Oct. 31 (Bloomberg) -- Halliburton Co., the world's largest oilfield-services company, won contracts worth at least $400 million over five years to help Oman, the Middle East's largest non-OPEC crude exporter, to produce more oil, the company said.

Houston, Texas-based Halliburton will assist state- controlled Petroleum Development Oman with oil well drilling, monitoring and production to help it increase output by almost a quarter to 800,000 barrels a day of crude by 2007, the company said in a press release.

Muscat-based Petroleum Development Oman, which is 34 percent owned by Royal Dutch/Shell Group, produces 95 percent of the Persian Gulf state's total oil output of about 700,000 barrels a day, according to government figures. The company plans to reduce operating costs by $2 billion over the next five years, partly by outsourcing work to oilfield-service companies.

Shares of Halliburton rose 8 cents to $37.04 at the close of business on Friday in New York Stock Exchange composite trading. The stock has climbed about 42 percent this year. Oilfield sales rose 17 percent to a record $2.1 billion in the third quarter as producers increased spending.

To contact the reporter on this story: Andy Critchlow in Dubai on at acritchlow1@bloomberg.net

Last Updated: October 31, 2004 03:39 EST