results from individuals and teams working together toward the same vision, with a common culture and strongly held principles that are directed toward enhancing shareholder value. To attract and retain the best people, we apply this philosophy to compensation for all employees.

Halliburton’s executive compensation program features market-driven compensation within a common, total-compensation framework, with flexibility to accommodate varied business drivers and objectives among Halliburton’s business units. Our executive compensation includes a base salary, a balanced mix of long- and short-term incentives, supplemental discretionary retirement, and benefits. This program is regularly reviewed to ensure that it supports the Company’s strategies and generates value for our shareholders. Additional information is published in our proxy statement.

Ethics and EqualityHuman Rights and Ethical BehaviorHalliburton and its board of directors support universal human rights as defined by the United Nations Universal Declaration of Human Rights, and are committed to preserving these rights for our employees in all locations where we operate. We believe it is the primary responsibility of local governments to safeguard and protect basic human rights. However, as an employer of a multinational workforce, we implement and enforce our Code of Business Conduct (COBC)and all employee policies that promote ethical and lawful behavior. We believe that all employees should be treated with dignity and respect, and individuals who fail to follow this principle are held accountable. To ensure compliance with these standards of conduct, we provide training and conduct audits, and we make available various avenues for reporting violations, including our Ethics Helpline.

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52Halliburton has 52 Local Ethics Officers in 38 countries.

24/7The Ethics Helpline is available to employees 24 hours a day, seven days a week.

2,588Halliburton issued 2,588 Applause awards related to outstanding behaviors in ethics.

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Rewarding Outstanding Ethical BehaviorThe Applause program, which was implemented in January 2012, invites all employees to recognize colleagues who exhibit outstanding performance in one of four designated categories. One of the categories is Ethical Behavior, which is a Halliburton core value and a nonnegotiable condition of employment. In 2012, the Company distributed 2,588 ethics-related Applause awards representing a value of $280,000.

Policies and Business PracticesCode of Business ConductOur Code of Business Conduct comprises 17 policies that set forth the framework in which we operate. It addresses the standards, principles, laws and regulations that impact our business, and delineates our expectations as they relate to employee behavior. The COBC also designates potential consequences for violations of these policies – disciplinary action, up to and including termination. This Code applies to all employees, management, officers and directors of the Company.

We provide a summary of the COBC in 13 languages, along with a website on our intranet that includes the COBC, a summary, articles, examples and training materials. Extensive training – classroom or online – is available to all employees. A basic course on the Code of Business Conduct must be completed by all employees every other year. Managers are required to complete an hour-long course annually.

Employees have access to the Ethics Helpline for advice on difficult situations and to report any perceived violations. The helpline is provided in several languages and is available 24 hours a day, 7 days a week. Callers may remain anonymous if they prefer.

Foreign Corrupt Practices ActWe have business practices and policies that provide specific guidance to our operations personnel in order to eliminate the risk of violating the Foreign Corrupt Practices Act (FCPA). Halliburton employees are prohibited from securing contracts to the Company by paying – or offering to pay – bribes, kickbacks or any other illegal, unethical or immoral compensation or accommodation to government officials. Halliburton has a detailed process for performing a due-diligence investigation of any potential commercial agent.

Multilevel management approvals are required before any commitment can be made to hire an agent or pay any commission. The Company expects its employees to behave professionally and ethically when dealing with governmental entities or companies, and it does not accept any conduct that may cast a shadow on Halliburton’s integrity or its principles of honesty and professionalism. We provide in-person and online training on the FCPA in numerous languages. Managers and all expatriate employees are required to complete this training annually.

Code of BusinessConduct Trainingcourses completed

39,638 43,661 62,135

10 11 12

* In 2011, we trained a large number of employees, which reduced the need for the same quantity of training in 2012.

FCPA Trainingcourses completed*

7,500 11,885 8,845

10 11 12

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LEO Program Halliburton started its Local Ethics Officer (LEO) program in 2010, placing the Company on the cutting edge of best practice. In 2012, approximately 38 countries had LEOs, with a total of 52 LEOs serving globally. For the people in their assigned areas, LEOs provide a local link to the Company’s broader ethics and compliance programs. Chosen because they exhibit exemplary ethical behaviors and leadership, the LEOs receive regular updates on regulations and legislation pertinent to ethical conduct. The LEO program is under the direction of the Company’s chief ethics and compliance officer.

Nondiscriminatory TreatmentOur COBC prohibits all discrimination against any employee or applicant for employment. We are committed to providing equal opportunity to all qualified individuals in our hiring and promotion policies. We endeavor to create a workforce that is a reflection of the diverse population of the communities in which we operate. Our COBC relates to all phases of employment, and is intended to provide employees with a working environment free of discrimination, harassment, intimidation or coercion relating directly or indirectly to race, color, religion, gender, age, disability, national origin or sexual orientation. As used in the COBC, “harassment” includes sexual, racial, ethnic, and all other forms of harassment, including harassment based on disability, whether verbal, written or physical.

Minimum WageWe follow all local laws regarding employee wages, and rely on market and industry standards to frame our compensation practices.

No Child Labor Halliburton does not employ child labor. In addition, we require our suppliers to adhere to all applicable laws regarding child labor, labor, wages and working hours.

Political ContributionsAlthough we believe that public policy and legislation can, and do, significantly affect our corporate success, we do not make contributions to any political candidates. The Halliburton Political Action Committee (HALPAC) has been established and is voluntarily funded by U.S. employees. HALPAC makes contributions to political candidates in the U.S. whose views and positions best meet the interests of our employees on industry issues. HALPAC complies with all regulations and disclosure requirements.

Halliburton participates in numerous industry trade associations, whose objectives include education, enhancement of the public image, and development of best practices related to our industry. Many of these trade organizations engage in legislative activity regarding matters that affect the industry as a whole, but not on behalf of any individual member. As only one among many members of any given organization, Halliburton does not direct any legislative activities.

In an effort to provide more transparency, Halliburton discloses the HALPAC annual report and trade association dues.

2012 memberships• U.S. Arab Bilateral

Chamber of Commerce

• Greater Houston Partnership

• Texas Independent Producers Association

• National Petroleum Council

• National Association of Manufacturers

• Western Energy Alliance

• National Foreign Trade Council (U.S.)

• U.S. Oil and Gas Association

• Independent Petroleum Association of America

• Houston World Affairs Council

• Petroleum Equipment Suppliers Association

• American Petroleum Institute

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financial performance

GUIDING PRINCIPLE

Deliver superior value for our shareholders

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Financial OverviewDuring 2012, Halliburton continued the successful strategies that have enabled us to outperform our competitors in both north American and international markets, and to nearly double the size of the Company over the past three years. We delivered industry-leading revenue growth in 2012, as well as industry-leading profit growth in our international operations.

Driven by the strength of our international operations, Halliburton reported record revenue of $28.5 billion for 2012, up $3.7 billion, or 15 percent, from 2011. Total operating income decreased $578 million, or 12 percent, from 2011, largely due to market conditions that affected our production enhancement services in North America, and a $300 million charge for an estimated loss contingency related to the 2010 Macondo well incident.

In addition to industry-leading revenue growth in 2012, Halliburton delivered return on average capital employed of 15 percent. This was the third consecutive year of superior returns relative to our primary competitors.

Financial AchievementsOur accomplishments in 2012 are a reflection of our success in executing our strategy. On the strength of our international business, Halliburton delivered industry-leading revenue growth and record total revenues. In operating income, we set records in our Latin America Region and in five of our 13 PSLs.

These results come into clear focus when measured against our basic strategy: to maintain our leadership in global unconventional development, expand our position in the deepwater market, and help our customers maximize recovery from mature fields.

As the leader in unconventional development, we reinforced our position in several ways:

• We elevated our service offering by rolling out our Frac of the FutureTM initiative. (For more details, please refer to the section, “Health, Safety and Environment.”)

• We expanded our service footprint in key emerging unconventional markets, such as Saudi Arabia, Mexico, Argentina, Australia and China.

Our ability to employ the technology and experience gained in North America is an important facet of our leadership.

In deepwater areas, recent infrastructure investments have supported key contract wins and market share gains in locations such as Malaysia, Mozambique, Tanzania, Kenya and Brazil.

Our service offering is focused on helping our customers reduce uncertainty in their operations, better characterize their reservoirs, and deliver improved reliability and integrity

financial performance 2012 at a glance

In operating income, we set records in our Latin America Region and in five of our 13 product service lines.

5 200%Halliburton has more than doubled its mature field business in two years.

Total Revenue andOperating Incomein billions of U.S. dollars

$18.0 $24.8 $28.5

10 11 12

$3.0$4.7 $4.2

■ revenue■ operating income

Return on AverageCapital Employedpercentage per year

15% 19% 15%

10 11 12

2012 revenue increased $3.7 billion, or 15 percent, over 2011.

+15%+8%New-product revenue up 8 percent to $10.9 billion, compared with $10.1 billion in 2011, up 38 percent compared with 2010.

Halliburton delivered industry-leading revenue growth and record total revenues of $28.5 billion.

$28.5B

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financial performancecontinued

in well construction. This is our essential value proposition in deepwater work. As new-build deepwater rigs come into service, our deepwater technology portfolio and reputation for service quality will help us strengthen our market position in this segment.

In mature fields, we saw great success with the critical investments we made in specialty chemicals with the Multi-Chem PSL and with our new Artificial Lift PSL. With these investments and our Boots & Coots PSL, we have more than doubled our mature field business since 2010.

Over the last few years, we have more than doubled our investments in technology, which is a critical focus in all three of these key strategic areas. We will continue to build on the strong platform that these three key areas provide, ramping up on our wins, gaining market share in regions where we have made strategic investments, and introducing new technologies.

Battle Red, our internal improvement program, is having an ongoing impact on our organization, our financial strength and our environmental performance. Battle Red is a Companywide effort to centralize, automate and streamline our processes and operations, with the objective of lowering costs and boosting our competitive advantage in North America (and, in the future, globally). Its key accomplishments include: increasing focus on adherence to established processes, resulting in improved environmental performance; centralizing all billing; implementing ClickSchedule, a Web-based scheduling tool that handles all job-scheduling functions in one system; establishing a mobile platform of smartphones and special mobile applications; and the Halliburton Sales Framework, a comprehensive new business acquisition process that reduces errors and speeds payments from customers. The changes Battle Red is implementing provide stronger and more responsive support for our growth in the key strategic areas.

Building, growing, strengthening – this is our strategy, and it is the foundation for sustainable financial well-being.

$17,380 $11,123

2012 Divisionrevenue and operating incomein millions of U.S. dollars

A B

$3,144$1,675

A completion & productionB drilling & evaluation■ revenue■ operating income

$16,004 $3,694 $4,510

2012 Regionrevenue and operating incomein millions of U.S. dollars

A B C

$2,940

$599 $593

$4,295

D

$687

A north americaB latin americaC europe/africa/cisD middle east/asia■ revenue■ operating income

HAlliburTon 2012 CorPorATE SuSTAinAbiliTy rEPorT

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health, safety & environment

GUIDING PRINCIPLE

Conduct operations that are safe and environmentally responsible

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Our Journey to ZEROHalliburton launched our “Journey to ZEro” program in 2011 with the goal of ZEro safety incidents, ZEro environmental incidents and ZEro nonproductive time. Through this initiative, we have successfully mobilized employees at all levels of the organization to engage in this ZEro vision.

We made progress toward ZERO in 2012, and saw improvements in our incident rates year-over-year. However, we are saddened to report that we had four fatalities in 2012, three of which were vehicle related.

With increasingly complex wells in difficult and remote operating locations, the need for robust execution of safety and risk management processes is even more crucial.

Key Achievements• While short of ZERO, we saw a 15 percent improvement in our total recordable incident

rate (TRIR); a 30 percent reduction in our lost-time incident rate (LTIR); and a 4 percent reduction in our recordable vehicle incident rate (RVIR). This TRIR performance is the Company’s best since 2009.

• Verification audits effectively progressed from evaluating simple compliance to assessing process sustainability and effectiveness.

Ongoing Focus• While health and safety incident rates improved overall, repeat incidents and those

caused by lack of process adherence continue to inhibit our Journey to ZERO.

• Our total environmental incident rate (TEIR) increased by 13 percent. The bulk of environmental incidents were small spills. With the addition of the Multi-Chem product service line, our chemical exposure has increased.

Halliburton Management System The Halliburton Management System (HMS) is the repository for our processes. This includes all key processes relating to process safety, personal safety, management of change, and stop-work authority. HMS is a critical component of our ability to deliver services that are safe and environmentally responsible. Solid work-level processes and procedures in HMS help employees work consistently and effectively.

Frequent and thorough audits are integral to the HMS system. In 2012, HMS audits were formally initiated.

health, safety & environment 2012 at a glance

making it to ZEROThailand Wireline and Perforating crews completed 10 years of work for a key customer in Thailand with zero health, safety or environmental incidents. Crews typically worked every day, around the clock, in two 12-hour shifts, with new tools and services constantly being introduced, and with activity steadily increasing over the 10-year period.

Angola Halliburton crews in Angola marked 10 million work hours without a lost-time incident (LTI) while working for Chevron on both offshore and onshore projects over the past 10 years. Using Behavior-Based Safety processes, Hazard Observation Cards, accurate Key Performance Indicators and Stop Work Authority has been central to this outstanding safety record.

4%4 percent reduction in our recordable vehicle incident rate (RVIR)

6%Our global carbon dioxide emissions have decreased 6 percent year-over-year

30%30 percent reduction in our lost-time incident rate (LTIR)

15%15 percent improvement in our total recordable incident rate (TRIR); this TRIR performance is the Company best since 2009

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International Organization of Standardization (ISO) certification represents a distinct competitive advantage. HMS is compliant with industry standards (ISO 9000, ISO 9001, ISO 14000, ISO 14001, OHSAS 18001, API Q1, API Q2 and API RP 75), and it has been approved by Bureau Veritas, a registrar for these standards.

Many Halliburton locations and operations around the globe have been ISO certified according to business requirements. Facilities in Halliburton’s Latin America Region continues to achieve this certification. The Company’s manufacturing facility in Duncan, Oklahoma, was recertified in 2012, marking its 28th year of certification.

Health and Safety PerformanceIncident Investigation and CausesHalliburton conducts rigorous HSE incident investigations. Incidents are ranked using a statistical Risk Rank matrix that factors in severity and consequence. Additionally, a near miss is any incident where the potential for personal injury, property damage or adverse environmental impact was present, even though there was no injury, damage or impact due to timing or distance. If the conditions in a near-miss incident have the potential to result in serious personal injury, property damage or adverse environmental impact, we classify this as a High-Potential (HIPO) incident.

Investigating and determining root causes of near misses and HIPO incidents enable us to identify and fix behavioral, process or equipment issues before they result in incidents. HIPO incident investigations showed that the most frequent root cause of these types of incidents continues to be failure to follow process. The next most frequent cause was equipment failure. We continue to review and update HMS to incorporate operational learnings on process safety, and we incorporate these in the training of our employees on our HMS processes.

Vehicle ActivitiesVehicular travel continues to be the work activity that presents the highest risk to our employees. We provide defensive-driving training, evaluate risks by using our established journey-management procedures, and deploy in-vehicle monitoring systems to monitor driver behaviors. These tools help us eliminate unnecessary trips, and provide opportunities to mentor and coach our employees on proper driving behaviors and skills.

Stop Work AuthorityWe continue to encourage use of our global Stop Work Authority (SWA) program. SWA gives all employees and contractors the authority and the responsibility to stop a task without fear of reprisal if they observe an unsafe action or condition at a worksite, or have concern regarding the control of an HSE risk. This program is designed to prevent incidents from occurring, to ensure that stop work actions are reported and follow-up actions are completed, and to recognize proactive participation in our safety culture. In 2012, a total of 2,347 SWAs were initiated. We believe this large number indicates the positive impact of this ongoing effort.

health, safety & environmentcontinued

5 7 4

Fatalitiesper year

10 11 12

■ contractors■ employees

12

1

■ International Association of Drilling Contractors (IADC) industry average

Total Recordable Incident Ratesper 200,000 work hours

0.83 0.94 0.80 0.88

10 11 12 12

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Management of ChangeIn 2012, the Management of Change (MOC) process was rolled out to the organization, and it is now the standard method for controlling change-related risk. Similar to SWA, MOC is a means of empowering our employees and key stakeholders to actively contribute to our success. Because all operational and process changes have the potential to cause disruption or to create a new hazard, it is important that these changes are reviewed, planned and approved before they are made. Therefore, MOC is a powerful tool on our Journey to ZERO.

The MOC process may be initiated internally or by external parties, including customers, subcontractors, regulatory bodies, or other entities that have an established interest in, or relationship with, the Company. In this first year of implementation, a total of 1,425 MOCs were initiated. This high participation number reflects acceptance of the program value by both the Company and its stakeholders. We will continue to emphasize MOC and embed it into our culture.

HSE Critical Focus AreasIn 2012, we increased our focus on the processes that present the most significant risk for HSE, process safety, and service-quality incidents in our operations. These areas are:

1. Barriers: The physical measures (such as packers, plugs, drilling fluids or cement) that prevent gas or oil from flowing into the wellbore from the formation and traveling to the surface

2. Hydrocarbons to the surface: Flow of gas or oil to the surface during activities such as well testing or well cleanup operations

3. Trapped pressure: Equipment in which a release of pressure could occur (for example, discharge iron, lab machinery, blowout preventers, pipelines, hoses, tanks or silos)

4. Well collision: The potential, during drilling, for collision with an existing wellbore

5. Radiation and explosives: Any surface activities involving a radioactive source or explosive material

The initial effort around these HSE Critical Focus Areas centered on establishing that all related HMS documents were current, clear and practical.

The next step was to achieve awareness, competency and execution of these processes. In 2012, our Process Assurance team conducted global workshops for managers and employees, communicating what the critical processes are, and which processes relate to their work.

Because managers have a responsibility to discuss the focus areas with their employees to create awareness, we have established a process for managers. The Management Process Execution Assessment is performed during visits to operational locations to identify areas of progress and areas in which improvement is needed.

■ International Association of Drilling Contractors (IADC) industry average

Lost-Time Incident Ratesper 200,000 work hours

0.28 0.30 0.21 0.26

10 11 12 12

Near-Miss Incident Ratesper 200,000 work hours5.4 5.0 5.0

10 11 12

customer rewards employee’s safe work practiceA member of Halliburton’s Wireline and Perforating team in Thailand was recognized by a key customer for his outstanding safety action. The wireline supervisor on location noticed that an inadequate sightline between the two critical parts of the operation made it impossible for signals to be clearly understood. He invoked his stop work authority and recommended using a radio to communicate the test results. The customer agreed and the job came to a halt while the employee obtained the radio.

Recordable Vehicle Incident Ratesper million miles traveled

0.50 0.51 0.49

10 11 12

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Environmental PerformanceReducing energy consumptionHalliburton is making an ongoing effort to reduce its consumption of energy and natural resources. We have developed industry-leading equipment and services that reduce or eliminate consumption of diesel, fresh water and nonrenewable products. Additionally, several of our key construction projects meet Leadership in Energy and Environmental Design (LEED) requirements for energy reduction and other environmental criteria. We are continuously improving our performance through innovation, and we intend to lead the industry in the development of these advanced technologies.

SpillsThe number of environmental incidents increased in 2012, along with an increase in business activity. The majority of environmental incidents continue to be spills. All of these spill events result in the loss of products, and incur additional costs for cleanup and remediation. We continue to focus on the process-related causes of spills, and we incorporate useful changes into HMS. We make persistent efforts to emphasize to employees the importance of developing a ZERO culture on environmental incidents of all types.

Chemical Scoring IndexDeveloped by Halliburton in 2009, the Chemical Scoring Index (CSI) is a tool used by our chemists and our clients to evaluate and compare the HSE impacts of chemicals used in various processes throughout the oil and gas business. The CSI system profiles and numerically ranks the hazards of chemical products commonly used in oilfield services. Through this ranking system, chemicals that are more hazardous are easily identified during the selection process, and a “greener” alternative chemical – one with a better CSI score – is recommended. The CSI is based on the United Nations’ Globally Harmonized System of Classification and Labeling of Chemicals, and the CSI methodology has been reviewed and validated by an independent third party.

Dual Fuel “Dual fuel” refers to the blending of two fuel types – diesel and abundant natural gas. It has become part of our evolving Frac of the FutureTM initiative, helping to advance our drive for efficiency and reduce our environmental footprint. Dual-fuel technology decreases the consumption of diesel fuel and reduces hazardous emissions.

One key customer that is already employing Frac of the Future technologies at some of its sites is partnering with us in a pilot program in which a fully functional system is undergoing rigorous testing at a wellsite in Oklahoma. The test involves 12 dual-fuel Q10™ pumps capable of producing up to 24,000 hydraulic horsepower – a full spread that is 100 percent dual-fuel compatible.

Our work on dual fuels is attracting attention in the media. The Wall Street Journal published an article highlighting the ongoing use of natural gas by companies like Halliburton and its customers as an alternative to traditional methods. Clearly, dual fuel is a win for Halliburton, for hydraulic fracturing, for shale development, and for clean and efficient energy use.

health, safety & environmentcontinued

Total Environmental Incident Ratesper 200,000 work hours1.08 0.94 1.04

10 11 12

2012 Incident Causal Factorsfor high-potenial HSE incidents

171 16129 22

A B C D

A failure to follow procedureB equipment relatedC trainingD communications and planning

2012 High PotentialIncidents428 444 443

10 11 12

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Air EmissionsWe continually seek ways to increase the efficiency of our equipment that utilizes combustion engines. The U.S. Environmental Protection Agency (EPA) has established strict requirements called “Tier 4” standards that require new engines to have advanced emission-control technologies. Tier 4-compliant engines emit significantly fewer nitrogen compounds and particulate matter. Not only are we complying with this U.S. law within country, but we are applying these same stringent standards to new equipment issued globally. Examples of equipment that we ensure are Tier 4 compliant include Q10 pumps, gathering conveyors, and various pumping units and blenders.

LEED-Certified BuildingsConstruction continues at our North Belt location in Houston, Texas. Six buildings are currently in various phases of the review process for LEED certification. These buildings were constructed according to LEED principles, which are designed to conserve energy and water, and to reduce waste and greenhouse-gas emissions. Three buildings are planned for LEED Gold certification, and three for LEED Silver certification. Applications for certification are currently being reviewed by the U.S. Green Building Council. We expect approval on all our points, which will confirm that the buildings qualify for LEED Certification for New Construction.

Greenhouse GasesIn 2012, our global carbon dioxide (CO2) emissions were approximately 4.212 million metric tons, which is a 6 percent decrease year-over-year. We attribute this to increased efficiency in our operations. When normalized per employee, the emissions exhibit a slight increase of 5 percent. Our dual-fuel initiatives, natural gas-powered fleet vehicles, and strong technology and innovation measures will continue to yield improved efficiencies.

Hydraulic FracturingFrom time to time, questions arise about hydraulic-fracturing operations, and the extent to which this activity may affect the environment. Halliburton is making a proactive effort to keep our stakeholders fully and accurately informed about all aspects of the hydraulic fracturing process.

Hydraulic fracturing is the process of creating fractures in rock formations deep beneath the earth’s surface. These carefully placed fractures enable hydrocarbons to move more easily through the rock and into a wellbore, so that these resources can be brought to the surface and converted into valuable energy.

We generally design and implement a hydraulic-fracturing operation to “stimulate” the well, once the well has been drilled, cased and cemented. We supply the proppant and any additives used in the fracturing-fluid mixture, while our customer provides the base fluid and water. We mix the additives and proppant with the base fluids, and pump the mixture down the wellbore to create the desired fractures in the target formation.

safety spotlight: 15 years, no lost timeApril 1, 2012, marked the 15th safe year of the Halliburton completions contract with a large client – a record that encompasses 500 completions and 2,000 well interventions – work carried out in the Netherlands, the U.K., Norway and Ireland; and locations including offices and workshops, as well as land and offshore installations. This milestone – 15 years with zero lost-time incidents – is an accomplishment shared by the hundreds of Halliburton personnel who have worked safely in this client’s operations.

Hazardous WasteDuncan, Oklahoma facilityshown in tons107 142 90

10 11 12

North AmericaElectricity Usageshown in millions of kWh

311.20 335.90 323.91

10 11 12

North AmericaNatural Gas Usageshown in MMBTU

0.958 0.868 0.890

10 11 12

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In a properly constructed well, chemicals from the fluids cannot contact drinking-water aquifers, since the fracturing operations in which the fluids are used generally take place thousands of feet below the level where drinking-water aquifers are located.

In the 60-plus years during which fracturing technology has been used, there has been no substantiated evidence that fracture stimulation has resulted in contamination of underground sources of drinking water. In 2004, the U.S. EPA conducted an extensive study of hydraulic-fracturing practices, focused on coalbed methane wells and the effects on groundwater. The EPA study concluded that hydraulic fracturing of coalbed-methane wells poses no threat to groundwater.

Currently, the EPA is concluding another study of the relationship between hydraulic fracturing and groundwater that will focus on the fracturing of shale-gas wells. Public concerns regarding the presence of methane in local water supplies have been noted. Although methane gas has been found in some local water systems, these occurrences have not been linked to fracturing operations. However, a debate is under way regarding the near-surface efficacy of well construction techniques in water wells and in oil and gas wells.

Halliburton was the first service company to disclose the ingredients of our fracturing fluids on our website. On our www.halliburton.com/hydraulicfracturing microsite, we provide a disclosure section in which additives and constituents of our fracturing fluids are listed, along with some of the more common household uses for some of the constituents. The microsite also features information on our new CleanStim® fracturing fluid. Made entirely of materials sourced from the food industry, the CleanStim fluid was used in a number of fracture-stimulation treatments in 2012. In addition, operators disclose ingredients used in hydraulic-fracturing operations on the website http://fracfocus.org/. Halliburton continues to provide appropriate data to our customers, as we have for many years, in order to support their efforts to disclose relevant information on this site.

Another issue related to fracturing is whether fracturing might cause earthquakes. In properly conducted operations, the fracturing process takes place thousands of feet below the surface of the earth. As rock is fractured, weak microseismic events are created, but these are not on the scale of an earthquake. During our fracturing operations, our microseismic monitoring service provides detailed, real-time information on the fractures as they are occurring, ensuring that the fracture networks are accurately placed and closely monitored. In contrast, disposal or injection wells, which are used to dispose of various industrial materials injected under pressure, can cause low levels of seismic activity when placed close to faults in seismically active areas.

health, safety & environmentcontinued

Total Volume Spillsin cubic meters

548 678 613

10 11 12

CO2 Emissionsmillion metric tonnesof CO2 equivalent

3.887 4.467 4.212

10 11 12

CO2 Emissionsnormalized to metric tonnesof CO2 per employee

66.08 65.96 69.36

10 11 12

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Service QualityIn 2012, Halliburton made major progress in providing distinctive service quality for our customers. Nonproductive time experienced in providing services to our customers showed a significant improvement year-over-year in 2012. Additionally, Cost of Poor Quality (which reflects internal costs or rebates provided to our customers for a poor-quality product or service delivery) improved in 2012, continuing a multiple-year positive trend.

HSE Awards and Recognition Clean Air Champion Award In Texas, the Houston-Galveston Area Council and its partner, Commute Solutions, recognized Halliburton’s van pool program with a Clean Air Champion award. The award honors businesses, local governments and other area organizations that are taking steps to improve the region’s air quality.

Environmental Distinction Award, Carrollton, TexasIn Texas, the City of Carrollton’s Environmental Services Department recognized Halliburton for consistently complying with industrial pretreatment regulations for a full year. Recipients are selected by a committee comprising Environmental Services staff and a City Council representative. Halliburton was the only oilfield services company to receive the award in 2012.

Post-Macondo ActivitiesTragically, the semi-submersible drilling rig, Deepwater Horizon, sank on April 22, 2010, after an explosion and fire onboard the rig that began on April 20, 2010. Halliburton continues to work with the many organizations – such as the U.S. Bureau of Safety and Environmental Enforcement (BSEE); the Bureau of Ocean Energy Management, Regulations and Enforcement (BOEMRE); and other governmental agencies, service companies and industry authorities – that have been involved with the investigations and post-incident reviews to make sure that incidents of this magnitude do not happen again.

We work on task forces associated with the reinforcement and implementation of the new Safety and Environmental Management Systems (SEMS) and American Petroleum Institute (API) Recommended Practice-75, which went into effect in November 2011. Halliburton is represented on the board of directors of the recently established Center for Offshore Safety, which includes representatives from operators, service companies, governmental agencies and industry associations.

environmental spotlight: new electronics recycling program benefits The Nature ConservancyIn 2012, we began a program for our U.S. operations to recycle used mobile phones and other handheld electronic devices. Our Information Technology group recycles its used devices, and we extended the program to allow U.S.-based employees to recycle their personal mobile devices.

Proceeds from the recovery of rare-earth metals and other electronics components are donated to The Nature Conservancy, a nonprofit environmental organization with which Halliburton has a long-standing relationship. Since it launched in the second half of 2012, the program has already recycled 110 devices, for a total of $1,885 donated to The Nature Conservancy.

HSE Fines and Penaltiesin thousands of U.S. dollars

$3.0 $68.0 $31.1

10 11 12

Nonproductive Timepercentage per year0.93% 0.92% 0.72%

10 11 12

Cost of Poor Qualitypercentage per year0.52% 0.44% 0.40%

10 11 12

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technology, innovation & resources

GUIDING PRINCIPLE

Lead the industry in innovation, technology development, and conscientious stewardship of global resources

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Halliburton technologies have been reshaping the oil and gas industry for decades, solidifying our reputation for innovation and thought leadership. We are working to innovate at a faster rate – faster than our own historical performance, and faster than our competitors can match. We are globalizing our technology footprint, enabling us to deliver our technology solutions more effectively and to collaborate more closely with our customers on key developments. We are executing our technology programs according to a disciplined, uniform process. We have a broad scope and magnitude of innovation, supported by 3,224 active u.S. patents, 289 of which were granted in 2012.

The story of our technology accomplishments is told not only in increased new product revenue, but also in a consistent track record of meeting customer challenges. Our technological leadership equips us to continue to serve our customers better, more economically and more reliably. The passion with which we “create technology” is a reflection of our dedication to the long-term sustainability of our Company.

Technology Fellows ProgramThe Technology Fellows Program is an important aspect of Halliburton’s technology culture. “Technology Fellow” is a position earned by the Company’s highest-performing engineers and scientists. Halliburton has nine Technology Fellows, and we plan to build significantly on that number.

Technology Fellows focus on exploring the frontiers, generating ideas and creating products. They offer guidance on pursuing emerging technologies, recommending those with the potential to be industry-changing. They ensure the uninterrupted transfer of knowledge, identifying exceptional performers and cultivating a steady resource of scientists and engineers.

Technology Fellows are acknowledged thought leaders – the best in their fields – and they help build the Company’s reputation for innovation and creativity.

technology, innovation & resources 2012 at a glance

3,224Halliburton has 3,224 active U.S. patents,289 of which were granted in 2012.

6,000The recycling and reuse of produced and flowback water kept nearly 6,000 truckloads of water off roads and highways in 2012.

31MOur CleanWave® system treated 31 million gallons of water in 2012.

15research and development technology centers spread throughout the world.

SYSTEM 360™ Total Fluid Management™ systemMineral exploration often takes place in remote locations where access is difficult and efficient use of water and drilling fluids is challenging. Our Baroid team developed a customized solution: the SYSTEM 360™ Total Fluid Management™ system, used successfully on a minerals exploration project in Los Calatos, Peru. The total water consumption at that site was reduced from 13,000 gallons a day to fewer than 2,800 gallons a day – a reduction of 78 percent. The 265,000 gallons of water that were saved equated to 44 water truck trips that were not needed. When a large storm washed out the access road to the site, other companies had to shut down due to lack of water. With the use of the SYSTEM 360™ Total Fluid Management™ system, the Halliburton team was able to reuse water from spent fluid, and the drilling was completed ahead of schedule.

1.4MSandCastle® storage units helped reduce diesel fuel consumption by 1.4 million gallons in 2012.

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Technology HighlightsHalliburton has a history of industry-leading innovation. Following are some examples of key technology introductions and their impacts.

Environmental FootprintCleanSuite™ System TechnologiesOur CleanSuite™ family of products and services is designed to reduce the use and transportation of water and chemicals in the hydraulic-fracturing process.

The CleanSuite system was an Energy Institute 2012 Award winner.

• CleanStream® service uses ultraviolet light to kill bacteria in wellbores. It is estimated that we kept approximately 130,000 gallons of biocide out of our fracturing operations.

• CleanStream service won a Hart Energy Special Meritorious Award for Engineering Innovation in 2012.

• Our CleanWave® system treated 31 million gallons of water in 2012, eliminating the need for an equivalent amount of fresh water in fracturing-fluid systems.

• The recycling and reuse of produced and flowback water kept nearly 6,000 truckloads of water off roads and highways.

Frac of the FutureTM InitiativeFrac of the FutureTM is a range of products and services designed to reduce the physical footprint, capital cost and environmental impact of the hydraulic-fracturing process.

• Advanced dry polymer (ADP™) blenders enable fracturing fluids to be mixed using a dry polymer, eliminating the need for hydrocarbon-based concentrates. In 2012, use of ADP products eliminated the need for more than 30 million gallons of mineral oil in fracturing fluids and its associated transport, and saved customers an estimated $159 million.

• The SandCastle® PS-2500 vertical storage system is powered by gravity and solar power, reducing diesel fuel consumption by approximately 1.4 million gallons in 2012, and dramatically reducing emissions of CO2, CO, non-methane hydrocarbons, NOx and particulate matter.

• Our new prime-mover engines can be run on dual fuel. It is a mixture of natural gas and diesel used to power Halliburton’s Q10™ pumps. Potential benefits include cost savings for the industry and for energy consumers, new jobs, and a cleaner environment.

technology, innovation & resourcescontinued

New Product Revenuein billions of U.S. dollars

$7.9 $10.1 $10.9

10 11 12

Total Research andDevelopment Spendingin millions of U.S. dollars

$366 $401 $460

10 11 12

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Well PerformanceFlexRite® Multibranch SystemA completion technology designed to reduce the number of wellbores required to be drilled to effectively drain a reservoir

Knoesis™ ServiceDesigned to eliminate unnecessary fracturing stages and associated resource use by better understanding the subsurface geology

SandWedge® Conductivity Enhancement SystemAn aqueous conductivity-enhancement technology that replaces earlier systems with improved HSE performance, along with more operational efficiency, versatility and reliability

EquiFlow® Autonomous Inflow Control DeviceAddresses the problem of unwanted gas or water production flowing to the surface, reducing the requirement to treat, dispose of or store these fluids at the surface

• Contains no moving parts, electronics or connections to the surface; requires no intervention; and ceases flow restriction if unwanted fluid recedes

• EquiFlow® ICD was a winner of Hart’s 2012 Special Meritorious Award for Engineering Innovation and a winner of the 2012 Offshore Technology Conference “Spotlight on New Technology” Award

Wellbore IntegrityWellLock™ ResinWellLock™ resin forms a secondary barrier to the primary cement sheath in the wellbore, preventing water and gas leaks, and ensuring that hydrocarbons do not interact with any geologic formation, including aquifers.

• Used as a barrier in chemical disposal and storage wells; also used for permanent plug and abandonment, and for remediation to address annular gas flow behind casing

CleanSpacer™ III Spacer FluidBiodegradable and ecofriendly, CleanSpacer™ III spacer fluid is designed to reduce the amount of cementing equipment required on location, thus reducing our environmental footprint.

• Combines biopolymers, naturally occurring nontoxic minerals, and fresh water, and can be collected and distributed across disposal fields where microorganisms naturally found in soil degrade the components

remote operations command and control centersIn the U.S., Halliburton opened remote operations command and control (ROCC™) centers serving operations in North Dakota and the Mid-Continent, South Texas and Southeast Texas/Louisiana areas. These new centers join the Company’s Wyoming facility already serving operations in that area. This is an initiative designed to help operators further optimize completions and reduce health, safety and environmental exposure.

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Enhancer 923™ Cement AgentUnique ability to deliver early development of compressive strength to help prevent gas from being lost or migrating into aquifers

Wellbore Construction and Completion EfficiencyDecisionSpace® Desktop SoftwareComprehensive data management system to integrate data from all domains into a single unified 3D workspace; the system optimizes the use of resources, reducing risk and improving performance

• DecisionSpace® won a 2012 World Oil Award for “Best Visualization and Collaboration”

Geo-Pilot® Enhanced Dogleg (EDL) Rotary Steerable System Delivers wellbores with enhanced dogleg capability to allow faster access to horizontal sections and to improve length of reservoir section accessed, with associated production potential

• When combined with MegaForce™ drill bit technology, significantly enhances penetration rates

• Features an enhanced dogleg capability that can be used where high build rates are required or where soft formation typically limits build-rate capability

ESTMZ™ Enhanced Single-Trip Multizone Completion SystemAllows several intervals within a well to be isolated and treated with a single trip of the workstring; reduces the time and risk associated with deepwater completions

• ESTMZ™ system won the 2012 Offshore Technology Conference’s Spotlight on New Technology award

RockStrong™ Coring SystemDesigned for use in high-temperature/high-pressure environments and hard, abrasive formations, it combines anti-jamming features with the industry’s most robust coring system

• Winner of a Hart’s 2012 Special Meritorious Award for Engineering Innovation

technology, innovation & resourcescontinued

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Dual-fuel technologyDeveloped collaboratively with a customer and a key supplier, our dual-fuel hydraulic fracturing system uses our Q10™ pumps with engines converted to run on a combination of diesel and natural gas. Using the 50 percent blend, the Q10 pump can produce up to 24,000 hydraulic horsepower. We expect to deploy 12 dual-fuel Q10 pumps in 2013. Dual fuel is part of our evolving Frac of the Future initiative, helping to improve efficiency and reduce our environmental footprint.

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Mergers and Acquisitions Petris Technology, Inc.Petris Technology, Inc., is a leading supplier of data-management and integration solutions to the global energy industry. Petris gives Halliburton a capability that is unique in the industry: the ability to provide customers with unrivaled access to technical data from their reservoirs and wells. These critical data are available where and when customers need it, empowering their decision-making processes.

Object Reservoir, Inc. Object Reservoir, Inc., adds finite-element reservoir modeling technology to the offerings of Landmark Software and Services, adding to Landmark’s workflow portfolio for unconventional reservoirs. This technology uses routinely collected well data to model hydrocarbon volumes rather than simply analyzing decline curves to model more wells in less time.

Data Retrieval CorporationData Retrieval Corporation is a leading provider of interventionless well-testing products. This unique technology accomplishes pressure testing at the surface of the well without any equipment being introduced to the wellbore, which means greater efficiency for our customers’ operations. These assets round out the Testing and Subsea technology portfolio in well testing, and support the product service line’s geographical diversification strategy.

Old School Services, LLCHalliburton enhanced its pressure-control offerings with the acquisition of Old School Services LLC. The acquisition enables Halliburton to provide operators with the through-tubing equipment required to resolve production challenges in the development of unconventional resources.

Red Spider Technology Ltd.The addition of Red Spider’s Remote Open Close Technology (ROCT) enhances Halliburton’s current Intelligent Completions remote operating technology portfolio to enhance our ability to activate downhole completion devices safely and efficiently.

advanced perforating flow labThe state-of-the-art Advanced Perforating Flow Lab expands our global capabilities in perforating research, development and testing with leading-edge technologies that simulate the most extreme real-world reservoir conditions. The increased capability enables us to provide customers with unique perforating solutions that help optimize reservoir performance.

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32

technology, innovation & resourcescontinued

Halliburton’s technology centers help us undertake research and develop technologies to meet our customers’ needs. As the industry continues to expand globally, our technology centers serve the critical purpose of placing our technology teams in closer communication with our client base. Just as importantly, they provide the benefits of a workforce with greater depth and diversity in talent, educational backgrounds, skill sets and solutions.

The remote operating Centers (roCs) are internal Halliburton centers focused on service quality and process assurance, primarily supporting drilling activities. Through these centers, we have reduced cost of poor quality and minimized both nonproductive time and HSE risks. The use of roCs allows us to provide improved safety and efficiency by reducing the number of operational personnel at the wellsite, thus eliminating associated costs such as transportation.

Duncan, Oklahoma

Houston, Texas

Nisku, Alberta, Canada

Lafayette, LouisianaCarrollton, TexasAlvarado, Texas

technology centersremote operating centers

Neuquén, Argentina

Quito, EcuadorBogotá, Colombia

Ciudad del Carmen, Mexico

Anchorage, Alaska

Bakersfield, California

Casper, Wyoming

Oklahoma City, Oklahoma

Corpus Christi, Texas

Williston, North Dakota

Rock Springs, Wyoming

Bossier City, Louisiana

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Rio de Janeiro, Brazil

Dhahran, Saudi Arabia

Pune, India

SingaporeSenai, Malaysia

Beijing, China

Arbroath, ScotlandTewkesbury, EnglandBrussels, Belgium

Lafayette, Louisiana

Macaé, Brazil

Perth, Australia

Oklahoma City, Oklahoma

Nizhnevartovsk, Russia

Baku, Azerbaijan

Al Khobar, Saudi Arabia

Stavanger, Norway

Aberdeen, Scotland

Bangkok, Thailand

Balikpapan, Indonesia

Brunei

Kuala Lumpur, Malaysia

Williston, North Dakota

Bossier City, Louisiana

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employees & communities

GUIDING PRINCIPLE

Enhance the economic and social well-being of our employees and the communities in which we operate

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Halliburton innovates, achieves, grows and leads for one reason: our people. The best in the business are drawn to the wide-open opportunity they see at Halliburton, coupled with the competitive compensation plans, health benefits, work-life programs and world-class training. We have the right people to develop the right technologies and bring those solutions to the industry – and we value those people beyond any other asset.

Our EmployeesDiversity and InclusionMaintaining a diverse workforce is an integral part of Halliburton’s long-term strategy. The Halliburton community encompasses more than 80 countries, and more than 72,000 men and women possessing different educational backgrounds and representing 140 nationalities. Halliburton strives to be a diversity leader, with employees who bring a range of both knowledge and perspectives to the Company, along with a will to succeed.

Our Diversity and Inclusion GoalsHalliburton has a comprehensive strategy to make diversity and inclusion as essential to our corporate culture as safety, technology and integrity. A key focus of our efforts has been increasing gender diversity in our organization by creating an environment that supports the hiring and retention of females. While we have made some strides, gender diversity and inclusion will remain a top priority for Halliburton.

Our customers recognize the value and business benefits of a diverse workforce. They are increasingly making diversity a prerequisite for awarding business to ensure that the companies they work with are bringing them the best people – irrespective of gender, nationality or background. Hiring and retaining diverse talent has become a business imperative, and it impacts how we operate and how we win business.

Our ongoing internal campaign reminds and encourages employees to make the most of the differences in our cultures, generations and genders. The theme line, “Great minds don’t always think alike,” invites inclusion on our teams and in our Company. We continue to ensure that our branding – both internally and externally – conveys the importance of diversity and inclusion at Halliburton.

employees and communities 2012 at a glance

$3.4MIn 2012, employees in 17 participating countries pledged more than $3.4 million to assist their local communities.

diversity and inclusion: vision and mission

Vision:Recognize. Influence. Distinguish.

Mission:Respect and acknowledge the differences that enrich our workforce potential, global communities and competitive edge, while creating sustainable business results.

$1.7BHalliburton made in-kind donations of software through the Landmark Software and Services product service line with a value of $1.7 billion.

$2.6MIn 2012, the Halliburton Foundation contributed more than $2.6 million to schools.

The Dow Jones Sustainability Indexes awarded us with a perfect score of 100 in Human Capital Development for the third consecutive year.

3

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Global Diversity Leadership Training The Web-based course, “Diversity and Inclusion for Managers and Supervisors,” includes five learning areas. It is designed to enhance awareness and help leaders educate their teams on the critical diversity and inclusion factors that make a difference in our workplace.

Additionally, a mandatory “Diversity and Inclusion” field was added to the Company’s performance-management process, “People, Performance, Results” (PPR). The field was added as an option to the PPR tool to engage employees in an ongoing evaluation of our diversity and inclusion progress.

Developing Women for LeadershipAs part of our Diversity and Inclusion initiative, we have carefully assessed ways to expand and retain our talent pool, and one of the greatest areas of opportunity is among our female employees in operations, engineering, geoscience and technology. Through our succession-planning process, we have selected women in these areas who have been identified as having leadership potential. As part of the process of cultivating that potential, managers will act as mentors in fostering the career development of these outstanding employees. At the same time, Human Resources’ Senior Director of Global Diversity and Inclusion is working with global human asset managers in helping these women complete robust leadership development plans.

Enhanced PartnershipsWe participated in more than 50 global events to promote women and minorities at pre-college, college and professional (mid-career) levels. For the national convention of the National Association for the Advancement of Colored People, Halliburton was a major sponsor and hosted a booth that drew more than 1,000 visitors. The Company also sponsored the national convention of the Society of Women Engineers, which had more than 300 attendees from around the world. Halliburton sponsored the Society of Hispanic Professional Engineers’ national convention, which had more than 200 attendees, and the Company was a major sponsor of the “Women Engineers Leading Global Innovation” symposium in Bangalore, India.

Women’s Global Leadership ConferenceMore than 30 Halliburton employees attended the 2012 Women’s Global Leadership Conference in Energy and Technology, held in Houston, Texas. The conference was the largest women’s event in the industry, attended by more than 600 active oil and gas professionals. Halliburton has supported this event for several years, with executives participating in panel discussions and presentations.

Talent Management StrategyOur people create our success. They provide the innovation, expertise and superior service quality that drive our growth. In our industry, the demand for superior talent far exceeds the supply, and we face an ongoing challenge to attract, retain and develop the people who can set us apart from the competition.

employees & communitiescontinued

Employeespercent of total workforce

Europe/Africa/CIS

Middle East/Asia

North America

Latin America

10 11 12

21%

16%

49%

14%

18%

16%

53%

13%

19%

17%

50%

15%

10 11 12

Employeespercent of local nationals in the workforce

88%

72%

99%

94%

89%

73%

99%

94%

88%

72%

99%

94%

Europe/Africa/CIS

Middle East/Asia

North America

Latin America

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That’s why we have an aggressive and proactive talent-management strategy to identify potential leaders and prepare them for leadership roles.

People, Performance, ResultsEach year, all Halliburton employees agree to specific goals and objectives in several key areas: ethics; financial accountability; health, safety and environment; and diversity and inclusion. Employees work with their supervisors to create competency development plans based on established requirements for the employees’ current positions and also for possible future positions. Employees’ measurable progress toward these goals is linked to compensation, and they meet with their managers for assessments. Through ongoing review, we are finding ways to make the system more effective.

Succession ManagementAt the heart of Halliburton’s talent-management strategy is our succession-management process – a thorough assessment of leadership competencies through which we identify, develop and retain a sustainable bench of skilled leaders. The process provides a consistent and sustainable way to identify and accelerate the development of key leadership talent within the Company. It also enables us to identify areas where potential leaders may have knowledge gaps.

Talent Profile SummaryThe Talent Profile Summary tracks the progress of high-potential employees. Managers use it to complete online Succession Management Leadership Assessments and Replacement Charts. The Talent Profile summary enables employees to take control of their careers while supporting the Company’s strategic talent management goals.

Halliburton UniversityHalliburton University is a comprehensive online tool that provides a streamlined competency system. We implemented enhancements to Halliburton University in 2012 – a significant step in strengthening our approach to training, development and competency-building. Employees use this system to assess and document competency levels, and to identify the training needed to move to the next career level. The site is the central location for all career-development activities, including role-based competencies, competency assessments, technical training, and online learning.

Training and DevelopmentWe continue to invest in our employees. Halliburton has one of the most respected training programs in the industry. We offer numerous structured programs globally, including competency development; online and classroom training; career planning; educational assistance; and leadership development.

Frontline Supervisor TrainingDesigned for Halliburton supervisors, this three-day intensive course specifically addresses the basics of supervising employees in a frontline environment. Frontline Supervisor Training is mandatory for all frontline field supervisors, and is to be completed no more than 180 days after assuming the supervisory role.

diversity and inclusion awards

• Chairman, President and CEO Dave Lesar was recognized with a “CEO in Action” award by Diversity, Inc.

• Millicent Chancellor, Vice President of Finance, was named by Diversity Journal to its 2012 list of “Women Worth Watching”

• Halliburton’s Senior Director of Global Diversity and Inclusion, Cindy Bigner, was named among “Houston’s 50 Most Influential Women” by Houston Woman Magazine

• Media company On Being A Black Lawyer named Sherry Williams, Senior Vice President and Chief Ethics and Compliance Officer, to its Second Annual Power 100 List – a catalog of the most influential black attorneys in the U.S., including those in government, academics, and both the public and private sectors.

• Halliburton was named a “Diversity Leader” by Profiles in Diversity Journal for the third consecutive year.

• Women Engineer Magazine readers voted Halliburton a top employer in its sector for women engineers.

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Business Leadership Development, Levels I–IIIIn partnership with the Mays Business School at Texas A&M University, Halliburton provides advanced business leadership training through courses taught at the business school’s Center for Executive Development. The classes help prepare participants from all corners of the globe for executive-level decision making.

President’s Leadership Excellence ProgramIn this year-long development program for high-potential employees, participants work on project teams addressing specific Company-related business challenges. Each team works on its assigned project all year, analyzing, researching and formulating a workable solution, which is then presented to the Executive Committee and all the Company’s vice presidents. The best solutions are pursued for possible implementation.

Training CentersHalliburton has 14 training centers located around the world to support our global business. The Company’s experienced technical and operational employees serve as trainers, using advanced communication systems and e-learning tools to provide learning opportunities for all employees.

employees & communitiescontinued

Employee Trainingin millions of hours3.1 3.9 3.8

10 11 12

Business Leadership Development CourseNumber of Attendees

Session I

Session II

Session III

10 11 12

420

97

47

545

175

54

597

225

48

Halliburton Training CentersNorth America

Brighton, Colorado

Carrollton, Texas

Fort Worth, Texas

New Iberia, Louisiana

Corpus Christi, Texas

Duncan, Oklahoma

Houston, Texas

Latin AmericaRio de Janeiro, Brazil

Villahermosa, Mexico

Europe / Africa / CISAberdeen, Scotland

Tyumen, Russia

Middle East / AsiaAl Khobar, Saudi Arabia

Tronoh, Malaysia

Cairo, Egypt

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Employee Benefits and ProgramsHalliburton provides several programs to help employees cope effectively and constructively with issues that arise at work and in their personal lives.

Dispute Resolution ProgramThe Dispute Resolution Program (DRP) provides employees with both formal and informal processes for resolving workplace issues. Trained, independent ombudsmen work with all parties involved to resolve disputes quickly and fairly, repair damaged relationships, and foster a better working environment.

The DRP adheres to the International Ombudsman Association’s Code of Ethics and Standards of Practice, which mandates confidentiality and neutrality. The process is designed to prevent retribution in any form − in fact, evidence of purposeful retribution is grounds for immediate termination of employment. This program is available where permissible by law.

Employee Assistance ProgramThe Employee Assistance Program (EAP) helps employees and their families with referrals to resources that can support and assist them in handling a wide range of difficulties. Through our confidential process, we can provide a free assessment of the situation and discuss a strategy for addressing it. Employees can contact the EAP by phone or in person. This program is available where permissible by law. A trained professional will make a preliminary assessment and either help directly or provide an appropriate referral. Among the issues addressed by the EAP are:

• Marriage, family, eldercare, separation and divorce

• Personal tragedy, death and grief

• Legal and financial issues

• Stress, self-esteem and depression

• Alcoholism and substance abuse

Employee Wellness ProgramsPhysical health can affect job performance in dramatic ways. Poor health can cost the Company in lost time. It can affect teams by disrupting their accustomed ways of working together. Of course, it takes a toll on employees and their families. Halliburton provides a number of resources to help employees achieve their health and fitness goals.

Rewarding Innovation and ExcellenceMaximizing Value-added Performance (MVP) awards give organizations within the Company additional options for recognizing outstanding achievement by individuals or teams. These awards emphasize efforts that benefit the Company and its stakeholders.

The Applause program, which was implemented in January 2012, invites all employees to recognize colleagues who exhibit outstanding performance in one of four designated categories:

Baroid enhances training Baroid is changing both its hiring standards and its training practices, and is redesigning the way employee skills are developed and demonstrated, both internally and externally. The Baroid team is working with the University Affairs group in defining a work process to enhance the recruiting of top candidates. Additionally, we’ve revamped our technical training programs, strengthening the focus on distinctive service quality and customer intimacy skills. We are rolling out culture- and language-based training, planned for all regions and given in a number of different languages. The result is reduced time to productivity for field employees, and effective delivery of specific training to all geo-markets around the world. This updated training and development approach tightens the alignment among the needs of our business, our clients and our individual employees.

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Technology Innovation, Ethical Behavior, Safety Leadership and Service Quality. In 2012, the Company distributed a total of 43,908 Applause awards, representing a value of $4,382,042.

Adoption BenefitsIn 2012, we began providing benefits for adoption leave and adoption expenses for U.S. employees. We look forward to continued enthusiasm for this program.

Our CommunitiesInvesting in our communities – devoting time and resources to charitable causes – has been central to our corporate culture since the Company was founded. Whether it is revitalizing our neighborhoods, supporting local youth, hiring and sourcing locally, or raising awareness for the treatment and eradication of disease, Halliburton and its employees take direct and effective action to make a difference in approximately 80 countries where we have a presence. Our commitment to good corporate citizenship is a fundamental part of creating sustained value for society, for our Company, and for our stakeholders.

Corporate DonationsBy making significant donations to charities, educational institutions and many other organizations that contribute to the well-being of communities and individuals, Halliburton assumes a global stance as a generous and engaged corporate citizen. Applying our resources in this way enables us to make a tangible difference in countless lives around the globe.

In-Kind DonationsHalliburton made in-kind donations of software through the Landmark Software and Services product service line with a value of $1.7 billion. The software donations are used as learning and teaching aids, helping engineering and geosciences students gain valuable hands-on experience in new and emerging technologies that are critical to the energy industry.

• Through the Company’s University Grant Program, Halliburton donated computer equipment, software and other items to the Polytechnic School of Masuku in Franceville, Gabon. The grant included 10 desktop computers and 19-inch monitors, antivirus software and other related items. The equipment was installed in a room selected by the university and entirely refurbished by Halliburton.

• The geophysical engineering department at Montana Tech in Butte, Montana, received a three-year software grant from Halliburton, providing Landmark Software and Services products valued at more than $20 million. The grant provides industry-leading software for mapping geological formations.

MVP Awardstotal U.S. dollars in millions

$3.60 $4.93 $4.73

10 11 12

MVP Awardstotal number of awards5,003 6,399 5,797

10 11 12

2012 Applause Awards

43,908Nominations Approved

28,795,250Points Issued

$4,382,042Total Dollar Value

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Halliburton Foundation Established in 1965, the Halliburton Foundation is a nonprofit organization that promotes educational and charitable purposes, and supports education at all levels, through employee matching gifts, direct grants and scholarships. In 2012, the Halliburton Foundation contributed more than $2.6 million to schools and higher-education institutions for use in enhancing educational opportunities for kindergarten through 12th-grade levels and at institutions of higher education.

Employee GivingOur employees are defined by their energy and hard work on the job. But they are just as well known for the energy they bring to the communities where they work and live. People around the globe have come to recognize Halliburton and its employees for their desire to give back and to enhance the well-being of our neighbors.

Charitable giving is encouraged and facilitated by the Company’s employee giving program, Giving Choices. This annual program allows employees to select the charities they want to support, and the Company provides a match for all employee donations and also pays administrative costs. In the U.S., employees choose from more than 1,000 participating charities, and if their preferred charity is not on the list, they can nominate it to be included. Other countries select one key organization to receive their donations.

In 2012, employees in 17 participating countries pledged more than $3.4 million to assist their local communities. The life-changing effects of these gifts can be seen all over the globe. For example:

• By directing their donations to Fondo Unido, our employees in Mexico provided shelter, food, clothing and hope to families and communities affected by the 7.4-magnitude earthquake that struck southern Mexico.

• Employees in India support the Indian Development Foundation in its work in health, education, the empowerment of women, and other vital quality-of-life efforts.

• In the U.K., employees help Cancer Research U.K. search for a cure.

• Malaysian employees send medical help and other relief services to victims of floods, earthquakes, wars and other disastrous circumstances through their support of MERCY Malaysia.

• Halliburton Oman and its employees donated 1,700 Omani rial (approximately US$4,500) through the Company’s Giving Choices campaign. The donation went to the Al Wafa Social Voluntary Centre in Muscat in 2012. The Al Wafa center provides care and social rehabilitation programs for children with disabilities from 4 to 14 years of age, and assistance for their families.

Halliburton Charity Golf TournamentThis year marked the 19th Annual Halliburton Charity Golf Tournament. Each year, the Company partners with vendors, suppliers and employees to host this prestigious event in Houston. Over its history, this tournament has given more than $6.5 million to U.S. charities, through donations and fees from its participants.

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Employee Volunteerism Wearing our red “The Energy to Help™” T-shirts while we do volunteer work makes it easy for our neighbors to see how important it is to our employees to put sweat equity into making life better for everyone. Through our Community Relations website, employees can search for volunteer opportunities in their area or use the site to initiate their own projects and build volunteer teams.

Employees around the world have donated thousands of volunteer hours to organize fundraisers for research on devastating diseases, assist children and the elderly, participate in environmental improvement projects, and support hundreds of other community initiatives. For example:

• Halliburton employees in Taloja, India, picked up trash and cleared out debris in the area near the Halliburton facility, and were joined in the cleanup effort by residents of nearby neighborhoods. In 2012, Halliburton was honored with a Corporate Social Responsibility award from the Indian Development Foundation.

• Employees in Grande Prairie, Alberta, Canada, took part in Halliburton Grande Prairie’s Annual Ditch Pick. Halliburton volunteers picked up trash along Highway 2 in Clairmont, Alberta. After just three hours, they had filled more than 150 bags of trash.

Employees also participate in major organized events, representing Halliburton in their red volunteer T-shirts. In 2012, they participated in walks, runs, bike rides and other athletic endeavors to raise funds for charitable organizations that are fighting heart disease and stroke, cancer, juvenile diabetes, and other devastating diseases. Halliburton also provided corporate sponsorships for some of these events.

Employees plan and execute local fundraising events for charitable causes close to home. Halliburton employees in Lagos, Nigeria, collected cash, food, diapers, soap and toys to donate to the Nigerian Red Cross Society Motherless and Abandoned Babies Home in Lagos. The facility has been home to hundreds of children, and it plays an integral role in the community.

employees & communitiescontinued

2012 Corporate Givingin U.S. dollars

$2,660,372Halliburton Foundation

$1,781,747,983In-Kind Donations

$2,062,962Direct Cash Donations

$1,786,471,281Total Donations

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Supporting EducationThe Company gives extensive support to schools, universities and charitable organizations that focus on science, technology, engineering and math. As noted on page 41, we provide in-kind donations of software to schools and universities in dozens of locations.

Our donations and other gifts to educational institutions are at the heart of a broader program of relationship-building that reaches around the world. We sponsor career fairs, hold informational and recruiting events, and help in designing curriculum and providing classroom instruction. We employ interns and work with university students on special academic projects. Our relationships with these institutions are one way that we ensure a sustainable source of talented and competent potential employees.

Other ways that we have supported education include:

• The Colorado School of Mines (CSM) in Golden, Colorado, received $2.5 million from Halliburton. The funds will be used to support a sponsored research program, CSM’s Halliburton Advanced Technology Graduate Fellows Program, and the school’s new petroleum engineering building, Marquez Hall. This gift supplements the Company’s annual giving, which provides support for scholarships, diversity programs, outreach programs for kindergarten through 12th-grade students, faculty support and research.

• Our training center on the campus of Tyumen State University of Oil and Gas in Tyumen, Russia, represents a mutually beneficial arrangement involving teaching, recruiting and invaluable research opportunities.

• In addition to our donation of computer equipment, software and other items to the Polytechnic School of Masuku in Franceville, Gabon, Halliburton is initiating plans to build ties with several other educational institutions in central Africa.

• Our University Affairs team visited seven major universities in Venezuela and five key institutions in Colombia, with more visits planned in Latin America for 2013.

• We presented information sessions about Halliburton and provided introductory overviews on industry technologies and trends at several universities.

• We hosted students for “job-shadowing” experiences at Halliburton’s office facilities in Brazil.

creating jobs in Lafayette, LouisianaHalliburton’s new Completion Tools manufacturing facility in Lafayette, Louisiana, was completed in 2012. It created 160 jobs, which exceeds the 150 jobs committed to at groundbreaking in 2011. The Company estimates an annual payroll for the facility of more than $8 million (plus benefits). Additionally, the facility is expected to provide 350 indirect jobs.

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communications & reports

GUIDING PRINCIPLE

Be transparent in reporting and validating our progress

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Board of Directors ReportsThorough and timely reports to the board of directors are the key tools that enable the directors to do their work effectively. Accurate information allows the board to see the “big picture,” and to make decisions and offer guidance accordingly.

Ethics and Code of Business Conduct

Internal Halliburton individuals or groups that report regularly to the board of directors and/or to its committees are: controller; chief compliance officer; Code of Business Conduct manager; Enterprise Risk Management treasurer; Audit; Health, Safety and Environment; Legal; Tax (occasionally or regarding specific issues); Corporate Development (on specific deals or opportunities) and operations leadership (as needed).

The Chief Ethics and Compliance Officer makes an annual report to the board’s Audit Committee on issues related to ethics and the Code of Business Conduct. The committee is also informed of any fraud that has been uncovered involving $50,000 or more.

Enterprise Risk ManagementHalliburton’s Enterprise Risk Management (ERM) process is coordinated by an interdisciplinary group, headed by the treasurer, that reports to our board of directors annually. ERM projects and initiatives are carried out by the working team, which includes members of our Risk Management group, along with representatives from our Internal Controls, Treasury, Operations and Law departments. The program classifies the Company’s enterprise risks (both financial and operational) into risk categories that are assigned to corresponding risk owners, who are responsible for management and control of risks within their functions. Each function is reviewed annually to monitor risk-mitigation activities, and to identify changing risk profiles and emerging issues.

Internal AuditThe Internal Audit group formally reports to the board’s Audit Committee five times a year; each meeting includes a private session with the Audit Committee. The vice president of Internal Audit and Controls also attends the four quarterly conferences with the Audit Committee to review the 10Q/K filings. Reports include: overall audit rating trends; any significant findings or conclusions from the audits; the annual risk assessment and audit plan, and progress against the plan; head count; and conclusions on quarterly assessments of internal control over financial reporting.

Ethics Helpline and WebsiteEmployees are empowered to report any observed violation, or suspected violation, of the Halliburton Code of Business Conduct or any illegal activity. The Company provides an Ethics Helpline, administered by an independent third party and operated 24 hours a day, 7 days a week, 365 days a year, in multiple languages. Callers may remain anonymous if they prefer. The information provided by the caller is promptly forwarded to the Halliburton Code of

communications & reports 2012 at a glance

74,844The Halliburton website houses 74,844 documents, a valuable source of information for the public, our employees and our customers.

72,000Halliburton has more than 72,000 employees worldwide working in more than 80 countries.

CleanStream® unitBacteria in a wellbore can plug tanks and piping, corrode the wellbore, and even damage the formation itself. Chemical biocides pose significant health hazards, requiring specialized protective equipment and extensive training to avoid health, safety and environmental incidents.

CleanStream® service uses ultraviolet (UV) light to inhibit the growth of bacteria by rendering it unable to reproduce itself. At the end of its natural life cycle, with no way to replace the organisms, the bacterial colony is destroyed. In 2012, CleanStream service replaced the use of 129,900 gallons of biocide.

In 2012, we began harmonizing our material safety data sheet system using the new United Nations Globally Harmonized System of Classification and Labeling of Chemicals.

Global system

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Business Conduct group in Houston, Texas, for review and appropriate action. Employees (and the public) can contact the Halliburton board of directors, using information provided on the Company’s website. A toll-free phone number and a local Texas phone number are given, along with a mailing address and email address for written communication. All complaints and concerns are received and processed by the Halliburton Director of Business Conduct and are referred to either the board’s Audit Committee or the board’s lead director, as appropriate.

HSE and Sustainable Development Executive CommitteeAs head of the HSE and Sustainable Development (SD) Executive Committee, the chief HSE officer reports to the board’s HSE Committee at each committee meeting. Standing items on the agenda include annual HSE and SD strategies, significant HSE incidents, HSE statistics, a review of the HSE Audit program, and a review of sustainability efforts.

Technical Transparency and DisclosureChemical DisclosureHalliburton supports disclosure, and was the first company to disclose the composition of a hydraulic-fracturing fluid to the public. (This information can be found on the website, www.halliburton.com/hydraulicfracturing.) We have proactively developed processes that provide our clients with information on the chemical components of our hydraulic-fracturing fluids, supporting their compliance with state laws and with the standards established by the Chemical Disclosure Registry. Other key efforts include:

• Continued support of voluntary and U.S. state regulatory reporting requirements, mainly through participation in FracFocus.org, the disclosure clearinghouse sponsored by the Groundwater Protection Council and the Interstate Oil and Gas Compact Commission

• Support of Canadian reporting requirements through support of FracFocus.ca

• Halliburton’s Production Enhancement PSL has developed fully disclosable fracturing fluid systems for Australia

Chemical Scoring IndexOur Chemical Scoring Index (CSI) provides a standardized system for assessing the HSE hazards of chemicals. It is used to evaluate all Halliburton products – both those in development and those already in use – in the Production Enhancement and Cementing PSLs. Our suppliers and clients are also using the CSI in recommending and selecting products. The CSI plays a significant role in the ongoing discussion regarding the environmental safety of chemicals used in fracturing.

Global Reporting InitiativeThe Global Reporting Initiative (GRI) provides a globally recognized sustainability reporting framework that is commonly used by companies to benchmark their reporting schema. We have adopted many aspects of the GRI format in our reporting mechanisms, including an index at the end of this 2012 Corporate Sustainability Report, as well as an external website dedicated to sustainability-related performance data. The adoption of the GRI

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HAlliburTon 2012 CorPorATE SuSTAinAbiliTy rEPorT

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SandCastle® storage binsThe millions of pounds of sand and proppant used for hydraulic fracturing are usually stored in horizontal containers at the wellsite. Our SandCastle® vertical storage system uses solar energy to power the unit’s shift to a vertical position, and gravity to deliver the materials directly to a simplified mixing system.

A monitor on each unit signals a remote operations center when supplies need to be replenished. Instead of trucks waiting at a jobsite, with engines idling, supplies now come to jobsites on demand. In 2012, SandCastle units saved more than 1.4 million gallons of diesel fuel and avoided emissions of 31 million pounds of carbon dioxide.

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framework validates our reporting practices and helps us to continually improve reporting and transparency.

Chemical TransparencyThe Halliburton website stores material safety data sheets (SDS, formerly called MSDS) that provide detailed chemical hazard information on all our products. We have been very active in being transparent and informative about our chemistry. In 2012, we began harmonizing our SDS system using the new United Nations Globally Harmonized System of Classification and Labeling of Chemicals. These efforts will continue in the coming years.

The website houses 74,844 documents–50,381 Halliburton-owned SDSs in 22 languages, 17,806 vendor-supplied SDSs in 13 languages, 3,822 BARATAGs (one-page summarized SDSs) in 12 languages, and 2,835 chemical labels – all of which are easily searchable. The site is a valuable source of information for the public, our employees and our customers.

HSE Transparency and DisclosureHalliburton Safety StatisticsHalliburton posts its safety statistics for recordable injuries, lost-time injuries and recordable vehicle incidents on our website. For injuries, we use U.S. Occupational Safety and Health Administration (OSHA) definitions globally, with rates based on 200,000 hours worked. There is no widely used standard for recordable vehicle incidents, but our standard generally covers any vehicle incident where an injury occurs or where any vehicle must be towed away from the scene of the incident. Vehicle incident rates are based on 1 million miles. Updates are posted quarterly to the Halliburton website.

HSE and Service Quality Audit ProgramsHSE and SQ audits help pinpoint issues that need to be addressed and make it possible to identify and communicate best practices across the organization. Both audit programs use an evaluation system that results in audit ratings of Effective, Effective With Opportunities, or Ineffective.

Using a risk-based process of assessment, evaluation and corrective action follow-up, the HSE audit assesses operations, practices and HSE management systems throughout the Company. Additionally, it evaluates consistency with HSE responsibilities under Halliburton’s Code of Business Conduct, local and federal regulations, and Company HSE standards. Audit findings are formally reported to the appropriate levels of management and functional support teams, and corrective actions are tracked and monitored until completed. Trending of HSE audit findings is evaluated and reported to the HSE and Sustainable Development Executive Committee.

Our SQ audit process, which includes external SQ audits on our suppliers, provide a cost-effective way to continuously improve our management systems, manage risk and reduce inconsistencies in service delivery. These audits are also used to confirm that our processes are aligned, and to ensure that new processes and current HMS processes meet ISO and contractual standards (when applicable) as well as new API Q2 standards being established.

ongoing safety awardCreated in 1982, the U.S. Occupational Safety and Health Administration’s (OSHA’s) Star Program awards localized operations that utilize a comprehensive and successful health and safety management system. To be eligible for inclusion in the Star Program, an operation must demonstrate injury and illness rates at or below the national average of its respective industries. The operation must also effectively implement controls and systems in a manner that clearly establishes performance above others in the same industry. Star participants are re-evaluated every three to five years, although incident rates are reviewed annually by OSHA.

In the U.S., our Duncan, Oklahoma, manufacturing site was recertified in 2012, and thus celebrated 28 years of continuous certification. Within the United States, a total of six operations are currently certified.

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stakeholderengagement

GUIDING PRINCIPLE

Engage our stakeholders to help achieve results that are compatible with our stated principles

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Employees, customers, suppliers, host governments and neighbors all have a stake in our success. Each group has its own unique impact on our business and our reputation, and each is affected by the way we conduct ourselves in every aspect of every endeavor. We expect the Company’s relationships with these groups to be built on mutual understanding and trust.

Shareholder EngagementAs an industry leader, we are considered a trusted expert by our suppliers and customers, the financial community, and government agencies. We take that role seriously, and we participate prominently in major industry-related events throughout the year. Following are several 2012 events in which Halliburton executives made presentations, participated in panels, or had other key roles:

• Credit Suisse Energy Summit

• UBS Global Oil and Gas Conference

• Royal Bank of Canada Capital Markets Global Energy and Power Conference

• Citi Global Energy Conference

• Credit Suisse London Energy Conference

• Simmons European Energy Conference

• Barclays Capital CEO Energy-Power Conference

• Dahlman Rose and Co. Ultimate Oil Services and E&P Conference

• Capital One Southcoast 7th Annual Energy Conference

Supplier Engagement The Supply Chain team held its second annual Supplier Day, using the occasion to forge stronger relationships with key suppliers, recognize outstanding performers, and update attendees on Halliburton’s strategies, organization and purchasing values. The event drew 220 representatives from 118 suppliers in 15 countries, and included strategy presentations by top Halliburton executives, awards and recognition, and breakout sessions for networking and further discussion.

Customer Engagement Customer relations for major accounts are coordinated through assigned global account managers. These individuals are responsible for developing strategies, managing conflict resolution and contract negotiations, facilitating the development and implementation of new technologies, and handling communication between Halliburton and the account organization − activities that contribute to stronger, more productive business relationships.

stakeholder engagement 2012 at a glance

Halliburton held its second annual Supplier Day in 2012; the event drew 220 representatives from 118 suppliers in 15 countries.

Society of Petroleum Engineers Distinguished LecturerRobello Samuel, a Halliburton Technology Fellow for Halliburton’s Landmark Software and Services product service line, was named a Distinguished Lecturer by the Society of Petroleum Engineers (SPE) for 2013-2014. He will visit SPE chapters worldwide to deliver a lecture on drilling engineering, titled “Technological Advancements to Meet Drilling Challenges in High-Angle and Horizontal Wells.” Key ideas from his talk include the importance of “pushing the boundaries,” and the equal importance of carefully and thoroughly understanding the challenges of horizontal drilling. As one of Halliburton’s nine Technology Fellows, one of Samuel’s roles is to meet and network with industry experts around the world.

15 40,000Since going live in October 2010, our Hydraulic Fracturing microsite has had more than 40,000 homepage visits and approximately 164,000 total page views by external visitors.

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Technology CollaborationShale Technical Centre of ExcellenceHalliburton and a major client in Malaysia signed a Framework Agreement for the evaluation and development of global shale resources. This collaboration will enable the customer to speed development of its in-house capability by leveraging Halliburton technology and experience in the North America shale industry. Additionally, Halliburton will work with the customer to establish a Shale Technical Centre of Excellence in Kuala Lumpur.

Employee EngagementEach year, we bring together approximately 1,000 employees from all over the world – rising stars, as well as veterans – for intensive training on our top technologies, for marketing and sales training, and for strategy briefings from corporate officers, hemisphere presidents and regional vice presidents. Halliburton Academy is the occasion for this giant knowledge transfer. In 2012, more than 1,000 employees, including 520 first-time attendees, were challenged to aggressively grow Halliburton’s business by “Growing Together” – collaborating and integrating solutions across product service lines, regions and disciplines. Our shared goals included increasing revenues and margins, improving execution, and fostering a more compelling sense of competitive urgency.

Industry Engagement Halliburton engages with the industry and technology leaders to forge relationships that promote the advancement of science and technology.

The Company’s 2012 memberships included:

U.S. Arab Bilateral Chamber of Commerce U.S. Oil and Gas Association

Greater Houston Partnership Independent Petroleum Association of America

Texas Independent Producers Association Houston World Affairs Council

National Petroleum Council Petroleum Equipment Suppliers Association

National Association of Manufacturers Society of Petroleum Engineers

Western Energy Alliance American Petroleum Institute

National Foreign Trade Council (U.S.)

Global Environmental Management InitiativeHalliburton was selected to host the annual meeting of the Global Environmental Management Initiative (GEMI) at the Company’s Houston headquarters. The GEMI is a nonprofit organization of leading companies dedicated to fostering health, safety and environmental excellence and environmental sustainability worldwide. The organization facilitates and encourages the sharing of tools and information to help businesses achieve these goals.

stakeholder engagementcontinued

Diverse Business Expenditurespercent of global spend

15% 9% 12%

10 11 12

HAlliburTon 2012 CorPorATE SuSTAinAbiliTy rEPorT

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Public EngagementHydraulic FracturingHalliburton continues to work with state legislators and regulators and with the public on providing an unprecedented level of transparency regarding the fracturing process. Rules adopted in Texas and Colorado in 2011 provide the public with in-depth information on hydraulic-fracturing systems, while still allowing Halliburton to continue to provide our customers with the best technologies and products.

Our involvement in this issue has extended to over 50 groups in the U.S., Europe, Australia and South Africa, including industry groups, policy writers, universities, regulatory agencies, and public forums and panels. Halliburton has been a contributor to the FracFocus website, FracFocus.org, which is a joint project of the Groundwater Protection Council (GWPC) and the Interstate Oil and Gas Compact Commission. We are working with the GWPC to promote the registry on the FracFocus site, and with major operators to help them in populating the site with information. Halliburton has participated in several tutorial sessions and is providing a template system that will populate the FracFocus registry for our customers.

Hydraulic Fracturing Microsite Halliburton maintains a Hydraulic Fracturing microsite on its corporate website to provide thorough, up-to-date information on our fracturing activities; the products, materials and processes that are involved; and issues related to fracturing. Since going live in October 2010, the site has had more than 40,000 homepage visits and approximately 164,000 total page views by external visitors.

The microsite provides a list of additives and constituents in our fracturing solutions and notes the more common household and industrial uses for those additives. Currently, information is available for formulations used in four U.S. regions (involving Texas, Pennsylvania, West Virginia, North Dakota, Colorado and Oklahoma) and also in Australia. We are in the process of providing disclosure for all U.S. sites where Halliburton is doing fracturing work, and are making frequent updates to the data.

Also featured on the microsite is a section called “Hydraulic Fracturing 101,” which offers an animated, interactive presentation to explain the basics of fracturing, where and why it is used, its benefits, and the safeguards that are in place throughout the process.

Another section, on CleanSuiteTM system technologies, spotlights our newest suite of products designed with sustainability as a key objective. The site also presents articles about projects where our products and services have been used, along with links to related websites such as the U.S. Energy Information Administration and the U.S. Environmental Protection Agency.

Diverse Business Expendituresin millions of U.S. dollars

$435

$1,356 $1,833

12

■ small businesses■ minority/women- owned businesses

$360

11

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gri index

2012 CSR page Halliburton GRI Website

1. STRATEGy AND ANALySIS1.1 Statement from CEO 1 ●1.2 Key impacts, risks and opportunities ○ ◐

2. ORGANIzATIONAL PROFILE2.1 Name of the organization 8 ●2.2 Primary brands, products and/or services 8 ●2.3 Operational structure 8 ●2.4 Location of the organization’s headquarters 8 ●2.5 Countries where the organization operates 8 ●2.6 Nature of ownership and legal form IBC ●2.7 Markets served 8 ●2.8 Scale of reporting organization 8, 9, 10, 47-49 ●2.9 Significant changes during the reporting period IBC ●2.10 Awards received in the reporting period 3, 25, 28-30, 37 ●

3. REPORT PARAMETERS3.1 Reporting period IBC ●3.2 Date of most recent previous report IBC ●3.3 Reporting cycle IBC ●3.4 Contact point regarding the report or its contents IBC ●3.5 Process for defining report content IBC ●3.6 Boundary of the report IBC ●3.7 Limitations on the scope or boundary of the report IBC ●3.8 Basis for reporting on joint ventures, subsidiaries and other entities IBC ●3.9 Data measurement techniques and the bases of calculations ○ ◐3.10 Restatements of information provided in earlier reports IBC ●3.11 Significant changes from previous reporting periods, boundary, or measurement methods applied in the report IBC ●3.12 GRI reference table 54, 55 ●3.13 Independent assurance ○ ○

4. GOVERNANCE , COMMITMENTS AND ENGAGEMENT4.1 Governance structure of the organization 7-10 ●4.2 Indicate whether the chairman is also an executive officer 9 ●4.3 Independent and/or non-executive members of the highest governance body 9 ●4.4 Mechanisms for shareholders to provide recommendations 10 ●4.5 Linkage between compensation and the organization’s performance 10 ●4.6 Conflicts of interest 9 ●4.7 Qualifications of the members of the highest governance body 9 ●4.8 Mission or values, codes of conduct, and principles 7,11 ●4.9 Procedures to identify, and management of, economic, environmental and social performance 10-13 ●4.10 Processes for evaluating the board’s performance ○ ●4.11 Methods for addressing the precautionary principle ○ ●4.12 Adoption of external economic, social and environmental codes and principles ○ ◐4.13 Memberships in industry associations 13, 52 ●4.14 List of stakeholder groups engaged by the organization 51, 52 ●4.15 Basis for identification and selection of stakeholders with whom to engage ○ ●4.16 Approaches to stakeholder engagement 51-53 ●4.17 Key topics and concerns that have been raised through stakeholder engagement and actions taken 1, 53 ●

economic PerformanceDMA EC Disclosure on management approach ○ ●EC1 Direct economic value generated and distributed 15, 16 ●EC2 Financial implications and risks of climate change ○ ○EC3 Coverage of defined benefit plan obligations ○ ●EC4 Significant financial assistance from government ○ ●EC6 Policy, practices and proportion of spending on locally based suppliers 52 ●EC7 Local hiring 52 ●EC8 Development of infrastructure investments and services provided primarily for public benefit ○ ●

The following pages provide information on Halliburton’s use of the Global Reporting Initiative (GRI) G3 Sustainability Guidelines.

For more information, go to www.halliburton.com/sustainabilityC

Halliburton declares that this 2012 Corporate Sustainability Report meets a “C” application level.

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2012 CSR page Halliburton GRI Website

environmenTal PerformanceDMA EN Disclosure on management approach ○ ●EN1 Materials used by weight/volume ○ ○EN2 Percent of materials recycled ○ ○EN3 Direct energy consumption by primary energy source 23 ●EN4 Indirect energy consumption by primary source ○ ●EN8 Water withdrawal by source ○ ○EN11 Location of lands adjacent to high biodiversity areas ○ ●EN12 Description of significant impacts of activities on biodiversity ○ ●EN16 Direct greenhouse gas emissions 24 ●EN17 Other indirect greenhouse gases by weight ○ ●EN19 Emissions of ozone depleting substances ○ ●EN20 NOx, SOx and other significant air emissions by type and weight ○ ●EN21 Total water discharge by quality/destination ○ ○EN22 Total weight of waste by type and disposal method 23 ●EN23 Total number and volume of significant spills 24 ●EN26 Initiatives to mitigate environmental impacts of products and services 22-24, 28-30 ●EN27 Percentage of products sold and packaging reclaimed ○ ○EN28 Monetary value of fines and penalties 25 ●

labor PracTicesDMA LA Disclosure on management approach ○ ●LA1 Total workforce by region 36 ●LA2 New hires/turnover by age, gender, region ○ ○LA4 Employees covered by collective bargaining ○ ●LA5 Minimum notice for operational changes ○ ●LA7 Rates of injury, occupational diseases, lost days, fatalities 19-21 ●LA8 Education, training, counseling, prevention on serious diseases ○ ●LA10 Employee training 11, 38-40 ●LA13 Composition of governance bodies ○ ◐LA14 Men to women salary ratios ○ ○

human righTsDMA HR Disclosure on management approach 10 ●HR1 Agreements that include human rights clauses ○ ●HR2 Suppliers/contractors undergoing HR screening 13 ●HR4 Incidents of discrimination and corrective actions 13 ●HR5 Operations/suppliers violating collective-bargaining freedom ○ ●HR6 Operations/suppliers at risk for use of child labor 13 ●HR7 Operations/suppliers at risk for use of forced labor ○ ●

socieTyDMA SO Disclosure on management approach 35 ●SO1 Programs on impacts of operations on communities ○ ◐SO2 Business units analyzed for risk from corruption ○ ●SO3 Employees trained in organization’s anti-corruption policies and procedures 11 ●SO4 Actions taken in response to incidents of corruption ○ ●SO5 Public policy on lobbying 13 ●SO8 Fines/penalties for noncompliance ○ ●

ProducT resPonsibiliTyDMA PR Disclosure on management approach ○ ●PR1 Life-cycle stages evaluations of products and services ○ ●PR3 Product/service information required by procedures ○ ●PR6 Programs for adherence to laws on marketing ○ ○PR9 Fines/penalties for noncompliance with product use laws ○ ●

● = Yes ◐ = Partial ○ = No IBC = inside back cover

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52 HAlliburTon 2012 CorPorATE SuSTAinAbiliTy rEPorT

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Previous reportsIntegrating Sustainability - Expanding Our Commitment

calendar year 2011Sustainability is in Our DNA

calendar year 2010

report ParametersReporting period: Calendar Year 2012Published date of previous report: March 2012Reporting cycle: Annual Printed on FSC®-certified paper that contains 10o percent post-consumer recovered fiber. FSC® certification ensures that this paper meets Forest Stewardship CouncilTM standards for responsible forest management.

For more informationFor additional copies, please contact:

Halliburton Global Director of Sustainability 10200 Bellaire Boulevard 1NE-42A Houston, Texas 77072 United States

Email: [email protected] our GRI Index Response webpage at www.halliburton.com/sustainability

Halliburton is a publicly traded corporation registered in Delaware. There were no significant changes to the size, structure or ownership of the Company in 2012.

In this report, only the financial data encompasses all of our product service lines, countries, joint ventures and non-wholly owned subsidiaries.

This report contains descriptions of our 2012 sustainability initiatives. Wherever possible, assessments of performance trends from 2010 to 2012 are provided to better highlight the trends’ significance over time. Topics covered in this report are those most pertinent to our business sector, and they arise from the context and expectations of the sector. Our analysis of the significance of topics relates to the Company’s short- and long-term strategies, and takes into consideration:

• Issuesincludedinsurveyssenttocompaniesbysustainabilityindexesandfinancialratingagencies for the assessment of sustainability performances

• Publicinformationcomingfrominstitutions,governments,nongovernmentorganizations(NGOs) and associations, at both international and local levels

• Benchmarkanalysisandmonitoringoftheoilandgassector.

The boundaries of this report correspond to those of the 2012 Halliburton Annual Report. The data included in this report come from the Company’s official management and reporting systems for the various functions described in this document.

The 2012 Corporate Sustainability Report was drafted in accordance with the Reporting Guidelines of the Global Reporting Initiative, version G3.

report information

XX% Total Recycled Fiber

XX% Total Recycled Fiber

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HALLIBURTON

281.871.2699www.halliburton.com

© 2013 Halliburton. All Rights Reserved.Printed in the USAH09979

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2012 Corporate Sustainability report

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2012 Corporate Sustainability Report

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