Tax Systems Implementation Project

The Need For Change Current Systems … Inadequate for basic tax functions: Provision system (TIS) is unsupported Compliance system not fully implemented Provision/Compliance systems are not integrated Poor functionality (FIN48, FIN18, TBBS do not exist in current systems) Do not support our Tax Vision: More tax resources allocated to tax planning Single tax system platform supporting: Global provision and U.S. compliance integration Tax planning and tax controversy processes Visibility of global tax attributes to the home office Possibility of foreign tax compliance in a future state Potential for integration of transactional taxes VAT, Sales & Use, Property Configuration to allow finance ERP systems (SAP, HFM, and Hyperion Planning) to better support tax

Tax Systems Vision – Single Platform Tax Accounting: Foreign Provision Fin48/UTP E&P Pools Domestic Deferred Domestic Provision Tax Planning Compliance: Dom., Int’l, State VAT Sales & Use Property Transfer Pricing Excise Audit/Controversy Tax Systems Vision – Single Platform 2011 2012 2013 Talisman Talisman OneSource Implementation Access OneSource Implementation TIS DI CorpTax CorpTax OneSource (Capability) Vertex Vertex Vertex TDW TDW TDW Access Access Access BNA BNA BNA

Software Evaluation Process Conducted including all tax disciplines Involved evaluation of two leading vendors CorpTax OneSource Company MLM Information Services, LLC. (Private Equity Owned) Thomson Reuters NYSE:TRI $13B Revenue Presence in 100 countries Strategy Built on Compliance Core Single Database Built by acquiring Best–In-Class Tax Systems Integrate multiple platforms Software Strengths Compliance Provision Data Management (supports Process Improvement) Foreign Support OneSource Is A Better Fit For Halliburton

How OneSource Supports Our Direction Sustained Process Improvements: Flexible data feeds & adjustment automation enable working with F&A to improve upstream data feeds Workflow allows us to build standard processes into software, thereby mitigating risk of manual manipulation Improved functionality means fewer manual workarounds and reformatting of reports to meet custom needs Single platform enables staff to move between provision & compliance Improved Data Management: Enables automation More flexible data feeds Higher level of detail available Less manual process maintenance Enhanced Reporting Capability: Uncertain Tax Position Calculations (FIN 48) Forecasting Functionality (FIN18) Global Provision – visibility around the world, without manual effort Allows Us To Focus On Higher Value-Added Tax Activities

OneSource Implementation Complete Jan. 1 2013 Project Cost Implementation Costs (2011 & 2012): $1,435K Pay-Back in Year 4 (2014) Implementation: Software: OneSource Implementation Complete Jan. 1 2013

Assumptions Start Implementation in July 2011 Team & agreements in place Staged Implementation to be fully complete by 1/1/2013 Domestic Provision (feed from Talisman for Global view) 1/1/2012 Foreign Provision 1/1/2013 Compliance 1/1/2013 Implementation Team OneSource Software Ernst & Young Implementation Team Halliburton Tax Staff (Provision, Compliance, Data Management) Project Benefits Headcount Reallocation (each individual fully loaded @ $170K) Elimination of old systems (CorpTax & DI in 2012) Project Scope Implementation & Configuration of OneSource Software

Next Steps – Obtain CFO Approval Subsequent to CFO Approval… Coordinate with stakeholders: Procurement & Legal Information Technology Internal Audit Finance and Accounting Define Configuration: Conduct configuration workshop with Ernst & Young and ThomsonReuters Finalize detailed workplan and roles Acquire Software/Services Begin Implementation

APPENDIX

Tax Systems Team – Internal Resourcing Mark Sumlin – Project Lead Daniel Garcia – Project Manager Gary Sella – Process Manager Kevin Shea – Data Manager Sara Sykes – Domestic Provision/Consolidation Darrell Simmons – Foreign Provision Randy Miller – Compliance Lead Randy Phillips – Federal Compliance Noman Mogul – International Compliance Lyle Maddox – State Compliance

Why Ernst & Young First-hand knowledge of Halliburton’s business and systems Gary Paice: Partner and national leader of the Tax Performance Advisory (“TPA”) services practice, has consulted with Halliburton tax in varying capacities since 1994 Rich Bosco: Sr. Manager in the TPA practice who recently spent over two years advising on tax projects at Halliburton, assisting with TIS and Taxwire Project Leads are familiar with data warehouse/ODS, SAP, Hyperion, TIS, Talisman and other unique Halliburton tools understanding how each must integrate across tax (gaining efficiencies through minimal time spent “getting up to speed”) They have worked with Halliburton tax in functions such as provision, compliance, transfer pricing, apportionment and other areas Global Tax Performance Advisory Team EY’s Tax Performance Advisory (TPA) team is organized globally and focuses on people, process and technology at large corporate tax departments. Full time, dedicated TPA resources number above 60 in the U.S. Approximately 20 in Europe/Middle East/India/Africa (EMEIA) and Approximately 10 in Asia/Pacific TPA services in Brazil, Mexico and a Latin America Business Center located in Miami

Why Ernst & Young (cont….) Providing objective advice EY provides objectivity to point out the vision, process and people changes that must occur to reach project goals. Software vendors rarely have the experience outside their tools to provide this type of objective advice. Tax accounting technical experience EY has consulted with the CAO and CFO of Halliburton on technical accounting issues and brings both the accounting technical, in addition to the implementation experience needed. Considering the full picture EY has extensive experience in teaming with all groups that are critical to these projects to obtain the right input and insights from multiple groups within Halliburton (Accounting, Tax, IT, etc) and other groups (external auditor). Working with the external auditor EY standard methodology includes external auditor at key milestones evaluating changes to the controls, testing plan and approach to provision calculations. Partnering with software developer Ernst & Young is formalizing an agreement with ThomsonReuters to achieve global implementer status, meaning teams are trained consistently in the same exacting standards ThomsonReuters requires, not just domestically, but globally. Ernst & Young is the only service firm with one practice (TPA) that is organized globally. Ernst & Young will team with ThomsonReuters, as appropriate, to provide best-practice solutions .