Halliburton to build world-class ship repair facility in Subic

Halliburton International Inc., the world’s largest service contractor, will build a multi-million dollar, world-class ship repair facility in the former US naval facility in Subic.

Subic Bay Metropolitan Authority (SBMA) chairman Felicito Payumo and Thomas Krun, chief operating officer of Kellog Brown and Root (KBR), the local affiliate of HII, are set to sign a memorandum of agreement (MOA) in Washington today during the state visit of President Arroyo. The President will witness the signing.

KBR is planning to set up a $100-million ship repair and maintenance facility in the former US naval facility.

It will transform the former ship repair facilities of the US Navy into a modern commercial port facility.

Payumo said HII’s decision to establish a ship repair facility in Subic is "another showcase for the country to host an internationally competitive and world class maritime logistics and maintenance support facility, container port, oil storage and refuelling depot."

Evaluation of the site and preparation of a development plan for the shop repair and maintenance operation will start on Nov. 30 this year.

KBR and SBMA will eventually sign a 25-year lease agreement, with an option to renew.

The lease agreement will enable KBR to utilize the facility for establishing and operating a maritime logistics and maintenance support facility.

Halliburton has wide experience in managing and operating vessel repair and maritime assets around the world.

It also engages in designing, engineering and constructing offshore oil and gas platforms.

KBR has undertaken a previous project in the country–the construction of a $100-million concrete gravity structure for the Malampaya gas project.