KBR JV to enter plea in UK probe, Halliburton says

* Probe related to $180 mln in bribes for Nigerian project

* Halliburton estimates end-2009 KBR indemnity at $72 mln

By Braden Reddall

SAN FRANCISCO, Feb 17 (Reuters) - A KBR Inc (KBR.N) joint venture is seeking plea negotiations with Britain's Serious Fraud Office (SFO) to settle its investigation into a Nigerian bribe scheme, former KBR owner Halliburton Co (HAL.N) said.

Engineering company KBR already pleaded guilty last year to U.S. charges that, as part of a multinational consortium, it paid $180 million in bribes between 1994 and 2004 to Nigerian officials to secure $6 billion in contracts.

The UK-based joint venture which held part of KBR's stake in the Nigerian project expects to get SFO confirmation that it will be admitted into a plea negotiation process, Halliburton said in a filing with U.S. financial regulators on Wednesday.

KBR admitted to paying the bribes for a consortium that also included France's Technip SA (TECF.PA), Italy's Snamprogetti (SPMI.MI) and Japan's JGC Corp (1963.T) to secure contracts for the Bonny Island liquefied natural gas terminal.

The SFO began investigating more than three years ago since part of KBR's consortium share was held by M.W. Kellogg Ltd (MWKL), a British JV 55 percent owned by Houston-based KBR.

"MWKL has informed the SFO that it intends to self-report corporate liability for corruption-related offenses arising out of the Bonny Island project," Halliburton said.

Halliburton, which indemnified KBR for some past liabilities when the two companies split in 2007, did not spell out the SFO plea impact, but said it expected its remaining obligation to KBR was $72 million as of the end of 2009.

This figure excludes the remaining money to resolve the U.S. investigations, Halliburton said. A spokeswoman did not immediately respond to a request for further comment.

KBR and Halliburton agreed with the Justice Department to pay a $402 million fine, with Halliburton paying $382 million. Halliburton agreed with the U.S. Securities and Exchange Commission to disgorge $177 million in profits to settle parallel criminal charges that KBR violated the Foreign Corrupt Practices Act.

Halliburton says its indemnity for MWKL is limited to 55 percent of any fine. Halliburton also says it is aware of Bonny Island investigations in France, Nigeria and Switzerland.

Technip said last week it had set aside $335 million for possible fines due to the Bonny Island case. [ID:nLDE61B048]

The scheme involved money wired through banks in Amsterdam and New York to accounts in Switzerland and Monaco, and KBR used shell companies in Portugal in an effort to avoid breaking U.S. laws, the U.S. government said.

The bribes -- including some in a briefcase stuffed with $100 bills -- went to officials in Nigeria's executive branch and the state oil company, the U.S. Justice Department found. (Reporting by Braden Reddall; Editing by Richard Chang)