Risk Management (“RM”) Program January2009

1 Risk Management Objectives  Goal of the Halliburton RMProgram is to achieve: - Higher returns on capital - Reduced cash-flow volatility - Reduced risk of unsuccessful projects or poor execution - NYSE compliance and strong corporate governance

2 Risk Management Strategy  The strategy designed to achieve the objectives has three basic elements: - Senior management leadership Board of Directors / Senior leadership oversight Advisory committees comprised of executive management - Cultural permeation Exposure to all levels of the organization Risk awareness ingrained in behaviors - Sustainability Continuous assessments Documentation and training Recognition program

3 Risk Management Process  Identify Risk -Risk assessments led by RM committee Guidance provided by Executive Advisory committees Over 200 individual interviews with senior management and key personnel Survey of an additional 60 Operations personnel in 25 countries Completed eight functional assessments (Legal, Ops, M&A, IT, HR, BD, F&A, Supply Chain) Focus groups to identify emerging risks  Control Risk -Avoidance or transfer of unacceptable levels of risk Strong corporate governance Contracting policies and review process Global insurance coverage Financial and process controls International Commercial Agent Policy and Agent Review Committee  Monitor Risk -Continuous reassessment of risks and controls Ensure linkage of Risk Management Process with Audit Plan and Program Cycle and risk-based audits Gap analysis performed to both confirm that controls in place are appropriate and effective Operational project reviews

4 Risk Management Leadership Board of Directors Halliburton Sr. Management RM Committee Chairman: Sr VP & Treasurer Director Risk Management VP Internal Audit & Controls Law Department Representative Corporate Advisory Committee VP & Controller Sr VP Commercial Law EVP Administration VP Litigation VP Information Technology Sr VP Supply Chain Management EVP Corporate Development VP Tax Working Team Risk Management, Internal Controls Treasury, Audit, Law Department Operations Advisory Committee President Completion & Production President Western Hemisphere President Eastern Hemisphere VP BD & Marketing Director Global Operations Finance President Drilling & Evaluation Subject Matter Experts ("SME") Determined as needed

5 Current Status  Completed preliminary assessment of all risks -8 Functional Assessments completed -144 material Assessment Risks identified -Prioritized by significance and likelihood  Categorized 144 Assessment Risks into 30 broad Risk Categories in Corporate Overview booklet -Facilitates better understanding -Easier to catalog and incorporate into user-friendly documents  Developed Risk Management Tool comprised of Corporate Overview booklet and 8 Functional Assessments -Incorporated Corporate Policies into Assessment Risks when appropriate -Normalized significance and likelihood across Assessment Risks using common terminology -Developed instructions for using Risk Management Tool located in appendix

6 Current Status (Continued)  Evaluated Assessment Risks in light of identified controls -Implemented(ing) corrective measures when appropriate Lease analysis Commodity price risk  Begin institutionalizing the Risk Management process -Process should be usable and influence behaviors at all levels of organization -Seamless integration into existing business policies and practices -Results tailored to specific jobs for maximum effectiveness -Employee communication

7 Top Risks  Lack of Demand for Hydrocarbon Based Fuels  $70 cost / barrell  Long term investment  Marginal wells / fields  Green energy  Failure to Comply with Laws and Regulations  International challenges  SEC compliance  Intellectual Property  Control of Hazardous Materials / Environmental damage  Harsh Chemicals  Radiation  Well site hazards