Feb 11 A seven-year dispute between U.S.
engineering company KBR Inc and a Brazilian client over
an oil project off the coast of the country settled last month
with a $219 million payment by Halliburton Co, KBR's
According to a Halliburton filing on Monday, the payment was
made in January to Barracuda & Caratinga Leasing Co (BCLC) to
settle the dispute over failed bolts on subsea flowlines that
were part of a $2.5 billion oilfield contract awarded to KBR.
BCLC, controlled by giant Brazilian oil company Petrobras
, first filed for arbitration of the issue in March
2006. The arbitrators found in BCLC's favor in late 2011, and
KBR challenged the decision in a New York court.
Under the 2007 separation agreement between KBR and
Halliburton, the oilfield services giant agreed to shoulder any
Barracuda-Caratinga award against KBR. Halliburton disclosed in
its annual report on Monday that it recorded an $80 million tax
benefit in 2012 related to the satisfaction of this obligation.