In addition to playing a major role in the $2.4 billion North West Shelf expansion project, Halliburton also has a long standing alliance with the Water Corporation and believes that WA is home to some of its hottest growth prospects.

While Mr Harl refused to name any potential acquisition, many in the market believe Clough Engineering could become a target.

Other potentials would include players in the drilling support sector, such as SDS Corporation or its rival, Scientific Services, or firms in the construction support business, like scaffolder PCH Group who has large contracts with players such as Worsley and the North West Shelf project.

With the expansion of LNG facilities on the North West Shelf as well as the construction of several petrochemical plants proposed for the Burrup Peninsula, Mr Harl said his company was targeting new work in oil and gas. Last year the Halliburton's Australian operations had revenues in excess of $100 million.

Halliburton will no doubt be pleased with the latest report from BIS Shrapnel. The forecaster said WA will lead a "massive" turnaround in engineering and construction work by 2005 on the back of its oil and gas industry.

Although engineering and construction spending plunged 12 per cent in the 2001 financial year and is tipped to fall a further 1.5% by June 30, the forecaster predicts activity will top the 1998 record by about 15% during 2004-05.